Quaker Houghton falls 4.4% after third-quarter results show margin gains and cash pressures

What happened

Quaker Houghton (KWR) fell 4.4% on October 30, 2026, after it beat third-quarter EPS estimates but warned of higher raw-material costs and working-capital pressures. The company reported non-GAAP diluted EPS of $2.39, above the $2.10 estimate, and adjusted EBITDA of $89.8 million, while management said higher raw-material costs and working-capital investment had weighed on cash. The session opened 4.0% above the previous close and the stock finished the day at $150.95, with trading volume 1.8 times its 20-day average. News of the quarter was reported by Seeking Alpha and Zacks Investment Research.

How big was the move

The stock fell 4.4% on the session, a move that was 3.1 times a typical daily move for this stock. Over the last five sessions the stock fell 3.2%, while the S&P 500 fell 1.8% on the day and fell 0.6% over five sessions. The Basic Materials sector median fell 0.6% on the day, making the stock 3.8 percentage points worse than the sector median. Market sensitivity is a beta of 1.16, so the stock tends to move more than the market. In the past five years the stock had 35 sessions with a decline of at least 4.4%; twenty trading days later the median result was a decline of 1.1%, and 14 of 35 were higher.

The technical picture

The stock traded 4.1% below its 20-day moving average and 4.9% below its 50-day moving average, while sitting 0.5% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 99 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) was 36, inside the neutral 30-to-70 range. The shares were 17.5% below the 52-week high. Over one month the stock fell 4.7% and over three months it fell 10.0%, while over one year the stock rose 15.7%, 5.7 percentage points ahead of the S&P 500. Sixty-day annualized volatility was 22%, lower than 99% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, Quaker Houghton reported revenue of $2.03 billion, which grew 8.7% from a year earlier and followed revenue growth one quarter earlier of 7.8%. Diluted earnings per share for the period were $5.60. Gross margin was 35.0% (a year earlier: 35.1%), and operating margin was 8.6% (a year earlier: 3.1%). Return on invested capital was 5.6% and the free-cash-flow margin was 1.9%. The balance sheet showed net debt of 3.0 times EBITDA and share count over one year decreased by 0.4%.

Valuation metrics show the stock at 27.0 times trailing earnings and 19.2 times expected forward earnings, with a free-cash-flow yield of 1.5%. Its price-to-earnings ratio is lower than 69% of its own readings over the past five years (five-year median: 28.7 times earnings). PromtFinance scores rank Momentum at 75 (Positive), Revisions 63 (Neutral), Value 58 (Neutral), with Growth 35 (Weak) and Quality 38 (Weak).

Earnings and analyst expectations

Quaker Houghton reported its last quarterly results on October 29, 2026, with earnings per share of $2.39 against $2.10 expected, 13.8% above estimates. The company posted net sales of $544.5 million, up 10% year-over-year, driven by a 3% increase in sales volumes largely from new business wins across all segments. Management described record adjusted EBITDA and margin and flagged cash pressures from higher raw-material costs and working-capital investment. Net income was $30.0 million and GAAP diluted EPS was $1.73; non-GAAP net income was $41.4 million.

The firm has beaten estimates in two consecutive quarters and the average surprise over the last four reports was 10.1% above estimates. The typical two-day reaction after recent reports was unchanged. The next report is scheduled for February 22, 2027.

Analysts’ consensus rating is Buy, based on 16 analysts, with 56% of ratings at Buy or Strong Buy. The consensus price target is $186.33, which is 23.4% above the closing price on October 30, 2026.

What to watch

• February 22, 2027: next quarterly earnings report date
• Management commentary and cadence on raw-material costs and working-capital trends from the October 29, 2026, release
• Adjusted EBITDA and margin progress relative to the reported $89.8 million and stated record margin
• Net debt of 3.0 times EBITDA and any plans to reduce leverage
• Consensus price target of $186.33 and analyst revisions