Education
About Us
Working with TipRanks
Follow Us
Quaker Chemical (KWR)
NYSE:KWR
Top Page
Quaker Chemical
(NYSE:KWR)
Select Model
Select Model
Rating:54Neutral
Price Target:
$130.00
▼(-3.91% Downside)
Action:ReiteratedDate:03/13/26
The score is held back primarily by inconsistent profitability (including a 2025 loss) and very weak technicals with the stock well below key moving averages. These pressures are partially offset by improved free cash flow, manageable leverage, and earnings-call guidance pointing to EBITDA improvement and share gains in 2026, while the negative P/E and executive departure add additional uncertainty.
Positive Factors
Improving free cash flow
The company produced positive operating and free cash flow across recent years, with a marked improvement in 2025. Sustainable FCF supports disciplined M&A, capital expenditure (~2.5%–3.5% of sales guidance), shareholder returns, and provides a buffer against cyclical revenue swings, enhancing long-term financial flexibility.
Manageable leverage and balance-sheet resilience
Net leverage around 2.3x and a stable equity base indicate a balance sheet that can support disciplined acquisitions, targeted capex, and returns to shareholders while retaining capacity to absorb cyclical downturns. This financial posture underpins strategic flexibility over the medium term.
Structural demand and market share gains in Asia Pacific
Consistent organic volumes and share gains in Asia demonstrate durable end-market exposure and successful penetration in faster-growing regions. Combined with recurring consumable sales and embedded technical services, this supports repeatable revenue streams and long-term market-position strengthening across industrial customers.
Negative Factors
Volatile profitability and GAAP loss in 2025
Material noncash impairment and restructuring drove a GAAP loss in 2025, highlighting volatile earnings quality and prior overpayments or goodwill risk. Such swings reduce predictability of returns, complicate ROE recovery, and may constrain capital allocation until earnings stability and sustained margin recovery are demonstrated.
Declining operating cash flow and working-capital strain
A sizable decline in operating cash flow driven by higher restructuring outflows, working-capital builds and inventory tied to network optimization weakens cash conversion. If working-capital management and inventory normalisation lag, free cash flow sustainability and funding for growth or buybacks may be constrained.
Operational and leadership execution risks
An involuntary COO departure amid recent plant disruptions and network changes raises execution risk during integration, cost-savings and operational turnaround efforts. Leadership turnover can slow remedial actions, complicate plant optimization and M&A integration, making operational improvements harder to sustain.
Quaker Chemical (KWR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.10B
Dividend Yield1.37%
Average Volume (3M)132.77K
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth0.08%
EPS Growth-107.33%
CountryUS
Employees4,400
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)1.65
Shares Outstanding17,335,075
10 Day Avg. Volume151,729
30 Day Avg. Volume132,768
Financial Highlights & Ratios
PEG Ratio9.44
Price to Book (P/B)1.75
Price to Sales (P/S)1.27
P/FCF Ratio29.77
Enterprise Value/Market Cap1.36
Enterprise Value/Revenue1.51
Enterprise Value/Gross Profit4.29
Enterprise Value/Ebitda19.13
Forecast
1Y Price Target
$177.00Price Target Upside30.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)8.01
Revenue Forecast (FY)$1.97B
Quaker Chemical Business Overview & Revenue Model
Company DescriptionQuaker 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.
How the Company Makes MoneyQuaker Houghton makes money primarily by selling formulated process fluids and specialty chemical products to industrial customers on a recurring, consumable basis. Revenue is generated from (1) product sales of industrial fluids used in customers’ ongoing operations (e.g., rolling, forming, machining, heat treatment, cleaning, and corrosion protection), where demand is tied to customers’ production volumes and process requirements; and (2) value-added services that support and optimize the use of these fluids at customer sites, which can include fluid management, application engineering, technical service, and related support that helps customers improve throughput, quality, tool life, and total cost of ownership. Pricing and revenue are influenced by formulation complexity and performance requirements, mix of industries served, contractual/customer-specific programs, and the company’s ability to pass through changes in key input costs (such as base oils and chemical feedstocks). Earnings are also supported by long-term customer relationships and embedded technical collaboration, where products are qualified into specific manufacturing processes and equipment, creating repeat purchasing over time.
Quaker Chemical Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed a cautiously optimistic tone: the company delivered solid Q4 results with double-digit adjusted EBITDA and EPS growth, demonstrated strong and consistent momentum in Asia Pacific, achieved net share gains and meaningful run-rate cost savings, and continued disciplined M&A and shareholder returns. However, material challenges remain — notably a significant drop in operating cash flow year-over-year, an $89 million goodwill impairment and notable restructuring costs, Q4 operational disruptions and customer outages, sequential margin pressure in North America, and soft end markets with tariff-related uncertainty. Taken together, the operational and cash-generation headwinds are meaningful but are balanced by clear revenue momentum, margin recovery plans, and a strengthened balance sheet — leading management to expect YoY adjusted EBITDA growth in 2026.Q4-2025 Updates
Positive Updates
Revenue Growth and Top-Line Performance
Q4 net sales of $468 million, up 6% year-over-year. Full-year revenue benefited from acquisitions (three closed in 2025 adding ~ $95 million of annualized revenue) and price/mix in some regions.
Adjusted EBITDA and Margin Improvement
Adjusted EBITDA of $72 million in Q4, an 11% increase year-over-year, with adjusted EBITDA margin improving to 15.3% (up 75 basis points YoY). Management expects continued YoY adjusted EBITDA growth in 2026.
Earnings Per Share Performance
Q4 non-GAAP diluted EPS of $1.65, a 24% increase year-over-year. Full-year non-GAAP diluted EPS of $7.02 after adjusting for non-GAAP items.
Asia Pacific Strength and Consistent Organic Growth
Asia Pacific net sales increased 15% in Q4 and 13% for the full year; organic volume growth in Asia Pacific was +4% in Q4 and +5% for the year — the 10th consecutive quarter of year-over-year volume growth in the region.
Net Share Gains and New Business Wins
Net share gains of approximately 4% in Q4 helped offset soft markets; the company reported new business wins across all regions and successful cross-selling initiatives.
Acquisition Contributions and Integration
Acquisitions contributed ~6% to Q4 sales (Dipsol contributed $21 million in Q4). Company completed three acquisitions in 2025 and expects continued disciplined M&A to expand TAM and capabilities.
Cost Savings and Structural Initiatives
Complexity and cost reduction plan generated roughly $25 million of run-rate savings for the full year; identified additional network and process optimization actions (e.g., Dortmund closure) expected to deliver incremental savings ($2 million in 2026, ~$5 million annually beginning 2027).
Balance Sheet and Capital Allocation
Net debt at year-end was $691 million with net leverage reduced to 2.3x trailing 12-month adjusted EBITDA. Returned $76 million to shareholders in 2025 (share repurchases $42 million; dividends $34 million) and continued investment in growth (full-year capex $56 million, China facility under construction).
Negative Updates
Significant Decline in Operating Cash Flow
Operating cash flow was $47 million in Q4 (down from $63 million prior-year quarter) and $136 million for the full year versus $205 million in 2024 — a meaningful reduction driven by higher restructuring outflows and working capital increases.
Full-Year GAAP Loss and Large Noncash Charges
Full-year GAAP diluted loss per share of $(0.14) driven by an $89 million noncash goodwill impairment charge and $35 million of restructuring charges, which materially impacted GAAP results for 2025.
Operational Disruptions and Weather-Related Impacts
December operational issues in U.S. plants (frozen pipes, boiler issues, transportation delays) and a major North American customer outage negatively impacted volumes (management estimates ~1% volume impact in Q4 and up to $5–$10 million revenue impact), delaying shipments and increasing costs.
Sequential Margin Pressure
Gross margin was roughly flat year-over-year (35.3% vs 35.2% prior-year Q4) but fell sequentially by ~150 basis points from Q3 due to unfavorable absorption and higher maintenance, repair and raw material disposal costs in North America.
Working Capital and Inventory Build-up
Increased working capital and temporary inventory increases (particularly in EMEA) related to network optimization and the Dortmund facility closure contributed to reduced cash generation and higher capital deployed into inventory.
Higher Restructuring and One-Time Costs
Higher year-over-year restructuring charges (~$29 million incremental) plus approximately $7 million of acquisition-assessment costs in Q4 increased nonoperating cash outflows and reduced free cash generation.
Market Softness and External Headwinds
Underlying markets in the Americas and EMEA remain soft (PMIs near 50), tariff uncertainty continues to disrupt trade flows, and company expects underlying markets to be flat in 2026 with only potential H2 improvement — representing demand risk.
SG&A and Inflationary Pressures
Total SG&A increased ~4% in Q4 (driven by acquisitions and FX) despite organic SG&A being ~4% lower at constant currency; management expects higher SG&A in 2026 from variable compensation and inflationary pressures.
Company Guidance
Guidance for 2026: management expects underlying markets to be roughly flat in 2026 with the potential for modest H2 improvement, and targets net share gains of 2%–4%; they expect gross margin to be within a 36%–37% range for the full year, raw material costs to remain steady early in the year, and positive organic growth and share gains in all segments. They forecast year‑over‑year adjusted EBITDA growth for 2026 (and expect Q1 to be the third consecutive quarter of YoY EBITDA improvement), driven by share gains, gross‑margin recovery and the run‑rate impact of acquisitions (Dipsol contributed $21M in Q4; 3 acquisitions in 2025 added ~$95M of annualized revenue and provide roughly a 1%–2% tailwind). SG&A will be higher year‑over‑year due to variable compensation and inflation but will be partially offset by transformational cost actions (they generated ~$25M of run‑rate savings in 2025); the longer‑term goal is to sustain EBITDA margins above 18% with modest targeted investments. Capital spend is expected to be ~2.5%–3.5% of sales in 2026, the balance sheet supports disciplined M&A (year‑end net debt $691M; net leverage ~2.3x TTM adj. EBITDA), and management expects to continue returning cash to shareholders while improving operating performance.Quaker Chemical Financial Statement Overview
Summary
Financials appear stable but inconsistent: revenue has been largely flat and profitability swung sharply, with a notable 2025 reset into a slight net loss and materially weaker EBITDA margin. Offsetting this, leverage remains manageable and free cash flow improved strongly in 2025, providing a cushion despite earnings volatility.Income Statement
Revenue has been essentially flat over the last few years (down in 2024, modest rebound in 2025), but profitability has been volatile. Gross margin stayed relatively steady in the mid-30% range, yet earnings swung from losses (2022, 2025) to solid profits (2021–2024). The sharp deterioration in 2025—net margin turning slightly negative and EBITDA margin dropping materially versus 2024—raises concerns about cost pressure and/or one-time headwinds.52
Neutral
Balance Sheet
Leverage looks manageable for the business, with debt-to-equity generally in a mid-range band, but it ticked up in 2025 as debt rose. Equity has remained fairly stable, supporting balance-sheet resilience. However, returns on equity have been inconsistent, including a negative year (2022) and a likely setback in 2025 given the net loss, which limits the quality of the capital base from a profitability standpoint.62
Positive
Cash Flow
Cash generation is a relative strength: operating cash flow and free cash flow were positive across the period, and free cash flow improved strongly in 2025 versus 2024. That said, cash flow has been uneven historically (weak in 2021–2022, much stronger in 2023–2025). Also, with net income slightly negative in 2025, the relationship between cash flow and earnings should be monitored for sustainability.68
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.89B | 1.84B | 1.95B | 1.94B | 1.76B |
| Gross Profit | 616.37M | 686.03M | 705.64M | 612.65M | 594.64M |
| EBITDA | 162.66M | 280.18M | 285.81M | 120.16M | 255.87M |
| Net Income | -2.49M | 116.64M | 112.75M | -15.93M | 121.37M |
Balance Sheet | |||||
| Total Assets | 2.80B | 2.61B | 2.71B | 2.82B | 2.96B |
| Cash, Cash Equivalents and Short-Term Investments | 179.83M | 188.88M | 194.53M | 180.96M | 165.18M |
| Total Debt | 928.61M | 737.82M | 788.97M | 991.80M | 929.66M |
| Total Liabilities | 1.42B | 1.26B | 1.33B | 1.54B | 1.57B |
| Stockholders Equity | 1.37B | 1.35B | 1.38B | 1.28B | 1.39B |
Cash Flow | |||||
| Free Cash Flow | 80.60M | 215.86M | 240.22M | 13.26M | 27.48M |
| Operating Cash Flow | 136.45M | 204.58M | 279.02M | 41.79M | 48.93M |
| Investing Cash Flow | -214.12M | -76.42M | -27.62M | -40.19M | -49.13M |
| Financing Cash Flow | 61.83M | -122.66M | -238.61M | 24.67M | -13.46M |
Quaker Chemical Technical Analysis
Negative
135.29
Price Trends
152.03
Negative
144.14
Negative
135.67
Negative
Market Momentum
-10.84
Positive
24.89
Positive
19.86
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KWR, the sentiment is Negative. The current price of 135.29 is below the 20-day moving average (MA) of 137.33, below the 50-day MA of 152.03, and below the 200-day MA of 135.67, indicating a bearish trend. The MACD of -10.84 indicates Positive momentum. The RSI at 24.89 is Positive, neither overbought nor oversold. The STOCH value of 19.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KWR.
Quaker Chemical Risk Analysis
Quaker Chemical disclosed 30 risk factors in its most recent earnings report. Quaker Chemical reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Quaker Chemical Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $2.91B | 38.21 | 34.72% | 1.87% | 4.98% | 30.84% | |
73 Outperform | $1.67B | 16.33 | 9.01% | 2.19% | -4.49% | -100.80% | |
63 Neutral | $2.09B | 12.77 | -1.11% | 0.74% | -2.53% | -100.23% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
59 Neutral | $2.30B | -56.41 | -33.65% | 2.79% | -13.67% | -608.89% | |
56 Neutral | $2.31B | -12.82 | -38.91% | ― | -13.39% | 88.25% | |
54 Neutral | $2.10B | -964.31 | -0.18% | 1.37% | 0.08% | -107.33% |
* Basic Materials Sector Average
KWR
Quaker Chemical
121.07
-6.31
-4.95%
ASH
Ashland
50.19
-4.02
-7.42%
IOSP
Innospec
67.23
-29.09
-30.20%
MTX
Minerals Technologies
67.24
0.57
0.86%
WDFC
WD-40 Company
215.76
-15.88
-6.85%
NGVT
Ingevity
65.35
22.21
51.48%
Quaker Chemical Corporate Events
Executive/Board Changes
Quaker Chemical Announces Involuntary Departure of Senior Executive
Negative
Mar 12, 2026
Effective March 9, 2026, Quaker Chemical Corporation announced that Jeffrey Fleck ceased serving as Senior Vice President and Chief Global Operations Officer, with the company stating his departure was not due to any disagreement. The company classified Fleck’s separation as an involuntary termination without cause, making him eligible, subject to a customary release of claims, for severance payments and benefits under his employment agreement and existing company plans as previously described in its 2025 proxy materials.
The most recent analyst rating on (KWR) stock is a Buy with a $144.00 price target. To see the full list of analyst forecasts on Quaker Chemical stock, see the KWR Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.