Greetings, and welcome to the Quaker Houghton Q1 2026 Earnings Conference Call. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to John Dalhoff, Director of Investor Relations. Mr. Dalhoff, you may begin. Thank you. Good morning, and welcome to Quaker Houghton's Q1 2026 Earnings Conference Call. Joining us on the call today are Joe Berquist, our President and Chief Executive Officer; Tom Coler, our Executive Vice President and Chief Financial Officer; and Robert T. Traub, our General Counsel. Our comments relate to the financial information released after the close of the U.S. markets yesterday, April 30, 2026. Our press release and accompanying slides can be found on our investor relations website. Both the prepared commentary and discussion during this call may contain forward-looking statements reflecting the company's current view of future events and their potential effect on Quaker Houghton's operating and financial 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 to the most directly comparable GAAP financial measures 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's my pleasure to hand the call over to Joe. Thank you, John, and good morning, everyone. We delivered a strong Q1 with organic volumes up 3% year-over-year, resulting in our third consecutive quarter of adjusted EBITDA growth. Our performance was driven by new business wins in all regions, highlighted by double-digit organic volume growth in Asia Pacific, where we continue to gain traction across the region. Adjusted EBITDA increased 5% compared to the prior year, building on net share gains that enabled us to outperform our end markets, which we estimate were down approximately 1% in the quarter. Gross margins improved from the fourth quarter, increasing 150 basis points sequentially and 40 basis points year-over-year. The sequential improvement in margins was bolstered by higher utilization of fixed assets and improved operational performance. Market conditions remained soft overall, with pockets of incremental industrial gains tempered by weak automotive production. The hostilities in the Strait of Hormuz are creating inflationary pressure on raw materials and input costs, but so far it has not had a significant direct or indirect impact on demand. Strong commercial execution from our team and contributions from our recent acquisitions helped offset the underlying sluggish markets, enabling us to deliver organic volume, revenue, and EBITDA growth in the quarter despite headwinds and volatility. Turning to the Q1 results, net sales increased 8% year-over-year, fueled by net share gains of 4% at the top of our target range, along with the contribution from recent acquisitions. This marks the 10th consecutive quarter of net share gains while our end markets have been consistently sluggish. Organic sales volumes in Asia Pacific grew for the 11th consecutive quarter. While our business in China continues to grow above end market rates, we are also achieving outsized growth in emerging markets such as India, Thailand, and Vietnam. Operating margins have expanded in the region as we are benefiting from recent organic investments in localized manufacturing. In EMEA, organic volumes grew 2% in the Q1 as new business wins outpaced persistently tough end markets. Volumes in the Americas declined slightly year-over-year, driven by a lingering customer outage, tariff uncertainty, and weather-related disruptions. Despite these challenges, March had the highest volume in the Americas in the last 16 months, signaling improved momentum as we exited the quarter. EBITDA margins declined 50 basis points year-over-year, primarily because of higher SG&A expenditures related to acquisitions, foreign currency, and incentive compensation. I would like to provide more color on the ongoing conflict in the Middle East and how we are managing its impact on our business. Immediately after the conflict began, we established an executive-level task force to monitor developments, assess potential impacts, and coordinate our response. Our top priority was to ensure the safety of our more than 4,700 employees, particularly those living and working in the region. We also took swift action to confirm supply continuity to customers in the affected region. Since then, the task force has remained actively engaged, tracking conditions closely and addressing emerging pressures. From a business perspective, we have proportionally low direct sales exposure to Middle East countries near the conflict area. Our sales to North Africa and the Middle East in 2025 were less than 2% of total company net sales. While Q1 results were largely insulated, we expect higher raw material and shipping costs in the Q2. To address this, we implemented pricing actions across all regions, with some taking effect in April. There will be a typical lag between rising costs and price realization, which we expect will create temporary gross margin pressures in the Q2. Based on the actions we have taken and additional increases planned for this quarter, we expect to recover margins within 1-2 quarters. Meanwhile, we are committed to ensuring products reach our customers without disruption. We have not yet seen a meaningful impact on customer demand, but a prolonged conflict could begin to influence broader economic activity, including forward demand and further cost inflation. With this backdrop, we are focused on what we can control. Today, we are announcing the launch of a new transformation program that will reduce cost and complexity across the organization, optimize our manufacturing network, strengthen sales and technical capabilities, and simplify global processes. We will pace investments over the coming months to unlock productivity in a disciplined manner. The first phase is underway through a comprehensive business process review focused on finding cost opportunities and improving master data management. The program will fundamentally change the way we work, and we are looking to modernize the employee and customer experience. In the Q1, we took steps to streamline our executive leadership structure to sharpen customer focus and accelerate decision-making. This program is central to achieving adjusted EBITDA margins at or above our target of 18%. We expect to exit this year with approximately $10 million in new run rate savings. Over the next 3 years, we see a clear path to delivering at least $20 million-$30 million of sustainable structural cost improvement, with much of that target already identified. We have a clear line of sight to a robust set of initiatives, giving us confidence in our long-term transformation path. This new program complements actions that are already underway. The closure of our manufacturing facility in Dortmund, Germany, remains on track, and we are beginning to realize the associated financial benefits. We continue to expect approximately $2 million in cost savings from the closure in 2026 and $5 million in annual run rate savings beginning in 2027. We also recently announced the planned closure of our manufacturing facility in Songjiang, China, which will coincide with the startup of our new facility in Zhangjiagang later this summer. Production from Songjiang will transition to the new site as it comes online, enabling more efficient operations and enhanced capabilities. This modern facility will strengthen our ability to serve customers across Asia-Pacific and manufacture recent portfolio additions more competitively at the local level. Turning to the outlook. Our view on macro trends is consistent with prior expectations. End markets declined modestly in the Q1 as expected. While we still continue to predict flat end market conditions for the full year with normal seasonal improvement and a slightly better demand environment in the second half, we expect sequential volume and revenue growth in Q2, driven by seasonal improvement and wrap effect of new and recent business wins. Visibility through the first part of the quarter indicates steady demand. At the same time, we anticipate temporary gross margin pressure related to higher input costs stemming from the Middle East conflict, which is expected to push gross margins below our target range in the Q2. The situation remains dynamic due to the prevailing market uncertainty. We expect these gross margin headwinds to be temporary, lasting no more than 1-2 quarters. Our current estimate is that Q2 gross margins will be 200-300 basis points below quarter 1 on a sequential basis. Through pricing actions we are taking, we expect to fully recover gross margins within our target range of 36%-37% as we exit the year. With the rapid raw material cost escalation in recent weeks above what we experienced at the end of the Q1 and the ongoing uncertainty of the situation, we are in the process of implementing further price increases, which we expect will be in place before the end of the Q2. We are recovering the cost impact from inflation in a responsible way and collaborating with our customers to successfully navigate the complexity of the current situation. As mentioned previously, the company is also taking action to improve our cost structure. Our long-term earnings profile continues to be resilient. Our local-for-local operating model and deep customer relationships differentiate us and enable new business wins. As a result, even amid heightened uncertainty, we continue to expect revenue and adjusted EBITDA growth in 2026, assuming no significant further deterioration in our end markets because of the Middle East conflict. In closing, I am incredibly proud of our team and their consistent execution in a challenging environment. We are making substantial progress across key priorities, including pursuit of new business, cost structure optimization while also diligently executing our strategy to create long-term value for our customers and shareholders. With that, I will turn the call over to Tom to walk through the financials in more detail. Thank you, Joe, and good morning, everyone. Q1 net sales were $480 million, an 8% increase from the prior year. Organic volumes increased 3%, driven by global net share gains of 4% across all regions, with Asia Pacific being the largest contributor. Acquisitions contributed an additional 4% to net sales, primarily related to Dipsol, which will become part of our organic base beginning in Q2. We also had a 4% benefit to net sales from favorable foreign currency translation, primarily due to the euro strengthening against the US dollar. Partially offsetting these items was unfavorable selling price and product mix, which was 3% lower than the prior year, associated with lower index pricing, regional and geographic mix. As expected, gross margins improved on both a year-over-year basis as well as sequentially to 36.8%, near the high end of our target range. This was driven by product margin improvement and more favorable manufacturing absorption. On a non-GAAP basis, SG&A increased approximately $16 million or 14% in the Q1 compared to the prior year. This increase was primarily due to acquisitions and the impact of foreign currency. Excluding these items, organic SG&A was approximately 6% higher in the Q1, mainly due to higher incentive compensation and accelerated depreciation related to our corporate headquarters and lab consolidation in the Philadelphia area. We delivered $73 million of adjusted EBITDA in the Q1, while adjusted EBITDA margin of 15.1% declined year-over-year due to higher SG&A costs. Switching now to our segment results. Our Asia Pacific segment continues to be a growth engine, with organic net sales increasing in 10 of our 11 last quarters and new business wins far exceeding the high end of our total company target range. Asia Pacific sales in the Q1 increased 25% year-over-year as the impact of our acquisition of Dipsol complemented organic volume growth of 10% and a favorable foreign currency impact of 3%. These drivers were partially offset by unfavorable price and mix, which declined 2% in the quarter. Segment earnings in Asia Pacific increased approximately $8 million or 32% in the Q1 compared to the prior year. This was driven by higher top-line growth as well as improved product margins and more favorable manufacturing absorption. Q1 net sales in EMEA increased 10% year-over-year, partially due to favorable foreign currency impacts. Higher net sales from organic volume growth and the impact of acquisitions were offset by lower selling price and product mix. Segment earnings in EMEA increased approximately $2 million or 9% in the Q1 compared to the prior year. Q1 net sales in the Americas were in line with the prior year as favorable impacts from our acquisitions and foreign currency were offset by lower organic sales volumes and selling price and product mix. Lower volumes were attributable to a continued customer outage, regional tariff uncertainty, and weather impacts early in the quarter, while lower selling prices were primarily the result of our index contracts as raw material costs declined in the quarter compared to the prior year. Segment earnings in the Americas decreased approximately $5 million or 8% in the Q1 compared to the prior year. This was driven by higher SG&A related to selling expense and incentive compensation, as well as unfavorable product mix that negatively impacted margins. Turning to non-operating costs. Our interest expense was $10 million in the Q1, which was consistent with the prior year and the past few quarters. Our cost of debt remained approximately 5% in the quarter. Our effective tax rate, excluding non-core and non-recurring items, was approximately 28% in the Q1, which is slightly lower than the prior year and in line with our expectations for the full year effective tax rate in the range of 28%-29%. In the Q1, our GAAP diluted earnings per share were $1.13, and our non-GAAP diluted earnings per share were $1.63, a 3% increase over the prior year due to improved operating performance. Cash generated from operations was $4 million in the Q1, increasing from a use of cash of $3 million in the prior year. The Q1 is typically our lowest from a cash generation perspective due to incentive compensation payments, working capital investments, and the seasonality of our business. The improvement over the prior year was primarily the result of better operating performance and lower cash restructuring costs, which totaled $4 million in the Q1. Capital expenditures in the Q1 were approximately $11 million, primarily related to the construction of our new facility in China. We anticipate capital expenditures to increase in the remaining quarters as we complete construction in China and finalize the build-out of our new corporate headquarters in Pennsylvania. We still expect full year 2026 capital expenditures to be approximately 2.5%-3.5% of sales. During the 1st quarter, we paid approximately $9 million in dividends. We remain focused on our capital allocation priorities. Balancing investments for growth with returning cash to shareholders and will continue to weigh opportunistic share repurchases in a prudent manner that optimizes shareholder value. In April, we announced that we entered into an amended credit agreement in which we extended our nearest debt maturity by almost 4 years from June 2027 to April 2031, while also increasing our revolving credit facility availability by approximately $300 million and improving our overall credit terms. The amended agreement also provides us with the right to increase the revolving credit facility by approximately $331 million for additional liquidity. The improvement in our credit terms and increased availability under this new agreement reflects the strength of our balance sheet and are clear indicators of the underlying health of our business and the durability of our cash flows. The new agreement provides increased financial flexibility that will allow us to execute our strategy, achieve our capital allocation priorities, and continue investing in growth. We delivered strong Q1 results, continuing to gain share and driving organic volume growth despite ongoing macroeconomic and geopolitical challenges. With a strengthened balance sheet and increased financial flexibility, we are well positioned to continue executing our strategy and creating value for shareholders. With that, I will turn it back over to Joe. Thank you, Tom. We are executing a clear set of priorities to strengthen the business, simplifying how we operate, enhancing our capabilities, and putting the right cost structure in place to support sustainable growth. With that, we would be happy to answer your questions. Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Mike Harrison with Seaport Research Partners. Please proceed with your question. Hi. Good morning. Good morning, Mike. Wanted to start with just kind of the raw material picture. I think you did a good job kind of articulating the expectation of 2- 300 basis points of margin pressure next quarter. Maybe just give us some details on what you guys are seeing in terms of raw material costs. I assume that the biggest pressure you're seeing is in crude based materials, maybe comment also on what you're seeing. I know we're just being past an oleochemical spike, I think some of those materials also continue to be kind of volatile. Also if you can cover whether you're having any issues with raw material availability in any parts of the world. Yeah. Thanks, Mike. Good question. Talk about the general situation. If you think about our raw materials, there is really three buckets, right? It is base oils, it is additives, and then it is oleochemicals. Right now, as is typical in an inflationary environment like this, everything sort of keys off of what is happening with crude oil, right? All three of those buckets are higher. In the, you know, sort of when hostilities broke out, as I mentioned, just a few minutes ago, you know, we put a task force together that day, right? That Saturday, we started looking at what impacts this is going to have on supply first of all, and then also cost. I think from a supply standpoint, to your last part of your question, we've been, you know, we've been very fortunate to not have any issues. I think the flexibility of our supply chain, the fact that, we have this local for local approach and, really, as one of the leaders in the space, I think our relationships and our ability to get product around the world is very good. Overall trend in those three buckets or raw materials in general, what we had thought, sort of the increase, was going to be, toward the end of Q1, I would say in the recent weeks that has gone up, you know, more. We put an increase out at the end of Q1. Some of that became effective in April. More will become effective here in May. We've already started on another round of price increases just because the cycle is pretty inflationary right now. You know, will that go further? I personally, you know, in my own thoughts on that, I don't believe so. But it all depends. If it does, I think as we did in the past, we have pretty good ability to go out and get pricing, but there is this lag. So our view of, of Q2, is, as I said, you know, we think it's gonna be somewhere between 200 basis points, maybe a little bit more than that. We have index agreements as well, and those index agreements tend to adjust on a quarterly basis. That, that's why there's that lag. It's just not something that we can go out and press a button and do immediately. All right. Very helpful. I wanted to ask about the new transformation program that you guys announced in the press release and in your prepared remarks. Kind of what was the genesis of this program? Maybe just give a little bit more detail on what kind of actions you're taking that are beyond the actions that you've announced with previous cost programs that are, I believe, still in mid-flight. Yeah. We've sunset or I mean, I guess there's a few lingering things with prior cost programs, but this is a new program. The genesis of the program really is, you know, I believe our EBITDA margins need to be above 18% and pushing 20% eventually. We're in this sort of mid-teens space right now. You know, I've been in the role now for about 18 months and I think, you know, visibility overall to how the company is operating. You know, some things that kind jump out to me are spans and layers. We had maybe added some layers of management that weren't there before. One of my philosophies was to bring the decision-making closer to the customer. I really would like to have, you know, our culture be one of working managers where we're hands-on working managers. Just some general, like, bringing clarity to the org structure and looking at areas where there's redundancy, maybe there's a little bit of bloat. We've addressed that and are addressing that. I mean, this is also about, you know, Mike, there's tremendous complexity still lingering from when Quaker and Houghton came together in 2019. That was a huge transformational deal. While we've integrated very well, we've had great customer retention and, you know, we're able to supply our customers, I think there's also the reality that our master data is a little messy. That creates a lot of inefficiency. That creates a lot of manual work. We looked at our business processes and just certain things like, you know, how we process intercompany charges amongst ourselves and how many times our customer service people have to touch an order before it gets to the customer. It's really inefficient. The key thrust of this is around business process optimization and making sure that we have a Quaker Houghton way of doing things. Tied very closely to that is our master data, and we have a very good line of sight to where that's where that's going. I actually think that there's efficiency that's at the end of that process that we can start to leverage things like AI and shared services type program to make the business more competitive. This is not a reaction to what's happening in the Middle East. This is something that I feel we need to do. It's the right thing to do for the business. We've gotta be more efficient. We've gotta have a more modern employee and customer experience. It's time to kinda, you know, bring the company forward we can really start to take advantage of a more modern set of tools. That makes sense. Then I guess, last question for now is just, as always, I'm trying to get a little bit of a sharper view on how you guys are thinking about EBITDA for the next quarter. You mentioned the gross margin pressure. Typically, you guys would see some seasonal improvements in EBITDA, but it sounds like maybe that could be completely offset by gross margin pressure. Is it fair to say we're probably looking at an EBITDA number in the Q2 that's pretty similar to what you guys just reported in Q1? Mike, I think that's fair. I, you know, I do think the volume aspect of this, surprisingly, you know, in the market that we're in, you would think, as volatile as it is, our volume is very strong. I do feel confident that Q2 volumes will sequentially improve. That, you know, even where I sit today, I would expect year-over-year improvement. There's visibility to our order book. There's visibility to business that we've won and sort of the wrap effect of that, what's in the pipeline. I mean, we have a couple of parts of our business where, you know, we're actually adding labor to boost up some of our off shifts to keep up with demand. The demand aspect of it is very good. We're putting price in. You know, that price will not all be in the Q2 and there's another phase coming. I do think from a, you know, from a volume perspective, we expect it to be better and seeing some of that normal seasonality that you see. There will be decide with gross margin, and I think the math would say we're gonna be within range, right, of where we landed Q1. Very helpful. Thanks very much. Sure. Thank you. Our next question comes from the line of Jonathan Tanwanteng with CJS Securities. Please proceed with your question. Hi. Good morning. Thank you for taking my questions. Good morning, John. Good morning. I was wondering if you could talk about the extended credit agreement you did recently and your thoughts maybe on capital allocation from here. Did you update that? I know that, you know, it was becoming current, but the expanded side, did you do that to accommodate your expected operational organic growth, or did you see more of an opportunity maybe to do, you know, share repurchases or M&A here? Maybe just give us a little more color on the opportunities that you see going forward and how you address that. Good morning, John. This is Tom. I'll share some thoughts on that. You know, I would say first and foremost, the update to the credit agreement was really about an opportunity to extend maturities, right? We were going current during June of this year with a maturity of our existing facility in June of 2027. This gave us an opportunity to extend that out to April of 2031 and add some additional years with respect to the facility. It does add additional capacity for us to really continue to be flexible and use all the available tools from a capital allocation standpoint. You know, we continue to be focused on investing in growth, both from an inorganic, you know, standpoint as well as organic growth, things like our new plant in China. I think as I said in my prepared remarks, you know, we continue to weigh how we deploy capital for growth as well as return capital to shareholders through, you know, opportunistic share buybacks and continue to pay dividends and those sorts of things. I think it's a combination of extending our maturities, some additional capacity, which gives us more flexibility from a capital allocation standpoint. We also improved terms as part of this refinancing of the facility. We have a great and supportive bank group that enabled us to accomplish those things in terms of the maturity and the additional capacity and the improved terms. Got it. Maybe just to be a little more focused here, do you see opportunity just given the market volatility, whether it's in your own shares or in potentially acquiring, you know, tuck-ins or larger players? Yeah. I'd say, John, yes to both, right? I think we have done, it's been a couple of quarters since we've done anything meaningful on share repurchase, but we're not gun shy to do that. Balance sheet's in good position, so if the opportunity presents itself, we expect we will do that. I would also say that you know, the M&A pipeline, as always, remains active. There are a number of sort of bolt-on, tuck-in type of opportunities out there that we think will give us more things in the portfolio that we could sell to our existing customers. Those types of deals have been very accretive for the company in the past and part of our strategy and will be part of our strategy going forward. I would say yes to both questions. You know, we're really happy we got the financing done at when we got it done and at the terms and additional flexibility that came with it. Great. Thank you. I'll jump back in queue. Thank you. Our next question comes from the line of Laurence Alexander with Jefferies. Please proceed with your question. Hey, guys. it's Dan Rizzo for Laurence. Thanks for taking my questions. A couple of things. As you aim for your 18% to 20% EBITDA margins, once, I guess, some of this volatility maybe tends to subside and your restructuring is in place, how should we think about incremental margins kind of on a in the mid-cycle? I mean, it's obviously increasing. I was wondering how we should kind of how we can quantify it. Hey, Dan. Tom. Thanks for the question. I think as we're thinking about driving towards that 18% plus EBITDA margin, you know, I think our assumptions relative to our targeted gross margin range, you know, remain consistent in that 36%-37%. I think what you heard us talk about in our prepared remarks and some of Joe's comments is really around this opportunity from a transformational and restructuring program to focus on cost and complexity reduction with respect to our G&A functions, our manufacturing and supply chain network. You know, as we look out over the next couple of years where we see, where we see some leverage is really, you know, as we think about SG&A as a percent of sales, those G&A functions and driving some of that cost and complexity out of the business. That's really the pathway towards that 18% as well as volume growth and you know, continuing to work around, you know, net share gains and some of the things that we've been able to successfully execute. I'm sorry, did you mention, and did I not hear what the cash cost of the plan is, the new plan? No, we didn't mention anything specific about the cash cost of the plan. I think what I said was we will pace this out over time. You know, for instance, we're not planning to put a big new ERP system in, right? It's not gonna be this a huge outlay. I think what's typical here is, you know, 1 to 1.5 times to achieve the types of synergies that we're looking at. We're not planning any, you know, sort of extraordinary type of investment to get there. Dan, hopefully that answers that question. No, that does. That's helpful. My final question. You guys have done a good job, obviously, always of increasing market share, but you have a lot of new products from Houghton, from Dipsol. I was wondering how much of your share growth is increased sales to existing customers versus going into, like, kind of different customers, and how that kind of breaks out. It's a really great question, Dan. You know, it's much easier to go in and what we say is grab a share of the wallet versus opening up a new door with someone that you don't have a relationship with. Proportionally, most of the gains that we're getting are coming from share gain within existing customer. Growing that share wallet, right? It's the customer who may be buying a lubricant from us that we could sell them a grease, specialty grease, a fire-resistant hydraulic, a metal finishing type of chemical. It's really the majority, high majority, you know, is coming from that, growing with existing customers, new parts of the portfolio. Thank you. That's very helpful. Thank you. Our next question comes from the line of Arun Viswanathan with RBC Capital Markets. Please proceed with your question. Arun, are you there? Sorry about that, guys. I hope you're. Yeah. Sorry about that. I was on mute. I hope you guys are well. Congrats on the quarter. I guess, you know, I understand the 200 basis points of gross margin compression maybe that you're expecting for Q2 because of the lag in pricing for rows. I would have 2 questions. First off, do you expect to fully recover that in the second half? Does that imply that you have to actually price above inflation? Secondly, I know you guys were successful in recouping inflation in the last inflationary cycle in '22, '23, and you were able to price seemingly above inflationary levels. Is the demand picture now maybe slightly choppier or less robust and would make that, you know, a little bit more difficult or take longer to recoup those margins, or how should we think about that? Thanks. Yeah. No. Good questions, Arun. Thanks for those. I would say, you know, look, the goal overall is we have these target gross margin ranges. I talked about the 18% EBITDA, and we're pretty committed to that, right? That would imply, you know, in this type of environment that you've got to stay ahead of inflation a little bit. That being said, you know, we volume making sure we retain and we don't have a lot of churn, and we can continue to stack the wins and the growth that we're seeing going forward is also part of it. About a quarter of our pricing is on index, so it takes away a lot of the emotional aspects of this. Our customers, I think, understand the situation that we're in right now, and we've also said, look, if things recess in the cost side, we will act accordingly. We're not trying to, you know, gouge them in any way. We're trying to be very responsible about it, as I said previously. The demand environment right now, you know, surprisingly, is very strong. You know, will that change? It's possible it will. You know, in any type of inflationary environment like that it can happen. Through, say, the first 4 months of the year, and visibility to where we are with our demand currently, we're not seeing that. We think we'll be okay. You know, the margin question specifically, we do think by the end of the year that we would get back into this 36%-37% range. That, that's our goal. Okay. Great. Thanks for that. I guess a follow-up, maybe I could just ask about the volume. You said that the volume environment is surprising or demand environment is, you know, quite strong. Maybe you can just kind of describe that a little bit more in detail because, is it steel utilization rates are really, you know, holding up and aluminum maybe as well, automotive, maybe you can just touch on some of the end markets. Also regionally, it seems like obviously Asia Pacific has remained relatively strong and you're benefiting from some wins, but, you know, are North America and Europe, are you also seeing some improvement or how should we think about that? Thanks. Yeah. No. I think the main takeaway here is we're really punching above our weight. Let's focus on Asia because the results are very, very strong, double-digit volume growth. I mean, that's against a backdrop of, you know, industrial production actually declined in China in the Q1, and we've seen light vehicle builds in all regions down between 2 and 4%. We are outperforming the markets that we're in. We've seen some improvement on the metal side, steel and aluminum production. That can at times be a precursor that automotive is gonna swing back, right? End of Q1, I think, as I mentioned, North America seemed to pick up a little bit, and North America will drive, you know, our Americas segment. Then typically, as you head out of Q1 in areas like Asia, you put the Lunar holiday behind you get into normal seasonality patterns. I think they had a tough first part of the year, China especially, but areas outside of China, India, Vietnam, Thailand, actually, they had pretty good performance, that offsets a little bit what's happening in China. All in all, like, as we head into the Q2, as I said, you know, I think this sort of normal seasonality returns. That's what it feels like right now. Then us taking share, you know, consistently taking share above market, we would expect that would continue into the year. Thanks a lot. Thank you. Our next question comes from the line of David Silver with Freedom Capital Markets. Please proceed with your question. Yeah. Hi. Good morning. Thank you. I have a couple of questions. Good morning, David. Yeah. Good morning. Good morning. I have a couple of questions. First one tactical, second one maybe a little bit longer term. On the tactical one, and I'll apologize in advance if this sounds very naive, but you know, I'm leaning on your long experience on the commercial side, Joe, and I'm sure that your company has a very detailed playbook for operating, you know, in conditions such as the one we're facing now with the volatile, you know, feedstock cost pressures. You know, I'm just kind of scratching my head and I'm saying, you know, why not a surcharge, I guess. In other words, you know, something that can be pegged to something clearly visible to both sides. It might, you know, halt some of that 200 to 300 basis point erosion on the way up. The customer gets the assurance that when, you know, the relevant cost pressure abates, you know, that the pricing that persisted before this, you know, will quickly return. I'm sure your company has a long playbook. Maybe if you could just share some of your thinking about, you know, how Quaker typically, you know, goes about, you know, re-recouping cost pressures in fast-moving markets such as the one here. Thank you. Yeah. No. Good question. We do use surcharges. That is something that we do. Really, you're able to put some of that in immediately, especially when it comes to things like freight. Other parts of the business, I mean, we have, you know, we have to go in and really show the data to the customer. Just as our suppliers come to us, you know, we push back and say, "Well, why is this going up? And I'm gonna shop it around then." You know, that happens when we talk to our customers as well. I think the nature of how we in our relationship, we're not a commodity, right? We are really kind of embedded in these plants. We're sitting in the morning meeting. We are part of their really become part of their operations in some cases. We have to bring the data. We have to give them justification, and a lot of times we have to give them options about what we're gonna do about it, right? Can we do something to offset it in other ways through service or bundling the product? It's a laborious process, but it's also very necessary. I think if you're gonna have long-term trusting relationships with your customer, that's really the only way we can kind of approach it. We would love to be able to be more efficient and Quaker with these things, but you know, it's extremely volatile. And then you run into these situations where every Friday, you know, something changes, right? And you have to kind of adjust to that as well. But I think over the long term, David, you know, our goal is to get back to this target range gross margin. That's something that we've always done, and I've also been, you know, pretty open about the fact that it does take us a quarter or two lag to catch up. Okay, great. Thank you for that. I have a longer-term question or a question about a longer-term topic. You know, one of the trends that's gonna become, you know, increasingly apparent, I guess, over the next couple of years will be reshoring and onshoring of heavy industry here. You know, with your global footprint, I'm guessing that Quaker Houghton has about as good a view on, you know, automakers and primary metals activities that might be showing up, you know, in the U.S. from some offshore, you know, companies. I was just wondering, you know, does Quaker Houghton have a playbook currently to maybe capture a little more than your share of this new, you know, investment coming to, let's say, the United States? Is there a process? Do you have to qualify, you know, 12 or 18 months in advance? Just what is the playbook, you know, that Quaker is developing to maybe take full advantage of, you know the coming wave, large investments in automotive and other kind of heavy industry assets here? Thank you. Yeah, great question. We do have a playbook, and I think, that playbook is pretty consistent regardless of what region, you know, new capacity is coming online. Look, we are seen as the industry leader. We participate in, you know, industry technical groups and forums. We maintain relationship with the mill builders and the equipment suppliers. When a new installation comes on, and you rightly point out that there's a lot of investment in North America right now, we generally know about it in the early phases. We try to be involved on the front end in the design of those systems. More often than not, when new capacity comes online, we're the incumbent supplier. That is something that is part of our playbook. How do we make sure that that's a valuable, you know, valuable approach for our customers? We have our own CNC machines. We have a pilot rolling mill in the company, and we can really do some things on the front end to test and ensure that we're going to have success when they start these mills up. That's something that's really important. I think the other aspect of this is, you know, there's been a shift, right? I mean, if you look at metal production in China, I think more steel is made there than the rest of the world combined. When you look at the trends just in the past few years, automotive production in China is starting to really take off. You're seeing the Chinese brands be more prominent in Africa and Southeast Asia and even in Europe and not so much here yet, but like we've always said, we're kind of agnostic of where it gets made. I think just my point is, as that part of the business grows, I think we're very pleased with our ability to kind of grow in a differential way right now in that part of the world. That's something that's been very intentional. Okay, great. I appreciate all the color. Thank you. Sure. Thank you. Our next question comes from the line of Jonathan Tanwanteng with CJS Securities. Hi. Thank you for the follow-up. I apologize if you've already addressed this, but I was wondering if you could talk about the potential for demand destruction or disruption at your customers and what you plan for in your scenario analysis as you know, consider what would happen if Iran or the Mideast conflict was extended. Have you talked to your customers about them and what, you know, contingencies might be and what your earnings profile and your revenue profile might look like if that were to happen? Yeah, John. I mean, look, we talk to our customers every day about that. We're watching that as closely as we can. I think it's a tough thing to predict. I would say right now, you know, there's an equal chance that this thing is prolonged or not prolonged. I would also say there's an equal chance that there's going to have some impact on demand, you know, that could be very, very disruptive or it's gonna have no impact, right? When we talk about our, you know, sort of our model and how we're looking at the year, I'm basing it upon what the most, you know, the information I have today, which is as we head into, you know, we're now well into the Q2 visibility on what we have. I'm not seeing that sort of catastrophic demand disruption on the horizon. We're not hearing that from our customers. We're not expecting it at this point. Is it possible it happens? Absolutely. You know, the longer this thing goes on and the higher inflation goes, it's not necessarily good for anyone's business, right? If that continues. I think we can't necessarily bake that scenario in. Although, you know, as I said earlier, there's probably an equally likely chance that happens or it doesn't happen right now. Based upon that, our outlook is kind of like with all the information we have today, the best thing we know and looking at all the empirical evidence we have, we're not seeing that yet. We didn't bake that into our guide. Okay, fair enough. Thank you very much. Thank you. There are no further questions at this time. I would like to turn the floor back over to Joe Berquist for closing comments. Thank you. We again really appreciate the interest in Quaker Houghton. Want to thank all of our employees for what they continue to do in these really volatile times and especially our employees that were impacted in this region close to the conflict and the amazing work that they've done to keep our customers supplied. Appreciate the questions. If there's any follow-up, don't hesitate to reach out to John Dalhoff, and we'll be happy to answer any additional questions you have. Thanks. Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.