Quaker Houghton announced its financial results for the third quarter ended September 30, 2026, reporting a 10% year-over-year increase in net sales to $544.5 million. This growth was driven by a 7% increase in selling price and product mix, as well as a 3% rise in sales volumes. The volume increase was attributed to new business wins across all segments, while the price increase reflects actions taken to offset higher raw material costs.
For the quarter, the company reported net income of $30.0 million, or $1.73 per diluted share, compared to $30.5 million and $1.75 per share in the prior year. Adjusting for non-recurring items, non-GAAP net income was $41.4 million, or $2.39 per share, representing a 15% increase year-over-year. The company also generated adjusted EBITDA of $89.8 million, an 8% increase from the prior year.
Segment performance varied by region. Net sales in the Americas increased 14% year-over-year, driven by volume growth and price increases. Asia Pacific sales grew 9%, supported by volume gains and favorable foreign currency translation. In contrast, EMEA sales increased 6%, with gains in price and mix offset by a decrease in volumes due to the reversal of pre-buy activity and unfavorable currency effects.
Regarding liquidity, Quaker Houghton reported total gross debt of $894.6 million and cash and cash equivalents of $167.0 million as of September 30, 2026, resulting in net debt of approximately $727.6 million. The company repurchased 21,781 shares during the third quarter for $3.3 million.
Looking ahead, management anticipates fourth quarter revenue and adjusted EBITDA will improve year-over-year but decline sequentially from the third quarter's record levels due to normal seasonal demand patterns. The company noted that raw material costs are expected to remain elevated through the end of the year due to ongoing conflict in the Middle East.
