Quaker Chemical (KWR) Down 23.3% Since Last Earnings Report: Can It Rebound?

It has been about a month since the last earnings report for Quaker Chemical (KWR). Shares have lost about 23.3% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Quaker Chemical due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Quaker Houghton before we dive into how investors and analysts have reacted as of late.

Key Highlights

Earnings per share (as reported) for the fourth quarter of 2025 were $1.18 compared with 81 cents a year ago, up 45.5%.

Adjusted earnings per share rose 24% to $1.65 from $1.33 in the prior-year quarter. It missed the Zacks Consensus Estimate of $1.71.

Revenues were $468.5 million, up 5.5% year over year from $444.1 million in the year-ago quarter. It beat the consensus estimate of $465.3 million.

Top-line growth in the fourth quarter was broad-based with important mix effects. Management attributes the sales increase primarily to acquisitions and favorable currency swings, partly offset by unfavorable price/mix and lower organic volume.

Adjusted EBITDA was $71.9 million compared with $64.8 million, up 10.9%, with an adjusted EBITDA margin of 15.3% compared with 14.6% a year ago.

Segment Performance

Americas: Net sales were $207.8 million, essentially flat year over year. Volumes declined 4%, offset by favorable currency of 2% and the contribution of acquisitions of 2%. Segment operating earnings increased modestly to $51.2 million from $50.9 million.

EMEA: Net sales were $135 million, up 7.3% year over year, driven by acquisitions, favorable price/mix, and currency, while volumes declined 2%. Segment operating earnings increased to $21.8 million from $18.6 million.

Asia/Pacific: Net sales were $125.7 million, up 14.7% year over year. Organic volume rose 4% and acquisitions, primarily Dipsol, provided a meaningful lift. Segment operating earnings increased to $34 million from $30.7 million.

Balance Sheet, Cash Flow and Capital Deployment

Fourth-quarter operating cash flow was $47 million versus $63 million a year ago, reflecting higher restructuring outflows and working capital needs, including temporary inventory builds in EMEA to support network optimization. Full-year operating cash flow was $136.5 million.

As of Dec 31, 205, total debt stood at $871 million, cash at $180 million and net debt at $691 million. Net leverage was 2.3x TTM adjusted EBITDA.

The company repurchased approximately $5 million of stock in the quarter and $41.5 million for the full year, and paid $34 million in dividends.

Outlook

Management expects first-quarter 2026 to mark a third consecutive quarter of year-over-year EBITDA improvement, supported by share gains, gross margin recovery from the fourth quarter's operational issues, and acquisition run-rate.

For 2026, the outlook calls for mid-single-digit revenue growth and high-single-digit adjusted EBITDA growth, with gross margin targeted at 36-37% for the year. Share gains of 2-4% are expected across all regions, with Asia/Pacific remaining the growth leader.

SG&A is expected to be higher year over year due to variable compensation rebuild and inflation, partially offset by transformation and cost-structure initiatives. Capital expenditure is planned at 2.5-3.5% of sales, including completion of a new China facility targeted to begin operations in the second half and the 2026 consolidation.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -7.37% due to these changes.

VGM Scores

At this time, Quaker Chemical has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Quaker Chemical has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Quaker Chemical belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Celanese (CE), has gained 14.5% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Celanese reported revenues of $2.2 billion in the last reported quarter, representing a year-over-year change of -7%. EPS of $0.67 for the same period compares with $1.45 a year ago.

For the current quarter, Celanese is expected to post earnings of $0.81 per share, indicating a change of +42.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.2% over the last 30 days.

Celanese has a Zacks Rank #5 (Strong Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

See Top Quantum Stocks Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Quaker Houghton (KWR): Free Stock Analysis Report

Celanese Corporation (CE): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research