Quaker Chemical Reports $66.6 Million Net Loss in Q2 2025 Amid Revenue Growth

Quaker Chemical Corporation reported a net loss of $66.6 million for the second quarter of 2025, translating to a loss of $3.78 per diluted share, a significant decline from the net income of $34.9 million, or $1.94 per diluted share, recorded in the same period last year. The company's total revenue for the quarter was $483.4 million, reflecting a 4% increase from $463.6 million in the prior year, primarily driven by a 6% contribution from acquisitions and a 2% increase in sales volumes. However, these gains were partially offset by a 4% decline in selling prices and product mix, attributed to ongoing soft market conditions and tariff-related uncertainties.

In the first half of 2025, Quaker Chemical's net sales totaled $926.3 million, a slight decrease from $933.3 million in the same period of 2024. The decline was primarily due to a 2% drop in selling prices and product mix, along with a 1% decrease in sales volumes, which were somewhat mitigated by a 4% contribution from acquisitions. The company’s cost of goods sold increased to $593.3 million, up from $576.0 million, reflecting higher raw material and manufacturing costs, as well as amortization related to the acquisition of Dipsol Chemicals.

Strategically, Quaker Chemical has made significant acquisitions, including Dipsol Chemicals for approximately $185.6 million, Natech for $6.5 million, and Chemical Solutions & Innovations for $3.9 million. These acquisitions are expected to enhance the company's product offerings and market presence, particularly in the automotive and industrial applications sectors. The company also reported restructuring charges of $23.4 million in the first half of 2025, as part of a global cost optimization program aimed at improving operational efficiency.

Operationally, the company experienced a decrease in segment operating earnings across all three reportable segments: Americas, EMEA, and Asia/Pacific. The Americas segment reported a 1% decline in net sales to $221.1 million, while EMEA saw a slight increase of 1% to $139.9 million, and Asia/Pacific experienced a 20% increase to $122.4 million. The overall operating loss for the second quarter was $52.5 million, primarily due to the aforementioned impairment charge of $88.8 million related to the EMEA segment.

Looking ahead, Quaker Chemical anticipates continued challenges due to soft end market conditions and uncertainties related to tariffs. The company remains focused on its long-term financial and strategic initiatives, including further integration of recent acquisitions and ongoing efforts to optimize its cost structure. The recent passage of the One Big Beautiful Bill Act may also impact the company's tax liabilities and operational strategies moving forward.