000008136212/312025Q3falseP1Yxbrli:sharesiso4217:USDiso4217:USDxbrli:shareskwr:countrykwr:segmentxbrli:pureiso4217:JPYkwr:positioniso4217:EUR00000813622025-01-012025-09-3000000813622025-10-2700000813622025-07-012025-09-3000000813622024-07-012024-09-3000000813622024-01-012024-09-3000000813622025-09-3000000813622024-12-3100000813622023-12-3100000813622024-09-300000081362us-gaap:CommonStockMember2023-12-310000081362us-gaap:AdditionalPaidInCapitalMember2023-12-310000081362us-gaap:RetainedEarningsMember2023-12-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310000081362us-gaap:NoncontrollingInterestMember2023-12-310000081362us-gaap:RetainedEarningsMember2024-01-012024-03-310000081362us-gaap:NoncontrollingInterestMember2024-01-012024-03-3100000813622024-01-012024-03-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310000081362us-gaap:CommonStockMember2024-01-012024-03-310000081362us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310000081362us-gaap:CommonStockMember2024-03-310000081362us-gaap:AdditionalPaidInCapitalMember2024-03-310000081362us-gaap:RetainedEarningsMember2024-03-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310000081362us-gaap:NoncontrollingInterestMember2024-03-3100000813622024-03-310000081362us-gaap:RetainedEarningsMember2024-04-012024-06-300000081362us-gaap:NoncontrollingInterestMember2024-04-012024-06-3000000813622024-04-012024-06-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300000081362us-gaap:CommonStockMember2024-04-012024-06-300000081362us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300000081362us-gaap:CommonStockMember2024-06-300000081362us-gaap:AdditionalPaidInCapitalMember2024-06-300000081362us-gaap:RetainedEarningsMember2024-06-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300000081362us-gaap:NoncontrollingInterestMember2024-06-3000000813622024-06-300000081362us-gaap:RetainedEarningsMember2024-07-012024-09-300000081362us-gaap:NoncontrollingInterestMember2024-07-012024-09-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300000081362us-gaap:CommonStockMember2024-07-012024-09-300000081362us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300000081362us-gaap:CommonStockMember2024-09-300000081362us-gaap:AdditionalPaidInCapitalMember2024-09-300000081362us-gaap:RetainedEarningsMember2024-09-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300000081362us-gaap:NoncontrollingInterestMember2024-09-300000081362us-gaap:CommonStockMember2024-12-310000081362us-gaap:AdditionalPaidInCapitalMember2024-12-310000081362us-gaap:RetainedEarningsMember2024-12-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310000081362us-gaap:NoncontrollingInterestMember2024-12-310000081362us-gaap:RetainedEarningsMember2025-01-012025-03-310000081362us-gaap:NoncontrollingInterestMember2025-01-012025-03-3100000813622025-01-012025-03-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310000081362us-gaap:CommonStockMember2025-01-012025-03-310000081362us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310000081362us-gaap:CommonStockMember2025-03-310000081362us-gaap:AdditionalPaidInCapitalMember2025-03-310000081362us-gaap:RetainedEarningsMember2025-03-310000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310000081362us-gaap:NoncontrollingInterestMember2025-03-3100000813622025-03-310000081362us-gaap:RetainedEarningsMember2025-04-012025-06-300000081362us-gaap:NoncontrollingInterestMember2025-04-012025-06-3000000813622025-04-012025-06-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-04-012025-06-300000081362us-gaap:CommonStockMember2025-04-012025-06-300000081362us-gaap:AdditionalPaidInCapitalMember2025-04-012025-06-300000081362us-gaap:CommonStockMember2025-06-300000081362us-gaap:AdditionalPaidInCapitalMember2025-06-300000081362us-gaap:RetainedEarningsMember2025-06-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300000081362us-gaap:NoncontrollingInterestMember2025-06-3000000813622025-06-300000081362us-gaap:RetainedEarningsMember2025-07-012025-09-300000081362us-gaap:NoncontrollingInterestMember2025-07-012025-09-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-300000081362us-gaap:CommonStockMember2025-07-012025-09-300000081362us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300000081362us-gaap:CommonStockMember2025-09-300000081362us-gaap:AdditionalPaidInCapitalMember2025-09-300000081362us-gaap:RetainedEarningsMember2025-09-300000081362us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300000081362us-gaap:NoncontrollingInterestMember2025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:AssetsTotalMember2025-01-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:AssetsTotalMember2025-07-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMemberus-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-07-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMember2025-07-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMember2025-01-012025-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMember2024-07-012024-09-300000081362kwr:ArgentineAndTurkishSubsidiariesMembersrt:SubsidiariesMember2024-01-012024-09-300000081362kwr:DipsolChemicalsCoLtdMember2025-04-012025-04-300000081362us-gaap:InterestRateSwapMember2025-01-012025-09-300000081362kwr:DipsolChemicalsCoLtdMember2025-04-010000081362kwr:DipsolChemicalsCoLtdMember2025-07-012025-09-300000081362kwr:DipsolChemicalsCoLtdMember2025-04-012025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:CustomerRelationshipsMember2025-04-012025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-04-012025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:TrademarksMember2025-04-012025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:CustomerRelationshipsMember2025-04-010000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:CustomerRelationshipsMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:CustomerRelationshipsMember2025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:CustomerRelationshipsMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-04-010000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:TechnologyBasedIntangibleAssetsMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TrademarksMember2025-04-010000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TrademarksMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:DipsolChemicalsCoLtdMemberus-gaap:TrademarksMember2025-04-010000081362kwr:DipsolChemicalsCoLtdMemberus-gaap:TrademarksMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:DipsolChemicalsCoLtdMember2025-04-010000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:DipsolChemicalsCoLtdMember2025-04-010000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:DipsolChemicalsCoLtdMember2025-04-010000081362kwr:DipsolChemicalsCoLtdMember2025-01-012025-09-300000081362kwr:NatechLtdMember2025-04-012025-04-300000081362kwr:NatechLtdMember2025-04-300000081362kwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-02-012025-02-280000081362kwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-02-280000081362kwr:SutaiGroupMember2024-07-012024-07-310000081362kwr:SutaiGroupMember2024-07-310000081362kwr:I.K.V.TribologieIKVTMember2024-02-012024-02-290000081362kwr:I.K.V.TribologieIKVTMember2024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:CustomerRelationshipsMember2024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:CustomerRelationshipsMember2024-02-012024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:TechnologyBasedIntangibleAssetsMember2024-02-012024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:TrademarksMember2024-02-290000081362kwr:I.K.V.TribologieIKVTMemberus-gaap:TrademarksMember2024-02-012024-02-290000081362us-gaap:OperatingSegmentsMembersrt:AmericasMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMember2025-01-012025-09-300000081362srt:AmericasMember2025-01-012025-09-300000081362srt:AmericasMember2025-07-012025-09-300000081362srt:AmericasMember2024-07-012024-09-300000081362srt:AmericasMember2024-01-012024-09-300000081362us-gaap:EMEAMember2025-07-012025-09-300000081362us-gaap:EMEAMember2024-07-012024-09-300000081362us-gaap:EMEAMember2025-01-012025-09-300000081362us-gaap:EMEAMember2024-01-012024-09-300000081362srt:AsiaPacificMember2025-07-012025-09-300000081362srt:AsiaPacificMember2024-07-012024-09-300000081362srt:AsiaPacificMember2025-01-012025-09-300000081362srt:AsiaPacificMember2024-01-012024-09-300000081362kwr:TopFiveMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-03-310000081362kwr:LargestCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2025-01-012025-03-310000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AmericasMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMemberus-gaap:EMEAMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AsiaPacificMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AmericasMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMemberus-gaap:EMEAMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AsiaPacificMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMember2025-07-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AmericasMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMemberus-gaap:EMEAMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AsiaPacificMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AmericasMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMemberus-gaap:EMEAMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AsiaPacificMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AmericasMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMemberus-gaap:EMEAMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AsiaPacificMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AmericasMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMemberus-gaap:EMEAMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AsiaPacificMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMember2024-07-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AmericasMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMemberus-gaap:EMEAMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMembersrt:AsiaPacificMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalsMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AmericasMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMemberus-gaap:EMEAMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMembersrt:AsiaPacificMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMemberkwr:MetalworkingAndOtherMember2024-01-012024-09-300000081362us-gaap:OperatingSegmentsMember2024-01-012024-09-300000081362kwr:FacilitiesVehiclesAndMachineryAndEquipmentMember2025-09-300000081362us-gaap:LandMember2025-09-300000081362us-gaap:RestructuringChargesMember2024-12-310000081362us-gaap:RestructuringChargesMember2025-01-012025-09-300000081362us-gaap:RestructuringChargesMember2025-07-012025-09-300000081362us-gaap:RestructuringChargesMember2025-09-300000081362us-gaap:RestrictedStockMember2025-09-300000081362us-gaap:RestrictedStockMember2025-01-012025-09-300000081362us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-09-300000081362srt:MinimumMemberus-gaap:RestrictedStockUnitsRSUMember2025-01-012025-09-300000081362srt:MaximumMemberus-gaap:RestrictedStockUnitsRSUMember2025-01-012025-09-300000081362us-gaap:RestrictedStockUnitsRSUMember2025-09-300000081362us-gaap:PerformanceSharesMember2025-01-012025-09-300000081362srt:MaximumMemberus-gaap:PerformanceSharesMember2025-01-012025-09-300000081362kwr:PerformanceStockUnitsROICMember2025-01-012025-09-300000081362kwr:PerformanceStockUnitsTSRMember2025-01-012025-09-300000081362us-gaap:PerformanceSharesMember2025-09-300000081362us-gaap:PensionPlansDefinedBenefitMember2025-07-012025-09-300000081362us-gaap:PensionPlansDefinedBenefitMember2024-07-012024-09-300000081362us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2025-07-012025-09-300000081362us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-07-012024-09-300000081362us-gaap:PensionPlansDefinedBenefitMember2025-01-012025-09-300000081362us-gaap:PensionPlansDefinedBenefitMember2024-01-012024-09-300000081362us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2025-01-012025-09-300000081362us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-09-300000081362us-gaap:PensionPlansDefinedBenefitMember2025-09-300000081362us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2025-09-300000081362us-gaap:ForeignCountryMember2025-07-012025-09-300000081362us-gaap:ForeignCountryMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMembersrt:ScenarioPreviouslyReportedMember2024-12-310000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMembersrt:ScenarioPreviouslyReportedMember2024-12-310000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMembersrt:ScenarioPreviouslyReportedMember2024-12-310000081362srt:ScenarioPreviouslyReportedMember2024-12-310000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:DipsolChemicalsCoLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:DipsolChemicalsCoLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:DipsolChemicalsCoLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:NatechLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:NatechLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:NatechLtdMember2025-01-012025-09-300000081362kwr:NatechLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMemberkwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberkwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberkwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-01-012025-09-300000081362kwr:ChemicalSolutionsAndInnovationsPtyLtdMember2025-01-012025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AmericasMember2025-09-300000081362us-gaap:OperatingSegmentsMemberus-gaap:EMEAMember2025-09-300000081362us-gaap:OperatingSegmentsMembersrt:AsiaPacificMember2025-09-3000000813622023-01-012023-03-310000081362us-gaap:CustomerListsMember2025-09-300000081362us-gaap:CustomerListsMember2024-12-310000081362kwr:TrademarksFormulationsandproducttechnologymemberMember2025-09-300000081362kwr:TrademarksFormulationsandproducttechnologymemberMember2024-12-310000081362us-gaap:OtherIntangibleAssetsMember2025-09-300000081362us-gaap:OtherIntangibleAssetsMember2024-12-310000081362kwr:HoughtonCombinationMember2024-12-310000081362kwr:AmendedRevolverMember2025-09-300000081362kwr:AmendedRevolverMember2024-12-310000081362kwr:AmendedUsTermLoanMember2025-09-300000081362kwr:AmendedUsTermLoanMember2024-12-310000081362kwr:AmendedEuroTermLoanMember2025-09-300000081362kwr:AmendedEuroTermLoanMember2024-12-310000081362kwr:IndustrialDevelopmentBondsMember2025-09-300000081362kwr:IndustrialDevelopmentBondsMember2024-12-310000081362kwr:BankLinesOfCreditAndOtherDebtObligationsMember2025-09-300000081362kwr:BankLinesOfCreditAndOtherDebtObligationsMember2024-12-310000081362kwr:AmendedEuroTermLoanMember2023-09-300000081362kwr:AmendedUsTermLoanMember2023-09-300000081362kwr:AmendedRevolverMember2023-09-300000081362kwr:AmendedCreditFacilityMember2023-09-300000081362kwr:OriginalCreditFacilityAndTheAmendedCreditFacilityMember2025-07-012025-09-300000081362kwr:OldCreditFacilityMember2025-09-300000081362srt:MinimumMemberkwr:AmendedCreditFacilityMember2025-01-012025-09-300000081362srt:MaximumMemberkwr:AmendedCreditFacilityMember2025-01-012025-09-300000081362us-gaap:LetterOfCreditMemberus-gaap:RevolvingCreditFacilityMember2025-09-300000081362us-gaap:LetterOfCreditMemberkwr:AmendedRevolverMember2025-09-300000081362us-gaap:InterestRateSwapMember2023-09-300000081362us-gaap:InterestRateSwapMember2024-04-012024-06-300000081362us-gaap:InterestRateSwapMember2025-03-310000081362us-gaap:InterestRateSwapMember2025-09-300000081362us-gaap:OtherAssetsMember2025-09-300000081362us-gaap:OtherAssetsMember2024-12-310000081362us-gaap:CorporateBondSecuritiesMember2024-12-310000081362us-gaap:CorporateBondSecuritiesMember2025-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2025-06-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-06-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-06-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-06-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2025-07-012025-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-07-012025-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-07-012025-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-07-012025-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2025-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-06-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2024-07-012024-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-07-012024-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-07-012024-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-07-012024-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2024-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2024-12-310000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-12-310000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-12-310000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-12-310000081362us-gaap:AccumulatedTranslationAdjustmentMember2025-01-012025-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2025-01-012025-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2025-01-012025-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-01-012025-09-300000081362us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310000081362us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-09-300000081362us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-09-300000081362us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-09-300000081362us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-09-300000081362currency:MXN2025-09-300000081362currency:JPY2025-09-300000081362us-gaap:ForeignExchangeForwardMember2025-01-012025-09-300000081362us-gaap:InterestRateSwapMember2023-07-012023-09-300000081362us-gaap:CurrencySwapMember2025-09-300000081362kwr:CurrencySwapEuroMember2025-09-300000081362us-gaap:CurrencySwapMember2025-04-300000081362kwr:CurrencySwapYenMember2025-04-300000081362us-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2025-01-012025-09-300000081362us-gaap:CurrencySwapMemberus-gaap:OtherNoncurrentAssetsMember2024-01-012024-12-310000081362us-gaap:CurrencySwapMemberus-gaap:AccruedLiabilitiesMember2025-01-012025-09-300000081362us-gaap:CurrencySwapMemberus-gaap:AccruedLiabilitiesMember2024-01-012024-12-310000081362us-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2025-01-012025-09-300000081362us-gaap:InterestRateSwapMemberus-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2024-01-012024-12-310000081362us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentAssetsMember2025-01-012025-09-300000081362us-gaap:InterestRateSwapMemberus-gaap:OtherNoncurrentAssetsMember2024-01-012024-12-310000081362us-gaap:ForeignExchangeForwardMemberus-gaap:AccruedLiabilitiesMember2025-01-012025-09-300000081362us-gaap:ForeignExchangeForwardMemberus-gaap:AccruedLiabilitiesMember2024-01-012024-12-310000081362us-gaap:CurrencySwapMember2025-01-012025-09-300000081362us-gaap:CurrencySwapMember2024-01-012024-12-310000081362us-gaap:InterestRateSwapMember2024-01-012024-12-310000081362us-gaap:InterestIncomeMember2025-07-012025-09-300000081362us-gaap:InterestIncomeMember2024-07-012024-09-300000081362us-gaap:InterestIncomeMember2025-01-012025-09-300000081362us-gaap:InterestIncomeMember2024-01-012024-09-300000081362us-gaap:InterestExpenseMember2025-07-012025-09-300000081362us-gaap:InterestExpenseMember2024-07-012024-09-300000081362us-gaap:InterestExpenseMember2025-01-012025-09-300000081362us-gaap:InterestExpenseMember2024-01-012024-09-300000081362us-gaap:NonoperatingIncomeExpenseMember2025-07-012025-09-300000081362us-gaap:NonoperatingIncomeExpenseMember2024-07-012024-09-300000081362us-gaap:NonoperatingIncomeExpenseMember2025-01-012025-09-300000081362us-gaap:NonoperatingIncomeExpenseMember2024-01-012024-09-300000081362kwr:HoughtonEnvironmentalMattersMember2025-09-300000081362kwr:HoughtonEnvironmentalMattersMember2024-12-3100000813622024-01-012024-12-31

For the transition period from              to             

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes    x     No    o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   x     No    o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o   No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As used in these Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for the period ended September 30, 2025 (the “Report”), the terms “Quaker Houghton,” the “Company,” “we,” and “our” refer to Quaker Chemical Corporation (doing business as Quaker Houghton), its subsidiaries, and associated companies, unless the context otherwise requires.

The condensed consolidated financial statements included herein are unaudited and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial reporting and the United States Securities and Exchange Commission (“SEC”) regulations. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, and cash flows for the interim periods. The results for the nine months ended September 30, 2025 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”). Certain prior year amounts have been reclassified to conform to the current year presentation.

The Company was organized in 1918 and incorporated as a Pennsylvania business corporation in 1930. Quaker Houghton is the global leader in industrial process fluids. With a presence around the world, including operations in over 25 countries, the Company’s customers include thousands of the world’s most advanced and specialized steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. Quaker Houghton develops, produces, and markets a broad range of formulated chemical specialty products and offers chemical management services, which the Company refers to as FluidcareTM, for various heavy industrial and manufacturing applications sold in its three reportable segments: (i) Americas; (ii) Europe, Middle East and Africa (“EMEA”); and (iii) Asia/Pacific.

Argentina’s and Türkiye’s economies were considered hyper-inflationary under U.S. GAAP effective July 1, 2018 and April 1, 2022, respectively. As of and for the three and nine months ended September 30, 2025, the Company’s Argentine and Turkish subsidiaries together represented approximately 1% and 2% of the Company’s consolidated total assets and net sales, respectively. During the three and nine months ended September 30, 2025, the Company recorded $0.9 million and $2.1 million of remeasurement losses associated with the applicable currency conversions, respectively. Comparatively, during the three and nine months ended September 30, 2024, the Company recorded $0.6 million and $0.3 million of remeasurement losses associated with the applicable currency conversions, respectively. These losses were recorded within Other (expense) income, net, in the Company’s Condensed Consolidated Statements of Operations.

In April 2025, the Company acquired Dipsol Chemicals Co., Ltd. and its subsidiaries, (“Dipsol”) for approximately $185.6 million (27.7 billion JPY), which included approximately $30.1 million (4.5 billion JPY) of acquired cash for a net purchase price of approximately $155.5 million (23.2 billion JPY). In July 2025, the Company satisfied all routine and customary post-closing conditions and finalized the purchase price with no adjustments. The Company funded the acquisition purchase price with borrowings under its existing credit facility. In connection with the acquisition of Dipsol, the Company entered into foreign currency forward contracts, which resulted in a $187.0 million cash payment and a $1.4 million foreign currency loss recognized during the nine months ended September 30, 2025. Dipsol is headquartered in Japan and is a leading supplier of surface treatment and plating solutions and services primarily for the automotive and other industrial applications end markets. Dipsol has operations in several countries and these operations are reported within the Company’s respective Americas, EMEA, and Asia/Pacific segments. This acquisition expands the Company’s advanced solutions businesses in attractive end markets with solid growth characteristics and high barriers to entry. Dipsol also provides significant cross-selling opportunities and enhances the Company’s ability to meet the needs of our customers across the globe.

The following table presents the preliminary estimated fair values of Dipsol assets acquired and liabilities assumed as of the acquisition date:

1.The Company recorded approximately $0.2 million of measurement period adjustments in the third quarter of 2025 to reflect changes in net working capital. All measurement period adjustments were offset against goodwill.

As of September 30, 2025, the allocation of the purchase price has not been finalized and the one-year measurement period has not ended. Further adjustments may be necessary as a result of the Company’s ongoing assessment of additional information related to the fair value of assets acquired and liabilities assumed.

The Company allocated $55.0 million of the purchase price to intangible assets across the Americas, EMEA, and Asia/Pacific segments. Customer relationships, product technologies, and trademarks will be amortized over 14 years, 8 years, and 13 years, respectively. The following table presents the intangible assets recognized for each reportable segment:

The Company recognized $53.0 million of goodwill, which is comprised of $47.3 million in the Asia/Pacific segment, $5.3 million in the Americas segment, and $0.4 million in the EMEA segment. The goodwill is not deductible for tax purposes. The goodwill is primarily attributable to expected synergies.

Total sales included in the Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2025 are $20.6 million and $41.5 million, respectively.

In April 2025, the Company acquired Natech, Ltd., (“Natech”) for approximately $6.5 million, which includes an initial cash payment of $6.0 million and a deferred payment of $0.5 million, subject to routine and customary post-closing adjustments, including an adjustment for working capital. Assets acquired included cash and cash equivalents of $1.5 million. Natech is based in the United Kingdom and is a manufacturer of surface treatment chemicals for a variety of industrial applications. Natech is reported as part of the EMEA reportable segment. This acquisition strengthens Quaker Houghton’s overall surface treatment product and application capabilities within Europe. The Company allocated $2.1 million of the purchase price to intangible assets and recognized $2.6 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill is primarily attributable to expected growth synergies. During the third quarter of 2025, the Company settled the working capital adjustment for an immaterial amount. As of September 30, 2025, the allocation of the purchase price has not been finalized.

In February 2025, the Company acquired Chemical Solutions & Innovations (Pty) Ltd. (“CSI”), for approximately $3.9 million, subject to routine and customary post-closing adjustments, including an adjustment for working capital. CSI is based in South Africa and is a supplier of metalworking fluids and lubricants to the South African market. CSI is reported as part of the EMEA reportable segment. This acquisition strengthens Quaker Houghton’s position in South Africa and expands the Company’s presence in that region. The Company allocated $1.4 million of the purchase price to intangible assets and recognized $1.7 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill is primarily attributable to expected growth synergies. During the third quarter of 2025, the Company settled the working capital adjustment for an immaterial amount. As of September 30, 2025, the allocation of the purchase price has not been finalized.

In July 2024, the Company acquired the Sutai Group (“Sutai”), for approximately $16.2 million, including an initial cash payment of $14.6 million, subject to routine and customary post-closing adjustments related to working capital and net indebtedness levels, as well as earn-out provisions with an initial estimated payout of $1.6 million related to the finalization of 2024 and 2025 earnings. Assets acquired included cash and cash equivalents of $5.5 million. The Company recorded incremental income of $0.8 million during the three and nine months ended September 30, 2025 relating to adjustments to earnout provisions in Other (expense) income, net on the Condensed Consolidated Statements of Operations. As of September 30, 2025, the Company does not have any remaining earnout liabilities recorded on its Condensed Consolidated Balance Sheets. Sutai is based in Japan and provides impregnation treatment products and services to the automotive and other industries. Sutai is reported as part of the Asia/Pacific segment. This acquisition strengthens Quaker Houghton’s technology portfolio, enabling the Company to better support and optimize production processes for customers across the Japanese, Asia Pacific and global markets. The Company allocated $3.1 million of the purchase price to intangible assets and recognized $5.5 million of goodwill in the Asia/Pacific segment, none of which is deductible for tax purposes. During the first quarter of 2025, the Company settled the working capital adjustment for an immaterial amount which impacted the residual goodwill recorded. The goodwill is primarily attributable to expected growth synergies. As of September 30, 2025, the allocation of the purchase price has been finalized.

During February 2024, the Company acquired I.K.V. Tribologie IKVT and its subsidiaries (“IKV”) for $35.2 million, including an initial cash payment of $29.7 million, subject to routine and customary post-closing adjustments related to working capital and net indebtedness levels as well as earn-out provisions related to the finalization of 2023 earnings. Assets acquired included approximately $4.8 million of cash and cash equivalents. IKV, which is part of the Company’s EMEA segment, specializes in high-performance lubricants and greases, including original equipment manufacturer first-fill greases that are primarily used in the automotive, aerospace, electronics, and other industrial markets. The acquisition of IKV strengthens the Company’s position in first-fill greases. The Company allocated $15.0 million of the purchase price to intangible assets, comprised of approximately $11.1 million of customer relationships to be amortized over 16 years; $3.2 million of product technologies to be amortized over 14 years; and $0.7 million of trademarks to be amortized over 5 years. In addition, the Company recognized $16.4 million of goodwill in the EMEA segment, none of which is deductible for tax purposes. The goodwill is primarily attributable to expected cost and growth synergies. In July 2024, the 2023 earnings were finalized, and the Company made a payment of $5.5 million in connection with the post-closing adjustments and earn-out provision. As of September 30, 2025, the allocation of the purchase price has been finalized.

The results of operations of Dipsol, Natech, CSI, Sutai and IKV subsequent to the acquisition dates are included in the unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025.

During the three and nine months ended September 30, 2025, the Company recognized $0.6 million and $4.8 million, respectively, of acquisition-related expenses including legal, financial, consulting and other costs, compared to $0.4 million and $0.9 million, respectively, during the three and nine months ended September 30, 2024. These costs are included in Selling, general and administrative expenses (“SG&A”) in the Condensed Consolidated Statements of Operations.

The Company has adopted Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures beginning with the 2024 Form 10-K and the Form 10-Q for the period ended March 31, 2025. This ASU expands reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, defined as those expenses that are regularly provided to the Chief Operating Decision Maker (“CODM”) and included in the reported measure of segment profit or loss. The Company disclosed that the CODM assesses segment performance and makes decisions about allocating resources to its operating segments using segment operating earnings. Based on the Company’s assessment, the Company determined that product costs are significant segment expenses that are regularly provided to the CODM and included in segment operating earnings. The Company disclosed product costs and other operating expenses included in segment operating earnings by reportable segment. See Note 4, Business Segments, for additional information.

The FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures in December 2023. This ASU requires public business entities (“PBEs”) to disclose additional information in specified categories with respect to the reconciliation of the effective tax rate to the statutory rate (the “rate reconciliation”) for federal, state, and foreign income taxes, requiring greater detail about individual reconciling items in the rate reconciliation to the extent the impact of those items exceeds a specified threshold. The ASU also requires PBEs to disclose income taxes paid disaggregated by federal, state, and foreign taxes. Further disaggregation is also required in jurisdictions where income taxes paid exceeds a certain threshold. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company will adopt ASU 2023-09 beginning with the Form 10-K for the year ended December 31, 2025 using a retrospective transition approach.

The FASB issued ASU 2024-03, Income Statement- Reporting Comprehensive Income- Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses in November 2024. This ASU requires PBEs to disclose, in interim and annual reporting periods, additional information about certain expenses in the notes to the financial statements, including disclosing the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization in each relevant expense caption. It also requires PBEs to disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively and to disclose the total amount of selling expenses, and in the annual reporting periods, an entity’s definition of selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is currently evaluating the disclosure requirements of this standard and the impact on its condensed consolidated financial statements.

The FASB issued ASU 2025-06, Intangibles- Goodwill and Other- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software in September 2025. This ASU removes all references to prescriptive and sequential software development stages and will now require PBEs to start capitalizing software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. The ASU also specifies that the disclosures in Subtopic 360-10, Property, Plant, and Equipment- Overall are required for all capitalized internal-use software costs. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the disclosure requirements of this standard and the impact on its condensed consolidated financial statements.

The Company’s operating segments, which are consistent with its reportable segments, reflect the structure of the Company’s internal organization and the manner by which the CODM, which is the Company’s Chief Executive Officer, allocates resources and assesses performance.

The CODM evaluates performance for the Company’s operating segments based on segment operating earnings. Segment operating earnings for each of the Company’s reportable segments are comprised of the segment’s net sales less directly related product costs and other operating expenses. Operating expenses not directly attributable to the net sales of each respective segment, such as certain corporate and administrative costs and restructuring charges, are not included in segment operating earnings. Other items not specifically identified with the Company’s reportable segments include Interest expense and Other (expense) income, net.

The CODM uses segment operating earnings to allocate resources for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for segment operating earnings when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating earnings to assess the performance for each segment and in the compensation of certain employees.

Segment asset information is not regularly provided to or reviewed by the CODM. Therefore, the Company does not disclose segment asset information for each reportable segment.

The following table presents information about the performance of the Company’s reportable segments for the three and nine months ended September 30, 2025 and 2024:

(1) Product costs include the costs of raw materials and are recorded in Cost of goods sold in the Company’s Condensed Consolidated Statements of Operations.

(2) Other operating expenses include overhead costs of operating the Company’s production facilities and providing chemical management services to customers and direct SG&A.

(3) Product costs includes the $6.0 million amortization of the fair value step-up in Dipsol's inventories as a result of the acquisition for the nine months ended September 30, 2025, which is comprised of approximately $2.6 million in the Americas segment, $3.0 million in the Asia/Pacific segment, and $0.4 million in the EMEA segment.

(4) Product costs includes a $0.7 million loss and a $2.9 million gain related to immaterial out-of-period adjustments for inventory for the three and nine months ended September 30, 2025, respectively. The $0.7 million loss was recognized in the Americas segment during the three months ended September 30, 2025. The $2.9 million gain recognized during the nine months ended September 30, 2025 was comprised of a $0.7 million gain in the Americas segment and a $2.2 million gain in the EMEA segment.

The following table presents a reconciliation of the Company’s segment operating earnings to income (loss) before taxes and equity in net income of associated companies in the Company’s Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024:

The following table presents information regarding the Company’s reportable segments’ depreciation for the three and nine months ended September 30, 2025 and 2024:

A significant portion of the Company’s revenues are realized from the sale of process fluids and services to manufacturers of steel, aluminum, automotive, aerospace, industrial and agricultural equipment, and durable goods. As previously disclosed in the Company’s 2024 Form 10-K, the Company’s five largest customers combined (each composed of multiple subsidiaries or divisions with semiautonomous purchasing authority) accounted for approximately 12% of consolidated net sales for 2024, with its largest customer accounting for approximately 3% of consolidated net sales.

The Company had no material contract assets recorded on its Condensed Consolidated Balance Sheets as of September 30, 2025 or December 31, 2024.

The Company had approximately $2.8 million and $4.2 million of deferred revenue as of September 30, 2025 and December 31, 2024, respectively. For the nine months ended September 30, 2025, the Company satisfied materially all of the associated performance obligations and recognized into revenue materially all advance payments received and recorded as of December 31, 2024.

The Company sells its industrial process fluids, specialty chemicals and technical expertise as a global product portfolio. The Company generally manages and evaluates its performance by reportable segment first, and then by customer industries. Net sales of each of the Company’s major product lines are generally spread throughout all three of the Company’s reportable segments, and in most cases, are approximately proportionate to the level of total sales in each reportable segment.

The following tables disaggregate the Company’s net sales by segment and customer industry.

The Company has operating leases for certain facilities, vehicles, and machinery and equipment with remaining lease terms up to 9 years. Operating lease expense is recognized on a straight-line basis over the lease term. In addition, the Company has certain land use leases with remaining lease terms up to 90 years.

The Company had no material variable lease costs, sublease income, or finance leases for the three and nine months ended September 30, 2025 and 2024. The components of the Company’s lease expense are as follows:

Supplemental cash flow information related to the Company’s leases is as follows:

Supplemental balance sheet information related to the Company’s leases is as follows:

Maturities of operating lease liabilities as of September 30, 2025 were as follows:

(1) During the year ended December 31, 2024, the Company entered into a new lease agreement for office and laboratory space in Radnor, Pennsylvania for the purpose of relocating its global headquarters. The lease for one portion of the laboratory space is expected to commence in the second quarter of 2026. The lease for the remaining portions of laboratory and office space is expected to commence upon the completion of the lessor owned leasehold improvements, which is expected to be in the second half of 2026. The cumulative future lease commitment for the laboratory and office space is $79.7 million. The future lease commitments relating to this lease were not included in the lease liabilities balance as of September 30, 2025.

In 2022, the Company initiated a global cost and optimization program to improve its cost structure and drive a more profitable and productive organization. As of September 30, 2025, the program included restructuring and associated severance costs to reduce headcount by approximately 420 positions globally. These actions are expected to be substantially complete by the end of 2026.

Employee separation benefits vary depending on local regulations across countries. The timing to finalize costs associated with all actions will depend on a number of factors and is subject to change. In addition to the global cost and optimization program described above, the Company continues to take actions to optimize its facility footprint. Restructuring costs incurred during the three and nine months ended September 30, 2025 and 2024 include employee severance and asset-related and facility closure costs, including non-cash asset write-offs, which are recorded in Restructuring and related charges, net in the Company’s Condensed Consolidated Statements of Operations.

Activity in the Company’s accrual for its restructuring program and facility closure actions are as follows:

The total liability related to the restructuring program and facility closure actions was $9.7 million as of September 30, 2025, which consisted of $4.8 million recognized in Accrued restructuring in the Condensed Consolidated Balance Sheets and $4.9 million recognized in Other non-current liabilities in the Condensed Consolidated Balance Sheets. The total liability was $2.3 million as of December 31, 2024, which was recognized in Accrued restructuring in the Condensed Consolidated Balance Sheets.

In connection with the plans for closure of certain manufacturing and non-manufacturing facilities, the Company has made available for sale certain facilities and properties. As of September 30, 2025, the Company classified properties in the Americas segment with an aggregate book value of approximately $1.2 million as held-for-sale. These assets are recorded in Prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets. The Company expects to complete the sale of these properties over the next 12 months. During the nine months ended September 30, 2025, the Company completed the sale of certain property previously classified as held for sale for a gain of $2.2 million, which is recorded in Other (expense) income, net in the Company’s Condensed Consolidated Statements of Operations.

The Company recognized $3.5 million and $10.4 million, respectively, of share-based compensation expense in its Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025, compared to $4.3 million and $12.4 million, respectively, for the three and nine months ended September 30, 2024.

As of September 30, 2025, unrecognized compensation expense related to non-vested restricted shares was $0.2 million, to be recognized over a weighted average remaining period of 0.4 years.

During the nine months ended September 30, 2025, the Company granted 80,100 restricted stock units under its LTIP, which are subject to time-based vesting, generally over one to three years. The fair value of these grants is based on the closing price of the Company’s common stock on the date of grant. As of September 30, 2025, unrecognized compensation expense related to non-vested restricted stock units was $9.1 million, to be recognized over a weighted average remaining period of 1.5 years.

As a component of its LTIP, the Company grants performance-based stock unit awards (“PSUs”). The number of shares that may ultimately be issued as settlement for each award may range from 0% up to 200% of the target award, subject to the achievement of the Company’s market-based total shareholder return (“TSR”) metric relative to the performance of a selected peer group, and separately the achievement of a performance-based return on invested capital (“ROIC”) measure. The service vesting period required for the PSUs is generally three years and the measurement period of the market-based and performance objectives is generally from January 1 of the year of grant through December 31 of the year prior to issuance of the shares.

As mentioned above, a portion of the Company’s PSUs are subject to the achievement of the Company’s TSR relative to the performance of a selected peer group. For PSUs subject to relative TSR performance granted in 2025 and 2024, the Company’s peer group was the S&P Composite 1500 Chemicals index.

Compensation expense for PSUs is measured based on the grant date fair value and is recognized on a straight-line vesting method basis over the applicable vesting period. During the nine months ended September 30, 2025, the Company granted 26,658 PSUs with a ROIC condition. The fair value of these grants is based on the closing trading price of the Company’s common stock on the date of grant. During the nine months ended September 30, 2025, the Company granted 26,608 PSUs with a relative TSR condition. These PSUs are valued using a Monte Carlo simulation on the grant date and had a grant-date fair value of $150.90 per unit, which was developed based on the assumptions set forth in the table below:

As of September 30, 2025, there was approximately $7.6 million of total unrecognized compensation cost related to PSUs, which the Company expects to recognize over a weighted-average period of 2.1 years.

The components of net periodic benefit cost (income) are as follows:

During the nine months ended September 30, 2025, $4.0 million of contributions have been made to the Company’s U.S. and foreign pension plans. Contributions to other postretirement benefit plans were $0.2 million. Taking into consideration current minimum cash contribution requirements, the Company currently expects to make full year cash contributions of approximately $6.7 million to its U.S. and foreign pension plans and approximately $0.2 million to its other postretirement benefit plans.

The components of Other (expense) income, net are as follows: