Quaker Houghton, a global leader in industrial process fluids, delivered strong third-quarter 2026 results, with net sales rising 10% year-on-year to $544.5 million and adjusted EBITDA climbing 8% to $89.8 million, marking its second consecutive quarter of record adjusted EBITDA.
The company's performance was driven by a 3% increase in sales volumes, supported by new business wins across all segments, alongside a 7% improvement in selling prices and product mix.
Net income for the quarter stood at $30 million, or $1.73 per diluted share, compared with $30.5 million, or $1.75 per diluted share, in the year-ago period.
However, adjusted profitability showed stronger momentum. Excluding non-recurring and non-core items, non-GAAP net income surged to $41.4 million from $36.3 million a year earlier, while non-GAAP earnings per diluted share increased 15% to $2.39 from $2.08.
Adjusted EBITDA reached $89.8 million, up from $82.9 million in the third quarter of 2025. The improvement was primarily driven by higher sales, partially offset by increased input costs and selling, general and administrative expenses.
Quaker Houghton reported strong growth in the Americas and improved operating earnings in Europe, the Middle East and Africa (EMEA), despite challenging market conditions and ongoing geopolitical tensions.
Asia Pacific continued to deliver volume growth, although market conditions in China weakened during the quarter.
Joe Berquist, Chief Executive Officer and President, commented, "Net sales increased 10% compared with the prior year, driven by new business wins across all segments, leading to a fifth consecutive quarter of year-over-year profitability improvement.
"Our results were led by strong growth in the Americas and improved operating earnings in EMEA despite end markets that remain challenged amid the backdrop of ongoing conflict in the Middle East. Asia Pacific continued to generate volume growth even as market conditions softened in China throughout the quarter. I am proud of our team's consistent execution and ability to convert above-market growth into higher earnings, leading to our second consecutive quarter of record adjusted EBITDA."
Despite the strong quarterly performance, Quaker Houghton expects revenue and adjusted EBITDA to decline sequentially in the fourth quarter from the record levels achieved in Q3, reflecting normal seasonal demand patterns during the holiday period in North America and EMEA.
The company also expects industrial activity in Asia to remain subdued, with geopolitical and economic uncertainty weighing on demand in China. Elevated global raw material costs are expected to persist through the end of 2026 amid the continuing conflict in the Middle East.
Berquist said, "Looking ahead, we anticipate fourth quarter revenue and adjusted EBITDA will improve year-over-year but decline sequentially from the third quarter's record level in line with normal seasonal demand patterns from the holiday season in North America and EMEA.
"Activity in Asia is expected to remain soft in the fourth quarter as geopolitical and economic uncertainty have tempered industrial demand in China, and we anticipate global raw material costs will remain elevated through the end of the year as the conflict in the Middle East continues. We remain focused on advancing our transformation initiatives and carrying our positive earnings momentum into 2027."
The company enters the final quarter of 2026 with sustained earnings momentum, supported by new business gains, pricing actions and operational execution, even as geopolitical uncertainty, input cost pressures and softer industrial demand cloud the near-term outlook.
