Quaker Chemical (KWR) Earnings Beat and Asian Growth Could Be a Game Changer

• Quaker Chemical Corporation reported third quarter 2025 results, with sales rising to US$493.84 million and net income of US$30.47 million, surpassing analyst estimates for both revenue and adjusted earnings per share.
• The results were fueled by organic volume growth, new business gains, particularly in Asia/Pacific, and continued share repurchases, reflecting strong cash generation and ongoing strategic initiatives.
• With the company outpacing expectations on earnings and revenue, we'll examine how these results and management's focus on scale and cost management affect Quaker Chemical's investment narrative.

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Quaker Chemical Investment Narrative Recap

To be a Quaker Chemical shareholder, you likely need to believe in the company’s ability to deliver sustainable organic growth in specialty chemicals and capitalize on demand for advanced, high-margin chemistries, particularly in growth regions like Asia/Pacific. The latest quarterly results, with revenue and adjusted earnings exceeding expectations, reinforce near-term optimism around volume growth and new business wins but do not materially resolve longer-term concerns about margin pressure from rising raw material and manufacturing costs, which remains the most important risk.

Among recent company actions, the ongoing share repurchase program, totaling US$85.75 million since early 2024, stands out. This continued buyback reflects consistent cash generation and could support per-share earnings, although its short-term impact on the core catalysts of margin improvement and cost control remains limited.

By contrast, margin pressure driven by raw material inflation and product mix shifts is a factor investors should be aware of…

Read the full narrative on Quaker Chemical (it's free!)

Quaker Chemical's narrative projects $2.1 billion revenue and $531.8 million earnings by 2028. This requires 3.9% yearly revenue growth and a $538.9 million earnings increase from the current $-7.1 million.

Uncover how Quaker Chemical's forecasts yield a $162.00 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Five individual fair value estimates from the Simply Wall St Community for Quaker Chemical range from US$70.23 to US$29,241.28. While opinions differ, many remain mindful that ongoing cost pressures could weigh on future profitability and investor confidence.

Explore 5 other fair value estimates on Quaker Chemical - why the stock might be a potential multi-bagger!

Build Your Own Quaker Chemical Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Quaker Chemical research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Quaker Chemical research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Quaker Chemical's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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