Quaker Houghton Reports Strong Q3 2026 Earnings, Driven by Volume Growth and Disciplined Cost Management
Quaker Houghton, a leading global supplier of process chemicals and lubricants to the automotive and industrial markets, reported strong third-quarter 2026 earnings, driven by volume growth and disciplined cost management.
The company's positive earnings momentum continued in Q3, with sales volumes increasing 3% year-over-year, marking its fifth consecutive quarter of year-over-year profitability growth. This resulted in the highest adjusted EBITDA in Quaker Houghton's history for the second consecutive quarter.
Quaker Houghton's President and CEO, Joe Berquist, said during the earnings conference call that the company's performance demonstrates the strength of its customer-intimate business model and the resilience of its global operating network. Despite continued volatility across markets, Quaker Houghton's teams are executing consistently to deliver products to customers, gain share, and convert top-line growth into higher earnings.
The Americas region led volume growth, with sales volumes increasing 7% year-over-year. This was driven by cross-selling and the company's share-of-wallet initiatives, which resulted in net share gains in the mid-single digits. Industrial activity and steel production improved against the prior-year quarter, where previously idled customer capacity continued to ramp up.
Asia Pacific delivered another solid quarter, with sales volumes increasing 5% year-over-year. Quaker Houghton won business in higher-growth geographic markets like India and Vietnam, expanded its position with electric vehicle OEMs and component manufacturers, and increasingly won with Chinese automotive producers.
The company's results were led by strong growth in the Americas and another quarter of improved operating earnings in EMEA, despite challenging operating conditions in that region. Asia Pacific continued its momentum, delivering year-over-year volume growth for the 13th consecutive quarter.
Quaker Houghton's CFO, Tom Coler, noted during the conference call that the company's adjusted EBITDA was at an all-time high, and its net share gains were in the mid-single digits. He also highlighted the company's ability to offset persistent inflation through successful pricing actions, which resulted in a 7% increase in price and mix.
The company's performance demonstrates its ability to adapt to changing market conditions and execute consistently on its business model. Quaker Houghton continues to outperform its underlying end markets, with all three regions reaching or exceeding the upper end of its target range.
