Quaker Chemical Q2 sales beat estimates

Overview

• Quaker Chemical Q2 sales rise 4% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 misses consensus, impacted by impairment charge

• Co repurchased $32.7 mln in shares in Q2, raised dividend by 5%

Outlook

• Company expects full-year 2025 revenue and earnings similar to 2024

• Quaker Chemical anticipates $20 mln cost savings by end of 2026

• Company sees economic conditions remaining challenging in H2 2025

• Quaker Chemical plans to leverage strong balance sheet for shareholder value

Result Drivers

• SALES GROWTH - Driven by 2% increase in organic volumes and 6% contribution from acquisitions, partially offset by 4% decline in selling price and product mix

• ASIA/PACIFIC PERFORMANCE - 8% organic volume growth in Asia/Pacific segment, offsetting soft market conditions in Americas and EMEA

• IMPAIRMENT CHARGE - $88.8 mln non-cash goodwill impairment in EMEA segment contributed to net loss

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy"

• Wall Street's median 12-month price target for Quaker Chemical Corp is $150.00, about 23.5% above its July 30 closing price of $114.71

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn1FcN7Na