The slight EPS beat and organic volume growth are positive, but Americas segment weakness, declining operating margins, and management's warning of Q2 gross margin pressure from raw material inflation temper the outlook. Monitor the Q2 earnings call for margin recovery trajectory and the cost savings program's execution timeline.
Price Chart
Executive Summary
Quaker Houghton reported Q1 2026 net sales of $480.5M (+8% YoY) and non-GAAP EPS of $1.63, a 3% YoY increase and a slight beat vs. the $1.62 consensus. Organic sales volumes grew 3% YoY driven by new business wins, and adjusted EBITDA rose 5% to $72.5M. The company also announced a new cost savings program targeting $20-$30M annually and amended its credit agreement to extend maturities, but management flagged near-term headwinds from raw material inflation and geopolitical uncertainty.
Key Financial Metrics
Key Facts
- Q1 2026 net sales of $480.5M, up 8% YoY vs $442.9M
- Non-GAAP EPS of $1.63, up 3% YoY vs $1.58, beating consensus of $1.62
- GAAP EPS of $1.13, up 55% YoY from $0.73
- Adjusted EBITDA of $72.5M, up 5% YoY from $69.0M
- Organic sales volumes increased 3% YoY, driven by 4% new business wins
- Americas segment operating earnings declined to $53.9M from $58.5M YoY
- Announced global transformation program targeting $20-$30M in annual savings by 2028
- Amended credit agreement, extending nearest-term maturity to April 2031
- Net debt of $705.3M, leverage ratio of 2.3x
- Operating cash flow of $3.8M vs -$3.1M in prior year period
Financial Impact
Revenue $480.5M, Non-GAAP EPS $1.63, Adjusted EBITDA $72.5M
Risk Factors
- Raw material inflation expected in Q2 2026, temporarily pressuring gross margins
- Americas segment operating earnings declined 7.7% YoY despite flat revenue
- Non-GAAP operating margin contracted to 9.4% from 10.3% YoY
- Geopolitical uncertainty from Middle East conflict could impact end markets
- Net debt increased to $705M from $691M sequentially
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-028945 |
| Document: kwr-20260430.htm | 0001628280-26-028945 |
| Document: kwr2026q1ex-9922.htm | 0001628280-26-028945 |
| Document: 0001628280-26-028945-index-headers.html | 0001628280-26-028945 |
| Document: 0001628280-26-028945-index.html | 0001628280-26-028945 |
| Document: 0001628280-26-028945.txt | 0001628280-26-028945 |
| 8-K Data (Synthetic) | 0001628280-26-028945 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Jul 31, 2026 9w ago | S-3ASR | $160.52 $165.91 | ▲ +3.36% | ▲ +0.37% | $162.23 (+1.06%) |
Jul 31, 2026 9w ago | S-3ASR | $160.52 $165.91 | ▲ +3.36% | ▲ +0.37% | $162.23 (+1.06%) |
Jul 7, 2026 12w ago | 8-K | $147.52 $171.02 | ▲ +15.93% | ▲ +12.66% | $162.23 (+9.97%) |
Jun 18, 2026 15w ago | Institutional Cluster | $150.18 $154.76 | ▲ +3.05% | ▲ +2.52% | $162.23 (+8.02%) |
May 15, 2026 20w ago | 8-K | $137.99 $144.46 | ▲ +4.69% | ▲ +2.57% | $162.23 (+17.56%) |
Apr 30, 2026 22w ago | 8-K | $142.43 $142.51 | ▲ +0.06% | ▼ −5.21% | $162.23 (+13.90%) |
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