Q2 2025 Quaker Chemical Corp Earnings Call
Greetings and welcome to the Quaker Hound second quarter 2025 earnings conference call.
A brief question and answer session will follow the formal presentation.
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As a reminder, this conference is being recorded.
I would now like to turn the call over to Jeffrey Schnell vice president of investor relations Mr. Snow, you may begin.
Thank you. Good morning and Welcome to our second quarter 2025 earnings conference call.
On the call today are Joe Burke West, our president and chief executive officer.
Tom Kohler, our Executive Vice President, and Chief Financial Officer and Robert trout, our general counsel
Our comments relate to the financial information released after the close of the US markets yesterday. July 31st 2025
Our press release and accompanying slides can be found on our investor relations website.
Mountains, operating performance.
These statements involve uncertainties and risks, which may cause actual results to differ. The company is under no obligation to provide subsequent, updates to these forward-looking statements.
This presentation also contains certain non-gaap Financial measures and the company has provided reconciliations of these non-gaap Financial measures to the most directly comparable, gaap Financial measure in the appendix of the presentation materials which are available on our website.
For additional information, please refer to our filings with the SEC.
Now, it is my pleasure to hand the call over to Joe.
Thank you, Jeff, and good morning, everyone.
In the second quarter, we delivered organic volume growth of 2% year-over-year led by another strong performance in asia-pacific importantly. All segments, delivered organic volume growth on a sequential basis mitigating sustained. Macroeconomic pressures.
We are gaining traction with our key objectives, refocusing and making the organization around the customer.
Which is enabling us to grow our share and outpace the market at solid levels of profitability.
And we have been deliberate in our actions to reduce complexity, and improve our cost structure to support stronger and sustained performance over the long term.
in the second quarter, we generated 42 million of operating cash flow and executed our Capital allocation strategy, including repurchasing, 33 million of shares,
I am pleased with the team's performance in the second quarter as they continue to adapt to the dynamic external environment while keeping a clear focus on our customers' needs.
Second quarter results, were broadly in line with our expectations.
We delivered a 4% year-over-year increase in sales including a 2% increase in organic sales volume.
This was led by an 8% increase on organic sales volume in asia-pacific. We also benefited from the contribution from Acquisitions namely dipole.
Which we closed early in the quarter and is performing in line with expectations.
We estimate the aggregate of the markets. We serve declined in the second quarter. A low single digit percentage compared to the prior year with regional differences.
Our end markets were also largely stable with the first quarter.
Uncertainty created by tariffs is impacting demand overall as well as Weighing on our Geographic and product mix.
Share gains remain strong across the portfolio.
Mitigating the impact of the persistent and challenging end markets.
These gains are trending at the high end of our range as we successfully convert trials and cross-sell.
We remain encouraged by the business development opportunities. We are generating and expect to continue to capitalize, on our pipeline to drive sustained above market growth.
Gross profit dollars were in line with the prior year and above the prior quarter.
Gross. Margins were slightly lower at 36% but remain within our target range.
Margin performance was influenced by both product and Geographic mix as well as higher raw material and Manufacturing costs. Some of which were induced by tariffs,
We generated 75 and a half million dollars of adjusted evida in the second quarter.
An increase of approximately 6 million dollars sequentially.
With adjusted avadim margins of 15.6%.
Reflecting our sales growth and discipline cost management.
our resilient performance, underscores, the strong culture at Quaker Houghton
Our success is driven by our commitment to serving the customer.
By being indispensable to our customers. We are earning the right to grow as a stronger. More profitable Enterprise, regardless of the in Market environment,
A few key areas of strength are fueling our organic growth.
We believe we have the most comprehensive portfolio of solutions in our industry.
And our team of technical experts, collectively possess unmatched, industry-leading process, and application knowledge.
We are leveraging our financial strength and Global reach by investing in new manufacturing capabilities.
Driving Innovation through our Global R&D organization and deploying resources to help our customers manufacturer metals, and metal containing industrial goods.
More cost-effectively safer and then more sustainable ways.
We are also giving our customers a broader set of solutions and improving our manufacturing capabilities and highly competitive markets.
To drive growth with strategic customers and reduce churn, which is trending back to historical levels.
Around key initiatives like fluid intelligence to enhance the outcomes for our customers by developing breakthrough. Sensor, technology, digitized services and automation.
We also have significant opportunities in our portfolio of advanced Solutions where volumes are up a double-digit percentage year-over-year.
As I mentioned in the beginning, we are winning in Asia-Pacific, where we have delivered organic growth for 7 of the last 8 quarters as we earn new business in excess of market growth rates.
By capitalizing on the evolving, landscape in China, as well as growth regions like India and Southeast Asia.
We expect further contributions as we integrate DOL's leading technology and capabilities into our portfolio.
And commercialize our new facility in China in the second half of 2026.
Solidifying our local for local strategy in the region.
It is critical that we continue to invest in our growth while maintaining a clear emphasis on controlling, what we can control.
in the first half of 2025, we actioned our previously announced 20 million dollar cost program
Yielding approximately 15 million dollars of realized Savings in 2025.
To align with the ongoing environment. We have identified further actions to drive out complexity and enhance, our competitiveness
To that end. We are initiating cost actions, which we expect will deliver approximately 20 million dollars of additional run rate savings by the end of 2026.
We expect these actions will deliver 5 to 8 million dollars of incremental in-ear Savings in the second half of 2025.
We have closed 1, facet Network year to date.
Further actions across the network are necessary, including possible asset consolidation, to unlock the leverage in our model and support our ability to deliver adjusted EVA to margins in the high teens as a percent of sales over time.
This journey is underway and we expect to provide more details in the coming quarters.
And lastly, we are executing on our disciplined Capital allocation strategy.
This week, the board approved a 5% increase to our cash dividend. Our 16th consecutive annual increase.
We also closed on 2.
We have approximately 68 million remaining on our current authorization.
And we will continue to be opportunistic with share repurchases.
balance with our growth ambitions while preserving our financial flexibility.
We continue to execute our Enterprise strategy with a focus on driving growth and delivering greater value to customers.
Turning to our Outlook.
Based on indicators, we track tariffs and a significant amount of uncertainty.
We forecast that the end market softness we experienced in the first half will persist through the second half of 2025.
Our pipeline of product trials remains healthy, and we are confident in our ability to convert them to new business with customers.
This will support our ability to drive above market growth in 2025.
in line with our long-term annual expectation of 2% to 4%,
dipole is performing in line with expectations and should also help offset some of the market softness as we progress through the year.
We expect the business performance will improve in the second half of 2025, and therefore, we forecast revenue and earnings will be in the range of 2024.
This is based on our current market visibility in the timing and execution of the additional cost actions I mentioned earlier.
We will remain diligent and agile to navigate the current uncertainty, while positioning the company to capitalize on the positive long-term fundamentals of our industry.
We have conviction in our strategy and our balancing the near-term and long-term needs of the organization.
We will continue to demonstrate strong execution regardless of the market environment.
Delivering for our customers and in turn creating value for shareholders.
With that, I'd like to pass it to Tom to discuss the financials and more details.
Thank you, Joe and good morning, everyone.
Second quarter. Net sales were 483 million, a 4%, increase from the prior year.
Acquisitions contributed an additional 6% to sales.
Selling price and product mix were 4% lower than the prior year. Approximately 2/3 of which stems from product service and Geographic mix organic volumes grew sequentially in all our segments,
Adjusting for one-time acquisition-related charges gross, margins were 36% compared to 36.4% in the first quarter of 2025.
Gross margins declined. When compared to the near record levels in the second quarter of 2024, primarily due to higher raw material and Manufacturing costs and the impact of geographic and product mix.
Gross margins remained within our target range.
Gross profit dollars, increase sequentially and were in line with the prior year. Due to the increase in net sales.
Excluding 1-time items sgna increased approximately 8 million dollars or 7% compared to the prior year.
Excluding Acquisitions sgna is approximately 3%, lower on a year-to-date basis in 2025, compared to 2024, as we benefit from the completion of our previously announced, 20 million of annualized costs and operational efficiency actions.
We are managing costs in a disciplined and prudent manner without sacrificing our ability to serve customers.
We delivered 75.5 million of adjusted ibida in the second quarter and adjusted ibida. Margins of 15.6%.
The lower result compared to the prior year, reflects the combination of higher sales, lower gross margins and our disciplined cost management.
Switching to our segment results. Our asia-pacific segment generated 3%, organic sales growth in the second quarter due to a strong contribution from organic volume growth.
We continue to capitalize on the momentum in this competitive region, winning trials. With new entrance and existing customers and successfully cross-selling in China and in broader, Asia, including India.
Sales increased 20% year-over-year as organic growth was amplified by a contribution from our acquisitions of Dipole and Sutai, which are performing in line with expectations.
Organic sales and volumes increased approximately 7% in asia-pacific sequentially.
Segment earnings declined approximately $2 million compared to the prior year, but increased sequentially.
Segment, margins decline compared to both periods, reflecting higher, raw material and Manufacturing costs as well as product and Geographic mix.
We remain disciplined and have opportunities across the region to improve our profitability while continuing to outpace market growth rates.
Net sales in the AMA segment grew compared to the prior year and prior quarter and market conditions remained. The most challenged in this region.
on a sequential basis, organic volumes increase 4% in the region driven by double-digit growth in our portfolio of advanced and operating Solutions
Acquisitions were additive to sales on a both a year-over-year and sequential basis.
Segment earnings in Q2 continue to improve sequentially, driven by higher sales and stable margins, despite higher raw material costs.
Net sales in the Americas declined. 1% year-over-year
Decline 2%, whereas price, mix was slightly positive.
This compares to a market we estimate was down a mid-single-digit percentage.
Organic volumes grew 2%, sequentially driven by growth in metalworking and advanced Solutions. Despite a modest contraction in our end markets.
Segments earnings in the Americas declined, by 5 million compared to the prior year driven by lower sales, and segment margins segment, margins in the Americas are flat with the first quarter of and trending in line with 20224.
Overall, our performance reflects our ability to generate value for customers and outperform our markets regardless of the operating environment.
Our growth initiatives and our building momentum and we remain disciplined on cost to enhance the leverage. We have embedded in our model
Turning to non-operating costs, our interest expense was $13 million in the second quarter.
This is slightly higher on a year-over-year and sequential basis reflecting the acquisition of dipole, which we funded under our existing credit facility.
Our cost of debt was approximately 5% in the quarter.
Our effective tax rate, excluding non-recurring and non-core items was approximately 28%.
We expect our full year effective tax rate to be between 28 and 29%.
In the second quarter, our Gap diluted earnings per. Share were a loss of 3.78.
This reflects a non-cash Goodwill impairment charge on our AMA segment driven by persistent Market volatility and geopolitical events, which have an increase our cost of capital in the region.
We also recorded a $9 million restructuring charge in the quarter as part of our cost and optimization program.
Excluding these items, second quarter non-GAAP diluted earnings per share were $1.71.
Cash generated from operations was 42 million in the second quarter.
Working capital was a source of cash as expected.
Cash conversion was at the low end of our targeted range due to higher restructuring costs and the lower year-over-year operating performance.
We continue to expect to deliver another solid year of cash flow in 2025.
Capital expenditures in the second quarter were approximately $8 million, reflecting the construction of our new facility in China, which is expected to be online in the second half of 2026.
We are maintaining a balanced approach to capex and are slightly moderating. Our expectation of capex spending in 2025 to 2% to 3% of sales versus our previous expectation of 2.5% to 3.5% of sales, due to the timing of ongoing projects.
As highlighted earlier in the quarter, we completed the Acquisitions of natech and dipole.
We also repurchased approximately 33 million shares outstanding and have approximately $68 million remaining on our existing share repurchase authorization.
Our net debt at quarter end was $735 million.
And our net leverage ratio increased to 2.6 times, our trailing 12 months, adjusted ibida, reflecting the dipole acquisition.
We are pleased with the consistent cash flow generation of the business and our balance sheet continues to provide ample flexibility.
Well, macroeconomic conditions remain challenged. The team is executing well, returning to growth highlighted by the positive inflection in our year-over-year organic sales volumes, managing costs to improve our competitiveness, maintaining margins in our targeted range, and deploying capital to create long-term shareholder value with that. I'll turn it back over to Joe.
Thank you, Tom.
The team is responded. Well to the sustained challenges in our end markets by solving customer needs in improving. Our cost competitiveness.
The resilience in progress, we are making on our journey, gives me confidence. In our ability, to react our growth and deliver value for customers and shareholders with that. We'd be happy to address your questions.
Thank you. We'll now begin the the question and answer session.
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Our first question comes from the line of Mike, Harrison a Seaport research Partners please proceed with your question.
Hi, good morning.
Hey, good morning, Mike. Good morning. Mike
The, uh, the 5% above market growth, uh, that you guys delivered in the quarter was quite impressive, uh, the head of that 2% to 4% kind of target or or or guidance that you provide. Can you just give us a little more color on, on kind of where those shares are, are coming from, both from a regional perspective and, uh, you know, specific, uh, product lines or or or markets? And I guess to, to the extent that you have some recurring aspects to your business model.
Uh, can can you guys sustain a mid single digit above market growth rate into the second half or or were there some aspects of Q2 strength? That that probably won't repeat?
Yeah. Uh, thanks. Thanks. Mike for the questions. I, I think, uh, start with
The new winners there um especially as Automotive growth is happening in that region. So
So that was good. Um, in the product mix side of things, some of the newer things that we've brought on the advanced Solutions. Even the the operating Solutions are are specialty greases are growing uh pretty pretty strongly for us. Um and I would say, you know, on the sustainability side of things I mean,
We we are very confident. We've got visibility to the pipeline as we head into, uh, you know, second half of the year. I think you've also got the benefit of business that you've won in the first half of the year that will wrap, right, as you head into the remainder of the year. So we feel pretty confident that we should be able to sustain that, um, you know, 2 to 4%.
Really over over the long term. Uh, no matter what happens, uh, in the external markets, right? So, uh,
You know, overall I think, uh, Asia is very strong. Um, we are seeing share gains across all of our product lines, maybe a little bit better in the, uh, specialty side of things. Um, but, uh, we are really growing, you know, in all the regions as well.
I wanted to, uh, dig in a little bit on asia-pacific, uh, margins, can you just give us a little better sense of what's going on, uh, there and whether we could see some recovery from the Q2 weakness in the second half and and I guess, uh, to what extent, uh, are the raw material headwinds, that you might be seeing their related to Oleo chemicals and and some of the plant-based inputs uh that are uh showing some spikes right now.
Yeah, so for Asia, I think I would start off by saying, you know, we're winning new business.
There in in, in a lot of different areas and with that, sometimes comes some incentives for for, uh, new business first bills over time, uh, those things are going to stabilize and, and we'll see, uh, modest Improvement.
Um, there's some pure product mix, uh, just the mix of, you know. Uh, do you have uh,
Higher Automotive, less mining those types of things that are going on. And also, India comes into play. Um, there's particularly been a raw material impact in that region related to Oleo chemicals. So palm oils. Uh, and, uh, so we have some, some targeted pricing, uh, that we're, we're going after. We have a few things that have held us back from doing that. Just based upon, uh, timing of indexes.
And where are the contracts? Additionally, in HPAC, we have a little bit of noise with the dipole acquisition. Those things should moderate over time. And then I think, you know,
generally I I, I would expect stability some modest Improvement in the second half long term. Um, we have a new plant coming on in China, and we've made some recent investments in, in our plant, in Thailand, for instance, where, uh, you know, we're starting to do estimation there in those types of things that will will really improve a, a profitability, over the long term.
All right, uh, last question for me is just in terms of the Outlook, um, you know, clearly you're going to need some earnings growth relative to, uh, where you were in the first half or or even the second quarter here. Uh, if you're going to be near 2024 earnings for the full year, can you give us any better sense of the, the Cadence of sequential ebit dog growth in Q3? And, and I guess could Q4 be even higher? Uh, I know that typically, uh, you you would see some seasonal, uh, decline in even. But, uh, but what, what are your thoughts on, uh, on the earnings Cadence for the rest of the year?
Yeah, I mean second second half, we expect will be stronger than the first half from our, you know, from our overall perspective. But we're not really baking into that like any, any Market Improvement? Uh, essentially the we're assuming that we're going to have flat markets heading into the second half and where, where that growth is going to come from is, you know, I mentioned wrap of new business wins and insight uh to how that comes on. Also visibility to our pipeline of of new business, uh, as well. Um,
If all we had was one quarter of dipole, right? So, uh, the acquisitions will have the benefit of an additional quarter there.
I mentioned the the cost actions. Uh so uh
Uh, some of those factors, um, little bit of little bit of self-help on pricing. Um, and, uh, you know, it's just a continued focus on on improving our, our operating margins. Uh, and Manufacturing.
All right, thanks very much.
Yeah, Mike, just your fourth quarter question. I mean look uh, seasonality of the business. Generally the the the third quarter is usually a stronger uh, quarter for us. I, I say second half is better than first half and that's largely driven by by what happens in in Asia PAC.
Primarily China and India in the second half. They don't see that that kind of dip that uh, Europe and and the America see in the fourth quarter. So I would expect our fourth quarter will be better than our fourth quarter last year. I don't know that it would be sequentially up over third quarter. Yeah. And I would just, I would just amplify that Mike that um, you know, as we think about the market environment, the second half, you know, Joe Joe sort of described it as as flat. So, you know, we're not assuming any Market improvement from sort of the, the, um, the the lower sort of challenged environment that we saw in the first half. So assuming that environment consists with no, um, incrementally. Uh, you know, significant impact relative to tariffs or geopolitical disrupt and then you think about self-help and we lag on index, uh, pricing by a quarter. And then some other selective pricing that sort of how we're thinking about section.
Half.
All right, thanks for the extra clarification there.
With CJs Securities, please proceed with your question.
Hi, good morning. Thank you for taking my questions, and it's really nice to see the organic volume growth there.
I was wondering if you could talk a little bit more about the comment you made earlier, uh, about double digit, uh, growth in the advanced products. I assume that includes fluid intelligence, but I was wondering if there's any more than that in there. Um, you know what percentage is that of the total revenue and if the incremental Market is there are are higher than the corporate average.
Yeah. John uh uh, thanks for your comments and and good to hear from you. Uh, so
Fluent intelligence, I'll start there. Fluent intelligence really is something that goes out crosses over all of our product lines. Uh, we are seeing really good traction there. Um, you know, I can give you a sort of a little anecdotal story, where 1 of the 1 of the Japanese customers that we've been, uh, coveting for, for a long time. Uh, we've been able to get a trial there and convert some business, uh, because the technology in that space has really come along and uh, it's helping us convert and and win some new things. But that is that is technology that really crosses over all of our segments,
on the advance of operating Solutions side, that is
Uh, the the recent dips all acquisition, uh, the coral acquisition that we made a couple years ago. It's, uh, things within the Norman, H group, so it plating anodizing. These are still products that are sold into, you know, existing customer base. But they're on the, on the finishing end of of those plants. Uh, so, we're, we're adding value to the part where, you know, changing the, the Metallurgy, or coating the energy in some way. And, um, so see seeing a lot of growth there. Those are newer things for us as we bought things and we start to globalize them. Um, you know, if there was a strength in a region, an example, there would be ikv what we did in, in the Greece, side of things, that was a plant, uh, that we now have manufacturing capabilities in Europe. And we're starting to see that take off and grow a little bit. So the overall specialty or what we would call me, it's an operating Solutions. Part of our portfolio is somewhere around 20%.
Of total revenues, but we're seeing a little bit higher growth rate in that part of the business.
Is it fair to say that's just the old Specialties business that got be segmented, or is it something different than that?
That's fair to say John. Yeah. That's that's yeah exactly. How how we kind of look at it but we've, I would just have we've continued to continue to grow that John Wright with our acquisition of dipole ikv sutai right? So I think is, as you as you've seen us acquire businesses over the last, you know, year to 18 months at, you know, we've had a focus on uh expanding our addressable Market in that in that area.
this year or next year and and to how much of this coming from, you know, Opex versus um, uh, cogs
Yeah, thanks, uh, thanks John. So, um, uh, I I would say that the way we think about it is it's sort of a, a 1 to 1 and a half time, uh, you know, sort of the expected run rate savings that we'll see in terms of the restructuring charge. So once, uh, once that's behind us that, that, that, you know, sort of, um, adds to the adds to the profile. But that's really how you should think about it. Um, we took approximately 9 million dollars worth of restructuring in, um,
in Q2. Um, and then, in terms of mix associated with that, um, we're continuing to look, um, you know, across both our, our, our manufacturing Network, as well as opportunities, to reduce complexity in, um, ensure that we're positioning ourselves to the best possible way to support our customers. And so, I would say, uh, in this this current, uh, this current environment. Uh, it's probably a little bit more of of GNA than it is, uh, network. But with the incremental, 20 million dollars that we announced, um, uh, as part of, um, as part of our Q2 earnings. I think you'll see us. Look at both GNA, as well as opportunities to improve our Network. Particularly in places, like Europe where we, uh, where, where our, uh, our segment margins are, are lower than the Americas and 8 pack. And and we've talked about that on previous calls.
Got it. Thank you so much.
Thank you. Ladies and gentlemen, as a reminder, if you'd like to join the question queue, please press star 1 on your telephone keypad,
Our next question comes to the line of a room with Swan with RBC Capital markets. Please proceed with your question.
Great. Thanks for taking my question. I hope you guys are well, um, yeah, so I guess you had, you know, a nice turn around here in Asia Pacific. Um,
I guess maybe as you look at, uh,
You know, what is that? What does that mean for your margin growth? Um, would you really need? You know, maybe some recovery in the other regions as well to continue to drive that even without margin closer to 18%, I think, uh, maybe some of your prior targets. Um, maybe I'll start with that. Thanks.
Yeah, look I I think
Our gross margins are in that 36% range, 36.37%. That's really where we feel we're in the target there.
uh,
to get to the 18%, there's, there's a couple different things that we could do on the cost side, right? Um, our, our sgna is a percent of sales, really GNA is a percent of sales, is higher than it's been historically. And uh, so thus the actions that that we announced um, in the first half of the year and some of that is continuing and and we think
Uh, you know, we're taking prudent steps to reduce complexity improve our cost.
Without inhibiting our ability to grow or, you know, causing any impact to our our customers. So so
going from sort of mid mid teens to to 18, I think uh there's opportunity there just on on the cost side and then when you look at our our our manufacturing costs as a percent of sales, I think Tom alluded to things that we're looking at in the um
In the, uh, you know, the network and just being more efficient, uh, overall, uh, in how we, uh, execute, you know, with our operations.
And then finally like there in an inflationary environment and there's there's some, there's some things, we mentioned, a Leo chemicals. You've got other things right now that are that are really tariff related. We're seeing some, some a little bit of inflation on the additive side where where suppliers are. Um, you know, we're we're local for local so it's not like we're paying tariffs, but it's the suppliers that are that are saying, hey, they they are experiencing difficulty with terrorists and they're trying to pass that along a pricing and then inflationary environment like that, we do tend to lag by a quarter or 2, but we expect over the long term that, uh, you know, we'll we'll be within our target range and, and we've shown in the past, our ability to get pricing. We have some of that ongoing right now.
Great. Thanks for that. And then um secondly your customers um,
You know, I guess, uh, what are they telling you about how they feel about the tariffs? Um, could it be a potential positive in North America and especially for the medals complex? Whether it be steel or aluminum? Um,
What are your customers, I guess? Uh, uh, indicating to you. And would you have to kind of
Uh, build some inventory or is there anything you need to do to prepare for that?
uh, we used the word uncertainty, and, and I think our customers are in the are in the same space Arun, um,
People are being cautious right now, uh, as far as building their own inventory and actually saw inventories at our customers, adjust down a little bit. And in the second quarter, hopefully, that's a good sign for for the rest of the year as far as North America goes. It's, it's a bit of of moving the deck chairs around, right? So, if something is a benefit for the US, it could potentially be a detriment to Mexico or Canada. We have, you know, very strong, uh, presence in in all 3 countries. But, you know, over the long term, uh, Americas is, is a very big, uh, region for us. So, we'll see, we'll see where that, where that goes?
Awesome if I could. Um, so I guess you you've been in the seat uh, for a little while now. And um, I guess our, our uh, um perception was that? Um, you you wanted to focus a little bit more on the commercial, uh, strategy at at Quaker. Um, maybe could you just share your thoughts on, uh,
You know how your, uh, approaching that and if there's been any major changes or, or do you foresee any major changes and what is that kind of, um, could you describe what that could potentially be if possible? Thanks a lot.
Yeah, and look, I I think we've we've seen like we're very happy. I think that we've seen our churn reduce, uh, get back to the historical levels. That's allowing us to to, to Really take advantage of this share gain that we're getting. How have we done that? Um, we have made some some changes in our org structure. I wouldn't call them anything major or radical. Uh, it it's, it's more, you know, uh, how we're organized around our product line management, how we're uh deploying, uh, in the different, uh, sales regions. But these are things that are more operational. Uh, they're not, they're not, um, you know, transformational so um,
We're very happy about our position right now. We're we're we're really happy. I I think in competitive markets like Asia pack and seeing you know growth with some of the new winners over there which is going to be essential, you know, for for the long.
The long term, but but, uh, we've taken a lot of steps, uh, part of the cost actions, that, that have occurred have helped us reduce our complexity. I think in turn that is enabled growth and that should continue as we go forward. Um, we also, you know, we continue to to be very, uh, strategic and prudently.
With our Capital deployment, you know, making Acquisitions, but also, uh, you know, we we repurchase some shares, uh, in the second quarter, we couldn't do that in the first quarter, so got back in and did that we raised our dividend. Uh, so really
Really optimistic about our position right now. Um, and as I said earlier, uh, no matter what the markets do, we're confident that we're going to continue to grow and and take share.
Thanks a lot.
Thank you.
Thank you, ladies and gentlemen, that concludes our question and answer session. I'll turn the floor back to Mr. Burke West for closing comments.
Yeah thank you. And uh before closing I just want to acknowledge the collective team at Quaker Houghton for their hard work and commitment to our strategy and we really appreciate all of you and your continued interest in our company. If you have any questions please reach out to Jeff and we'd be happy to follow up. Thank you.
Thank you, this concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.