NYSE$KWR

Quaker Chemical Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Quaker Houghton's Q3 2024 financial performance reflected resilience amidst softening end market conditions, with consistent volumes driven by new business wins.

Quaker Houghton reported Q3 2024 net sales of $462.3 million, a 6% decrease compared to Q3 2023. Net income was $32.3 million, or $1.81 per diluted share. Non-GAAP net income was $34.0 million, or $1.89 per diluted share. The company generated adjusted EBITDA of $78.6 million with a margin of 17.0%.

  • Net sales decreased by approximately 6% compared to the third quarter of 2023, primarily due to lower selling prices and product mix, and a decline in sales volumes.
  • Net income decreased slightly to $32.3 million, or $1.81 per diluted share, compared to $33.7 million, or $1.87 per diluted share, in the third quarter of 2023.
  • Adjusted EBITDA decreased by 7% to $78.6 million, driven by the decline in net sales.
  • The company repurchased 89,088 shares for approximately $14.6 million during the quarter.

Headline financials

Total Revenue

$462M

Previous: $491M-5.8%
EPS

$1.81

Previous: $2.05-11.7%
Adjusted EBITDA

$78.6M

No prior period
Adjusted EBITDA Margin

17.0%

No prior period
Non-GAAP Operating Income

$54.2M

No prior period
Non-GAAP Operating Margin

11.7%

No prior period
Capital Expenditures

-$19.3M

Previous: -$25.8M+25.0%
Free Cash Flow

$13M

Previous: $7.88M+65.2%
Net Income

$32.3M

Previous: $33.7M-3.9%
Operating Income

$51.7M

Previous: $59.5M-13.1%
Gross Profit

$173M

Previous: $183M-5.9%
Cash & Equivalents

$212M

Previous: $198M+6.9%
Total Assets

$2.74B

Previous: $2.73B+0.1%
Stock-Based Comp

$4.29M

Previous: $3.78M+13.5%

Revenue & EPS history

Quaker Chemical · Revenue · Quarterly

$462M

Q3 2024-5.8%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company anticipates current difficult market conditions will likely persist through the end of the year.

Tailwinds

  • Focus remains on executing on what we can control
  • Driving efficiencies and productivity for our Company and our customers
  • Confident in the long-term positive fundamentals of the industry we serve
  • Investments will strengthen our ability to continue to deliver above market growth, especially as end markets recover
  • Balance sheet and cash generation remain strong, providing avenues to accelerate our growth and enhance shareholder value

Headwinds

  • Anticipate the current difficult market conditions will likely persist through the end of the year
  • End market conditions softened compared to the second quarter of 2024
  • Americas and EMEA segments continue to be impacted by a continuation of softer end market conditions, for metal and metalworking applications, compared to the prior year
  • Operating earnings decreased in all segments in the third quarter of 2024 compared to the prior year
  • Operating earnings and operating margins declined in all segments in the third quarter of 2024 compared to the second quarter of 2024

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 Q3 2024

Historical avgQ3 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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