Quaker Houghton Q1 Report 2024

Net sales in the first quarter of 2024 were $469.8 million, a decline of approximately 6% compared to $500.1 million in the first quarter of 2023. This result was primarily due to a decrease in selling price and product mix of approximately 5%, and a decline in sales volumes of approximately 1%. The decrease in selling price and product mix was primarily attributable to our index-based customer contracts. The decline in sales volumes was primarily attributable to a continuation of softer end market conditions that persisted throughout 2023 and have continued into the current year and partially offset by an improvement in volumes in the Asia/ Pacific segment and new business wins across all segments.

The Company reported net income in the first quarter of 2024 of $35.2 million, or $1.95 per diluted share, compared to net income of $29.5 million, or $1.64 per diluted share, in the first quarter of 2023. Excluding non-recurring and non-core items in each period, the Company’s non-GAAP net income and earnings per diluted share were $37.7 million and $2.09 respectively in the first quarter of 2024 compared to $34.0 million and $1.89 respectively in the prior year quarter. The Company generated adjusted EBITDA of $83.3 million in the first quarter of 2024, an increase of 6% compared to $78.8 million in the first quarter of 2023, primarily driven by an improvement in gross margins in all segments compared to the prior year.

Highlights

• Q1’24 net sales of $469.8 million, net income of $35.2 million and earnings per diluted share of $1.95
• Q1’24 non-GAAP net income of $37.7 million and non-GAAP earnings per diluted share of $2.09
• Delivered adjusted EBITDA of $83.3 million in Q1’24, a 6% increase compared to $78.8 million in Q1’23
• Gross margins improved 400 basis points compared to the prior year, the 7th consecutive quarterly year-over-year increase
• Generated $27.2 million of operating cash flow in Q1’24