Quaker Houghton (NYSE: KWR) has closed a new 7-year U.S. dollar-denominated Term Loan B facility with an aggregate principal amount of $550 million. The industrial process fluids leader will use the proceeds to repay in full the U.S. Term Loans outstanding under its existing Credit Agreement.

The new facility matures in October 2033 and is priced at SOFR +175 basis points. This refinancing action replaces prior debt instruments, consolidating the company's long-term liability structure under updated terms.

Facility terms and structure

The Term Loan B amends Quaker Houghton's existing Credit Agreement. The structure includes specific amortization requirements designed to manage principal repayment over the loan's life.

Quarterly amortization payments are set at 0.25% of the initial aggregate principal amount. The remaining balance is due at maturity in October 2033.

Quaker Houghton reported second-quarter adjusted earnings per share of $2.19, significantly beating the analyst consensus estimate of $1.65 by 32.73%. The Conshohocken-based industrial process fluids leader also posted net sales of $532.550 million, which exceeded the market expectation of $503.883 million by 5.69%. These results underscore a robust operational turnaround, with top-line growth driven by a 7% surge in sales volumes from new business wins across all segments.

The company’s financial performance reflects strong top-line expansion and disciplined cost management. Net income attributable to Quaker Chemical Corporation common shareholders reached $26.8 million, or $1.55 per diluted share, marking a significant recovery from a net loss of $66.6 million in the second quarter of 2025. Excluding non-recurring items, non-GAAP net income stood at $37.9 million, representing a 28.07% year-over-year increase from $1.71 per share in the prior year period. Management noted that pricing actions have successfully offset raw material inflation pressures.

Financial Performance Highlights

The following table summarizes key financial metrics for the three and six months ended June 30, 2026, compared to the same periods in 2025. All figures are in thousands of US dollars unless otherwise noted.

Segment operating earnings demonstrated mixed but generally positive trends. The EMEA segment saw operating earnings rise to $32.7 million from $25.0 million, while Asia/Pacific increased to $36.6 million from $28.7 million. Conversely, Americas segment operating earnings declined slightly to $57.2 million from $59.0 million, attributed to higher raw material costs and selling, general, and administrative (SG&A) expenses.

What the Numbers Show

A critical observation from the filing is the divergence between GAAP and non-GAAP profitability metrics, highlighting the impact of one-time charges in the prior year. The second quarter of 2025 included $88.8 million in impairment charges, which significantly distorted GAAP comparability. Excluding these non-core items, the company’s core operational engine has strengthened considerably, with adjusted EBITDA margin expanding to 16.0% from 15.6% in the prior year quarter. This margin improvement, coupled with volume growth that exceeded management’s target range, indicates successful market share gains even as broader industrial demand remained stable.

Capital Allocation and Liquidity

Quaker Houghton reinforced its commitment to returning capital to shareholders by announcing a new share repurchase program authorizing the buyback of up to $250 million of common stock. This open-ended program replaces the 2024 Share Repurchase Plan. In the second quarter alone, the company repurchased 170,568 shares for approximately $24.2 million. Additionally, the quarterly dividend was increased by approximately 4.3%.

Liquidity remains solid, with cash and cash equivalents totaling $155.1 million as of June 30, 2026. Total gross debt stood at $876.1 million, resulting in net debt of approximately $721.0 million. The company’s net debt-to-trailing twelve-month adjusted EBITDA ratio was approximately 2.3x, reflecting a manageable leverage position amidst ongoing operational investments.