NYSE$KWR

Quaker Chemical Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Quaker Houghton's financial performance declined due to decreased sales volume and unfavorable foreign currency translation, but profitability improved through gross margin expansion and effective cost management.

Quaker Houghton reported a decrease in net sales by 6% to $463.6 million, primarily due to lower selling prices, product mix, and sales volumes. Despite the revenue decline, the company increased net income to $34.9 million, or $1.94 per diluted share, and non-GAAP earnings to $2.13 per diluted share. Adjusted EBITDA rose by 5% to $84.3 million, driven by improved gross margins.

  • Net sales decreased by 6% year-over-year to $463.6 million due to lower prices, product mix and sales volumes.
  • Net income increased to $34.9 million, with earnings per diluted share at $1.94.
  • Adjusted EBITDA increased by 5% to $84.3 million, driven by gross margin improvements.
  • The company continues to outperform end markets, driven by focus and execution, earning profitable new business by enhancing customer’s operations.

Headline financials

Total Revenue

$464M

Previous: $495M-6.4%
EPS (adj)

$2.13

Previous: $1.93+10.4%
Capital Expenditures

-$11.1M

Previous: -$17M+34.7%
Free Cash Flow

$23.8M

Previous: $12.3M+93.1%
Net Income

$34.9M

Previous: $29.3M+18.9%
Operating Income

$58.4M

Previous: $56.8M+2.9%
Gross Profit

$176M

Previous: $178M-1.1%
Cash & Equivalents

$189M

Previous: $189M-0.4%
Total Assets

$2.67B

Previous: $2.79B-4.2%
Stock-Based Comp

$4.24M

Previous: $3.89M+9.2%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$464M

Q2 2024-6.4%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

Quaker Houghton expects to deliver another year of earnings growth in 2024, despite challenging market conditions. The company remains committed to advancing its enterprise strategy, enhancing capabilities, and strengthening its portfolio to drive efficiencies and reinforce customer relationships.

Tailwinds

  • Strong balance sheet and cash flow generation support a balanced capital allocation strategy.
  • Well-positioned to accelerate long-term growth initiatives and drive value creation.
  • Commitment to advancing enterprise strategy.
  • Enhancing capabilities.
  • Strengthening leading portfolio of products and technical capabilities to drive efficiencies and further reinforce the relationship with our customers.

Headwinds

  • Challenging end market environment is likely to persist through the end of the year.
  • Potential effects of the conflicts in Ukraine and the Middle East.
  • Inflation and global supply chain constraints on the Company’s business, results of operations, and financial condition.
  • Expectations about future demand and raw material costs.
  • Impact of increased raw material costs and pricing initiatives.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

+1.5%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.4%

Avg return

30 days after

52%

34 / 65 earnings

Positive

+20.6%

Q2 2022

Best reaction

-10.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.0%+5.1%+7.4%
Q4 2025+1.1%-13.5%-25.8%
Q3 2025+5.5%+7.1%+9.6%
Q1 2025-2.6%-5.8%+2.3%
Q4 2024+2.6%-1.2%-7.8%
Q3 2024+4.2%+3.9%+2.0%
Q2 2024-6.5%-8.0%-3.3%
Q1 2024-1.0%-0.2%-3.3%
Q4 2023+0.5%-0.2%+4.1%
Q3 2023+13.0%+14.6%+28.9%
Q2 2023-5.3%-9.1%-11.4%
Q1 2023+11.3%+11.5%+7.8%
Q4 2022+0.6%+0.5%-5.0%
Q3 2022+6.4%+19.1%+25.1%
Q2 2022+20.6%+21.3%+8.7%
Q1 2022-2.8%-13.4%-5.1%
Q4 2021-3.4%-10.9%-4.2%
Q3 2021+3.6%+3.9%-12.3%
Q2 2021-1.9%+2.8%+4.3%
Q1 2021-0.7%-1.6%-1.5%
Q4 2020-4.2%-5.3%-20.1%
Q3 2020+8.9%+22.6%+24.2%
Q2 2020-1.8%+1.5%-2.6%
Q1 2020+7.6%+3.8%+21.8%
Q4 2019+1.1%+0.1%-28.9%
Q3 2019-4.2%-7.6%-0.6%
Q2 2019-10.0%-10.5%-15.2%
Q1 2019-3.3%-6.6%-18.6%
Q4 2018-0.5%-3.5%-4.6%
Q3 2018+13.3%+13.7%+14.6%
Q2 2018+10.0%+3.2%+10.0%
Q1 2018-2.0%-2.4%+3.3%
Q4 2017+1.1%-0.7%-2.1%
Q3 2017+4.8%+3.9%+8.1%
Q2 2017-3.9%-5.4%-8.2%
Q1 2017-0.5%+0.0%-3.6%
Q4 2016+2.9%+0.8%-2.4%
Q3 2016+1.9%+2.3%+20.0%
Q2 2016-0.1%+0.1%+1.1%
Q1 2016-1.4%
Q4 2015+6.1%
Q3 2015+5.1%
Q2 2015+16.0%
Q1 2015-5.5%
Q4 2014-7.0%
Q3 2014+8.7%
Q2 2014-0.3%
Q1 2014-2.7%
Q4 2013+6.8%
Q3 2013-3.1%
Q2 2013+1.7%
Q1 2013+8.6%
Q4 2012+1.9%
Q3 2012+11.6%
Q2 2012+2.8%
Q1 2011-1.6%
Q1 2012+0.2%
Q4 2009-1.6%
Q4 2011-1.6%
Q3 2010+3.5%
Q3 2011+3.5%
Q4 2010-4.3%
Q2 2010-4.3%
Q2 2011-4.3%
Q1 2010-6.6%

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