, /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
The Board of Directors of Stepan Company has declared a quarterly cash dividend on the Company's common stock of $0.405 per share. The dividend is payable on December 15, 2026, to common stockholders of record on December 1, 2026. The Company increased its quarterly cash dividend in the fourth quarter of 2026 by $0.010 per share, marking the 59th consecutive year that the Company has increased its cash dividend to stockholders.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com.
More information about Stepan's sustainability program can be found on the Sustainability page at www.stepan.com.
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.
There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to: our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; risks related to restructuring activities, including the execution of facility closures and asset, decommissioning, potential operational disruptions, impacts on employees and local, communities, and environmental compliance; accidents, unplanned production shutdowns, interruptions or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs, and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants.
These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
, /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
Third Quarter 2026 Highlights
Reported net income was $17.8 million, up 64% versus the prior year. Adjusted net income(1) was $21.7 million, up 98% versus the prior year.EBITDA(2) was $57.5 million versus $56.1 million in the prior year. Adjusted EBITDA(2) was $66.3 million, up 18%, year-over-year.Global sales volume was up 3% year-over-year. Organic sales volume was up 7% year-over-year. Cash from Operations was $29.3 million during the quarter. Free cash flow(3) for the quarter was $8.2 million and was negatively impacted by higher working capital requirements.Pre-tax earnings include a $5.6 million restructuring charge, related to the Company's previously announced Project Catalyst, inclusive of approximately 100 salaried position reductions or 7% of global salaried headcount.In October, the Company closed on its previously announced agreement to sell a parcel of land near its Millsdale site for $28.5 million. The full cash proceeds will be used to pay down debt.YTD 2026 Highlights
Reported net income was a $0.7 million loss versus $41.9 million of income in the prior year. The current year loss is entirely due to a $76.1 million pre-tax restructuring charge. The cash impact associated with this restructuring charge was approximately $12.8 million year-to-date. Adjusted net income(1) was $59.1 million, up 40% versus the prior year.EBITDA(2) was $110.1 million and Adjusted EBITDA(2) was $190.3 million. Adjusted EBITDA was up 15% year-over-year.Organic sales volume was up 4% year-over-year."Quarterly earnings were up significantly, driven by improved results in all three segments. Third quarter adjusted EBITDA of $66.3 million was up 18% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. Surfactant adjusted EBITDA was up 27% in the quarter and Polymers grew single digits including one time maintenance costs. Specialty Products adjusted EBITDA was up 5% driven by double digit volume growth," said Luis E. Rojo, President and Chief Executive Officer. "Surfactant organic sales volume was up 8% and Polymer sales volume was up 3% in the quarter. The Surfactant volume growth was broad-based and across most end markets. Within Polymers, the North American Rigid, Spray Foam and Phthalic Anhydride businesses delivered double digit volume growth. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We executed the organizational redesign phase of Project Catalyst during the quarter in line with expectations."
Financial Summary
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands, except per share
data)
2026
2025
%
Change
2026
2025
%
Change
Net Sales
$
692,154
$
590,284
17
%
$
1,980,772
$
1,778,228
11
%
Operating Income
$
25,959
$
21,794
19
%
$
13,547
$
68,047
(80)
%
Net Income (Loss)
$
17,813
$
10,839
64
%
$
(682)
$
41,891
(102)
%
Earnings per Diluted Share
$
0.78
$
0.47
66
%
$
(0.03)
$
1.83
(102)
%
Adjusted Net Income *
$
21,688
$
10,948
98
%
$
59,053
$
42,211
40
%
Adjusted Earnings per
Diluted Share *
$
0.94
$
0.48
96
%
$
2.58
$
1.84
40
%
* See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
Percentage Change in Net Sales
Net sales in the third quarter of 2026 increased 17% year-over-year. This increase reflects higher selling prices, mainly attributable to the pass-through of higher raw material costs and pricing actions, a 3% increase in sales volume and the favorable impact of foreign currency translation. Organic sales volume was up 7% year-over-year.
Three Months Ended
September 30, 2026
Nine Months Ended
September 30, 2026
Volume
3
%
1
%
Selling Price & Mix
13
%
7
%
Foreign Translation
1
%
3
%
Total
17
%
11
%
Segment Results
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands)
2026
2025
%
Change
2026
2025
%
Change
Net Sales
Surfactants
$
486,633
$
422,358
15
%
$
1,424,222
$
1,264,151
13
%
Polymers
$
178,650
$
143,928
24
%
$
486,686
$
452,795
7
%
Specialty Products
$
26,871
$
23,998
12
%
$
69,864
$
61,282
14
%
Total Net Sales
$
692,154
$
590,284
17
%
$
1,980,772
$
1,778,228
11
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands, all amounts pre-tax)
2026
2025
%
Change
2026
2025
%
Change
Operating Income (Loss)
Surfactants
$
27,440
$
15,718
75
%
$
80,350
$
58,015
38
%
Polymers
$
14,569
$
14,104
3
%
$
45,860
$
39,281
17
%
Specialty Products
$
10,185
$
9,634
6
%
$
19,907
$
20,400
(2)
%
Total Segment
Operating Income
$
52,194
$
39,456
32
%
$
146,117
$
117,696
24
%
Corporate Expenses
$
(26,235)
$
(17,662)
49
%
$
(132,570)
$
(49,649)
167
%
Consolidated
Operating Income
(Loss)
$
25,959
$
21,794
19
%
$
13,547
$
68,047
(80)
%
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in millions)
2026
2025
%
Change
2026
2025
%
Change
EBITDA
$
57.5
$
56.1
2
%
$
110.1
$
164.7
(33)
%
Adjusted EBITDA
Surfactants
$
48.2
$
38.0
27
%
$
144.2
$
120.9
19
%
Polymers
$
23.3
$
22.4
4
%
$
71.9
$
64.0
12
%
Specialty Products
$
11.7
$
11.1
5
%
$
24.3
$
24.8
(2)
%
Unallocated Corporate
$
(16.9)
$
(15.3)
10
%
$
(50.1)
$
(44.6)
12
%
Consolidated Adjusted EBITDA
$
66.3
$
56.2
18
%
$
190.3
$
165.1
15
%
Consolidated adjusted EBITDA(2) increased $10.1 million, or 18%, in the quarter. This increase was primarily due to higher Surfactant earnings driven by sales volume growth and margin recovery.
Surfactant net sales were $486.6 million for the quarter, up 15% versus the prior year. Selling prices were up 10% primarily due to pass through of higher raw material costs and pricing actions. Global Sales volume was up 3% and organic sales volume increased 8%. Double digit growth in the Consumer Products, Construction & Industrial and Oilfield end markets and to our Tier 2/3 customer base was partially offset by lower Crop Productivity demand. Foreign currency translation positively impacted net sales by 2%. Surfactant adjusted EBITDA(2) for the quarter increased $10.2 million, or 27%, versus the prior year. This increase was primarily due to sales volume growth and margin recovery. Polymer net sales were $178.7 million for the quarter, a 24% increase versus the prior year. Selling prices were up 22%, primarily due to the pass-through of higher raw material costs. Sales volume increased 3% in the quarter. North American sales volume was up double digits, inclusive of significant growth in Spray Foam, partially offset by lower volumes in Europe and Asia. Foreign currency translation negatively impacted net sales by 1% during the quarter. Polymer adjusted EBITDA(2) increased $0.9 million, or 4%, versus the prior year primarily due to sales volume growth that more than offset regulatory-mandated maintenance turnaround costs, that occur every 5 years, at the Company's Germany site.Specialty Products net sales were $26.9 million for the quarter, a 12% increase versus the prior year. Specialty Products sales volume increased 20% while adjusted EBITDA(2) increased $0.6 million, or 5%. The increase in adjusted EBITDA(2) was primarily due to higher sales volume in the medium chain triglycerides product line that was partially offset by less favorable product mix. Outlook
"We believe we are positioned to continue delivering growth and executing on our diversification strategy. Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization, is contributing to this growth," said Luis E. Rojo, President and Chief Executive Officer. "Despite the ongoing and significant market uncertainties and challenges, the organization continues to be focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first nine-month results, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026."
Notes
(1) Adjusted net income and adjusted earnings per share are non-GAAP measures which exclude deferred compensation income/expense, certain environmental remediation-related costs as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
(2) EBITDA and adjusted EBITDA are non-GAAP measures. See Table VI for calculations and GAAP reconciliations of EBITDA and adjusted EBITDA.
(3) Free cash flow is a non-GAAP measure and reflects cash generated from operations minus capital expenditures. Cash generated from operations was $29.3 million during the third quarter of 2026 and capital expenditures were $21.1 million.
Conference Call
Stepan Company will host a conference call to discuss its third quarter results at 9:00 a.m. ET (8:00 a.m. CT) on October 28, 2026. The call can be accessed by phone and webcast. To access the call by phone, please click on this Registration Link, complete the form and you will be provided with dial in details and a PIN. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. The webcast can be accessed through the Investors/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.
Supporting Slides
Slides supporting this press release will be made available at www.stepan.com through the Investors/Presentations page at approximately the same time as this press release is issued.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com
More information about Stepan's sustainability program can be found on the Sustainability page at www.stepan.com
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.
There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; accidents, unplanned production shutdowns or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants. In addition to the risks described in the Company's periodic reports, the restructuring actions described herein may involve risks related to the execution of facility closures and asset decommissioning, potential operational disruptions, impacts on employees and local communities, environmental compliance, and the realization of anticipated cost savings and efficiencies.
These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
* * * * *
Tables follow
Table I
STEPAN COMPANY
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited – in 000's, except per share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2026
2025
2026
2025
Net Sales
$
692,154
$
590,284
$
1,980,772
$
1,778,228
Cost of Sales
604,573
519,261
1,728,358
1,559,857
Gross Profit
87,581
71,023
252,414
218,371
Operating Expenses:
Selling
13,726
11,299
40,758
38,064
Administrative
26,607
22,864
72,123
67,079
Research, Development and Technical Services
15,670
14,225
47,858
43,575
Deferred Compensation
37
841
2,001
1,606
56,040
49,229
162,740
150,324
Business Restructuring
5,582
-
76,127
-
Operating Income
25,959
21,794
13,547
68,047
Other Income (Expense):
Interest, Net
(6,344)
(6,815)
(17,037)
(16,426)
Other, Net
212
1,536
1,377
3,344
(6,132)
(5,279)
(15,660)
(13,082)
Income (Loss) Before Provision for Income
Taxes
19,827
16,515
(2,113)
54,965
Provision for Income Taxes
2,014
5,676
(1,431)
13,074
Net Income (Loss)
17,813
10,839
(682)
41,891
Net Income (Loss) Per Common Share
Basic
$
0.78
$
0.47
$
(0.03)
$
1.83
Diluted
$
0.78
$
0.47
$
(0.03)
$
1.83
Shares Used to Compute Net Income Per
Common Share
Basic
22,906
22,875
22,897
22,869
Diluted
22,978
22,893
22,897
22,888
Table II
Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share*
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands, except per share
amounts)
2026
EPS
2025
EPS
2026
EPS
2025
EPS
Net Income (Loss) Reported
$
17,813
$
0.78
$
10,839
$
0.47
$
(682)
$
(0.03)
$
41,891
$
1.83
Deferred Compensation (Income)
Expense
$
52
$
-
$
(149)
$
-
$
581
$
0.03
$
(549)
$
(0.02)
Environmental Remediation
Expense
$
2,391
$
0.10
$
258
$
0.01
$
2,561
$
0.11
$
869
$
0.03
Business Restructuring
$
1,432
$
0.06
$
-
$
-
$
56,593
$
2.47
$
-
$
-
Adjusted Net Income
$
21,688
$
0.94
$
10,948
$
0.48
$
59,053
$
2.58
$
42,211
$
1.84
* All amounts in this table are presented after-tax
The Company believes that certain non-GAAP measures, in conjunction with comparable GAAP measures, are useful for evaluating the Company's operating performance and financial condition. The Company uses this non-GAAP information as an indicator of business performance and evaluates management's effectiveness with specific reference to these indicators. Management believes that these non-GAAP financial measures provide useful supplemental information because they exclude non-operational items that affect comparability between years. These measures should be considered in addition to, not as substitutes for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from similarly titled measures presented by other companies. The Company's Annual Report on Form 10-K for the year ended December 31, 2025 contains additional information regarding the use of non-GAAP financial measures.
Summary of Third Quarter 2026 Adjusted Net Income Items
Adjusted net income excludes non-operational deferred compensation income/expense, certain environmental remediation costs and other significant and infrequent or non-recurring items.
Deferred Compensation: The third quarter of 2026 reported net income includes $0.1 million of after-tax expense versus $0.1 million of after-tax income in the prior year. Environmental Remediation: The third quarter of 2026 reported net income includes $2.4 million of after-tax expense versus $0.3 million of after-tax expense in the prior year. The higher current year expense primarily reflects a reserve adjustment related to the Company's Maywood, NJ site.Business Restructuring: The third quarter of 2026 reported net income includes $1.4 million of after-tax expense related to restructuring charges. There were no restructuring charges recognized in the prior year quarter. Table III
Reconciliation of Pre-Tax to After-Tax Adjustments
Management uses the non-GAAP adjusted net income metric to evaluate the Company's operating performance. Management excludes the
items listed in the table below because they are non-operational items. The cumulative tax effect is typically calculated using the statutory
tax rates for the jurisdictions in which the transactions occurred.
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands, except per share
amounts)
2026
EPS
2025
EPS
2026
EPS
2025
EPS
Pre-Tax Adjustments
Deferred Compensation (Income)
Expense
$
69
$
(198)
$
765
$
(732)
Environmental Remediation
Expense
$
3,145
$
344
$
3,368
$
1,158
Business Restructuring
$
5,582
$
-
$
76,127
$
-
Total Pre-Tax Adjustments
$
8,796
$
146
$
80,260
$
426
Cumulative Tax Effect on
Adjustments
$
(4,921)
$
(37)
$
(20,525)
$
(106)
After-Tax Adjustments
$
3,875
$
0.16
$
109
$
0.01
$
59,735
$
2.61
$
320
$
0.01
Table IV
Deferred Compensation Plans
The full effect of the deferred compensation plans on quarterly pre-tax income was $0.1 million of expense versus $0.2 million
of income in the prior year. The quarter-end market prices of Company stock and the impact of deferred compensation on
specific income statement line items is summarized below:
2026
2025
9/30
6/30
3/31
12/31
9/30
6/30
3/31
Stepan Company
$
62.38
$
55.72
$
49.98
$
47.36
$
47.70
$
54.58
$
55.04
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands)
2026
2025
2026
2025
Deferred Compensation
Operating Income (Expense)
$
(37)
$
(841)
$
(2,001)
$
(1,606)
Other, net – Mutual Fund Gain
(32)
1,039
1,236
2,338
Total Pre-Tax
$
(69)
$
198
$
(765)
$
732
Total After-Tax
$
(52)
$
149
$
(581)
$
549
Effects of Foreign Currency Translation
The Company's foreign subsidiaries transact business and report financial results in their respective local currencies. These results are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. The table below presents the impact that foreign currency translation had on select income statement line items.
($ in millions)
Three Months
Ended
September 30,
Change
Change
Due to
Foreign
Currency
Translation
Nine Months Ended
September 30,
Change
Change
Due to
Foreign
Currency
Translation
2026
2025
2026
2025
Net Sales
$
692.2
$
590.3
$
101.9
$
8.5
$
1,980.8
$
1,778.2
$
202.6
$
51.0
Gross Profit
87.6
71.0
$
16.6
0.7
252.4
218.4
$
34.0
6.1
Operating Income
26.0
21.8
$
4.2
0.4
13.5
68.0
$
(54.5)
3.8
Pretax Income
(Loss)
19.8
16.5
$
3.3
0.4
(2.1)
55.0
$
(57.1)
3.9
Corporate Expenses
Three Months Ended
September 30,
Nine Months Ended
September 30,
($ in thousands)
2026
2025
%
Change
2026
2025
%
Change
Total Corporate Expenses
$
26,235
$
17,662
49
%
$
132,570
$
49,649
167
%
Less:
Deferred Compensation Expense
$
37
$
841
(96)
%
$
2,001
$
1,606
25
%
Environmental Remediation
Expense
$
3,145
$
344
814
%
$
3,368
$
1,158
191
%
Business Restructuring
$
5,582
$
-
NM
$
76,127
$
-
NM
Adjusted Corporate Expenses
$
17,471
$
16,477
6
%
$
51,074
$
46,885
9
%
Adjusted Corporate expenses increased $1.0 million, or 6%, for the quarter. This increase was primarily due to higher incentive-based compensation expenses.
Table V
Stepan Company
Consolidated Balance Sheets
September 30, 2026 and December 31, 2025
September 30,
2026
December 31,
2025
ASSETS
Current Assets
$
982,764
$
858,959
Property, Plant & Equipment, Net
1,132,891
1,219,627
Other Assets
274,742
279,116
Total Assets
$
2,390,397
$
2,357,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$
742,975
$
666,494
Deferred Income Taxes
11,008
11,450
Long-term Debt
341,687
340,975
Other Non-current Liabilities
75,940
94,773
Total Stepan Company Stockholders' Equity
1,218,787
1,244,010
Total Liabilities and Stockholders' Equity
$
2,390,397
$
2,357,702
Selected Balance Sheet Information
The Company's total debt decreased by $13.3 million and cash decreased by $15.6 million versus June 30, 2026. The Company's net debt level increased $2.3 million versus June 30, 2026 and its net debt ratio was 31% which was constant with the prior quarter (Net Debt and Net Debt Ratio are non-GAAP measures, reconciliations of which are shown in the table below). Management uses the non-GAAP net debt metric to show a more complete picture of the Company's overall liquidity, financial flexibility and leverage level.
($ in millions)
September 30,
2026
June 30,
2026
March 31,
2026
December 31,
2025
Net Debt
Total Debt
$
634.1
$
647.4
$
651.7
$
626.7
Cash
98.1
113.7
140.8
132.7
Net Debt
$
536.0
$
533.7
$
510.9
$
494.0
Equity
1,218.8
1,212.0
1,193.0
1,244.0
Net Debt + Equity
$
1,754.8
$
1,745.7
$
1,703.9
$
1,738.0
Net Debt / (Net Debt + Equity)
31
%
31
%
30
%
28
%
The major working capital components were:
($ in millions)
September 30,
2026
June 30,
2026
March 31,
2026
December 31,
2025
Net Receivables
$
502.1
$
492.3
$
433.7
$
388.0
Inventories
340.0
324.5
289.0
298.8
Accounts Payable
(315.2)
(321.7)
(285.7)
(261.7)
$
526.9
$
495.1
$
437.0
$
425.1
Table VI
Reconciliations of Non-GAAP EBITDA and Adjusted EBITDA
Management uses the non-GAAP EBITDA and adjusted EBITDA metrics to evaluate the Company's operating
performance. Management excludes the items listed in the table below because they are non-operational items.
Shares of Stepan Company (NYSE:SCL – Get Free Report) crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $57.07 and traded as high as $62.22. Stepan shares last traded at $62.0950, with a volume of 97,167 shares.
Analysts Set New Price Targets Several analysts have recently weighed in on SCL shares. Wall Street Zen upgraded shares of Stepan from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Weiss Ratings upgraded shares of Stepan from a “sell (d)” rating to a “sell (d+)” rating in a report on Wednesday, July 29th. Seaport Research Partners reaffirmed a “buy” rating and issued a $85.00 target price on shares of Stepan in a research report on Friday, August 7th. Finally, Zacks Research upgraded shares of Stepan from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, September 29th. One investment analyst has rated the stock with a Strong Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Stepan presently has an average rating of “Moderate Buy”.
Read Our Latest Research Report on SCL
Stepan Price Performance The stock has a 50-day moving average price of $62.89 and a 200 day moving average price of $57.07. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.15 and a quick ratio of 0.77. The firm has a market cap of $1.41 billion, a price-to-earnings ratio of -517.46 and a beta of 0.94. Stepan (NYSE:SCL – Get Free Report) last posted its earnings results on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, beating the consensus estimate of $0.61 by $0.57. The business had revenue of $684.11 million during the quarter, compared to the consensus estimate of $635.85 million. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%. The business’s quarterly revenue was up 15.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.52 EPS. As a group, equities research analysts forecast that Stepan Company will post 2.69 earnings per share for the current fiscal year.
Stepan Dividend Announcement The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were paid a $0.3950 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $1.58 dividend on an annualized basis and a yield of 2.5%. Stepan’s payout ratio is currently -1,316.67%.
Institutional Investors Weigh In On Stepan Large investors have recently modified their holdings of the company. O Keefe Stevens Advisory Inc. raised its holdings in shares of Stepan by 4.1% in the third quarter. O Keefe Stevens Advisory Inc. now owns 99,461 shares of the basic materials company’s stock valued at $6,204,000 after buying an additional 3,901 shares during the last quarter. Farther Finance Advisors LLC boosted its stake in shares of Stepan by 194.8% during the third quarter. Farther Finance Advisors LLC now owns 395 shares of the basic materials company’s stock worth $25,000 after buying an additional 261 shares during the period. Core Capital Management & Research inc. acquired a new stake in shares of Stepan during the second quarter worth about $2,670,000. Integrated Wealth Concepts LLC purchased a new position in shares of Stepan during the second quarter worth about $85,000. Finally, Squarepoint Ops LLC purchased a new position in shares of Stepan during the second quarter worth about $283,000. 82.70% of the stock is owned by institutional investors and hedge funds.
Stepan Company Profile (Get Free Report)
Stepan Company (NYSE:SCL) is a global manufacturer of specialty and intermediate chemicals. The company produces surfactants, polymers and specialty products used in a broad range of consumer and industrial applications, including household and institutional cleaning, personal care, agriculture, food, construction, automotive, coatings and insulation.
Stepan’s surfactants are used as cleaning agents, emulsifiers, dispersants and wetting agents in products such as detergents, shampoos, agricultural formulations and industrial cleaners.
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Stepan uvedl, že jeho marže se začínají zotavovat, podpořené růstem EBITDA o 45 % meziročně a organickým objemem o 6 %. Projekt Catalyst má přinést úspory 100 milionů USD během dvou let.
3 chemical stocks to play the industry breakoutStepan NYSE: SCL is in the early stages of a margin recovery, supported by growth in higher-margin product areas, cost reductions and broader-based volume gains, Chief Financial Officer Ruben Velasquez said during a company presentation.
Velasquez said second-quarter EBITDA increased 45% year over year, while organic volume rose 6%. He described the volume performance as broad-based across geographies and most of the company’s priority growth segments rather than the result of activity from a single customer.
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The specialty and intermediate chemicals company operates through Surfactants, Polymers and Specialty Products. Surfactants account for about 70% of sales but approximately 60% of EBITDA, according to Velasquez. Specialty Products represent a smaller sales contribution but a comparatively larger portion of EBITDA.
Strategy Focuses on Higher-Margin Markets Velasquez said Stepan’s strategy centers on customer-focused innovation, diversification into faster-growing and higher-margin applications, operational excellence and disciplined capital allocation.
The company is seeking to expand in what it calls priority segments, including crop productivity, oilfield solutions, rigid polyols used in insulation panels, and smaller tier 2 and tier 3 customers that require more tailored technical support. Velasquez said roughly 75% of Stepan’s EBITDA now comes from these priority segments.
While legacy consumer customers remain important to plant utilization and sales volumes, the company is aiming for a more balanced customer mix. Velasquez said the company does not plan to divest lower-margin legacy consumer business, citing longstanding relationships with large consumer-product companies and continued innovation opportunities with those customers.
Stepan employs about 230 scientists globally and operates 14 application centers, Velasquez said. The company launched 41 products last year, and new products account for roughly 10% of annual sales.
Oilfield and Insulation Opportunities Priority segments, including oil and gas, posted high-single-digit growth in the second quarter, Velasquez said. He attributed demand in oilfield chemicals partly to producers’ interest in extracting more oil from existing reservoirs, particularly when oil prices are elevated.
Stepan’s surfactants can be used in secondary recovery applications, where chemicals are used with water or gas to help oil flow from reservoirs. Velasquez said the company is also working with smaller oil companies to develop surfactant formulations suited to specific fields. That development work can take several months, but he said resulting business tends to be more durable once a formulation is adopted.
In Polymers, Stepan is a market leader in polyiso insulation products for industrial buildings, while its rigid and spray-foam activities are growing from a smaller base. Velasquez said the rigid and spray-foam business, which serves residential applications, grew threefold in the second quarter. He cited energy conservation and insulation needs as long-term drivers, while acknowledging that construction conditions remain soft in some markets.
Project Catalyst Targets $100 Million in Savings Stepan’s Project Catalyst cost-reduction initiative is intended to generate $100 million in savings over two years, with 60% expected in 2026 and 40% in 2027. The program includes footprint optimization, operational efficiencies and organizational changes.
As part of the effort, Stepan completed the closure of a legacy site in New Jersey at the end of the first quarter, closed certain units at facilities in Illinois and the U.K., and announced a reduction of 100 roles. The company is moving some production to more efficient plants, including its alkoxylation facility in Pasadena, Texas.
Velasquez said Pasadena is expected to reach average utilization of 80% by year-end as Stepan shifts volume from less-efficient plants and brings certain previously outsourced production in-house. He said the company had already realized $18 million to $20 million of the initiative’s expected $25 million quarterly run-rate improvement in the second quarter.
He cautioned that the full $100 million of Catalyst savings will not all reach the bottom line, because some savings will offset inflation and some will be reinvested in growth areas.
Cash Generation and Balance Sheet Remain Priorities Velasquez said Stepan has reduced net leverage to about 2.5 times from roughly 3 times previously and intends to continue deleveraging while maintaining flexibility for future investments. Capital expenditures are expected to normalize in a range of $100 million to $110 million after a period of larger investments, including the Pasadena facility.
The company invested about $58 million in working capital during the second quarter, driven by higher receivables associated with organic volume growth and inventory purchases intended to secure material supply. Despite that investment, Velasquez said Stepan expects to finish the year with positive cash generation.
He also said the company estimates that customer pull-forward activity contributed approximately $5 million to $10 million of EBITDA in the second quarter. Even excluding that effect, he said, Stepan’s EBITDA and volume growth remained significant and broad-based.
About Stepan (NYSE:SCL)Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company's portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.
Serving a diverse set of end-markets, Stepan's offerings address both consumer-facing and industrial applications.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Stepan Co. (SCL - Free Report) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +93.44%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $0.21 per share when it actually produced earnings of $0.45, delivering a surprise of +114.29%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Stepan Co., which belongs to the Zacks Chemical - Diversified industry, posted revenues of $684.11 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.59%. This compares to year-ago revenues of $594.69 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Stepan Co. shares have added about 22.5% since the beginning of the year versus the S&P 500's gain of 8.5%.
What's Next for Stepan Co.?While Stepan Co. has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Stepan Co. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.93 on $654.1 million in revenues for the coming quarter and $2.54 on $2.51 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Diversified is currently in the top 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Avient (AVNT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This maker of resins used in plastic pipe and other products is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of +11.3%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level.
Avient's revenues are expected to be $895.27 million, up 3.3% from the year-ago quarter.
Stepan ve 2. čtvrtletí zvýšil čistý zisk na 22,9 mil. USD a upravený čistý zisk na 27,1 mil. USD. Firma zároveň oznámila plán snížit globální počet zaměstnanců s pevnou mzdou asi o 100.
, /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
Second Quarter 2026 Highlights
Reported net income was $22.9 million, up 102% versus the prior year. Adjusted net income(1) was $27.1 million, up 126% versus the prior year. EBITDA(2) was $69.1 million and Adjusted EBITDA(2) was $74.4 million, up 37% and 45% respectively, year-over-year. Global sales volume was up 3% year-over-year. Organic sales volume was up 6% year-over-year. Cash from Operations was $8.4 million during the quarter. Free cash flow(3) for the quarter was a negative $15.0 million, driven by higher working capital requirements. Excluding the impact of higher working capital, free cash flow was $32.7 million, up 69% versus the prior year. Pre-tax earnings include a $5.1 million restructuring charge largely related to the previously announced closure of the Company's Fieldsboro, NJ site and decommissioning of select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities. The Company announced today a plan to reduce its global salaried workforce by approximately 100 positions. This action is part of the previously announced Project Catalyst efficiency initiative. The majority of this restructuring expense is expected to be recognized during the second half of 2026. The Company anticipates full year restructuring charges in the range of $75.0 to $80.0 million, which is in line with prior communications, with a projected cash impact between $14.0 and $18.0 million. First Half 2026 Highlights
Reported net income was a $18.5 million loss versus $31.1 million of income in the prior year. The current year loss is entirely due to a $70.5 million pre-tax restructuring charge. The cash impact associated with this restructuring charge was approximately $7.0 million year-to-date. Adjusted net income(1) was $37.4 million, up 20% versus the prior year. EBITDA(2) was $52.7 million and Adjusted EBITDA(2) was $124.1 million. Adjusted EBITDA was up 14% year-over-year. Organic sales volume was up 3% year-over-year. "Quarterly earnings were up significantly driven by improved Surfactant and Polymer results. Second quarter adjusted EBITDA of $74.4 million was up 45% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. We believe the quarter also benefited from customer pre-buys as a result of the global geopolitical situation. Surfactant and Polymer adjusted EBITDA were up 59% and 22%, respectively," said Luis E. Rojo, President and Chief Executive Officer. "Surfactant organic sales volume was up 7% and Polymer sales volume was up 5% in the quarter. The Surfactant volume growth was broad-based and across all end markets and all regions. Within Polymers, the North American Rigid and Phthalic Anhydride businesses delivered double digit volume growth. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We continue to execute Project Catalyst safely and in line with expectations. As part of the organizational-effectiveness component of Project Catalyst, today we announced a plan to reduce the Company's global salaried workforce by around 100 roles before the end of the year. During the past few quarters, we took a disciplined and deliberate approach to minimize the impact of these actions through normal attrition, pausing external hiring and emphasizing internal talent. We are committed to supporting our affected colleagues through this transition in line with our People First culture."
Financial Summary
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands, except per share data)
2026
2025
%
Change
2026
2025
%
Change
Net Sales
$
684,109
$
594,689
15
%
$
1,288,618
$
1,187,944
8
%
Operating Income (Loss)
$
37,210
$
17,965
107
%
$
(12,412)
$
46,253
NM
Net Income (Loss)
$
22,911
$
11,341
102
%
$
(18,495)
$
31,052
NM
Earnings per Diluted Share
$
1.00
$
0.50
100
%
$
(0.81)
$
1.36
NM
Adjusted Net Income *
$
27,052
$
11,952
126
%
$
37,365
$
31,262
20
%
Adjusted Earnings per
Diluted Share *
$
1.18
$
0.52
127
%
$
1.63
$
1.37
19
%
* See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
Percentage Change in Net Sales
Net sales in the second quarter of 2026 increased 15% year-over-year. This increase reflects higher selling prices, mainly attributable to the pass-through of higher raw material costs and more favorable product mix, a 3% increase in sales volume and the favorable impact of foreign currency translation. Organic sales volume was up 6% year-over-year.
Three Months Ended
June 30, 2026
Six Months Ended
June 30, 2026
Volume
3
%
(—)
%
Selling Price & Mix
9
%
5
%
Foreign Translation
3
%
3
%
Total
15
%
8
%
Segment Results
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands)
2026
2025
%
Change
2026
2025
%
Change
Net Sales
Surfactants
$
483,902
$
411,456
18
%
$
937,589
$
841,793
11
%
Polymers
$
178,007
$
162,751
9
%
$
308,036
$
308,867
(0)
%
Specialty Products
$
22,200
$
20,482
8
%
$
42,993
$
37,284
15
%
Total Net Sales
$
684,109
$
594,689
15
%
$
1,288,618
$
1,187,944
8
%
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands, all amounts pre-tax)
2026
2025
%
Change
2026
2025
%
Change
Operating Income (Loss)
Surfactants
$
34,362
$
13,367
157
%
$
52,910
$
42,297
25
%
Polymers
$
22,469
$
17,159
31
%
$
31,291
$
25,177
24
%
Specialty Products
$
5,007
$
5,258
(5)
%
$
9,722
$
10,766
(10)
%
Total Segment
Operating Income
$
61,838
$
35,784
73
%
$
93,923
$
78,240
20
%
Corporate Expenses
$
(24,628)
$
(17,819)
38
%
$
(106,335)
$
(31,987)
232
%
Consolidated
Operating Income
(Loss)
$
37,210
$
17,965
107
%
$
(12,412)
$
46,253
NM
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in millions)
2026
2025
%
Change
2026
2025
%
Change
EBITDA
$
69.1
$
50.6
37
%
$
52.7
$
108.6
(51)
%
Adjusted EBITDA
Surfactants
$
54.9
$
34.5
59
%
$
96.0
$
82.9
16
%
Polymers
$
31.2
$
25.6
22
%
$
48.6
$
41.6
17
%
Specialty Products
$
6.5
$
6.7
(3)
%
$
12.6
$
13.7
(8)
%
Unallocated Corporate
$
(18.1)
$
(15.4)
18
%
$
(33.1)
$
(29.3)
13
%
Consolidated Adjusted EBITDA
$
74.4
$
51.4
45
%
$
124.1
$
108.9
14
%
Consolidated adjusted EBITDA(2) increased $23.0 million, or 45%, in the quarter. This increase was primarily due to higher Surfactant and Polymer earnings driven by sales volume growth and margin recovery.
Surfactant net sales were $483.9 million for the quarter, up 18% versus the prior year. Selling prices were up 12% primarily due to pass through of higher raw material costs, improved product and customer mix, along with pricing actions. Global Sales volume was up 2% and organic sales volume increased 7%. All global regions recognized organic volume growth and our strategic end markets combined grew high single digits. Foreign currency translation positively impacted net sales by 4%. Surfactant adjusted EBITDA(2) for the quarter increased $20.4 million, or 59%, versus the prior year. This increase was primarily due to sales volume growth and margin recovery. Polymer net sales were $178.0 million for the quarter, a 9% increase versus the prior year. Selling prices were up 3%, primarily due to the pass-through of higher raw material costs and margin recovery. Sales volume increased 5% in the quarter. North American sales volume was up double digits, inclusive of significant growth in Spray Foam, partially offset by lower volumes in Europe and Asia. Foreign currency translation positively impacted net sales by 1% during the quarter. Polymer adjusted EBITDA(2) increased $5.6 million, or 22%, versus the prior year primarily due to sales volume growth and global margin improvement. Specialty Products net sales were $22.2 million for the quarter, an 8% increase versus the prior year. Specialty Products volume increased 4% while adjusted EBITDA(2) decreased $0.2 million, or 3%. The slight decrease in adjusted EBITDA(2) was primarily due to less favorable product mix within the medium chain triglycerides product line that was mostly offset by higher earnings in the food and flavor business. Outlook
"We believe we are positioned to continue delivering growth in all our key strategic businesses such as Crop Productivity, Oilfield, Tier 2/3 Surfactants and North American Polymers. We continue to execute on Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization to enable balanced growth," said Luis E. Rojo, President and Chief Executive Officer. "Despite the ongoing and significant market uncertainties and challenges, the organization is focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first half results, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026."
Notes
(1) Adjusted net income and adjusted earnings per share are non-GAAP measures which exclude deferred compensation income/expense, certain environmental remediation-related costs as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
(2) EBITDA and adjusted EBITDA are non-GAAP measures. See Table VI for calculations and GAAP reconciliations of EBITDA and adjusted EBITDA.
(3) Free cash flow is a non-GAAP measure and reflects cash generated from operations minus capital expenditures. Cash generated from operations was $8.4 million during the second quarter of 2026 and capital expenditures were $23.4 million.
Conference Call
Stepan Company will host a conference call to discuss its second quarter results at 9:00 a.m. ET (8:00 a.m. CT) on July 29, 2026. The call can be accessed by phone and webcast. To access the call by phone, please click on this Registration Link, complete the form and you will be provided with dial in details and a PIN. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. The webcast can be accessed through the Investors/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.
Supporting Slides
Slides supporting this press release will be made available at www.stepan.com through the Investors/Presentations page at approximately the same time as this press release is issued.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com
More information about Stepan's sustainability program can be found on the Sustainability page at www.stepan.com
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.
There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; accidents, unplanned production shutdowns or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants. In addition to the risks described in the Company's periodic reports, the restructuring actions described herein may involve risks related to the execution of facility closures and asset decommissioning, potential operational disruptions, impacts on employees and local communities, environmental compliance, and the realization of anticipated cost savings and efficiencies.
These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
* * * * *
Tables follow
Table I
STEPAN COMPANY
For the Three and Six Months Ended June 30, 2026 and 2025
(Unaudited – in 000's, except per share data)
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Net Sales
$
684,109
$
594,689
$
1,288,618
$
1,187,944
Cost of Sales
584,127
522,804
1,123,785
1,040,596
Gross Profit
99,982
71,885
164,833
147,348
Operating Expenses:
Selling
14,866
14,657
27,032
26,765
Administrative
24,203
22,801
45,516
44,215
Research, Development and Technical Services
17,195
14,701
32,188
29,350
Deferred Compensation
1,402
1,761
1,964
765
57,666
53,920
106,700
101,095
Business Restructuring
5,106
-
70,545
-
Operating Income (Loss)
37,210
17,965
(12,412)
46,253
Other Income (Expense):
Interest, Net
(5,682)
(5,485)
(10,693)
(9,611)
Other, Net
1,021
1,306
1,165
1,808
(4,661)
(4,179)
(9,528)
(7,803)
Income (Loss) Before Provision for Income
Taxes
32,549
13,786
(21,940)
38,450
Provision for Income Taxes
9,638
2,445
(3,445)
7,398
Net Income (Loss)
22,911
11,341
(18,495)
31,052
Net Income (Loss) Per Common Share
Basic
$
1.00
$
0.50
$
(0.81)
$
1.36
Diluted
$
1.00
$
0.50
$
(0.81)
$
1.36
Shares Used to Compute Net Income Per
Common Share
Basic
22,897
22,865
22,893
22,866
Diluted
22,924
22,879
22,893
22,885
Table II
Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share*
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands, except per share amounts)
2026
EPS
2025
EPS
2026
EPS
2025
EPS
Net Income (Loss) Reported
$
22,911
$
1.00
$
11,341
$
0.50
$
(18,495)
$
(0.81)
$
31,052
$
1.36
Deferred Compensation (Income)
Expense
$
52
$
-
$
69
$
-
$
529
$
0.02
$
(401)
$
(0.02)
Environmental Remediation
Expense
$
92
$
-
$
542
$
0.02
$
170
$
0.01
$
611
$
0.03
Business Restructuring
$
3,997
$
0.18
$
-
$
-
$
55,161
$
2.41
$
-
$
-
Adjusted Net Income
$
27,052
$
1.18
$
11,952
$
0.52
$
37,365
$
1.63
$
31,262
$
1.37
* All amounts in this table are presented after-tax
The Company believes that certain non-GAAP measures, in conjunction with comparable GAAP measures, are useful for evaluating the Company's operating performance and financial condition. The Company uses this non-GAAP information as an indicator of business performance and evaluates management's effectiveness with specific reference to these indicators. Management believes that these non-GAAP financial measures provide useful supplemental information because they exclude non-operational items that affect comparability between years. These measures should be considered in addition to, not as substitutes for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from similarly titled measures presented by other companies. The Company's Annual Report on Form 10-K for the year ended December 31, 2025 contains additional information regarding the use of non-GAAP financial measures.
Summary of Second Quarter 2026 Adjusted Net Income Items
Adjusted net income excludes non-operational deferred compensation income/expense, certain environmental remediation costs and other significant and infrequent or non-recurring items.
Deferred Compensation: The second quarter of 2026 reported net income includes $0.1 million of after-tax expense versus $0.1 million of after-tax expense in the prior year. Environmental Remediation: The second quarter of 2026 reported net income includes $0.1 million of after-tax expense versus $0.5 million of after-tax expense in the prior year. Business Restructuring: The second quarter of 2026 reported net income includes $4.0 million of after-tax expense related to restructuring charges. There were no restructuring charges recognized in the prior year quarter. Table III
Reconciliation of Pre-Tax to After-Tax Adjustments
Management uses the non-GAAP adjusted net income metric to evaluate the Company's operating performance. Management excludes the items listed in the table below because they are non-operational items. The cumulative tax effect is typically calculated using the statutory tax rates for the jurisdictions in which the transactions occurred.
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands, except per share amounts)
2026
EPS
2025
EPS
2026
EPS
2025
EPS
Pre-Tax Adjustments
Deferred Compensation (Income)
Expense
$
68
$
92
$
696
$
(534)
Environmental Remediation
Expense
$
121
$
722
$
223
$
814
Business Restructuring
$
5,106
$
-
$
70,545
$
-
Total Pre-Tax Adjustments
$
5,295
$
814
$
71,464
$
280
Cumulative Tax Effect on
Adjustments
$
(1,154)
$
(203)
$
(15,604)
$
(70)
After-Tax Adjustments
$
4,141
$
0.18
$
611
$
0.02
$
55,860
$
2.44
$
210
$
0.01
Table IV
Deferred Compensation Plans
The full effect of the deferred compensation plans on quarterly pre-tax income was $0.1 million of expense versus $0.1 million of expense in the prior year. The quarter-end market prices of Company stock and the impact of deferred compensation on specific income statement line items is summarized below:
2026
2025
6/30
3/31
12/31
9/30
6/30
3/31
Stepan Company
$
55.72
$
49.98
$
47.36
$
47.70
$
54.58
$
55.04
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands)
2026
2025
2026
2025
Deferred Compensation
Operating Income (Expense)
$
(1,402)
$
(1,761)
$
(1,964)
$
(765)
Other, net – Mutual Fund Gain
1,334
1,669
1,268
1,299
Total Pre-Tax
$
(68)
$
(92)
$
(696)
$
534
Total After-Tax
$
(52)
$
(69)
$
(529)
$
401
Effects of Foreign Currency Translation
The Company's foreign subsidiaries transact business and report financial results in their respective local currencies. These results are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. The table below presents the impact that foreign currency translation had on select income statement line items.
($ in millions)
Three Months
Ended
June 30,
Change
Change
Due to
Foreign
Currency
Translation
Six Months Ended
June 30,
Change
Change
Due to
Foreign
Currency
Translation
2026
2025
2026
2025
Net Sales
$
684.1
$
594.7
$
89.4
$
17.1
$
1,288.6
$
1,187.9
$
100.7
$
42.4
Gross Profit
100.0
71.9
$
28.1
2.9
164.8
147.3
$
17.5
5.4
Operating Income
(Loss)
37.2
18.0
$
19.2
2.1
(12.4)
46.3
$
(58.7)
3.4
Pretax Income
(Loss)
32.5
13.8
$
18.7
2.1
(21.9)
38.5
$
(60.4)
3.5
Corporate Expenses
Three Months Ended
June 30,
Six Months Ended
June 30,
($ in thousands)
2026
2025
%
Change
2026
2025
%
Change
Total Corporate Expenses
$
24,628
$
17,819
38
%
$
106,335
$
31,987
232
%
Less:
Deferred Compensation Expense
$
1,402
$
1,761
(20)
%
$
1,964
$
765
157
%
Environmental Remediation
Expense
$
121
$
722
(83)
%
$
223
$
814
(73)
%
Business Restructuring
$
5,106
$
-
NM
$
70,545
$
-
NM
Adjusted Corporate Expenses
$
17,999
$
15,336
17
%
$
33,603
$
30,408
11
%
Adjusted Corporate expenses increased $2.7 million, or 17% for the quarter. This increase was primarily due to higher incentive-based compensation expenses.
Table V
Stepan Company
Consolidated Balance Sheets
June 30, 2026 and December 31, 2025
June 30, 2026
December 31,
2025
ASSETS
Current Assets
$
974,764
$
858,959
Property, Plant & Equipment, Net
1,142,612
1,219,627
Other Assets
275,290
279,116
Total Assets
$
2,392,666
$
2,357,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$
846,998
$
666,494
Deferred Income Taxes
10,998
11,450
Long-term Debt
244,069
340,975
Other Non-current Liabilities
78,555
94,773
Total Stepan Company Stockholders' Equity
1,212,046
1,244,010
Total Liabilities and Stockholders' Equity
$
2,392,666
$
2,357,702
Selected Balance Sheet Information
The Company's total debt decreased by $4.3 million and cash decreased by $27.1 million versus March 31, 2026. The Company's net debt level increased $22.8 million versus March 31, 2026 and its net debt ratio was 31% versus 30% in the prior quarter (Net Debt and Net Debt Ratio are non-GAAP measures, reconciliations of which are shown in the table below). Management uses the non-GAAP net debt metric to show a more complete picture of the Company's overall liquidity, financial flexibility and leverage level.
($ in millions)
June 30,
2026
March 31,
2026
December 31,
2025
Net Debt
Total Debt
$
647.4
$
651.7
$
626.7
Cash
113.7
140.8
132.7
Net Debt
$
533.7
$
510.9
$
494.0
Equity
1,212.0
1,193.0
1,244.0
Net Debt + Equity
$
1,745.7
$
1,703.9
$
1,738.0
Net Debt / (Net Debt + Equity)
31
%
30
%
28
%
The major working capital components were:
($ in millions)
June 30,
2026
March 31,
2026
December 31,
2025
Net Receivables
$
492.3
$
433.7
$
388.0
Inventories
324.5
289.0
298.8
Accounts Payable
(321.7)
(285.7)
(261.7)
$
495.1
$
437.0
$
425.1
Table VI
Reconciliations of Non-GAAP EBITDA and Adjusted EBITDA
Management uses the non-GAAP EBITDA and adjusted EBITDA metrics to evaluate the Company's operating performance. Management excludes the items listed in the table below because they are non-operational items. Refer to the Income Statement on Table I for a bridge between Operating Income and Net Income.
, /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
The Board of Directors of Stepan Company has declared a quarterly cash dividend on the Company's common stock of $0.395 per share. The dividend is payable on September 15, 2026, to common stockholders of record on September 1, 2026. The Company increased its quarterly cash dividend in the fourth quarter of 2025 by $0.010 per share, marking the 58th consecutive year that the Company has increased its cash dividend to stockholders.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com.
More information about Stepan's sustainability program can be found on the Sustainability page at www.stepan.com.
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.
There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to: our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; risks related to restructuring activities, including the execution of facility closures and asset, decommissioning, potential operational disruptions, impacts on employees and local, communities, and environmental compliance; accidents, unplanned production shutdowns, interruptions or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs, and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants.
These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
