Quaker Chemical's Q2 2025: Unpacking Contradictions in Asia/Pacific Margins, Tariffs, and Growth Strategies

Asia/Pacific margin and growth expectations, tariff impacts and customer inventories, cost savings and efficiency initiatives, gross margin expectations and pricing dynamics, and Asia Pacific margin growth and market performance are the key contradictions discussed in Quaker Chemical Corporation's latest 2025Q2 earnings call.



Revenue Growth and Market Performance:
- Quaker Chemical Corporation reported sales of $483 million in Q2, up 4% year-over-year, with a 2% increase in organic sales volume.
- The growth was driven by strong performance in Asia/Pacific, particularly in China and India, and contributions from acquisitions, despite a low single-digit decline in overall market conditions.

Profitability and Cost Management:
- The company generated $75.5 million in adjusted EBITDA in Q2, with adjusted EBITDA margins of 15.6%.
- Profitability was maintained through disciplined cost management, including the completion of a $20 million annualized cost program and further actions to reduce complexity and enhance competitiveness.

Share Gains and Product Mix:
- The company achieved share gains across all regions, led by a 5% increase in new business wins, with notable growth in advanced and operating solutions.
- Share gains were supported by successful trials and cross-selling efforts, as well as the integration of recent acquisitions like Dipsol.

Acquisitions and Strategic Investments:
- Quaker Houghton closed on acquisitions of Dipsol and Natech, which are in line with expectations and are expected to contribute to future growth.
- The company's ongoing investments in new manufacturing capabilities and R&D are aimed at driving innovation and supporting strategic customers, despite macroeconomic challenges.