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Jun 30, 2025
Quaker Chemical Q2 2025 Earnings Report
Quaker Chemical reported a net loss in Q2 2025 due to a significant impairment charge, despite a 4% increase in net sales driven by acquisitions and organic volume growth.
Key Takeaways
Quaker Chemical experienced a challenging second quarter in 2025, reporting a net loss of $66.6 million, primarily due to an $88.8 million goodwill impairment charge related to its EMEA segment. Despite this, the company saw a 4% increase in net sales to $483.4 million, driven by a 6% contribution from acquisitions and 2% organic sales volume growth. Adjusted EBITDA decreased by approximately 10% year-over-year to $75.5 million, reflecting lower operating margins.
Net sales increased by 4% year-over-year to $483.4 million, primarily due to acquisitions and organic volume growth.
The company reported a net loss of $66.6 million, or $3.78 per diluted share, largely impacted by an $88.8 million goodwill impairment charge.
Non-GAAP net income was $30.0 million, with non-GAAP earnings per diluted share of $1.71.
Adjusted EBITDA was $75.5 million, a decrease of 10% compared to the prior year, with an adjusted EBITDA margin of 15.6%.
Revenue by Geographic Location
Forward Guidance
Quaker Houghton anticipates tepid economic conditions in the second half of 2025 but expects stronger business performance, aiming to deliver full-year 2025 revenue and earnings in the range of 2024, supported by new business opportunities and cost savings initiatives.
Positive Outlook
- Expectation of stronger business performance in the second half of 2025.
- Anticipated delivery of full-year 2025 revenue and earnings in the range of 2024.
- Meaningful opportunities across the portfolio to gain profitable new business.
- Initiated actions expected to deliver approximately $20 million of additional run-rate cost savings by the end of 2026.
- Strong balance sheet and consistent cash flow generation to support capital allocation and shareholder value creation.
Challenges Ahead
- Economic conditions are likely to remain tepid in the second half of 2025.
- Challenging environment of uncertainty persists.
- Underlying end market activity remained below prior year levels.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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