Quaker Houghton Q3 Report 2023

• Q3’23 net sales of $490.6 million, net income of $33.7 million and earnings per diluted share of $1.87
• Q3’23 non-GAAP net income of $36.9 million and non-GAAP earnings per diluted share of $2.05
• Delivered adjusted EBITDA of $84.4 million in Q3’23, a 20% increase compared to $70.3 million in Q3’22
• Generated approximately $199.5 million of operating cash flow year-to-date; Net debt to adjusted EBITDA improved to 2.0x

Third Quarter 2023 Consolidated Results

Net sales in the third quarter of 2023 were $490.6 million compared to $492.2 million in the third quarter of 2022. This result was primarily due to an increase in selling price and product mix of approximately 2% and a favorable impact of foreign currency translation of 2%, offset by a decrease in sales volumes of approximately 4%. The increase in selling price and product mix was primarily attributable to higher selling prices in all segments.  The decline in sales volumes was primarily attributable to a continuation of softer market conditions that have persisted throughout the year and the wind-down of the tolling agreement for products previously divested related to the Combination, in the Europe, Middle East and Africa (“EMEA”) segment, partially offset by new business wins in all segments.