Quaker Houghton Half-Year Report 2023

• Net sales of $495.4 million in Q2’23, an increase of 1% compared to Q2’22 driven by value-based pricing initiatives
• Q2’23 net income of $29.3 million and earnings per diluted share of $1.63
• Q2’23 non-GAAP net income of $34.8 million and non-GAAP earnings per diluted share of $1.93
• Delivered adjusted EBITDA of $80.2 million in Q2’23, a 37% increase compared to $58.5 million in Q2’22
• Generated $116.1 million of operating cash flow year-to-date; net debt to adjusted EBITDA improved to 2.3x

Second Quarter 2023 Consolidated Results

Second quarter of 2023 net sales were $495.4 million, an increase of 1% compared to $492.4 million in the second quarter of 2022 primarily due to an increase in selling price and product mix of approximately 11%, partially offset by a 10% decrease in sales volumes.  The increase in selling price and product mix was primarily attributable to increases in selling prices in all segments to offset the significant inflationary pressures on the business.  The decline in sales volumes was primarily attributable to a continuation of softer market conditions and the impact of the war in Ukraine in the EMEA segment.