Quaker Chemical (KWR) Q4 2025 earnings summary

Executive summary

• Q4 2025 net sales reached $468.5M, up 6% year-over-year, with adjusted EBITDA up 11% to $71.9M and non-GAAP EPS up 24% to $1.65; full year net sales were $1.89B, with adjusted EBITDA of $299.2M and non-GAAP EPS of $7.02.

• Growth was driven by new business wins, strong organic volume growth in Asia-Pacific, and three acquisitions in 2025, which added $95M in annualized revenue.

• Full year net loss of $2.5M resulted from $88.8M goodwill impairment and $35.1M restructuring charges.

• $136.5M operating cash flow generated in 2025; $75.9M returned to shareholders via dividends and buybacks.

• Announced closure of Dortmund, Germany facility for network optimization, targeting $2M in 2026 cost savings and $5M annually from 2027.

Financial highlights

• Q4 gross profit was $165.5M (gross margin 35.3%); full year gross profit $679.4M (gross margin 36.1%).

• Q4 operating income was $31.2M (6.7% margin), up 7.6% year-over-year; full year operating income $53.0M, impacted by impairment and restructuring.

• Q4 adjusted EBITDA margin was 15.3%; full year adjusted EBITDA margin was 15.8%.

• Q4 non-GAAP diluted EPS was $1.65; full year non-GAAP diluted EPS was $7.02.

• Operating cash flow for 2025 was $136.5M, down from $204.6M in 2024.

Outlook and guidance

• Underlying markets expected to remain flat in H1 2026, with potential incremental growth in H2; management targets 2%-4% net share gains and positive organic growth in all segments.

• Gross margin expected within 36%-37% range for 2026; EBITDA margin goal remains above 18% long-term.

• Management expects to maintain sufficient liquidity and remain in compliance with credit facility terms.

• Anticipates third consecutive quarter of year-over-year EBITDA improvement in Q1 2026.