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Entergy (ETR - Free Report) came out with quarterly earnings of $1.03 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +9.57%. A quarter ago, it was expected that this power company would post earnings of $0.89 per share when it actually produced earnings of $0.86, delivering a surprise of -3.37%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Entergy, which belongs to the Zacks Utility - Electric Power industry, posted revenues of $3.52 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.08%. This compares to year-ago revenues of $3.33 billion. The company has topped consensus revenue estimates three 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.

Entergy shares have added about 21.5% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Entergy?While Entergy 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 Entergy 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 $1.75 on $4.13 billion in revenues for the coming quarter and $4.40 on $14.27 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, Utility - Electric Power is currently in the bottom 32% 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.

Another stock from the same industry, Dominion Energy (D - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31.

This energy company is expected to post quarterly earnings of $0.73 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has been revised 3.8% higher over the last 30 days to the current level.

Dominion Energy's revenues are expected to be $4.06 billion, up 6.6% from the year-ago quarter.

, /PRNewswire/ -- OGE Energy Corp. (NYSE: OGE), the parent company of Oklahoma Gas and Electric Company ("OG&E"), today reported earnings of $0.56 per diluted share during the three months that ended June 30, 2026, compared to $0.53 per diluted share in the second quarter 2025.

OG&E, a regulated electric company, contributed earnings of $0.58 per diluted share in the second quarter, compared to earnings of $0.53 per diluted share in the second quarter 2025. Other operations, which includes the holding company, contributed a loss of $0.02 per diluted share compared to breakeven results in the second quarter of 2025. "Our second-quarter results reflect the strength of our business and the disciplined execution of our team as we advance investments that support reliable, affordable service for customers," said Sean Trauschke, Chairman, President, and CEO of OGE Energy Corp. "We are making significant progress on initiatives that position OG&E for incremental growth while maintaining a strong focus on protecting existing customers as we prepare to serve new large-load opportunities and support economic development."

Second Quarter 2026 results

OG&E contributed net income of $120.1 million, or $0.58 per diluted share, in the second quarter compared to $107.7 million, or $0.53 per diluted share, in the same period 2025. The increase in net income was primarily due to increased recovery of capital investments and lower interest expense, partially offset by increased operation and maintenance expenses.

Other Operations resulted in a loss of $3.8 million, or $0.02 per diluted share, in the second quarter compared to a loss of $0.2 million, in the same period 2025. The increased loss was primarily due to higher interest expense and a one-time benefit related to legacy midstream operations recognized in 2025, which was partially offset by increased other income.

OGE Energy's net income was $116.3 million or $0.56 per diluted share in the second quarter, compared to earnings of $107.5 million, or $0.53 per diluted share, in the same period 2025.

2026 Outlook 
OGE Energy's 2026 consolidated earnings guidance remains unchanged and is projected to be $2.43 per average diluted share, within a range of $2.38 to $2.48 per average diluted share. The guidance assumes, among other things, normal weather for the remainder of the year. OG&E has significant seasonality in its earnings due to weather on a year-over-year basis.

See OGE Energy's 2025 Form 10-K for other key factors and assumptions underlying its 2026 guidance.

Conference Call Webcast
OGE Energy Corp. will host an earnings and business update conference call on Wednesday, July 29, 2026, at 8 a.m. CDT. The conference will be available through the Investor Center at www.oge.com.

Some of the matters discussed in this news release may contain forward looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements are intended to be identified in this document by the words "anticipate," "believe," "estimate," "expect," "forecast," "intend," "objective," "plan," "possible," "potential," "project," "target" and similar expressions. Actual results may vary materially. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to: general economic conditions, including the availability of credit, access to existing lines of credit, access to the commercial paper markets, actions of rating agencies and inflation rates, and their impact on capital expenditures; the ability of the Company to access the capital markets and obtain financing on favorable terms, as well as inflation rates and monetary fluctuations; the ability to obtain timely and sufficient rate relief to allow for recovery of items such as capital expenditures, fuel and purchased power costs, operating costs, transmission costs and deferred expenditures; prices and availability of electricity, coal and natural gas; competitive factors, including the extent and timing of the entry of additional competition in the markets served by the Company, potentially through deregulation; the impact on demand for the Company's services resulting from cost-competitive advances in technology, such as distributed electricity generation and customer energy efficiency programs; technological developments, changing markets and other factors that result in competitive disadvantages and create the potential for impairment of existing assets; factors affecting utility operations such as unusual weather conditions; catastrophic weather-related damage; unscheduled generation outages; unusual maintenance or repairs; unanticipated changes to fossil fuel, natural gas or coal supply costs or availability due to higher demand, shortages, transportation problems or other developments; environmental incidents; or electric transmission or gas pipeline system constraints; availability and prices of raw materials and equipment for current and future construction projects; the effect of retroactive pricing of transactions in the SPP markets, adjustments in market pricing mechanisms by the SPP, or allocation of transmission upgrade costs; federal or state legislation and regulatory decisions and initiatives that affect cost and investment recovery, have an impact on rate structures or affect the speed and degree to which competition enters the Company's markets; environmental laws, safety laws or other regulations that may impact the cost of operations, restrict or change the way the Company's facilities are operated or result in stranded assets; the ability of the Company to meet future capacity requirements mandated by the SPP, which could be impacted by future load growth, environmental regulations, and the availability of resources; changes in accounting standards, rules or guidelines; the discontinuance of accounting principles for certain types of rate-regulated activities; the cost of protecting assets against, or damage due to, terrorism or cyberattacks, including the Company losing control of its assets and potential ransoms, and other catastrophic events; the availability, cost, coverage and terms of insurance; changes in the use, perception or regulation of generative artificial intelligence technologies, which could limit the Company's ability to utilize such technology, create risk of enhanced regulatory scrutiny, generate uncertainty around intellectual property ownership, licensing or use, or which could otherwise result in risk of damage to the Company's business, reputation or financial results; creditworthiness of suppliers, customers and other contractual parties, including large, new customers from industries such as cryptocurrency and data centers; social attitudes regarding the electric utility and power industries; identification of suitable investment opportunities to enhance shareholder returns and achieve long-term financial objectives through business acquisitions and divestitures; increased pension and healthcare costs; national and global events that could adversely affect and/or exacerbate macroeconomic conditions, including inflationary pressures, interest rate fluctuations, supply chain disruptions, economic recessions, pandemic health events, tariffs and uncertainty surrounding continued hostilities or sustained military campaigns, and their collateral consequences; costs and other effects of legal and administrative proceedings, settlements, investigations, claims and matters, including, but not limited to, those described in the Company's Form 10-Q for the quarter ended June 30, 2026; and other risk factors listed in the reports filed by the Company with the Securities and Exchange Commission, including those listed within the Company's most recent Form 10-K for the year ended December 31, 2025.

Note: Condensed Consolidated Statements of Income for OGE Energy Corp., Condensed Statements of Income and Comprehensive Income for Oklahoma Gas & Electric Company, and Financial and Statistical Data for Oklahoma Gas & Electric Company attached.

OGE ENERGY CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions, except per share data)

2026

2025

2026

2025

OPERATING REVENUES

Revenues from contracts with customers

$

688.0

$

719.7

$

1,424.7

$

1,460.8

Other revenues

23.9

21.9

39.8

28.5

Operating revenues

711.9

741.6

1,464.5

1,489.3

FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE

217.7

261.1

554.4

585.1

OPERATING EXPENSES

Other operation and maintenance

138.7

127.1

275.2

248.9

Depreciation and amortization

138.1

140.6

274.5

278.0

Taxes other than income

25.8

26.2

55.7

57.4

Operating expenses

302.6

293.9

605.4

584.3

OPERATING INCOME

191.6

186.6

304.7

319.9

OTHER INCOME (EXPENSE)

Allowance for equity funds used during construction

7.3

6.0

14.8

13.0

Other net periodic benefit expense

(2.6)

(2.9)

(5.2)

(5.5)

Other income

15.3

17.2

28.9

24.2

Other expense

(7.1)

(5.2)

(19.4)

(9.7)

Net other income

12.9

15.1

19.1

22.0

INTEREST EXPENSE

Interest on long-term debt

71.6

66.6

137.9

128.0

Allowance for borrowed funds used during construction

(3.4)

(3.7)

(7.0)

(8.2)

Interest on short-term debt and other interest charges

(1.5)

9.3

(4.3)

19.7

Interest expense

66.7

72.2

126.6

139.5

INCOME BEFORE TAXES

137.8

129.5

197.2

202.4

INCOME TAX EXPENSE

21.5

22.0

30.7

32.2

NET INCOME

$

116.3

$

107.5

$

166.5

$

170.2

BASIC AVERAGE COMMON SHARES OUTSTANDING

206.5

201.3

206.4

201.3

DILUTED AVERAGE COMMON SHARES OUTSTANDING

207.8

202.1

207.5

202.0

BASIC EARNINGS PER AVERAGE COMMON SHARE

$

0.56

$

0.53

$

0.81

$

0.85

DILUTED EARNINGS PER AVERAGE COMMON SHARE

$

0.56

$

0.53

$

0.80

$

0.84

OKLAHOMA GAS AND ELECTRIC COMPANY
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(In millions)

2026

2025

2026

2025

OPERATING REVENUES

Revenues from contracts with customers

$

688.0

$

719.7

$

1,424.7

$

1,460.8

Other revenues

23.9

21.9

39.8

28.5

Operating revenues

711.9

741.6

1,464.5

1,489.3

FUEL, PURCHASED POWER AND DIRECT TRANSMISSION EXPENSE

217.7

261.1

554.4

585.1

OPERATING EXPENSES

Other operation and maintenance

138.6

126.3

275.4

248.1

Depreciation and amortization

138.1

140.6

274.5

278.0

Taxes other than income

25.8

26.2

55.7

57.4

Operating expenses

302.5

293.1

605.6

583.5

OPERATING INCOME

191.7

187.4

304.5

320.7

OTHER INCOME (EXPENSE)

Allowance for equity funds used during construction

7.3

6.0

14.8

13.0

Other net periodic benefit expense

(2.5)

(2.6)

(5.0)

(5.1)

Other income

6.4

4.1

9.1

9.4

Other expense

(0.6)

(0.5)

(1.4)

(1.4)

Net other income

10.6

7.0

17.5

15.9

INTEREST EXPENSE

Interest on long-term debt

65.9

60.8

126.5

116.4

Allowance for borrowed funds used during construction

(3.4)

(3.7)

(7.0)

(8.2)

Interest on short-term debt and other interest charges

(4.1)

6.3

(11.1)

12.0

Interest expense

58.4

63.4

108.4

120.2

INCOME BEFORE TAXES

143.9

131.0

213.6

216.4

INCOME TAX EXPENSE

23.8

23.3

35.6

37.7

NET INCOME

$

120.1

$

107.7

$

178.0

$

178.7

Other comprehensive income, net of tax

—

—

—

—

COMPREHENSIVE INCOME

$

120.1

$

107.7

$

178.0

$

178.7

OKLAHOMA GAS AND ELECTRIC COMPANY
FINANCIAL AND STATISTICAL DATA

Three Months Ended

Six Months Ended

June 30,

June 30,

(Dollars in millions)

2026

2025

2026

2025

Operating revenues by classification:

Residential

$

261.1

$

261.0

$

521.5

$

548.3

Commercial

215.6

225.9

427.6

434.7

Industrial

56.5

60.2

117.2

122.4

Oilfield

49.3

53.2

107.7

112.4

Public authorities and street light

62.3

64.5

124.2

125.3

System sales revenues

644.8

664.8

1,298.2

1,343.1

Provision for rate refund

—

—

—

3.0

Integrated market

27.4

26.3

74.7

47.6

Transmission

30.5

42.1

71.2

81.9

Other

9.2

8.4

20.4

13.7

Total operating revenues

$

711.9

$

741.6

$

1,464.5

$

1,489.3

MWh sales by classification (In millions)

Residential

2.3

2.1

4.4

4.6

Commercial

3.3

3.1

6.1

5.8

Industrial

1.0

1.0

2.0

2.0

Oilfield

1.1

1.0

2.2

2.1

Public authorities and street light

0.7

0.7

1.4

1.4

System sales

8.4

7.9

16.1

15.9

Integrated market

0.4

0.2

0.7

0.4

Total sales

8.8

8.1

16.8

16.3

Number of customers

917,157

909,131

917,157

909,131

Weighted-average cost of energy per kilowatt-hour (In cents)

Natural gas

3.438

3.498

5.173

4.265

Coal

2.662

2.761

2.620

2.751

Total fuel

3.086

3.120

4.208

3.508

Total fuel and purchased power

2.406

3.076

3.179

3.437

Degree days (A)

Heating - Actual

127

156

1,510

2,056

Heating - Normal

250

250

2,139

2,139

Cooling - Actual

772

579

864

598

Cooling - Normal

553

553

563

563

(A) Degree days are calculated as follows: The high and low degrees of a particular day are added together and then averaged. If the calculated average is above 65 degrees, then the difference between the calculated average and 65 is expressed as cooling degree days, with each degree of difference equaling one cooling degree day. If the calculated average is below 65 degrees, then the difference between the calculated average and 65 is expressed as heating degree days, with each degree of difference equaling one heating degree day. The daily calculations are then totaled for the particular reporting period. The calculation of heating and cooling degree normal days is based on a 30-year average and weighted on a jurisdictional split.

SOURCE OGE Energy Corp.

, /PRNewswire/ -- M/I Homes, Inc. (NYSE: MHO) announced results for the three and six months ended June 30, 2026.

2026 Second Quarter Results:

New contracts increased 15% to 2,387, a second quarter record Homes delivered decreased 6% to 2,206 Revenue declined 9% to $1.1 billion Gross margin of 22% Pre-tax income of $105 million, including inventory charges of $4 million, 10% of revenue, down 35% Net income of $79 million ($3.02 per diluted share) versus $121 million ($4.42 per diluted share) Shareholders' equity reached a record $3.2 billion, with book value per share increasing to a record $128 Repurchased $50 million of common stock Return on equity of 10% Homebuilding debt to capital ratio of 18% The Company reported pre-tax income of $104.6 million and net income of $79.1 million ($3.02 per diluted share). These results include pre-tax inventory charges of $4.2 million ($0.12 per diluted share). This compares to pre-tax income of $160.1 million and net income of $121.2 million, or $4.42 per diluted share, for the second quarter of 2025. For the six months ended June 30, 2026, pre-tax income was $193.7 million and net income was $146.9 million, or $5.57 per diluted share. This compared to pre-tax income of $306.2 million and net income of $232.5 million, or $8.40 per diluted share, for the same period of 2025.

Homes delivered in 2026's second quarter decreased 6% to 2,206 homes. This compares to 2,348 homes delivered in 2025's second quarter. Homes delivered for the six months ended June 30, 2026 were 4,120 compared to 2025's deliveries of 4,324 for the six months ended June 30, 2025, a decrease of 5%. New contracts increased 15% to a record 2,387 for the second quarter of 2026 compared to 2,078 in last year's second quarter. For the first half of 2026, new contracts were 4,737 compared to 4,370 in 2025, an increase of 8%. Homes in backlog at June 30, 2026 had a total sales value of $1.31 billion, an 8% decrease from a year ago. Backlog units at June 30, 2026 decreased 6% to 2,426 homes, with an average sales price of $538,000. At June 30, 2025, backlog sales value was $1.43 billion, with backlog units of 2,577 and an average sales price of $553,000. M/I Homes had 234 communities at both June 30, 2026 and 2025. The Company's cancellation rate was 8% in the second quarter of 2026 compared to 13% in the second quarter of 2025.

Robert H. Schottenstein, Chief Executive Officer and President, commented, "We delivered solid second quarter results despite continued challenging market conditions. Highlights included a second quarter record of 2,387 new contracts, gross margins of 22%, a pre-tax margin of 10% and a return on equity of 10%."

Mr. Schottenstein added, "Notwithstanding current market conditions, we are confident in the long-term fundamentals of the housing industry and in our ability to navigate this uncertain environment. Our financial condition is excellent, highlighted by S&P's recent upgrade of our credit rating to BB+. We have a very strong balance sheet with record shareholders' equity of $3.2 billion, no borrowings under our $900 million unsecured credit facility, cash of $736 million, a homebuilding debt-to-capital ratio of 18%, and a net debt-to-capital ratio of negative 1%. Given the quality of our geographic footprint, the diversity of our product offering and continued focus on well-located communities, we are well positioned to have a solid 2026."

The Company will broadcast live its earnings conference call today at 10:30 A.M. Eastern Time. To listen to the call live, log on to the M/I Homes' website at mihomes.com, click on the "Investors" section of the site, and select "Listen to the Conference Call." A replay of the call will continue to be available on our website through July 2027.

M/I Homes, Inc., celebrating its 50th year in business in 2026, is one of the nation's leading homebuilders of single-family homes. The Company has homebuilding operations in Columbus and Cincinnati, Ohio; Indianapolis, Indiana; Chicago, Illinois; Minneapolis/St. Paul, Minnesota; Detroit, Michigan; Tampa, Sarasota, Fort Myers/Naples and Orlando, Florida; Austin, Dallas/Fort Worth, Houston and San Antonio, Texas; Charlotte and Raleigh, North Carolina and Nashville, Tennessee.

Certain statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "targets," "envisions," "goals," "projects," "intends," "plans," "believes," "seeks," "estimates," variations of such words and similar expressions are intended to identify such forward-looking statements. These statements involve a number of risks and uncertainties. Any forward-looking statements that we make herein and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those in such forward-looking statements as a result of various factors, including, without limitation, factors relating to the economic environment, interest rates, availability of resources, competition, market concentration, land development activities, construction defects, product liability and warranty claims and various governmental rules and regulations including changes in trade policy affecting business such as new or increased tariffs, as well as the potential impact of retaliatory tariffs and other penalties, as more fully discussed in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as the same may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. All forward-looking statements made in this press release are made as of the date hereof, and the risk that actual results will differ materially from expectations expressed herein will increase with the passage of time. We undertake no duty to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. However, any further disclosures made on related subjects in our subsequent filings, releases or presentations should be consulted.

M/I Homes, Inc. and Subsidiaries

Summary Statement of Income (unaudited)

(Dollars and shares in thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

New contracts

2,387

2,078

4,737

4,370

Average community count

232

230

232

227

Cancellation rate

8 %

13 %

8 %

11 %

Backlog units

2,426

2,577

2,426

2,577

Backlog sales value

$              1,305,248

$              1,425,138

$              1,305,248

$              1,425,138

Homes delivered

2,206

2,348

4,120

4,324

Average home closing price

$                        459

$                        479

$                        459

$                        477

Homebuilding revenue:

   Housing revenue

$              1,011,974

$              1,124,475

$              1,890,584

$              2,064,506

   Land revenue

18,948

6,667

29,814

11,209

Total homebuilding revenue

$              1,030,922

$              1,131,142

$              1,920,398

$              2,075,715

Financial services revenue

32,336

31,450

63,567

62,970

Total revenue

$              1,063,258

$              1,162,592

$              1,983,965

$              2,138,685

Cost of sales - operations

823,559

875,973

1,541,675

1,599,283

Cost of sales - inventory charges

4,200

—

4,200

—

Gross margin

$                235,499

$                286,619

$                438,090

$                539,402

General and administrative expense

70,198

67,247

131,384

126,320

Selling expense

64,023

63,655

119,363

116,441

Operating income

$                101,278

$                155,717

$                187,343

$                296,641

Interest income, net of interest expense

(3,286)

(4,377)

(6,391)

(9,574)

Income before income taxes

$                104,564

$                160,094

$                193,734

$                306,215

Provision for income taxes

25,496

38,851

46,834

73,735

Net income

$                  79,068

$                121,243

$                146,900

$                232,480

Earnings per share:

Basic

$                   3.08

$                   4.52

$                   5.69

$                   8.59

Diluted

$                   3.02

$                   4.42

$                   5.57

$                   8.40

Weighted average shares outstanding:

Basic

25,667

26,836

25,836

27,074

Diluted

26,193

27,406

26,376

27,673

M/I Homes, Inc. and Subsidiaries

Summary Balance Sheet and Other Information (unaudited)

(Dollars in thousands, except per share amounts)

As of

June 30,

2026

2025

Assets:

Total cash, cash equivalents and restricted cash

$   735,941

$   800,398

Mortgage loans held for sale

258,965

280,867

Inventory:

Lots, land and land development

1,850,007

1,683,930

Land held for sale

40,887

5,005

Homes under construction

1,387,441

1,403,582

Other inventory

226,963

194,089

Total Inventory

$ 3,505,298

$ 3,286,606

Property and equipment - net

34,446

33,749

Investments in joint venture arrangements

62,018

67,466

Operating lease right-of-use assets

51,929

56,403

Goodwill

16,400

16,400

Deferred income tax asset

4,508

13,451

Other assets

186,538

184,699

Total Assets

$ 4,856,043

$ 4,740,039

Liabilities:

Debt - Homebuilding Operations:

Senior notes due 2028 - net

$   398,814

$   398,040

Senior notes due 2030 - net

298,125

297,621

Total Debt - Homebuilding Operations

$   696,939

$   695,661

Notes payable bank - financial services operations

252,366

275,926

Total Debt

$   949,305

$   971,587

Accounts payable

244,494

252,476

Operating lease liabilities

53,732

57,997

Other liabilities

381,092

375,843

Total Liabilities

$ 1,628,623

$ 1,657,903

Shareholders' Equity

3,227,420

3,082,136

Total Liabilities and Shareholders' Equity

$ 4,856,043

$ 4,740,039

Book value per common share

$     127.88

$     117.01

Homebuilding debt to capital ratio (1)

18 %

18 %

(1)

 The ratio of homebuilding debt to capital is calculated as the carrying value of our homebuilding debt outstanding divided by the sum of the carrying value of our homebuilding debt outstanding plus shareholders' equity.

M/I Homes, Inc. and Subsidiaries

Selected Supplemental Financial and Operating Data (unaudited)

(Dollars in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Cash provided by operating activities

$      36,806

$      37,755

$     172,537

$    102,642

Cash used in investing activities

$     (11,873)

$     (12,318)

$        (6,755)

$     (15,246)

Cash used in financing activities

$     (56,408)

$       (1,417)

$    (119,030)

$   (108,568)

Land/lot purchases

$    131,056

$    101,751

$     210,296

$     247,734

Land development spending

$    154,742

$    139,008

$     259,105

$     240,607

Land sale revenue

$      18,948

$        6,667

$       29,814

$       11,209

Land sale gross profit

$        5,491

$        3,202

$         7,690

$         3,988

Financial services pre-tax income

$      14,423

$      14,476

$       28,520

$       30,582

M/I Homes, Inc. and Subsidiaries

Non-GAAP Financial Results (1)

(Dollars in thousands)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Net income

$      79,068

$    121,243

$    146,900

$    232,480

Add:

Provision for income taxes

25,496

38,851

46,834

73,735

Interest income - net

(6,156)

(7,726)

(11,996)

(15,767)

Interest amortized to cost of sales

7,952

8,227

14,646

15,128

Depreciation and amortization

5,333

4,904

10,587

9,681

Non-cash charges

8,761

3,916

12,946

8,116

Adjusted EBITDA

$    120,454

$    169,415

$    219,917

$    323,373

(1)

We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations.

M/I Homes, Inc. and Subsidiaries

Selected Supplemental Financial and Operating Data

NEW CONTRACTS

Three Months Ended

Six Months Ended

June 30,

June 30,

%

%

Region

2026

2025

Change

2026

2025

Change

Northern

1,016

873

16 %

2,042

1,938

5 %

Southern

1,371

1,205

14 %

2,695

2,432

11 %

Total

2,387

2,078

15 %

4,737

4,370

8 %

HOMES DELIVERED

Three Months Ended

Six Months Ended

June 30,

June 30,

%

%

Region

2026

2025

Change

2026

2025

Change

Northern

892

967

(8) %

1,644

1,793

(8) %

Southern

1,314

1,381

(5) %

2,476

2,531

(2) %

Total

2,206

2,348

(6) %

4,120

4,324

(5) %

BACKLOG

June 30, 2026

June 30, 2025

Dollars

Average

Dollars

Average

Region

Units

(millions)

Sales Price

Units

(millions)

Sales Price

Northern

1,234

$       699

$  567,000

1,281

$       721

$  563,000

Southern

1,192

$       606

$  508,000

1,296

$       704

$  543,000

Total

2,426

$    1,305

$  538,000

2,577

$    1,425

$  553,000

LAND POSITION SUMMARY

June 30, 2026

June 30, 2025

Lots

Lots Under

Lots

Lots Under

Region

Owned

Contract

Total

Owned

Contract

Total

Northern

7,138

12,519

19,657

7,104

8,710

15,814

Southern

16,244

13,149

29,393

17,403

17,247

34,650

Total

23,382

25,668

49,050

24,507

25,957

50,464

M/I Homes, Inc. and Subsidiaries

Non-GAAP Reconciliation (1)

(Dollars and shares in thousands, except per share amounts)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

2026

2025

Income before income taxes

$    104,564

$  160,094

$    193,734

$  306,215

Add: Inventory charges (2)

4,200

—

4,200

—

Adjusted income before income taxes

$    108,764

$  160,094

$    197,934

$  306,215

Net income

$     79,068

$  121,243

$    146,900

$  232,480

Add: Inventory charges - net of tax (2)

3,176

—

3,185

—

Adjusted net income

$     82,244

$  121,243

$    150,085

$  232,480

Inventory charges - net of tax (2)

$       3,176

$          —

$       3,185

$       —

Divided by: Diluted weighted average shares outstanding

26,193

27,406

26,376

27,673

Diluted earnings per share related to inventory charges (2)

$        0.12

$          —

$        0.12

$       —

Add: Diluted earnings per share

3.02

4.42

5.57

8.40

Adjusted diluted earnings per share

$        3.14

$      4.42

$        5.69

$       8.40

(1)

We believe these non-GAAP financial measures are relevant and useful to investors in understanding our operations and may be helpful in comparing us with other companies in the homebuilding industry to the extent they provide similar information. These non-GAAP financial measures should be used to supplement our GAAP results in order to provide a greater understanding of the factors and trends affecting our operations.

(2)

Represents the related charges divided by diluted weighted average shares outstanding during the respective period as presented in the Summary Statement of Income.

SOURCE M/I Homes, Inc.

Energy Transfer (ET +1.46%) has become a very reliable income investment over the past few years. The master limited partnership (MLP), which sends a Schedule K-1 Federal tax form each year, just notched its 19th consecutive quarterly dividend increase. That pay bump pushes its current yield up to 6.8%.

Here's a look at whether now's the time to buy the high-yielding MLP for income.

Image source: The Motley Fool.

Built back better Energy Transfer recently declared its latest cash distribution. The MLP is raising its quarterly payment to $0.34 per unit ($1.36 annualized), a more than 3% increase compared to the year-ago period. It will pay this distribution on Aug. 19 to unitholders of record as of the close of business on Aug. 7.

That's the 19th quarterly increase in a row. The pipeline company began raising its distribution in late 2021, following a 50% cut in early 2020 to retain additional cash and strengthen its financial position. That strategy has worked to perfection as Energy Transfer is now in the best financial shape in its history. That has allowed it to steadily rebuild its distribution, which is now well above the prior peak of $1.22 per unit.

Today's Change

(

1.46

%) $

0.29

Current Price

$

20.20

Plenty of fuel to continue growing Energy Transfer currently plans to grow its distribution by 3% to 5% per year. That's a very achievable level for the MLP. It currently generates significant excess free cash after paying distributions ($2.7 billion in distributable cash flow in the first quarter, compared to less than $1.2 billion in total distributions paid). That's enabling it to retain substantial excess free cash flow to fund its growth capital program.

The MLP currently expects to invest between $5.5 billion and $5.9 billion into growth capital projects this year. That's part of a multi-year, multi-billion-dollar expansion backlog, with projects expected to enter commercial service through 2030, including $9.5 billion of major gas pipeline projects. It also has many smaller-scale gas pipeline projects underway, as well as crude oil and natural gas liquids (NGL) projects. Meanwhile, it has several additional projects under development to support growing gas power demand, NGL exports, and U.S. oil production. These projects should drive meaningful earnings and cash flow growth as they enter commercial service. The MLP currently expects to grow its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by 15% at the midpoint of its guidance range this year. This growth should support its distribution growth plan.

Time to buy the high-yielding MLP? Energy Transfer's strong growth has fueled a more than 20% increase in its unit price this year. Despite that, it trades at the lowest valuation among its MLP peers at 8.5 times forward earnings (compared to the 9.5x-11.5x range). Given its strong growth prospects and financial profile, Energy Transfer looks like a great buy right now. It should continue delivering a growing income stream along with solid price appreciation as its earnings grow, which should fuel high-octane total returns in the coming years.

Centurion Mine Advancing Toward Targeted Production Rates

Seaborne Thermal Results Benefit from Higher Pricing

Multiple Strategic Financial Actions Further Strengthen Capital Structure

, /PRNewswire/ -- Peabody (NYSE: BTU) today reported net income attributable to common stockholders of $(90.6) million, or $(0.74) per diluted share, for the second quarter of 2026, compared to $(27.6) million, or $(0.23) per diluted share, in the prior-year quarter. Peabody reported Adjusted EBITDA1 of $24.0 million in the second quarter of 2026 compared to $93.3 million in the prior-year quarter.

"While second quarter results reflected temporarily lower volumes and higher costs, we are already seeing those impacts mitigate across our operations. We expect improved results in the second half of the year as performance at our flagship Centurion Mine achieves targeted production rates," said Peabody President and Chief Executive Officer Jim Grech. "We're targeting strong cash generation for the second half of 2026, fueled by our seaborne metallurgical and thermal segments."

Highlights

Completed significant longwall commissioning activities at Centurion and are targeting 1.5 to 2.0 million tons of sales in the second half of 2026, while costs and margins progress toward targeted run-rate levels. Issued $250 million of 0.5% 2031 convertible notes, purchased a capped call with a cap price of $50.61 per share and repurchased $241.2 million of 3.25% 2028 convertible notes (with a conversion price of $18.99 per share) for cash consideration of $386.8 million, effectively repurchasing 5.0 million shares. Revised U.S. and Australia surety arrangements reducing reclamation cash collateral requirements by approximately $350 million. Increased revolving credit facility capacity to $400 million. Awarded a grant from the U.S. Department of Energy to advance rare earth elements (REE) and critical minerals (CM) development opportunities in the Powder River Basin. Coupled with the Wyoming Energy Authority grant awarded earlier this year, the company continued to progress promising REE/CM opportunities. Declared a quarterly dividend of $0.075 per share on July 29, 2026, payable on Sept. 3, 2026, to stockholders of record on Aug. 12, 2026. Second Quarter Segment Performance

Seaborne Thermal

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Tons sold (in millions)

3.0

3.0

3.6

6.0

8.0

Export

1.9

1.9

2.1

3.8

5.0

Domestic

1.1

1.1

1.5

2.2

3.0

Revenue per Ton

$      74.85

$      66.61

$      53.22

$      70.81

$      57.25

Export - Avg. Realized Price per Ton

95.87

86.25

72.86

91.20

76.56

Domestic - Avg. Realized Price per Ton

36.69

32.62

24.19

34.66

24.57

Costs per Ton

57.93

50.26

44.10

54.17

42.61

Adjusted EBITDA Margin per Ton

$      16.92

$      16.35

$        9.12

$      16.64

$      14.64

Adjusted EBITDA (in millions)

$        52.1

$        48.5

$        33.5

$      100.6

$      117.7

Seaborne Thermal delivered Adjusted EBITDA of $52.1 million in the second quarter, realizing average prices 12.4 percent higher than the first quarter amid strong coal-fueled generation across multiple Asian countries. Costs per ton of $57.93 came in at the low end of guidance, reflecting strong production volumes at Wilpinjong.

Seaborne Metallurgical

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Tons sold (in millions)

2.5

2.0

2.2

4.5

4.0

Revenue per Ton

$     148.04

$     138.28

$     114.79

$     143.57

$     119.40

Costs per Ton

155.08

141.72

118.97

148.96

118.39

Adjusted EBITDA Margin per Ton

$       (7.04)

$       (3.44)

$       (4.18)

$       (5.39)

$        1.01

Adjusted EBITDA (in millions)

$       (17.0)

$         (7.0)

$         (9.2)

$       (24.0)

$          4.0

Seaborne Metallurgical delivered Adjusted EBITDA of $(17.0) million in the quarter, as the continued commissioning of Centurion contributed to higher-than-expected costs. Sales volumes exceeded expectations by 0.2 million tons due to higher volumes at Metropolitan and the CMJV. Realized pricing increased 7.1 percent quarter over quarter to $148.04 per ton, supported by growing supply constraints in China.

Powder River Basin

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Tons sold (in millions)

16.4

21.2

20.0

37.6

39.6

Revenue per Ton

$      13.63

$      13.65

$      13.82

$      13.64

$      13.92

Costs per Ton

14.06

12.53

11.66

13.20

11.92

Adjusted EBITDA Margin per Ton

$      (0.43)

$        1.12

$        2.16

$        0.44

$        2.00

Adjusted EBITDA (in millions)

$        (7.1)

$        23.7

$        43.0

$        16.6

$        79.3

Powder River Basin delivered Adjusted EBITDA of $(7.1) million in the second quarter. Sales volumes fell below targeted levels due to milder weather extending the spring shoulder season and longer coal generation plant maintenance downtimes ahead of summer. Costs totaled $14.06 per ton, reflecting lower volumes while maintaining full utilization of the equipment fleet to uncover more coal in advance of higher expected volumes in the second half of the year.

Other U.S. Thermal

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Tons sold (in millions)

3.0

3.3

2.9

6.3

6.0

Revenue per Ton

$      55.26

$      55.79

$      54.08

$      55.54

$      54.20

Costs per Ton

46.13

44.37

49.39

45.20

46.43

Adjusted EBITDA Margin per Ton

$        9.13

$      11.42

$        4.69

$      10.34

$        7.77

Adjusted EBITDA (in millions)

$        26.9

$        37.8

$        13.5

$        64.7

$        46.4

Other U.S. Thermal delivered Adjusted EBITDA of $26.9 million in the quarter. Sales volumes of 3.0 million tons came in 0.4 million tons below expectations, reflecting the impact of mild weather and heavy rainfall at the end of the quarter resulting in rail outages. Despite these challenges, costs of $46.13 per ton were in line with guidance, reflecting disciplined cost management.

Centurion Update

Centurion made meaningful commissioning progress during the quarter. The operating team has implemented effective processes to address face conditions while maintaining production momentum and is working through remaining roof control issues, which are due to a limited rock fault zone. With operational constraints significantly reduced, Peabody's focus is on achieving targeted production rates.

The company is now targeting annual Centurion sales of 2.0 to 2.5 million tons, including 0.5 to 0.7 million tons in the third quarter. Costs are expected to trend more in line with expectations as production volumes increase.

Financial Update

At June 30, 2026, the company had $526.3 million cash and total liquidity of $959.1 million.

"Peabody enhanced its capital structure through a series of strategic financial transactions, including an opportunistic refinancing of convertible notes, revised surety arrangements that reduced restricted cash and collateral by approximately $350 million and increased our revolving credit facility to $400 million," said Executive Vice President and Chief Financial Officer Mark Spurbeck. "Together, these actions unlock shareholder value, jump start shareholder returns, lower borrowing costs and increase financial flexibility."

During the quarter, the company issued $250 million of 2031 convertible notes at a conversion price of $38.32 per share, which was effectively increased to $50.61 per share with a related capped call transaction. The company also repurchased $241.2 million of 2028 convertible notes for cash consideration of $386.8 million, effectively repurchasing 5.0 million shares. New surety arrangements resulted in a reduction to Restricted Cash and Collateral of approximately $350 million (43 percent). The company intends to evaluate additional 2028 convertible note repurchases and share repurchases in accordance with its shareholder return policy and financial strategy to increase free cash flow per share and maintain financial resiliency.

Third Quarter 2026 Outlook  

Seaborne Thermal

Volume is expected to be 3.0 million tons, including 1.9 million export tons. 1.1 million tons of Newcastle product and 0.8 million tons of high ash product are unpriced. Costs are anticipated to be $52—$57 per ton. Seaborne Metallurgical

Seaborne met volume is expected to be 1.9—2.1 million tons, a decrease from second quarter due to a longwall move at Metropolitan and an expected lock outage impacting sales at Shoal Creek. Sales are anticipated to achieve approximately 70-75 percent of the premium hard coking coal price index. Costs are anticipated to be $130—$140 per ton.  U.S. Thermal

PRB volume is expected to be 22 million tons at an average price of $13.60 per ton and costs of approximately $11.75—$12.25 per ton. Other U.S. Thermal volume is expected to be 3.7 million tons at an average price of $58.20 per ton and costs of approximately $45—$49 per ton.  2026 Guidance Targets

For the full year outlook, the company is updating guidance. Seaborne thermal expects a volume increase of 200 thousand tons to 12.7 million tons. Seaborne met costs are expected to increase by approximately $10 per ton, primarily due to lower volumes and elevated contract labor, materials and supply costs at Centurion. The company also is increasing Powder River Basin costs by $0.25 per ton, reflecting lower first-half shipments.

Today's earnings call is scheduled for 10 a.m. CT and can be accessed via the company's website at PeabodyEnergy.com.

Peabody (NYSE: BTU) is a leading coal producer, providing essential products for the production of affordable, reliable energy and steel. Our commitment to sustainability underpins everything we do and shapes our strategy for the future. For further information, visit PeabodyEnergy.com.  

Contact:
Kala Finklang
Email: [email protected]  

1 Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenue. Revenue per Ton and Adjusted EBITDA Margin per Ton are equal to revenue by segment and Adjusted EBITDA by segment, respectively, divided by segment tons sold. Costs per Ton is equal to Revenue per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted EBITDA Margin per Ton best reflect controllable costs and operating results at the reportable segment level. We consider all measures reported on a per ton basis, as well as Adjusted EBITDA margin, to be operating/statistical measures. Please refer to the tables and related notes herein for a reconciliation and definition of non-GAAP financial measures.

Guidance Targets

Segment Performance

2026 Full Year

Total Volume
(millions of

short tons)

Priced Volume
(millions of short
tons)

Priced Volume
Pricing per
Short Ton

Average Cost per
Short Ton

Seaborne Thermal

12.4 - 13.0

8.3

$60.19

$49.50 - $54.50

Seaborne Thermal (Export)

7.9 - 8.5

3.8

$91.20

N/A

Seaborne Thermal (Domestic)

4.5

4.5

$34.00

N/A

Seaborne Metallurgical

8.8 - 10.3

4.5

$143.57

$130.00 - $145.00

PRB U.S. Thermal

82.0 - 88.0

80.8

$13.65

$12.00 - $12.50

Other U.S. Thermal

13.2 - 14.2

13.6

$56.70

$45.00 - $49.00

Other Annual Financial Metrics ($ in millions)

2026 Full Year

SG&A

$115

Total Capital Expenditures

$340

ARO Cash Spend

$65

Supplemental Information

Seaborne Thermal

~50% of unpriced export volumes are expected to price on average at
Globalcoal "NEWC" levels and ~50% are expected to have a higher ash
content and price at 85-95% of API 5 price levels.

Seaborne Metallurgical

On average, Peabody's metallurgical sales are anticipated to price at 70-80%
of the premium hard-coking coal index price (FOB Australia).

PRB and Other U.S. Thermal

PRB and Other U.S. Thermal volumes reflect volumes priced at June 30, 2026.
Weighted average quality for the PRB segment 2026 volume is approximately
8,730 BTU.

Certain forward-looking measures and metrics presented are non-GAAP financial and operating/statistical measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort.

Condensed Consolidated Statements of Operations (Unaudited)

For the Quarters Ended Jun. 30, 2026, Mar. 31, 2026 and Jun. 30, 2025 and the Six
Months Ended Jun. 30, 2026 and 2025

(In Millions, Except Per Share Data)

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Revenue

$    1,003.2

$      973.3

$      890.1

$    1,976.5

$    1,827.1

Operating Costs and Expenses (1)

953.9

864.7

789.4

1,818.6

1,559.6

Depreciation, Depletion and Amortization

107.5

109.5

93.4

217.0

185.5

Asset Retirement Obligation Expenses

13.8

13.6

13.8

27.4

27.4

Selling and Administrative Expenses

23.3

31.6

23.5

54.9

47.1

Restructuring Charges

2.3

1.1

3.5

3.4

5.2

Costs Related to Terminated Acquisition

2.3

3.0

18.8

5.3

21.2

Net Gain on Disposals

(4.4)

(11.7)

(14.8)

(16.1)

(20.0)

Loss from Equity Affiliates

9.9

5.7

0.9

15.6

7.6

Operating Loss

(105.4)

(44.2)

(38.4)

(149.6)

(6.5)

Interest Expense, Net of Capitalized Interest

12.7

10.7

11.1

23.4

22.6

Induced Conversion Expense

17.2

—

—

17.2

—

Interest Income

(12.1)

(13.1)

(13.8)

(25.2)

(29.2)

Net Periodic Benefit Credit, Excluding Service Cost

(0.3)

(0.4)

(7.4)

(0.7)

(14.8)

(Loss) Income from Continuing Operations Before Income Taxes

(122.9)

(41.4)

(28.3)

(164.3)

14.9

Income Tax (Benefit) Provision

(37.0)

(16.0)

(2.7)

(53.0)

2.2

(Loss) Income from Continuing Operations, Net of Income Taxes

(85.9)

(25.4)

(25.6)

(111.3)

12.7

Loss from Discontinued Operations, Net of Income Taxes

(0.3)

(0.2)

(0.4)

(0.5)

(0.7)

Net (Loss) Income

(86.2)

(25.6)

(26.0)

(111.8)

12.0

Less: Net Income Attributable to Noncontrolling Interests

4.4

6.8

1.6

11.2

5.2

Net (Loss) Income Attributable to Common Stockholders

$       (90.6)

$      (32.4)

$      (27.6)

$     (123.0)

$           6.8

Adjusted EBITDA (2)

$         24.0

$        82.5

$        93.3

$       106.5

$       237.3

Diluted EPS - (Loss) Income from Continuing Operations (3)(4)

$       (0.74)

$      (0.26)

$      (0.22)

$      (1.00)

$         0.06

Diluted EPS - Net (Loss) Income Attributable to Common
     Stockholders (3)

$       (0.74)

$      (0.27)

$      (0.23)

$      (1.01)

$         0.06

(1)

Excludes items shown separately.

(2)

Adjusted EBITDA is a non-GAAP financial measure. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(3)

Weighted average diluted shares outstanding were 122.0 million, 122.0  million and 121.7 million during the quarters ended June 30, 2026,  March 31, 2026 and June 30, 2025, respectively. Weighted average diluted shares outstanding were 122.0 million and 122.3 million during the six months ended June 30, 2026 and 2025, respectively.

(4)

Reflects (loss) income from continuing operations, net of income taxes less net income attributable to noncontrolling interests.

This information is intended to be reviewed in conjunction with the company's filings with the SEC.

Condensed Consolidated Balance Sheets

As of Jun. 30, 2026 and Dec. 31, 2025

(Dollars In Millions)

(Unaudited)

Jun. 30, 2026

Dec. 31, 2025

Cash and Cash Equivalents

$         526.3

$         575.3

Accounts Receivable, Net

328.8

314.9

Inventories, Net

440.3

383.2

Other Current Assets

324.2

285.4

Total Current Assets

1,619.6

1,558.8

Property, Plant, Equipment and Mine Development, Net

3,081.9

3,153.3

Operating Lease Right-of-Use Assets

119.5

121.2

Restricted Cash and Collateral

459.8

844.1

Investments and Other Assets

124.9

127.6

Deferred Income Taxes

43.4

2.2

Total Assets

$      5,449.1

$      5,807.2

Current Portion of Long-Term Debt

$           13.5

$           15.2

Accounts Payable and Accrued Expenses

792.7

827.0

Total Current Liabilities

806.2

842.2

Long-Term Debt, Less Current Portion

325.5

321.2

Deferred Income Taxes

—

26.3

Asset Retirement Obligations, Less Current Portion

692.4

692.8

Accrued Postretirement Benefit Costs

108.0

109.2

Operating Lease Liabilities, Less Current Portion

85.9

87.5

Other Noncurrent Liabilities

133.2

145.8

Total Liabilities

2,151.2

2,225.0

Common Stock

1.9

1.9

Additional Paid-in Capital

3,865.8

4,004.8

Treasury Stock

(1,930.6)

(1,927.3)

Retained Earnings

1,214.4

1,355.9

Accumulated Other Comprehensive Income

97.1

101.1

Peabody Energy Corporation Stockholders' Equity

3,248.6

3,536.4

Noncontrolling Interests

49.3

45.8

Total Stockholders' Equity

3,297.9

3,582.2

Total Liabilities and Stockholders' Equity

$      5,449.1

$      5,807.2

This information is intended to be reviewed in conjunction with the company's filings with the SEC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Quarters Ended Jun. 30, 2026, Mar. 31, 2026 and Jun. 30, 2025 and the Six
Months Ended Jun. 30, 2026 and 2025

(Dollars In Millions)

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Cash Flows From Operating Activities

Net Cash (Used In) Provided By Continuing Operations

$        (0.7)

$         30.6

$         23.8

$        29.9

$       144.3

Net Cash Used in Discontinued Operations

(0.7)

(0.6)

(0.6)

(1.3)

(1.2)

Net Cash (Used In) Provided By Operating Activities

(1.4)

30.0

23.2

28.6

143.1

Cash Flows From Investing Activities

Additions to Property, Plant, Equipment and Mine Development

(58.4)

(85.4)

(94.2)

(143.8)

(164.6)

Changes in Accrued Expenses Related to Capital Expenditures

(1.5)

(37.1)

(3.4)

(38.6)

(42.0)

Proceeds from Disposal of Assets, Net of Receivables

—

5.4

5.3

5.4

12.5

Contributions to Joint Ventures

(172.1)

(165.6)

(153.0)

(337.7)

(291.3)

Distributions from Joint Ventures

173.5

160.2

155.9

333.7

306.7

Other, Net

(2.1)

(1.0)

(1.7)

(3.1)

(2.0)

Net Cash Used In Investing Activities

(60.6)

(123.5)

(91.1)

(184.1)

(180.7)

Cash Flows From Financing Activities

Proceeds from Long-Term Debt

360.0

—

—

360.0

—

Repayments of Long-Term Debt

(499.3)

(2.4)

(4.8)

(501.7)

(7.6)

Payment of Debt Issuance and Other Deferred Financing Costs

(14.3)

—

(0.1)

(14.3)

(1.8)

Purchase of Capped Calls

(16.7)

—

—

(16.7)

—

Excise Taxes Paid Related to Common Stock Repurchases

—

—

(1.7)

—

(1.7)

Repurchase of Employee Common Stock Relinquished for Tax
     Withholding

—

(3.3)

—

(3.3)

(0.8)

Dividends Paid

(9.1)

(9.2)

(9.2)

(18.3)

(18.3)

Distributions to Noncontrolling Interests

—

(7.7)

—

(7.7)

(14.7)

Net Cash Used In Financing Activities

(179.4)

(22.6)

(15.8)

(202.0)

(44.9)

Net Change in Cash, Cash Equivalents and Restricted Cash

(241.4)

(116.1)

(83.7)

(357.5)

(82.5)

Cash, Cash Equivalents and Restricted Cash at Beginning of
     Period

1,168.4

1,284.5

1,383.8

1,284.5

1,382.6

Cash, Cash Equivalents and Restricted Cash at End of
     Period

$      927.0

$    1,168.4

$    1,300.1

$      927.0

$    1,300.1

This information is intended to be reviewed in conjunction with the company's filings with the SEC.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

For the Quarters Ended Jun. 30, 2026, Mar. 31, 2026 and Jun. 30, 2025 and the Six
Months Ended Jun. 30, 2026 and 2025

(Dollars In Millions)

Note: Management believes that non-GAAP financial measures are used by investors to measure our operating performance. These measures
are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures
presented by other companies.

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

(Loss) Income from Continuing Operations, Net of Income Taxes

$      (85.9)

$      (25.4)

$      (25.6)

$      (111.3)

$         12.7

Depreciation, Depletion and Amortization

107.5

109.5

93.4

217.0

185.5

Asset Retirement Obligation Expenses

13.8

13.6

13.8

27.4

27.4

Restructuring Charges

2.3

1.1

3.5

3.4

5.2

Costs Related to Terminated Acquisition

2.3

3.0

18.8

5.3

21.2

Changes in Amortization of Basis Difference Related to Equity
     Affiliates

(0.7)

(0.6)

(0.8)

(1.3)

(1.4)

Interest Expense, Net of Capitalized Interest

12.7

10.7

11.1

23.4

22.6

Induced Conversion Expense

17.2

—

—

17.2

—

Interest Income

(12.1)

(13.1)

(13.8)

(25.2)

(29.2)

Unrealized Losses (Gains) on Foreign Currency Option
     Contracts

3.9

(0.3)

(4.1)

3.6

(8.4)

Take-or-Pay Contract-Based Intangible Recognition

—

—

(0.3)

—

(0.5)

Income Tax (Benefit) Provision

(37.0)

(16.0)

(2.7)

(53.0)

2.2

Adjusted EBITDA (1)

$        24.0

$        82.5

$        93.3

$       106.5

$       237.3

Operating Costs and Expenses

$      953.9

$      864.7

$      789.4

$    1,818.6

$    1,559.6

Unrealized (Losses) Gains on Foreign Currency Option
     Contracts

(3.9)

0.3

4.1

(3.6)

8.4

Take-or-Pay Contract-Based Intangible Recognition

—

—

0.3

—

0.5

Net Periodic Benefit Credit, Excluding Service Cost

(0.3)

(0.4)

(7.4)

(0.7)

(14.8)

Total Segment Costs (2)

$      949.7

$      864.6

$      786.4

$    1,814.3

$    1,553.7

(1)

Adjusted EBITDA is defined as (loss) income from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the reportable segments' operating performance, as displayed in the reconciliation above. Adjusted EBITDA is used by the chief operating decision maker as the primary financial metric to measure each segment's operating performance against expected results and to allocate resources, including capital investment in mining operations and potential expansions.

(2)

Total Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each reportable segment's operating performance, as displayed in the reconciliation above. Total Segment Costs is used by management as a component of a metric to measure each segment's operating performance.

This information is intended to be reviewed in conjunction with the company's filings with the SEC.

Supplemental Financial Data (Unaudited)

For the Quarters Ended Jun. 30, 2026, Mar. 31, 2026 and Jun. 30, 2025 and the Six
Months Ended Jun. 30, 2026 and 2025

Quarter Ended

Six Months Ended

Jun.

Mar.

Jun.

Jun.

Jun.

2026

2026

2025

2026

2025

Tons Sold (In Millions)

24.9

29.6

28.7

54.5

57.6

Revenue Summary (In Millions)

Seaborne Thermal

$       230.6

$      197.5

$      195.1

$       428.1

$       460.2

Seaborne Metallurgical

358.3

283.0

252.2

641.3

472.3

Powder River Basin

223.8

289.5

275.7

513.3

551.3

Other U.S. Thermal

163.2

184.5

155.1

347.7

323.8

Total U.S. Thermal

387.0

474.0

430.8

861.0

875.1

Corporate and Other

27.3

18.8

12.0

46.1

19.5

Total

$    1,003.2

$      973.3

$      890.1

$    1,976.5

$    1,827.1

Total Segment Costs Summary (In Millions) (1)

Seaborne Thermal

$       178.5

$      149.0

$      161.6

$       327.5

$       342.5

Seaborne Metallurgical

375.3

290.0

261.4

665.3

468.3

Powder River Basin

230.9

265.8

232.7

496.7

472.0

Other U.S. Thermal

136.3

146.7

141.6

283.0

277.4

Total U.S. Thermal

367.2

412.5

374.3

779.7

749.4

Corporate and Other

28.7

13.1

(10.9)

41.8

(6.5)

Total

$      949.7

$      864.6

$      786.4

$    1,814.3

$    1,553.7

Other Supplemental Financial Data (In Millions)

Adjusted EBITDA - Seaborne Thermal

$        52.1

$        48.5

$        33.5

$       100.6

$       117.7

Adjusted EBITDA - Seaborne Metallurgical

(17.0)

(7.0)

(9.2)

(24.0)

4.0

Adjusted EBITDA - Powder River Basin

(7.1)

23.7

43.0

16.6

79.3

Adjusted EBITDA - Other U.S. Thermal

26.9

37.8

13.5

64.7

46.4

Adjusted EBITDA - Total U.S. Thermal

19.8

61.5

56.5

81.3

125.7

Middlemount

(10.1)

(5.0)

(1.3)

(15.1)

(8.2)

Resource Management Results (2)

8.3

14.0

17.3

22.3

22.8

Selling and Administrative Expenses

(23.3)

(31.6)

(23.5)

(54.9)

(47.1)

Other Operating Costs, Net (3)

(5.8)

2.1

20.0

(3.7)

22.4

Adjusted EBITDA (1)

$        24.0

$        82.5

$        93.3

$       106.5

$       237.3

(1)

Total Segment Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to the "Reconciliation of Non-GAAP Financial Measures" section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(2)

Includes gains (losses) on certain surplus coal reserve, coal resource and surface land sales and property management costs and revenue.

(3)

Includes trading and brokerage activities, costs associated with post-mining activities, gains (losses) on certain asset disposals, minimum charges on certain transportation-related contracts, results from the Company's other equity method investments, costs associated with suspended operations, holding costs associated with the Centurion Mine, the impact of foreign currency remeasurement and expenses related to the Company's other commercial activities.

This information is intended to be reviewed in conjunction with the company's filings with the SEC.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "projects," "forecasts," "targets," "would," "will," "should," "goal," "could" or "may" or other similar expressions. Forward-looking statements provide management's or the Board's current expectations or predictions of future conditions, events, or results. All statements that address operating performance, events, or developments that may occur in the future are forward-looking statements, including statements regarding the shareholder return framework, execution of the Company's operating plans, market conditions for the Company's products, reclamation obligations, financial outlook, potential acquisitions and strategic investments, and liquidity requirements. All forward-looking statements speak only as of the date they are made and reflect Peabody's good faith beliefs, assumptions, and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive, and regulatory factors, many of which are beyond Peabody's control, that are described in Peabody's periodic reports filed with the SEC including its Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025, and other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody's website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

SOURCE Peabody

, /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.

Three Months Ended
June 30, 2026

($ in millions)

Surfactants

Polymers

Specialty
Products

Unallocated
Corporate

Consolidated

Operating Income

$

34.4

$

22.5

$

5.0

$

(24.6)

$

37.2

   Depreciation and Amortization

20.5

8.7

1.5

0.2

30.9

   Other, Net Income

-

-

-

1.0

1.0

EBITDA

$

69.1

   Deferred Compensation

-

-

-

0.1

0.1

   Environmental Remediation

-

-

-

0.1

0.1

   Business Restructuring

-

-

-

5.1

5.1

Adjusted EBITDA

$

54.9

$

31.2

$

6.5

$

(18.1)

$

74.4

Three Months Ended
June 30, 2025

($ in millions)

Surfactants

Polymers

Specialty
Products

Unallocated
Corporate

Consolidated

Operating Income

$

13.4

$

17.2

$

5.2

$

(17.8)

$

18.0

   Depreciation and Amortization

21.1

8.4

1.5

0.3

31.3

   Other, Net Income

-

-

-

1.3

1.3

EBITDA

$

50.6

   Deferred Compensation

-

-

-

0.1

0.1

   Environmental Remediation

-

-

-

0.7

0.7

Adjusted EBITDA

$

34.5

$

25.6

$

6.7

$

(15.4)

$

51.4

Six Months Ended
June 30, 2026

($ in millions)

Surfactants

Polymers

Specialty
Products

Unallocated
Corporate

Consolidated

Operating Income

$

52.9

$

31.3

$

9.7

$

(106.3)

$

(12.4)

   Depreciation and Amortization

43.1

17.3

2.9

0.6

63.9

   Other, Net Income

-

-

-

1.2

1.2

EBITDA

$

52.7

   Deferred Compensation

-

-

-

0.7

0.7

   Environmental Remediation

-

-

-

0.2

0.2

   Business Restructuring

-

-

-

70.5

70.5

Adjusted EBITDA

$

96.0

$

48.6

$

12.6

$

(33.1)

$

124.1

Six Months Ended
June 30, 2025

($ in millions)

Surfactants

Polymers

Specialty
Products

Unallocated
Corporate

Consolidated

Operating Income

$

42.3

$

25.2

$

10.8

$

(32.0)

$

46.3

   Depreciation and Amortization

40.6

16.4

2.9

0.6

60.5

   Other, Net Income

-

-

-

1.8

1.8

EBITDA

$

108.6

   Deferred Compensation

-

-

-

(0.5)

(0.5)

   Environmental Remediation

-

-

-

0.8

0.8

Adjusted EBITDA

$

82.9

$

41.6

$

13.7

$

(29.3)

$

108.9

SOURCE Stepan Company

The BP logo is seen on gasoline pumps at a BP gas station in Manhattan, New York City, U.S., November 24, 2021. REUTERS/Andrew Kelly/File Photo Purchase Licensing Rights, opens new tab

CompaniesLONDON, July 29 (Reuters) - Dragon Oil, Carlyle Group (CG.O), opens new tab, Energean (ENOG.L), opens new tab and Artemis Energy are among the groups expected to ​bid this week for assets in BP's (BP.L), opens new tab West ‌Nile Delta natural gas development off Egypt, three sources familiar with the sale process said.

British oil major BP, which produces about ​60% of Egypt's natural gas through joint ventures ​in the East Nile Delta and fields it operates ⁠in the West Nile Delta, is attempting to ​simplify its portfolio and cut debt and costs.

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Details on the ​bids, which the sources said are due to be submitted by the end of the week, were not immediately clear.

BP and Carlyle ​declined to comment. Energean, Artemis and Dubai-based Dragon Oil ​did not immediately respond to requests for comment.

Reuters reported in May ‌that ⁠BP was considering selling some of its gas assets in Egypt, citing sources.

Egypt's domestic energy production has struggled to keep pace with rising demand and as global gas markets have ​remained tight during ​the Iran war.

BP, ⁠which has invested more than $35 billion in Egypt over six decades, produced 518 million ​cubic feet per day of natural gas ​in the ⁠country last year, down about 40% from 2024 and nearly 60% from 2023.

In April, BP announced a gas and ⁠condensate ​discovery off Egypt's coast and earlier ​in 2026 was awarded the North-East El Alamein and West El Hammad ​offshore exploration concessions.

Reporting by Stephanie Kelly; Editing by Alexander Smith

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A London-based senior correspondent covering UK-listed energy companies including BP and Shell and energy developments in Europe, the Middle East and Africa.