Quaker Houghton Reports 6% Net Sales Decline but Increases Net Income to $116.6 Million

Quaker Chemical Corporation, operating as Quaker Houghton, reported a net sales decline of 6% for the fiscal year ending December 31, 2024, totaling $1.84 billion compared to $1.95 billion in 2023. The decrease was attributed to a 4% drop in selling prices and product mix, a 2% decline in sales volumes, and a 1% unfavorable impact from foreign currency translation. However, the company noted a 1% increase in sales from acquisitions, which partially offset these declines. Despite the decrease in sales, Quaker Houghton achieved a net income of $116.6 million, or $6.51 per diluted share, up from $112.7 million, or $6.26 per diluted share, in the previous year, primarily due to lower interest expenses and reduced foreign exchange losses.

In terms of operational changes, Quaker Houghton made significant acquisitions in 2024, including the Sutai Group for approximately $16.2 million and I.K.V. Tribologie IKVT for $35.2 million. These acquisitions are expected to enhance the company's technology portfolio and strengthen its market position in the Asia/Pacific and EMEA regions. Additionally, the company acquired Chemical Solutions & Innovations (CSI) in February 2025 for $3.9 million, further expanding its footprint in South Africa. The company also reorganized its executive management team in early 2023 to align with its new business structure, which now includes three reportable segments: Americas, EMEA, and Asia/Pacific.

Quaker Houghton reported a total employee headcount of approximately 4,400 as of December 31, 2024, with about 1,000 employees in the U.S. and 3,400 in international subsidiaries. The company’s customer base includes thousands of advanced steel, aluminum, automotive, aerospace, and metalworking companies, with its five largest customers accounting for approximately 12% of consolidated net sales. The company continues to focus on enhancing customer engagement and expanding its market share through strategic initiatives and product innovations.

Looking ahead, Quaker Houghton expressed optimism for 2025, anticipating continued growth driven by new business wins and the delivery of value-added solutions to its customers. The company plans to invest in long-term growth initiatives and further strengthen its sustainability programs. Despite the challenges posed by soft end-market conditions in the Americas and EMEA segments, the company is positioned to achieve above-market growth rates through its strategic focus on customer intimacy and operational excellence.

Overall, Quaker Houghton’s financial performance reflects a resilient approach to navigating market fluctuations, with a commitment to enhancing its product offerings and expanding its global presence through strategic acquisitions and operational improvements.