QUAKER HOUGHTON ANNOUNCES FOURTH QUARTER AND FULL YEAR 2025 RESULTS

• Q4’25 net sales of $468.5 million, an increase of 6% Y/Y, net income of $20.7 million and earnings per diluted share of $1.18
• Q4’25 non-GAAP net income of $28.9 million and non-GAAP earnings per diluted share of $1.65, an increase of 24% Y/Y
• Full year net sales of $1.89 billion, net loss of $2.5 million and loss per diluted share of $0.14, which includes an $88.8 million impairment charge and $35.1 million of restructuring charges
• Full year non-GAAP net income of $123.2 million and non-GAAP earnings per diluted share of $7.02
• Delivered Q4’25 adjusted EBITDA of $71.9 million, an 11% increase Y/Y, and full year adjusted EBITDA of $299.2 million
• Generated $136.5 million of operating cash flow in 2025, completed three strategic acquisitions, and returned $75.9 million to shareholders through dividends and share repurchases

CONSHOHOCKEN, Pa., Feb. 23, 2026 Quaker Houghton (the “Company”) (NYSE: KWR), the global leader in industrial process fluids, announced its fourth quarter and full year 2025 results today.

Fourth Quarter 2025 Consolidated Results

Net sales in the fourth quarter of 2025 were $468.5 million, an increase of 6% compared to $444.1 million in the fourth quarter of 2024. This increase was primarily driven by a contribution from acquisitions of 6% and a favorable impact from foreign currency translation of 2%, partially offset by a decline in selling price and product mix of 1% and a decline in organic sales volumes of 1%. The decline in organic sales volumes was primarily driven by a continuation of soft market conditions and customer order patterns, particularly in the Americas and EMEA, partially offset by new business wins. The decrease in selling price and product mix was primarily attributable to the impact of the mix of products and geographies, and the impact of our index-based customer contracts.

The Company reported net income in the fourth quarter of 2025 of $20.7 million, or $1.18 per diluted share, compared to $14.2 million or $0.81 per diluted share in the fourth quarter of 2024. As described in further detail in the Non-GAAP section below, excluding non-recurring and non-core items in each period, the Company’s fourth quarter of 2025 non-GAAP net income and earnings per diluted share were $28.9 million and $1.65, respectively, compared to $23.6 million and $1.33, respectively, in the prior year period. The Company generated adjusted EBITDA of $71.9 million in the fourth quarter of 2025, an increase of approximately 11% compared to $64.8 million in the fourth quarter of 2024, primarily driven by the increase in net sales and improvement in operating margins.

Joseph A. Berquist, Chief Executive Officer and President, commented, “We finished 2025 with our second consecutive quarter of year-over-year profitability improvement, as adjusted EBITDA increased 11% from the prior year. Total organic volume was down less than 1%, supported by strong organic volume growth in Asia Pacific of 4%. Net share gains globally were approximately 4%, offsetting weak underlying market conditions that we estimate were down low-to-mid single digits in aggregate. Acquisitions positively impacted revenue by 6%, and we continue to be pleased by the contribution of Dipsol. Fourth quarter gross margins were flat to the prior year, but are expected to improve in Q1 as seasonal absorption impacts, operational issues, and higher product disposal charges that occurred in the fourth quarter have been resolved.

Looking ahead to 2026, we anticipate end markets to remain at similar levels through the first half of the year, with potential for incremental growth in the latter half of 2026. Given our proven track record to win new business, and our disciplined focus on operations and controlling costs, we are confident that we will deliver revenue and adjusted EBITDA growth in 2026.”

Fourth Quarter and Full Year 2025 Segment Results

The Company’s fourth quarter and full year 2025 operating performance of each of its three reportable segments: (i) Americas; (ii) EMEA; and (iii) Asia/Pacific are further described below.

The following table summarizes the sales variances by reportable segment and consolidated operations in the fourth quarter of 2025 compared to the fourth quarter of 2024:

Net sales in the Asia/Pacific segment increased 15% in the fourth quarter of 2025 compared to the same period in 2024, as an increase in organic sales volumes and a further contribution in sales from acquisitions, primarily Dipsol, was partially offset by a decrease in selling price and product and geographic mix. Net sales in the EMEA segment increased 7% in the fourth quarter of 2025 compared to the same period in 2024, due to an increase in sales from acquisitions, an increase in selling price and product mix, and a favorable impact of foreign currency translation, partially offset by a decline in organic sales volumes. Net sales in the Americas segment was consistent in the fourth quarter of 2025 compared to the same period in 2024, as an increase in sales from acquisitions and a favorable impact of foreign currency translation was offset by a decline in organic sales volumes.

Sales volumes increased in the Asia/Pacific segment in the fourth quarter of 2025 compared to the prior year period primarily due to continued new business wins. Volumes declined in the Americas and EMEA segments in the fourth quarter of 2025 compared to the prior year period primarily due to softer underlying end market activity, partially offset by new business wins.

Consolidated net sales decreased approximately 5% compared to the third quarter of 2025, driven by a decrease in organic sales volumes and decline in selling price and product mix. Organic sales volumes decreased in all three segments in the fourth quarter of 2025 compared to the third quarter of 2025 primarily due to normal seasonal trends and weaker end market conditions, partially offset by new business wins. The decline in selling price and product mix in the fourth quarter of 2025 compared to the third quarter of 2025 reflects changes in the mix of products, services and geographies, and the impact of our index-based customer contracts.

Segment operating earnings increased in all three segments in the fourth quarter of 2025 compared to the prior year period, primarily due to higher net sales in the EMEA and Asia/Pacific segments, along with improved segment operating margins in the EMEA and Americas segments. This favorability was partially offset by lower net sales in the Americas segment and lower operating margins in the Asia/Pacific segment.

Cash Flow and Liquidity Highlights

Net cash provided by operating activities was $136.5 million for the year ended December 31, 2025, compared to net cash provided by operating activities of $204.6 million for the year ended December 31, 2024. The Company’s decrease in operating cash flow primarily reflects lower operating performance and higher cash outflows from restructuring activities and working capital.

As of December 31, 2025, the Company’s total gross debt was $871.2 million and its cash and cash equivalents was $179.8 million, which resulted in net debt of $691.4 million. The Company’s net debt divided by its trailing twelve months adjusted EBITDA was approximately 2.3x. In the fourth quarter of 2025, the Company repurchased 38,893 shares for approximately $5.0 million. In the full year of 2025, the Company repurchased 364,797 shares for approximately $41.5 million. In 2025, the Company returned approximately $75.9 million to shareholders through dividends and share repurchases.

Non-GAAP Measures and Reconciliations

The information in this press release includes non-GAAP (unaudited) financial information that includes EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP earnings per diluted share. The Company believes these non-GAAP financial measures provide meaningful supplemental information as they enhance a reader’s understanding of the financial performance of the Company, facilitate a comparison among fiscal periods, and exclude items that management believes are not indicative of future operating performance or core to the Company’s operations. Non-GAAP results are presented for supplemental informational purposes only and should not be considered a substitute for the financial information presented in accordance with GAAP. In addition, our definitions of EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP gross profit, non-GAAP gross margin, taxes on income before equity in net income of associated companies – adjusted, non-GAAP net income, and non-GAAP earnings per share, as discussed and reconciled below to the most comparable GAAP measures, may not be comparable to similarly named measures reported by other companies.

The Company presents EBITDA, which is calculated as net income attributable to the Company before depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies. The Company also presents adjusted EBITDA which is calculated as EBITDA plus or minus certain items that management believes are not indicative of future operating performance or core to the Company’s operations. The Company presents non-GAAP operating income, which is calculated as operating income plus or minus certain items that management believes are not indicative of future operating performance or core to the Company’s operations. Additionally, the Company presents non-GAAP gross profit, which is calculated as gross profit plus or minus certain items that management believes are not indicative of future operating performance or core to the Company’s operations. Adjusted EBITDA margin, non-GAAP operating margin, and non-GAAP gross margin are calculated as the percentage of adjusted EBITDA, non-GAAP operating income, and non-GAAP gross profit to consolidated net sales, respectively. The Company believes these non-GAAP measures provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry as well as by management in assessing the operating performance of the Company on a consistent basis.

Additionally, the Company presents non-GAAP net income and non-GAAP earnings per diluted share as additional performance measures. Non-GAAP net income is calculated as adjusted EBITDA, defined above, less depreciation and amortization, interest expense, and taxes on income before equity in net income of associated companies, in each case adjusted, as applicable, for any depreciation, amortization, interest or tax impacts resulting from the non-core items identified in the reconciliation of net income attributable to the Company to adjusted EBITDA. Non-GAAP earnings per diluted share is calculated as non-GAAP net income per diluted share as accounted for under the “two-class share method.” The Company believes that non-GAAP net income and non-GAAP earnings per diluted share provide transparent and useful information and are widely used by analysts, investors, and competitors in our industry as well as by management in assessing the performance of the Company on a consistent basis.

As it relates to future projections for the Company as well as other forward-looking information contained in this press release, the Company has not provided guidance for comparable GAAP measures or a quantitative reconciliation of forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP measure because it is unable to determine with reasonable certainty the ultimate outcome of certain significant items necessary to calculate such measures without unreasonable effort. These items include, but are not limited to, certain non-recurring or non-core items the Company may record that could materially impact net income. These items are uncertain, depend on various factors, and could have a material impact on the U.S. GAAP reported results for the guidance period.

The Company’s reference to trailing twelve months adjusted EBITDA within this press release refers to the twelve month period ended December 31, 2025 adjusted EBITDA of $299.2 million, as presented in the non-GAAP reconciliations below.

Certain of the prior period non-GAAP financial measures presented in the following tables have been adjusted to conform with current period presentation. The following tables reconcile the Company’s non-GAAP financial measures (unaudited) to their most directly comparable GAAP (unaudited) financial measures (dollars in thousands unless otherwise noted, except per share amounts):

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