Tronox (NYSE:TROX – Get Free Report) and Stepan (NYSE:SCL – Get Free Report) are both small-cap materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.
Analyst Recommendations This is a breakdown of current recommendations for Tronox and Stepan, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Tronox 4 4 2 0 1.80 Stepan 1 1 0 0 1.50 Tronox presently has a consensus price target of $6.93, suggesting a potential upside of 37.47%. Given Tronox’s stronger consensus rating and higher probable upside, analysts plainly believe Tronox is more favorable than Stepan.
Profitability This table compares Tronox and Stepan’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets Tronox -17.96% -24.34% -5.51% Stepan -0.11% 3.90% 2.01% Earnings & Valuation This table compares Tronox and Stepan”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Tronox $2.90 billion 0.28 -$470.00 million ($3.46) -1.46 Stepan $2.33 billion 0.60 $46.90 million ($0.12) -512.42 Stepan has lower revenue, but higher earnings than Tronox. Stepan is trading at a lower price-to-earnings ratio than Tronox, indicating that it is currently the more affordable of the two stocks.
Dividends Tronox pays an annual dividend of $0.20 per share and has a dividend yield of 4.0%. Stepan pays an annual dividend of $1.58 per share and has a dividend yield of 2.6%. Tronox pays out -5.8% of its earnings in the form of a dividend. Stepan pays out -1,316.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Stepan has increased its dividend for 57 consecutive years.
Volatility & Risk Tronox has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Stepan has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.
Institutional & Insider Ownership 73.4% of Tronox shares are held by institutional investors. Comparatively, 82.7% of Stepan shares are held by institutional investors. 2.0% of Tronox shares are held by company insiders. Comparatively, 6.6% of Stepan shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Summary Stepan beats Tronox on 11 of the 17 factors compared between the two stocks.
About Tronox (Get Free Report)
Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.
About Stepan (Get Free Report)
Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, and lubricating ingredients. Its surfactants are also used in various applications, including emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins, including liquid and powdered products, which are used in CASE applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.
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Connor Clark & Lunn Investment Management Ltd. acquired a new position in Stepan Company (NYSE:SCL – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund acquired 13,945 shares of the basic materials company’s stock, valued at approximately $777,000. Connor Clark & Lunn Investment Management Ltd. owned about 0.06% of Stepan at the end of the most recent quarter.
A number of other institutional investors have also recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. bought a new stake in shares of Stepan during the 2nd quarter worth $25,000. 1620 Investment Advisors Inc. grew its position in Stepan by 86.9% during the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock valued at $27,000 after buying an additional 265 shares during the period. EverSource Wealth Advisors LLC increased its holdings in Stepan by 206.5% during the second quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock worth $28,000 after buying an additional 351 shares during the last quarter. Allworth Financial LP bought a new stake in Stepan in the second quarter worth about $33,000. Finally, Parallel Advisors LLC boosted its stake in Stepan by 700.0% in the fourth quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company’s stock valued at $33,000 after acquiring an additional 602 shares during the last quarter. Institutional investors own 82.70% of the company’s stock.
Wall Street Analysts Forecast Growth Several equities analysts have weighed in on the company. Weiss Ratings raised 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 set a $85.00 price target on shares of Stepan in a research report on Friday, August 7th. Wall Street Zen upgraded Stepan from a “hold” rating to a “buy” rating in a research note on Saturday, August 8th. Finally, Zacks Research raised shares of Stepan from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has an average rating of “Reduce”.
Check Out Our Latest Stock Report on SCL Stepan Price Performance Shares of Stepan stock opened at $62.49 on Tuesday. The firm has a market capitalization of $1.42 billion, a PE ratio of -520.75 and a beta of 0.94. The company has a current ratio of 1.15, a quick ratio of 0.77 and a debt-to-equity ratio of 0.20. Stepan Company has a 12 month low of $41.82 and a 12 month high of $68.00. The business’s 50-day moving average price is $60.22 and its 200-day moving average price is $54.97.
Stepan (NYSE:SCL – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $1.18 earnings per share for the quarter, beating analysts’ consensus estimates of $0.61 by $0.57. Stepan had a positive return on equity of 3.90% and a negative net margin of 0.11%.The firm had revenue of $684.11 million during the quarter, compared to analyst estimates of $635.85 million. During the same quarter in the prior year, the firm posted $0.52 earnings per share. The business’s quarterly revenue was up 15.0% compared to the same quarter last year. Sell-side analysts forecast that Stepan Company will post 2.69 EPS for the current fiscal year.
Stepan Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a dividend of $0.395 per share. The ex-dividend date is Tuesday, September 1st. This represents a $1.58 dividend on an annualized basis and a yield of 2.5%. Stepan’s payout ratio is presently -1,316.67%.
About Stepan (Free Report)
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.
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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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Deutsche Bank AG bought a new position in Stepan Company (NYSE:SCL – Free Report) during the second quarter, according to the company in its most recent 13F filing with the SEC. The fund bought 23,364 shares of the basic materials company’s stock, valued at approximately $1,302,000. Deutsche Bank AG owned about 0.10% of Stepan as of its most recent SEC filing.
Several other hedge funds and other institutional investors have also bought and sold shares of the business. Goldman Sachs Group Inc. raised its position in Stepan by 195.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 299,970 shares of the basic materials company’s stock worth $14,207,000 after acquiring an additional 198,457 shares during the period. Bank of New York Mellon Corp purchased a new position in Stepan in the second quarter valued at approximately $6,836,000. Towle & Co. purchased a new position in Stepan in the first quarter valued at approximately $5,295,000. Bridgeway Capital Management LLC bought a new position in Stepan during the second quarter valued at $5,573,000. Finally, Sei Investments Co. grew its holdings in Stepan by 465.5% during the first quarter. Sei Investments Co. now owns 123,800 shares of the basic materials company’s stock valued at $6,188,000 after purchasing an additional 101,907 shares during the period. Hedge funds and other institutional investors own 82.70% of the company’s stock.
Stepan Trading Down 0.6% Shares of SCL opened at $62.44 on Friday. Stepan Company has a twelve month low of $41.82 and a twelve month high of $68.00. The stock has a market cap of $1.42 billion, a PE ratio of -520.33 and a beta of 0.94. The company has a quick ratio of 0.77, a current ratio of 1.15 and a debt-to-equity ratio of 0.20. The business’s 50-day moving average price is $60.04 and its 200-day moving average price is $55.04.
Stepan (NYSE:SCL – Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The basic materials company reported $1.18 EPS for the quarter, beating analysts’ consensus estimates of $0.61 by $0.57. The company had revenue of $684.11 million during the quarter, compared to analyst estimates of $635.85 million. Stepan had a negative net margin of 0.11% and a positive return on equity of 3.90%. Stepan’s revenue was up 15.0% compared to the same quarter last year. During the same period last year, the business earned $0.52 earnings per share. On average, equities analysts forecast that Stepan Company will post 2.69 EPS for the current fiscal year. Stepan Announces Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.395 dividend. This represents a $1.58 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 1st. Stepan’s dividend payout ratio (DPR) is presently -1,316.67%.
Wall Street Analysts Forecast Growth Several brokerages have issued reports on SCL. Weiss Ratings upgraded Stepan from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, July 29th. Zacks Research upgraded Stepan from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. Wall Street Zen raised Stepan from a “hold” rating to a “buy” rating in a report on Saturday, August 8th. Finally, Seaport Research Partners restated a “buy” rating and issued a $85.00 price objective on shares of Stepan in a research note on Friday, August 7th. One analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce”.
View Our Latest Research Report on SCL
About Stepan (Free Report)
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.
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First Trust Advisors LP lifted its stake in shares of Stepan Company (NYSE:SCL – Free Report) by 11.2% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 94,340 shares of the basic materials company’s stock after acquiring an additional 9,534 shares during the quarter. First Trust Advisors LP owned about 0.42% of Stepan worth $4,715,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Deprince Race & Zollo Inc. boosted its stake in Stepan by 29.5% during the 4th quarter. Deprince Race & Zollo Inc. now owns 900,377 shares of the basic materials company’s stock valued at $42,642,000 after purchasing an additional 205,157 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Stepan by 195.5% in the 4th quarter. Goldman Sachs Group Inc. now owns 299,970 shares of the basic materials company’s stock worth $14,207,000 after buying an additional 198,457 shares in the last quarter. Bridgeway Capital Management LLC acquired a new stake in shares of Stepan in the second quarter valued at $5,573,000. UBS Group AG lifted its holdings in shares of Stepan by 338.9% in the third quarter. UBS Group AG now owns 125,004 shares of the basic materials company’s stock valued at $5,963,000 after buying an additional 96,526 shares during the period. Finally, AQR Capital Management LLC boosted its stake in Stepan by 114.9% during the fourth quarter. AQR Capital Management LLC now owns 154,903 shares of the basic materials company’s stock valued at $7,336,000 after buying an additional 82,825 shares in the last quarter. Institutional investors own 82.70% of the company’s stock.
Stepan Stock Performance Stepan stock opened at $63.86 on Wednesday. The firm’s 50 day simple moving average is $56.12 and its 200-day simple moving average is $54.08. The company has a market cap of $1.45 billion, a P/E ratio of -532.20 and a beta of 0.94. The company has a debt-to-equity ratio of 0.20, a current ratio of 1.15 and a quick ratio of 0.86. Stepan Company has a fifty-two week low of $41.82 and a fifty-two week high of $68.00.
Stepan (NYSE:SCL – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The basic materials company reported $1.18 EPS for the quarter, beating the consensus estimate of $0.61 by $0.57. Stepan had a negative net margin of 0.11% and a positive return on equity of 3.90%. The business had revenue of $684.11 million during the quarter, compared to the consensus estimate of $635.85 million. During the same quarter in the prior year, the firm earned $0.52 EPS. The firm’s quarterly revenue was up 15.0% on a year-over-year basis. As a group, equities research analysts predict that Stepan Company will post 2.54 EPS for the current year.
Stepan Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.395 dividend. This represents a $1.58 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, September 1st. Stepan’s dividend payout ratio (DPR) is -1,316.67%.
Analyst Ratings Changes Several equities research analysts have commented on SCL shares. Weiss Ratings upgraded shares of Stepan from a “sell (d)” rating to a “sell (d+)” rating in a research report on Wednesday, July 29th. Zacks Research upgraded Stepan from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of “Reduce”.
Get Our Latest Stock Report on SCL
Stepan Profile (Free Report)
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.
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3 chemical stocks to play the industry breakoutStepan NYSE: SCL reported higher second-quarter earnings as broad-based volume growth, margin recovery and early savings from its Project Catalyst program lifted results, while management cautioned that some demand may have been pulled forward amid geopolitical and raw-material uncertainty.
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Reported net income for the second quarter of 2026 was $22.9 million, or $1.00 per diluted share, compared with $11.3 million, or $0.50 per share, a year earlier. Adjusted net income increased to $27.1 million, or $1.18 per diluted share, from $12 million, or $0.52 per share, in the prior-year period.
Net sales rose 15% year over year to $684 million. President and Chief Executive Officer Luis Rojo said higher selling prices, increased volumes, favorable product and customer mix, and favorable currency translation contributed to the sales increase. Adjusted EBITDA rose 45% to $74.4 million, while organic volume increased 6% across the company.
Volume Growth and Margin Recovery Drive Results Rojo said the company’s second-quarter performance reflected contributions from volume growth, margin recovery and productivity initiatives. Pricing actions and contractual pass-through mechanisms helped offset higher raw-material costs, he said, while Project Catalyst savings were ramping in line with the company’s plan.
However, management said some of the quarter’s sales strength may have reflected customer inventory building. Rojo estimated that pre-buying tied to uncertainty surrounding the Iran conflict and raw-material availability represented roughly $5 million to $10 million of EBITDA in the second quarter.
“We are considering that potential timing effect as we plan for the second half of 2026,” Rojo said in prepared remarks. During the question-and-answer session, he added that the company expects third-quarter results to be somewhat lower than the second quarter after accounting for the elevated volume and margin contribution.
Chief Financial Officer Ruben Velasquez said the company also expects special maintenance turnarounds, particularly in Polymers, to reduce second-half results by approximately $4 million to $5 million.
Surfactants and Polymers Lead Segment Improvement The Surfactants segment reported net sales of $484 million, up 18% from a year earlier. Selling prices increased 12%, largely reflecting raw-material pass-throughs, product and customer mix, and pricing actions. Reported volume rose 3%, while organic volume increased 7%; currency translation added 4% to sales.
Surfactants adjusted EBITDA increased 59% to $55 million. The company cited broad-based volume growth, Project Catalyst savings and recovery from production-timing and absorption impacts discussed in the first quarter. Industrial cleaning, laundry, construction and industrial applications, and oil field were among the leading growth areas.
Rojo highlighted growth in the company’s Tier 2 and Tier 3 customer base, saying the business generated 500 new customer-product combinations during the first half. He also said Stepan recorded double-digit growth in oil field and continued growth in agriculture despite market challenges related to fertilizers and the Iran conflict.
Polymers sales increased 9% to $178 million, with selling prices up 3% and volume up 5%. North American volume grew by strong double digits, driven by Rigid Polyols and Phthalic Anhydride, including significant growth in spray foam products. Those gains were partly offset by lower volumes in Europe and Asia.
Polymers adjusted EBITDA rose 22% to $31 million, primarily on volume growth and margin recovery. North American EBITDA increased by $5 million, while Europe improved modestly as better margins offset continued soft construction demand. Asia was slightly lower because of softer demand in China.
Specialty Products sales rose 8% to $22 million, while volume increased 4%. Adjusted EBITDA was slightly lower at $6.5 million due to a less favorable product mix in medium-chain triglycerides.
Project Catalyst Actions Continue Stepan said Project Catalyst is expected to produce approximately $100 million in pre-tax savings over two years, with about 60% of the savings anticipated in 2026. Rojo said the company remains on track to exceed its commitment of $60 million in pre-tax savings this year and is currently realizing approximately $18 million to $20 million in savings per quarter.
The company expects to exit 2026 at a quarterly savings run rate of about $22 million, according to Rojo. He said most of the program’s savings actions have already been executed or announced, though Stepan continues to identify additional initiatives needed to reach the full $100 million run-rate target next year.
During the first half, Stepan completed the closure of its Fieldsboro, New Jersey, site and decommissioned select assets at Millsdale, Illinois, and Stalybridge, United Kingdom. The company is transferring volumes to other facilities in its network.
Velasquez said reported second-quarter results included a $5.1 million pre-tax restructuring charge, primarily tied to those actions. Stepan expects full-year restructuring charges of $75 million to $80 million. The company also announced plans to reduce approximately 100 salaried positions in the third quarter, with most associated expenses expected to be recognized in the second half.
Cash Flow and Balance Sheet Free cash flow was negative $15 million in the quarter after $23 million of capital expenditures and a $58 million working-capital build tied to stronger sales and higher raw-material costs. Cash from operations before working-capital changes was $56 million, including approximately $6 million of cash restructuring costs.
Net debt ended the quarter at $534 million, and net leverage improved to 2.5 times from 2.7 times in the first quarter and 2.9 times a year earlier. The company paid $9 million in dividends during the quarter and said it remains focused on cash generation, deleveraging and disciplined capital allocation.
Rojo said Stepan expects to deliver full-year adjusted EBITDA growth, positive free cash flow and continued balance-sheet deleveraging in 2026, while navigating ongoing uncertainty in raw materials and global markets.
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].
Should You Invest $1,000 in Stepan Right Now?Before you consider Stepan, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Stepan wasn't on the list.
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Stepan Company (NYSE:SCL – Get Free Report) shares gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $58.01, but opened at $62.71. Stepan shares last traded at $61.8130, with a volume of 23,201 shares traded.
The basic materials company reported $1.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.61 by $0.57. Stepan had a positive return on equity of 2.65% and a negative net margin of 0.61%.The company had revenue of $684.11 million during the quarter, compared to analysts’ expectations of $635.85 million. During the same quarter in the previous year, the business earned $0.52 EPS. Stepan’s revenue was up 15.0% compared to the same quarter last year.
Stepan Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.395 per share. This represents a $1.58 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 1st. Stepan’s dividend payout ratio (DPR) is -254.84%.
Key Stepan News Here are the key news stories impacting Stepan this week:
Positive Sentiment: Stepan reported quarterly earnings of $1.18 per share, well above the $0.61 analyst consensus, while revenue rose 15% year over year to $684.1 million, exceeding estimates of $635.9 million. Stepan Q2 earnings and revenue estimates Positive Sentiment: Reported net income more than doubled to $22.9 million, while adjusted EBITDA increased 45% to $74.4 million. Growth in the Surfactant and Polymer businesses was supported by higher volumes and recovering margins. Stepan Reports Second Quarter 2026 Results Positive Sentiment: The earnings call emphasized a strong turnaround, with management highlighting operating improvements despite challenging market conditions. Surfactant sales rose 18% to $483.9 million and Polymer sales increased 9% to $178.0 million. Stepan Company Earnings Call Highlights Strong Turnaround Positive Sentiment: The board declared a quarterly cash dividend of $0.395 per share, supporting the stock’s income appeal and signaling continued shareholder returns. Stepan Declares Quarterly Dividend Neutral Sentiment: Stepan is advancing Project Catalyst, including a plan to eliminate approximately 100 global salaried positions. Management expects the program to improve efficiency, but the benefits will take time to materialize. Stepan advances Project Catalyst restructuring Negative Sentiment: Restructuring is expected to generate $75 million to $80 million in full-year charges, and second-quarter free cash flow was negative $15 million. These costs and cash-flow pressures could temper the earnings optimism. Analyst Upgrades and Downgrades A number of research analysts have recently commented on SCL shares. Zacks Research upgraded shares of Stepan from a “strong sell” rating to a “hold” rating in a report on Monday, July 6th. Weiss Ratings lowered shares of Stepan from a “sell (d+)” rating to a “sell (d)” rating in a report on Monday, May 11th. One research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Reduce”.
Get Our Latest Research Report on Stepan
Institutional Investors Weigh In On Stepan Institutional investors and hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its holdings in shares of Stepan by 206.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock worth $28,000 after buying an additional 351 shares during the period. 1620 Investment Advisors Inc. increased its stake in shares of Stepan by 86.9% during the fourth quarter. 1620 Investment Advisors Inc. now owns 570 shares of the basic materials company’s stock valued at $27,000 after buying an additional 265 shares during the period. Parallel Advisors LLC increased its stake in shares of Stepan by 700.0% during the fourth quarter. Parallel Advisors LLC now owns 688 shares of the basic materials company’s stock valued at $33,000 after buying an additional 602 shares during the period. Quarry LP purchased a new position in shares of Stepan during the third quarter valued at $34,000. Finally, Danske Bank A S bought a new stake in shares of Stepan in the third quarter valued at about $43,000. 82.70% of the stock is owned by institutional investors.
Stepan Price Performance The firm has a fifty day moving average of $55.16 and a two-hundred day moving average of $53.72. The stock has a market capitalization of $1.50 billion, a P/E ratio of -106.76 and a beta of 0.95. The company has a debt-to-equity ratio of 0.28, a current ratio of 1.26 and a quick ratio of 0.86.
About Stepan (Get Free Report)
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.
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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.
, /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.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
, /PRNewswire/ -- Stepan Company (NYSE: SCL) will issue its second quarter 2026 earnings results on Wednesday, July 29, 2026 at approximately 7:00 a.m. ET (6:00 a.m. CT). Supporting slides will be posted at approximately the same time on the Investors/Presentations page at www.stepan.com. The Company will hold a conference call to discuss and answer questions about its financial and operational performance on the same day at 9:00 a.m. ET (8:00 a.m. CT).
The call will be hosted by Luis E. Rojo, President and Chief Executive Officer, and Ruben Velasquez, Vice President and Chief Financial Officer.
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.
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 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; our ability to realize cost savings or operating efficiencies associated with strategic initiatives; compliance with laws; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; 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 currency exchange rate fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to access capital markets; global political, military, security or other instability; costs related to expansion or other capital projects; interruption or breaches of information technology systems; our ability to retain executive management and key personnel; and 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.
Stepan Company (SCL) is reaffirmed as a 'buy' due to compelling valuation and significant cost-saving initiatives. SCL's Project Catalyst targets $100M in pre-tax savings over two years, with 60% expected in the current year. Despite mixed profitability and cash flow, SCL remains attractively priced versus peers, especially on cash flow metrics.
SG Americas Securities LLC grew its holdings in shares of Stepan Company (NYSE:SCL – Free Report) by 166.8% during the fourth quarter, according to the company in its most recent disclosure with the SEC. The fund owned 46,410 shares of the basic materials company’s stock after buying an additional 29,017 shares during the quarter. SG Americas Securities LLC owned 0.21% of Stepan worth $2,198,000 at the end of the most recent reporting period.
Several other hedge funds and other institutional investors have also recently modified their holdings of the business. EverSource Wealth Advisors LLC grew its position in Stepan by 206.5% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 521 shares of the basic materials company’s stock valued at $28,000 after acquiring an additional 351 shares during the last quarter. Financial Consulate Inc. bought a new stake in shares of Stepan during the third quarter worth $30,000. Quarry LP bought a new stake in shares of Stepan during the third quarter worth $34,000. Danske Bank A S purchased a new stake in shares of Stepan during the third quarter valued at $43,000. Finally, Raymond James Financial Inc. purchased a new stake in shares of Stepan during the second quarter valued at $100,000. 82.70% of the stock is currently owned by hedge funds and other institutional investors.
Stepan Trading Down 0.0% NYSE:SCL opened at $49.96 on Friday. The stock has a market capitalization of $1.13 billion, a price-to-earnings ratio of 24.37 and a beta of 1.01. Stepan Company has a 52 week low of $41.82 and a 52 week high of $68.00. The company has a quick ratio of 0.84, a current ratio of 1.29 and a debt-to-equity ratio of 0.27. The firm has a 50 day moving average of $54.27 and a 200 day moving average of $49.55.
Stepan (NYSE:SCL – Get Free Report) last issued its quarterly earnings results on Monday, February 23rd. The basic materials company reported ($0.02) earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.37). The business had revenue of $553.89 million for the quarter, compared to analysts’ expectations of $570.60 million. Stepan had a return on equity of 3.38% and a net margin of 2.01%.Stepan’s revenue was up 5.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.12 EPS. As a group, sell-side analysts anticipate that Stepan Company will post 3.55 earnings per share for the current fiscal year.
Stepan Dividend Announcement The business also recently disclosed a quarterly dividend, which was paid on Friday, March 13th. Stockholders of record on Monday, March 2nd were paid a dividend of $0.395 per share. This represents a $1.58 annualized dividend and a dividend yield of 3.2%. The ex-dividend date was Monday, March 2nd. Stepan’s payout ratio is presently 77.07%.
Analysts Set New Price Targets A number of brokerages have recently commented on SCL. Weiss Ratings lowered shares of Stepan from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Wednesday, March 4th. Zacks Research cut Stepan from a “hold” rating to a “strong sell” rating in a research note on Wednesday, March 4th. Two equities research analysts have rated the stock with a Sell rating, According to data from MarketBeat, the stock currently has a consensus rating of “Sell”.
View Our Latest Research Report on Stepan
About Stepan (Free Report)
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.
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, /PRNewswire/ -- Stepan Company (NYSE: SCL) will issue its first quarter 2026 earnings results on Tuesday, April 28, 2026 at approximately 7:00 a.m. ET (6:00 a.m. CT). Supporting slides will be posted at approximately the same time on the Investors/Presentations page at www.stepan.com. The Company will hold a conference call to discuss and answer questions about its financial and operational performance on the same day at 8:00 a.m. ET (7:00 a.m. CT).
The call will be hosted by Luis E. Rojo, President and Chief Executive Officer, and Ruben D. Velasquez, Vice President and Chief Financial Officer.
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.
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 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; our ability to realize cost savings or operating efficiencies associated with strategic initiatives; compliance with laws; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; 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, retaliatory measures and countermeasures, currency exchange controls and rate fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; potential adverse tax consequences due to international scope of our business; downgrades in our credit ratings or our ability to access capital markets; 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; our ability to retain executive management and key personnel; and 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.
Wall Street expects a year-over-year decline in earnings on higher revenues when Stepan Co. (SCL - Free Report) reports results for the quarter ended March 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 28. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis specialty chemicals company is expected to post quarterly earnings of $0.21 per share in its upcoming report, which represents a year-over-year change of -75%.
Revenues are expected to be $630.3 million, up 6.2% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 17.81% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Stepan Co.?For Stepan Co., the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.
On the other hand, the stock currently carries a Zacks Rank of #5.
So, this combination makes it difficult to conclusively predict that Stepan Co. will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Stepan Co. would post earnings of $0.35 per share when it actually produced a loss of -$0.02, delivering a surprise of -105.71%.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Stepan Co. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsDow Inc. (DOW - Free Report) , another stock in the Zacks Chemical - Diversified industry, is expected to report loss per share of $0.33 for the quarter ended March 2026. This estimate points to a year-over-year change of 0%. Revenues for the quarter are expected to be $9.45 billion, down 9.5% from the year-ago quarter.
The consensus EPS estimate for Dow Inc. has been revised 51.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +32.54%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Dow Inc. will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
, /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
First Quarter 2026 Highlights
Reported net income was a $41.4 million loss versus $19.7 million of income in the prior year. The current year loss resulted from a previously announced $65.4 million pre-tax restructuring charge. Adjusted net income(1) was $10.3 million, down 47% versus the prior year, largely due to lower Surfactant earnings and higher interest expense. The higher interest expense reflects lower capitalized interest income due to the start-up of the Pasadena, TX site. EBITDA(2) was a negative $16.5 million versus $58.0 million in the prior year. Current year EBITDA was negatively impacted by the $65.4 million restructuring charge. Adjusted EBITDA(2) was $49.6 million, down 14% year-over-year. Organic sales volume was flat year-over-year as strong demand within Crop Productivity, Oilfield and Industrial Cleaning was offset by soft European Polymers demand. Cash from Operations was $16.9 million during the quarter. Free cash flow(3) for the quarter was a negative $14.0 million, driven by higher working capital requirements which are typical during the first quarter. Pre-tax earnings include a $65.4 million restructuring charge related to the previously announced closure of the Company's Fieldsboro, NJ site and select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities. The cash impact associated with this restructuring charge was less than $1.0 million during the quarter. The Company has entered into an agreement to sell a parcel of land near its Millsdale site for $30 million. This agreement is subject to customary closing conditions and the transaction is expected to close during the second half of the year. "We are executing Project Catalyst safely and in line with expectations despite early quarter weather-related impacts and the new geopolitical challenges. Global adjusted EBITDA was down $7.9 million, or 14%, driven by our Surfactants business. Surfactants EBITDA was down due to higher oleochemicals prices, the cold snap in the U.S., production timing differences in Asia along with competitive pressures in Mexico. Polymers adjusted EBITDA grew 8% on the strength of North American volume growth and margin recovery that more than offset ongoing challenges within the European business. Specialty Products volume was up 30% versus prior year while EBITDA was down due to product mix and higher raw material costs," said Luis E. Rojo, President and Chief Executive Officer. "On a total Company basis, organic net sales, which exclude the impact of the asset divestiture in the Philippines, were up 4% and organic sales volume was flat year-over-year. Strong growth in Crop Productivity, Oilfield and Industrial Cleaning was offset by European Polymers volume. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We are continuing our efforts to further optimize our asset base and create a more productive and agile organization to enable balanced growth."
Financial Summary
Three Months Ended
March 31,
($ in thousands, except per share data)
2026
2025
%
Change
Net Sales
$
604,509
$
593,255
2
%
Operating Income (Loss)
$
(49,622)
$
28,288
NM
Net Income (Loss)
$
(41,406)
$
19,711
NM
Earnings per Diluted Share
$
(1.81)
$
0.86
NM
Adjusted Net Income *
$
10,313
$
19,310
(47)
%
Adjusted Earnings per
Diluted Share *
$
0.45
$
0.84
(46)
%
* 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 first quarter of 2026 increased 2% year-over-year. This increase reflects higher selling prices and the favorable impact of foreign currency translation. A 3% decline in sales volume partially offset the above. Organic volume was flat and organic net sales were up 4% year-over-year.
Three Months Ended
March 31, 2026
Volume
(3)
%
Selling Price & Mix
1
%
Foreign Translation
4
%
Total
2
%
Segment Results
Three Months Ended
March 31,
($ in thousands)
2026
2025
%
Change
Net Sales
Surfactants
$
453,687
$
430,337
5
%
Polymers
$
130,029
$
146,116
(11)
%
Specialty Products
$
20,793
$
16,802
24
%
Total Net Sales
$
604,509
$
593,255
2
%
Three Months Ended
March 31,
($ in thousands, all amounts pre-tax)
2026
2025
%
Change
Operating Income (Loss)
Surfactants
$
18,548
$
28,930
(36)
%
Polymers
$
8,822
$
8,018
10
%
Specialty Products
$
4,715
$
5,508
(14)
%
Total Segment
Operating Income
$
32,085
$
42,456
(24)
%
Corporate Expenses
$
(81,707)
$
(14,168)
477
%
Consolidated
Operating Income (Loss)
$
(49,622)
$
28,288
(275)
%
Three Months Ended
March 31,
($ in millions)
2026
2025
%
Change
EBITDA
$
(16.5)
$
58.0
(128)
%
Adjusted EBITDA
Surfactants
$
41.1
$
48.3
(15)
%
Polymers
$
17.4
$
16.1
8
%
Specialty Products
$
6.2
$
7.0
(11)
%
Unallocated Corporate
$
(15.1)
$
(13.9)
9
%
Consolidated Adjusted EBITDA
$
49.6
$
57.5
(14)
%
Consolidated adjusted EBITDA(2) decreased $7.9 million, or 14%, in the quarter. This was primarily due to lower Surfactant earnings resulting from a 2% decline in sales volume, competitive pressures in Mexico and production timing differences in Asia.
Surfactant net sales were $453.7 million for the quarter, up 5% versus the prior year. Selling prices were up 2% primarily due to pass through of higher raw material costs, improved product and customer mix, along with pricing actions. Organic sales volume was up 2%, driven by strong demand within the Industrial Cleaning, Oilfield and Crop Productivity end markets. Total sales volume declined 2% due to the Philippines divestiture in the fourth quarter of 2025. The Company achieved volume growth in all global regions except Asia. Foreign currency translation positively impacted net sales by 5%. Surfactant adjusted EBITDA(2) for the quarter decreased $7.2 million, or 15%, versus the prior year. This decrease was primarily due to higher overhead due to production timing differences in Asia, competitive pressures in Mexico, the severe cold snap in the U.S. and higher oleochemicals raw material costs. Polymer net sales were $130.0 million for the quarter, an 11% decrease versus the prior year. Selling prices decreased 8%, primarily due to the pass-through of lower raw material costs and competitive pressures. Sales volume decreased 6% in the quarter. North American sales volume was up 5% but this was more than offset by a 19% decline in Europe. Foreign currency translation positively impacted net sales by 3% during the quarter. Polymer adjusted EBITDA(2) increased $1.3 million, or 8%, versus the prior year primarily due to global margin improvement. Specialty Products net sales were $20.8 million for the quarter, a 24% increase versus the prior year, primarily due to higher sales volume. Specialty Products adjusted EBITDA(2) decreased $0.8 million, or 11%. The decrease in adjusted EBITDA(2) was primarily due to product mix and lower margins within the medium chain triglycerides product line due to higher raw material costs. Outlook
"We are executing 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 growth. During the first quarter we executed our plans to close our Fieldsboro, NJ site and decommission select assets at our Millsdale, IL and Stalybridge, UK facilities," said Luis E. Rojo, President and Chief Executive Officer. "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. With our actions on growth, productivity and cash, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026, despite the ongoing and significant market uncertainties and challenges."
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 $16.9 million during the first quarter of 2026 and capital expenditures were $30.9 million.
Conference Call
Stepan Company will host a conference call to discuss its first quarter results at 8:00 a.m. ET (7:00 a.m. CT) on April 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 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; our ability to realize cost savings or operating efficiencies associated with strategic initiatives; compliance with laws; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; 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, retaliatory measures and countermeasures, currency exchange rate fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access capital markets; 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; our ability to retain executive management and key personnel; and 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 Months Ended March 31, 2026 and 2025
(Unaudited – in 000's, except per share data)
Three Months Ended
March 31,
2026
2025
Net Sales
$
604,509
$
593,255
Cost of Sales
539,658
517,792
Gross Profit
64,851
75,463
Operating Expenses:
Selling
12,166
12,108
Administrative
21,313
21,414
Research, Development and Technical Services
14,993
14,649
Deferred Compensation Expense
562
(996)
49,034
47,175
Business Restructuring
65,439
-
Operating Income (Loss)
(49,622)
28,288
Other Income (Expense):
Interest, Net
(5,011)
(4,126)
Other, Net
144
502
(4,867)
(3,624)
Income (Loss) Before Provision for Income Taxes
(54,489)
24,664
Provision for Income Taxes
(13,083)
4,953
Net Income (Loss)
(41,406)
19,711
Net Income (Loss) Per Common Share
Basic
$
(1.81)
$
0.86
Diluted
$
(1.81)
$
0.86
Shares Used to Compute Net Income Per
Common Share
Basic
22,888
22,867
Diluted
22,888
22,890
Table II
Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share*
Three Months Ended
March 31,
($ in thousands, except per share amounts)
2026
EPS
2025
EPS
Net Income (Loss) Reported
$
(41,406)
$
(1.81)
$
19,711
$
0.86
Deferred Compensation (Income) Expense
$
477
$
0.02
$
(470)
$
(0.02)
Environmental Remediation
Expense
$
78
$
0.00
$
69
$
0.00
Business Restructuring
$
51,164
$
2.24
$
-
$
-
Adjusted Net Income
$
10,313
$
0.45
$
19,310
$
0.84
* 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 First 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 first quarter of 2026 reported net income includes $0.5 million of after-tax expense versus $0.5 million of after-tax income in the prior year. Environmental Remediation: The first 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. Business Restructuring: The first quarter of 2026 reported net income includes $51.2 million of after-tax expense related to restructuring charges. There were no restructuring charges recognized in the prior year quarter. Table III
Reconciliation of Pre-Tax to After-Tax Adjustments
Management uses the non-GAAP adjusted net income metric to evaluate the Company's operating performance. Management excludes the items listed in the table below because they are non-operational items. The cumulative tax effect is typically calculated using the statutory tax rates for the jurisdictions in which the transactions occurred.
Three Months Ended
March 31,
($ in thousands, except per share amounts)
2026
EPS
2025
EPS
Pre-Tax Adjustments
Deferred Compensation (Income) Expense
$
628
$
(626)
Environmental Remediation Expense
$
102
$
92
Business Restructuring
$
65,439
$
-
Total Pre-Tax Adjustments
$
66,169
$
(534)
Cumulative Tax Effect on Adjustments
$
(14,450)
$
133
After-Tax Adjustments
$
51,719
$
2.26
$
(401)
$
(0.02)
Table IV
Deferred Compensation Plans
The full effect of the deferred compensation plans on quarterly pre-tax income was $0.6 million of expense versus $0.6 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
3/31
12/31
9/30
6/30
3/31
Stepan Company
$
49.98
$
47.36
$
47.70
$
54.58
$
55.04
Three Months Ended
March 31,
($ in thousands)
2026
2025
Deferred Compensation
Operating Income (Expense)
$
(562)
$
996
Other, net – Mutual Fund Gain (Loss)
(66)
(370)
Total Pre-Tax
$
(628)
$
626
Total After-Tax
$
(477)
$
470
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
March 31,
Change
Change
Due to
Foreign
Currency
Translation
2026
2025
Net Sales
$
604.5
$
593.3
$
11.2
$
25.3
Gross Profit
64.9
75.5
$
(10.6)
2.5
Operating Income
(49.6)
28.3
$
(77.9)
1.3
Pretax Income
(54.5)
24.7
$
(79.2)
1.4
Corporate Expenses
Three Months Ended
March 31,
($ in thousands)
2026
2025
%
Change
Total Corporate Expenses
$
81,707
$
14,168
477
%
Less:
Deferred Compensation (Income) Expense
$
562
$
(996)
(156)
%
Environmental Remediation
Expense
$
102
$
92
11
%
Business Restructuring
$
65,439
$
-
NM
Adjusted Corporate Expenses
$
15,604
$
15,072
4
%
Table V
Stepan Company
Consolidated Balance Sheets
March 31, 2026 and December 31, 2025
March 31, 2026
December 31,
2025
ASSETS
Current Assets
$
906,238
$
858,959
Property, Plant & Equipment, Net
1,148,164
1,219,627
Other Assets
278,935
279,116
Total Assets
$
2,333,337
$
2,357,702
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
$
720,453
$
666,494
Deferred Income Taxes
11,052
11,450
Long-term Debt
328,415
340,975
Other Non-current Liabilities
80,393
94,773
Total Stepan Company Stockholders' Equity
1,193,024
1,244,010
Total Liabilities and Stockholders' Equity
$
2,333,337
$
2,357,702
Selected Balance Sheet Information
The Company's total debt increased by $25.0 million and cash increased by $8.1 million versus December 31, 2025. The Company's net debt level increased $16.9 million versus December 31, 2025 and its net debt ratio was 30% versus 28% in the prior quarter (Net Debt and Net Debt Ratio are non-GAAP measures, reconciliations of which are shown in the table below). Management uses the non-GAAP net debt metric to show a more complete picture of the Company's overall liquidity, financial flexibility and leverage level.
($ in millions)
March 31,
2026
December 31,
2025
Net Debt
Total Debt
$
651.7
$
626.7
Cash
140.8
132.7
Net Debt
$
510.9
$
494.0
Equity
1,193.0
1,244.0
Net Debt + Equity
$
1,703.9
$
1,738.0
Net Debt / (Net Debt + Equity)
30
%
28
%
The major working capital components were:
($ in millions)
March 31,
2026
December 31,
2025
Net Receivables
$
433.7
$
388.0
Inventories
289.0
298.8
Accounts Payable
(285.7)
(261.7)
$
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 June 15, 2026, to common stockholders of record on June 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 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; our ability to realize cost savings or operating efficiencies associated with strategic initiatives; compliance with laws; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; 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, retaliatory measures and countermeasures, currency exchange controls and rate fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; potential adverse tax consequences due to international scope of our business; downgrades in our credit ratings or our ability to access capital markets; 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; our ability to retain executive management and key personnel; and 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.
Stepan Co. (SCL - Free Report) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +114.29%. A quarter ago, it was expected that this specialty chemicals company would post earnings of $0.35 per share when it actually produced a loss of $0.02, delivering a surprise of -105.71%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Stepan Co., which belongs to the Zacks Chemical - Diversified industry, posted revenues of $604.51 million for the quarter ended March 2026, missing the Zacks Consensus Estimate by 4.09%. This compares to year-ago revenues of $593.26 million. The company has topped consensus revenue estimates just once 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 11.2% since the beginning of the year versus the S&P 500's gain of 4.8%.
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 unfavorable. 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 #5 (Strong Sell) for the stock. So, the shares are expected to underperform 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 $0.60 on $658.8 million in revenues for the coming quarter and $2.43 on $2.6 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 bottom 30% 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.
Kronos Worldwide (KRO - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.
This maker of titanium dioxide pigments is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of -306.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Kronos Worldwide's revenues are expected to be $523.79 million, up 6.9% from the year-ago quarter.
On May 01, 2026, Stepan Co (SCL) shares rose 3.1% to a current price of $51.59. This move comes amid a 52-week trading range that has seen a high of $68.00 and
