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1. Company Snapshot

1.a. Company Description

Quaker Chemical Corporation develops, produces, and markets various formulated chemical specialty products for a range of heavy industrial and manufacturing applications.The company operates through four segments: Americas; Europe, Middle East, and Africa; Asia/Pacific; and Global Specialty Businesses.It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals.


The company also provides chemical management services.It serves steel, aluminum, automotive, aerospace, offshore, can, mining, and metalworking companies.The company was formerly known as Quaker Chemical Products Corporation and changed its name to Quaker Chemical Corporation in August 1962.


Quaker Chemical Corporation was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

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1.b. Last Insights on KWR

Quaker Chemical Corporation's recent performance was negatively impacted by declining margins, flat demand, and rising costs. The company's Q4 earnings miss, with quarterly earnings of $1.65 per share versus the Zacks Consensus Estimate of $1.71 per share, also contributed to the decline. Furthermore, investors are weighing margin targets and share gains against tariffs and rising costs. Despite this, the company eyes 2026 share gains and margin lift, driven by APAC momentum, China capacity, and cost savings. Analysts have a "Hold" rating on the stock.

1.c. Company Highlights

2. Quaker Houghton Delivers Mixed FY2025 Results Amidst Challenging Market Conditions

Quaker Houghton reported fourth quarter net sales of $468 million, a 6% increase from the prior year, driven by share gains across all regions. The company's adjusted EBITDA margin was 15.3%, improving 75 basis points year-over-year. Adjusted earnings per share came in at $1.65, slightly below estimates of $1.71. Gross profit increased by 6% compared to the prior year quarter, with gross margin percentage flat due to variation in regional mix.

Publication Date: Feb -25

📋 Highlights
  • Adjusted EBITDA Growth:: Increased 11% YoY to $72.1 million, driven by new business wins and organic volume growth.
  • Asia Pacific Performance:: Net sales rose 13% YoY, with 10 consecutive quarters of organic volume growth.
  • Margin Improvements:: EMEA gross margins improved 280 bps, while Asia Pacific saw organic margin growth despite flat overall gross margin.
  • Shareholder Returns:: $76 million returned to shareholders in 2025 via $5 million share repurchases and $9 million in dividends.
  • Cost Savings Initiatives:: Closure of German facility expected to save $2 million in 2026 and $5 million annually from 2027.

Regional Performance

The Asia Pacific region saw a 13% increase in net sales for the full year, driven by strong organic volume growth. The EMEA region saw a 280 basis point improvement in gross margins, while Asia Pacific had margin growth on an organic basis. The Americas region saw underlying growth of around 1% down in the fourth quarter, excluding the customer outage.

Operational Highlights

The company generated $47 million in operating cash flow in the fourth quarter, down from $63 million in the prior year period, due to higher restructuring costs and negative impacts to working capital. Quaker Houghton announced the closure of its German manufacturing facility, expecting cost savings of $2 million in 2026 and $5 million annually from 2027.

Outlook and Guidance

Looking forward, the company expects underlying markets to remain flat in 2026, with potential for incremental growth in the second half of the year. Quaker Houghton remains confident in delivering net share gains within its target range of 2% to 4%, driven by its sales pipeline and recent business wins. Analysts estimate next year's revenue growth at 4.2%.

Valuation Metrics

Quaker Houghton's current valuation metrics indicate a 'P/E Ratio' of -1102.07, 'P/B Ratio' of 2.0, 'P/S Ratio' of 1.45, and 'EV/EBITDA' of 28.26. The company's 'Net Debt / EBITDA' ratio stands at 5.83, indicating a relatively high level of debt. As per Tom Coler, "we expect margin growth in '26. Our product margin remains healthy in all 3 regions." The company's margin outlook is expected to improve, with gross margins recovering to the 36-37% range.

3. NewsRoom

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Quaker Chemical (KWR) Down 23.3% Since Last Earnings Report: Can It Rebound?

Mar -25

Source: zacks.com

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Quaker Chemical and EV Fluids: Why APAC Wins Matter in 2026

Mar -17

Source: zacks.com

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Can Execution Power Quaker Chemical's Growth in a Soft Market?

Mar -17

Source: zacks.com

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KWR Stock: Undervalued Play or Execution Risk Waiting to Unfold?

Mar -17

Source: zacks.com

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Head to Head Review: Quaker Houghton (NYSE:KWR) versus 5E Advanced Materials (NASDAQ:FEAM)

Mar -14

Source: defenseworld.net

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Reviewing Quaker Houghton (NYSE:KWR) and Givaudan (OTCMKTS:GVDNY)

Mar -06

Source: defenseworld.net

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Citigroup Inc. Sells 275,040 Shares of Quaker Houghton $KWR

Mar -01

Source: defenseworld.net

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Quaker Houghton Announces Quarterly Dividend

Feb -27

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.81%)

6. Segments

Metalworking and Other

Expected Growth: 3.5%

Quaker Chemical's Metalworking and Other segment growth of 3.5% is driven by increasing demand for metalworking fluids and process chemicals in the automotive and aerospace industries, as well as growth in the company's pipeline of new product launches and expansion into emerging markets.

Metals

Expected Growth: 4.5%

Quaker Chemical Corporation's Metals segment growth of 4.5% is driven by increasing demand for specialized lubricants and coatings in the automotive and aerospace industries, coupled with the company's strategic acquisitions and expansion into emerging markets, as well as its focus on innovative product development and customer-centric solutions.

7. Detailed Products

Metalworking Fluids

Quaker Chemical Corporation offers a wide range of metalworking fluids, including cutting fluids, grinding fluids, and machining fluids, designed to improve tool life, reduce heat generation, and enhance surface finish.

Rolling Oils

Quaker Chemical Corporation's rolling oils are designed to provide lubrication and cooling during the hot and cold rolling of metals, ensuring consistent quality and surface finish.

Coil Coatings

Quaker Chemical Corporation's coil coatings provide corrosion protection and aesthetic appeal to metal coils, ensuring durability and performance.

Hydraulic Fluids

Quaker Chemical Corporation's hydraulic fluids are designed to provide high-performance lubrication and protection for hydraulic systems, ensuring reliability and efficiency.

Greases

Quaker Chemical Corporation's greases are formulated to provide long-lasting lubrication and protection for bearings, gears, and other moving parts.

Chemical Management Services

Quaker Chemical Corporation's chemical management services provide customized solutions for managing chemicals, including procurement, inventory management, and disposal.

8. Quaker Chemical Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Quaker Chemical Corporation faces moderate threat from substitutes due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

Quaker Chemical Corporation has a diverse customer base, which reduces the bargaining power of individual customers, resulting in a low threat.

Bargaining Power Of Suppliers

Quaker Chemical Corporation relies on a few key suppliers for raw materials, which gives them some bargaining power, but the company's large scale of operations mitigates this threat.

Threat Of New Entrants

The chemical industry has high barriers to entry, including significant capital requirements and regulatory hurdles, which reduces the threat of new entrants.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players, leading to a high intensity of rivalry among firms.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 35.60%
Debt Cost 10.94%
Equity Weight 64.40%
Equity Cost 11.35%
WACC 11.20%
Leverage 55.28%

11. Quality Control: Quaker Chemical Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Element Solutions

A-Score: 4.8/10

Value: 3.6

Growth: 6.2

Quality: 6.0

Yield: 2.0

Momentum: 4.5

Volatility: 6.7

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Axalta Coating Systems

A-Score: 4.7/10

Value: 5.3

Growth: 5.6

Quality: 7.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.7

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Quaker Chemical

A-Score: 4.6/10

Value: 5.9

Growth: 6.2

Quality: 3.5

Yield: 3.0

Momentum: 3.5

Volatility: 5.3

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H.B. Fuller

A-Score: 4.6/10

Value: 4.9

Growth: 4.9

Quality: 4.4

Yield: 3.0

Momentum: 2.5

Volatility: 7.7

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Avient

A-Score: 4.5/10

Value: 5.4

Growth: 3.2

Quality: 4.0

Yield: 7.0

Momentum: 1.5

Volatility: 6.0

1-Year Total Return ->

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Minerals Technologies

A-Score: 4.2/10

Value: 6.6

Growth: 4.3

Quality: 3.4

Yield: 1.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

123.99$

Current Price

123.99$

Potential

-0.00%

Expected Cash-Flows