Stepan Co 8-K, filed Oct 28, 2026
Stepan Co (SCL)
About this 8-K
Stepan Co filed this 8-K on October 28, 2026.
Stepan Company reported third-quarter net income of $17.8 million, up 64%, and adjusted EBITDA of $66.3 million, up 18%; its board declared a $0.405 quarterly dividend payable December 15, 2026, marking 59 consecutive years of increases. AI summary
Items reported
- Item 2.02: Financial results
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition
On October 28, 2026, Stepan Company (“Stepan”) issued a press release providing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference into this Item 2.02.
The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as expressly set forth by specific reference in such filing.
Item 8.01. Other Events
On October 28, 2026, Stepan issued a press release announcing that its Board of Directors had declared a quarterly cash dividend on its common stock of $0.405 per share. The dividend will be paid on December 15, 2026, to common stockholders of record as of December 1, 2026. A copy of the press release is attached as Exhibit 99.2 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit Number: 99.1
Description: Press Release of Stepan Company dated October 28, 2026, announcing third quarter 2026 financial results.
Exhibit Number: 99.2
Description: Press Release of Stepan Company dated October 28, 2026, announcing quarterly cash dividend.
Exhibit Number: 104
Description: Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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STEPAN COMPANY |
Date: October 28, 2026 |
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By: |
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/s/ Shawn Lisle |
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Shawn Lisle |
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Vice President, General Counsel and Secretary |
Exhibit 99.1
Stepan Reports Third Quarter 2026 Results
Northbrook, Illinois, October 28, 2026 -- Stepan Company (NYSE: SCL) today reported:
Third Quarter 2026 Highlights
YTD 2026 Highlights
“Quarterly earnings were up significantly, driven by improved results in all three segments. Third quarter adjusted EBITDA of $66.3 million was up 18% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. Surfactant adjusted EBITDA was up 27% in the quarter and Polymers grew single digits including one time maintenance costs. Specialty Products adjusted EBITDA was up 5% driven by double digit volume growth," said Luis E. Rojo, President and Chief Executive Officer. "Surfactant organic sales volume was up 8% and Polymer sales volume was up 3% in the quarter. The Surfactant volume growth was broad-based and across most end markets. Within Polymers, the North American Rigid, Spray Foam and Phthalic Anhydride businesses delivered double digit
1
volume growth. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We executed the organizational redesign phase of Project Catalyst during the quarter in line with expectations."
Financial Summary
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Three Months Ended |
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Nine Months Ended |
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($ in thousands, except per share data) |
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2026 |
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2025 |
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% |
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2026 |
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2025 |
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% |
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Net Sales |
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$ |
692,154 |
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$ |
590,284 |
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17 |
% |
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$ |
1,980,772 |
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$ |
1,778,228 |
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11 |
% |
Operating Income |
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$ |
25,959 |
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$ |
21,794 |
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19 |
% |
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$ |
13,547 |
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$ |
68,047 |
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(80 |
)% |
Net Income (Loss) |
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$ |
17,813 |
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$ |
10,839 |
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64 |
% |
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$ |
(682 |
) |
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$ |
41,891 |
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(102 |
)% |
Earnings per Diluted Share |
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$ |
0.78 |
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$ |
0.47 |
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66 |
% |
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$ |
(0.03 |
) |
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$ |
1.83 |
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(102 |
)% |
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Adjusted Net Income * |
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$ |
21,688 |
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$ |
10,948 |
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98 |
% |
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$ |
59,053 |
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$ |
42,211 |
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40 |
% |
Adjusted Earnings per |
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$ |
0.94 |
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$ |
0.48 |
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96 |
% |
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$ |
2.58 |
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$ |
1.84 |
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40 |
% |
* See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share. |
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Percentage Change in Net Sales
Net sales in the third quarter of 2026 increased 17% year-over-year. This increase reflects higher selling prices, mainly attributable to the pass-through of higher raw material costs and pricing actions, a 3% increase in sales volume and the favorable impact of foreign currency translation. Organic sales volume was up 7% year-over-year.
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Three Months Ended |
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Nine Months Ended |
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Volume |
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3 |
% |
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1 |
% |
Selling Price & Mix |
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13 |
% |
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7 |
% |
Foreign Translation |
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1 |
% |
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3 |
% |
Total |
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17 |
% |
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11 |
% |
Segment Results
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Three Months Ended |
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Nine Months Ended |
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($ in thousands) |
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2026 |
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2025 |
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% |
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2026 |
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2025 |
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% |
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Net Sales |
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Surfactants |
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$ |
486,633 |
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$ |
422,358 |
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15 |
% |
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$ |
1,424,222 |
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$ |
1,264,151 |
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13 |
% |
Polymers |
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$ |
178,650 |
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$ |
143,928 |
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24 |
% |
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$ |
486,686 |
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$ |
452,795 |
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7 |
% |
Specialty Products |
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$ |
26,871 |
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$ |
23,998 |
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12 |
% |
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$ |
69,864 |
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$ |
61,282 |
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14 |
% |
Total Net Sales |
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$ |
692,154 |
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$ |
590,284 |
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17 |
% |
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$ |
1,980,772 |
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$ |
1,778,228 |
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11 |
% |
2
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Three Months Ended |
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Nine Months Ended |
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($ in thousands, all amounts pre-tax) |
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2026 |
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2025 |
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% |
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2026 |
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2025 |
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% |
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Operating Income (Loss) |
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Surfactants |
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$ |
27,440 |
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$ |
15,718 |
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75 |
% |
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$ |
80,350 |
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$ |
58,015 |
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38 |
% |
Polymers |
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$ |
14,569 |
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$ |
14,104 |
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3 |
% |
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$ |
45,860 |
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$ |
39,281 |
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17 |
% |
Specialty Products |
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$ |
10,185 |
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$ |
9,634 |
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6 |
% |
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$ |
19,907 |
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$ |
20,400 |
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(2 |
)% |
Total Segment |
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$ |
52,194 |
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$ |
39,456 |
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32 |
% |
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$ |
146,117 |
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$ |
117,696 |
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24 |
% |
Corporate Expenses |
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$ |
(26,235 |
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$ |
(17,662 |
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49 |
% |
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$ |
(132,570 |
) |
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$ |
(49,649 |
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167 |
% |
Consolidated |
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$ |
25,959 |
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$ |
21,794 |
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19 |
% |
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$ |
13,547 |
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$ |
68,047 |
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(80 |
)% |
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Three Months Ended |
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Nine Months Ended |
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($ in millions) |
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2026 |
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2025 |
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% |
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2026 |
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2025 |
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% |
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EBITDA |
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$ |
57.5 |
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$ |
56.1 |
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2 |
% |
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$ |
110.1 |
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$ |
164.7 |
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(33 |
)% |
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Adjusted EBITDA |
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Surfactants |
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$ |
48.2 |
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$ |
38.0 |
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27 |
% |
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$ |
144.2 |
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$ |
120.9 |
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19 |
% |
Polymers |
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$ |
23.3 |
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$ |
22.4 |
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4 |
% |
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$ |
71.9 |
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$ |
64.0 |
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12 |
% |
Specialty Products |
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$ |
11.7 |
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$ |
11.1 |
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5 |
% |
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$ |
24.3 |
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$ |
24.8 |
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(2 |
)% |
Unallocated Corporate |
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$ |
(16.9 |
) |
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$ |
(15.3 |
) |
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10 |
% |
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$ |
(50.1 |
) |
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$ |
(44.6 |
) |
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12 |
% |
Consolidated Adjusted EBITDA |
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$ |
66.3 |
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$ |
56.2 |
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18 |
% |
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$ |
190.3 |
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$ |
165.1 |
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15 |
% |
Consolidated adjusted EBITDA(2) increased $10.1 million, or 18%, in the quarter. This increase was primarily due to higher Surfactant earnings driven by sales volume growth and margin recovery.
3
Outlook
“We believe we are positioned to continue delivering growth and executing on our diversification strategy. Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization, is contributing to this growth," said Luis E. Rojo, President and Chief Executive Officer. "Despite the ongoing and significant market uncertainties and challenges, the organization continues to be focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first nine-month results, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026."
Notes
(1) Adjusted net income and adjusted earnings per share are non-GAAP measures which exclude deferred compensation income/expense, certain environmental remediation-related costs as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
(2) EBITDA and adjusted EBITDA are non-GAAP measures. See Table VI for calculations and GAAP reconciliations of EBITDA and adjusted EBITDA.
(3) Free cash flow is a non-GAAP measure and reflects cash generated from operations minus capital expenditures. Cash generated from operations was $29.3 million during the third quarter of 2026 and capital expenditures were $21.1 million.
Conference Call
Stepan Company will host a conference call to discuss its third quarter results at 9:00 a.m. ET (8:00 a.m. CT) on October 28, 2026. The call can be accessed by phone and webcast. To access the call by phone, please click on this Registration Link, complete the form and you will be provided with dial in details and a PIN. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. The webcast can be accessed through the Investors/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.
Supporting Slides
Slides supporting this press release will be made available at www.stepan.com through the Investors/Presentations page at approximately the same time as this press release is issued.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
4
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
Contact: Ruben Velasquez 847-446-7500
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.
5
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
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Table I
STEPAN COMPANY
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited – in 000's, except per share data)
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Three Months Ended |
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Nine Months Ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Net Sales |
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$ |
692,154 |
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$ |
590,284 |
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$ |
1,980,772 |
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$ |
1,778,228 |
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Cost of Sales |
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604,573 |
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519,261 |
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1,728,358 |
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1,559,857 |
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Gross Profit |
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87,581 |
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71,023 |
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252,414 |
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218,371 |
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Operating Expenses: |
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Selling |
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13,726 |
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11,299 |
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40,758 |
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38,064 |
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Administrative |
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26,607 |
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22,864 |
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72,123 |
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67,079 |
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Research, Development and Technical Services |
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15,670 |
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14,225 |
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47,858 |
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43,575 |
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Deferred Compensation |
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37 |
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841 |
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2,001 |
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1,606 |
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56,040 |
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49,229 |
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162,740 |
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150,324 |
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Business Restructuring |
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5,582 |
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- |
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76,127 |
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- |
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Operating Income |
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25,959 |
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21,794 |
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13,547 |
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68,047 |
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Other Income (Expense): |
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Interest, Net |
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(6,344 |
) |
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(6,815 |
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(17,037 |
) |
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(16,426 |
) |
Other, Net |
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212 |
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1,536 |
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1,377 |
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3,344 |
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(6,132 |
) |
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(5,279 |
) |
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(15,660 |
) |
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(13,082 |
) |
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Income (Loss) Before Provision for Income |
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19,827 |
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16,515 |
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(2,113 |
) |
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|
54,965 |
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Provision for Income Taxes |
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2,014 |
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|
5,676 |
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|
|
(1,431 |
) |
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|
13,074 |
|
Net Income (Loss) |
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|
17,813 |
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|
|
10,839 |
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|
|
(682 |
) |
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|
41,891 |
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Net Income (Loss) Per Common Share |
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||||
Basic |
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$ |
0.78 |
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$ |
0.47 |
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|
$ |
(0.03 |
) |
|
$ |
1.83 |
|
Diluted |
|
$ |
0.78 |
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|
$ |
0.47 |
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|
$ |
(0.03 |
) |
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$ |
1.83 |
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Shares Used to Compute Net Income Per |
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|
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|
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|
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||||
Basic |
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|
22,906 |
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22,875 |
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|
|
22,897 |
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|
|
22,869 |
|
Diluted |
|
|
22,978 |
|
|
|
22,893 |
|
|
|
22,897 |
|
|
|
22,888 |
|
7
Table II
Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share*
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
|
2026 |
|
|
EPS |
|
|
2025 |
|
|
EPS |
|
|
2026 |
|
|
EPS |
|
|
2025 |
|
|
EPS |
|
||||||||
Net Income (Loss) Reported |
|
$ |
17,813 |
|
|
$ |
0.78 |
|
|
$ |
10,839 |
|
|
$ |
0.47 |
|
|
$ |
(682 |
) |
|
$ |
(0.03 |
) |
|
$ |
41,891 |
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deferred Compensation (Income) |
|
$ |
52 |
|
|
$ |
- |
|
|
$ |
(149 |
) |
|
$ |
- |
|
|
$ |
581 |
|
|
$ |
0.03 |
|
|
$ |
(549 |
) |
|
$ |
(0.02 |
) |
Environmental Remediation |
|
$ |
2,391 |
|
|
$ |
0.10 |
|
|
$ |
258 |
|
|
$ |
0.01 |
|
|
$ |
2,561 |
|
|
$ |
0.11 |
|
|
$ |
869 |
|
|
$ |
0.03 |
|
Business Restructuring |
|
$ |
1,432 |
|
|
$ |
0.06 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
56,593 |
|
|
$ |
2.47 |
|
|
$ |
- |
|
|
$ |
- |
|
Adjusted Net Income |
|
$ |
21,688 |
|
|
$ |
0.94 |
|
|
$ |
10,948 |
|
|
$ |
0.48 |
|
|
$ |
59,053 |
|
|
$ |
2.58 |
|
|
$ |
42,211 |
|
|
$ |
1.84 |
|
* All amounts in this table are presented after-tax
The Company believes that certain non-GAAP measures, in conjunction with comparable GAAP measures, are useful for evaluating the Company’s operating performance and financial condition. The Company uses this non-GAAP information as an indicator of business performance and evaluates management’s effectiveness with specific reference to these indicators. Management believes that these non-GAAP financial measures provide useful supplemental information because they exclude non-operational items that affect comparability between years. These measures should be considered in addition to, not as substitutes for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from similarly titled measures presented by other companies. The Company's Annual Report on Form 10-K for the year ended December 31, 2025 contains additional information regarding the use of non-GAAP financial measures.
Summary of Third Quarter 2026 Adjusted Net Income Items
Adjusted net income excludes non-operational deferred compensation income/expense, certain environmental remediation costs and other significant and infrequent or non-recurring items.
8
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 |
|
|
Nine Months Ended |
|
||||||||||||||||||||||||||
($ in thousands, except per share amounts) |
|
2026 |
|
|
EPS |
|
|
2025 |
|
|
EPS |
|
|
2026 |
|
|
EPS |
|
|
2025 |
|
|
EPS |
|
||||||||
Pre-Tax Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Deferred Compensation (Income) |
|
$ |
69 |
|
|
|
|
|
$ |
(198 |
) |
|
|
|
|
$ |
765 |
|
|
|
|
|
$ |
(732 |
) |
|
|
|
||||
Environmental Remediation |
|
$ |
3,145 |
|
|
|
|
|
$ |
344 |
|
|
|
|
|
$ |
3,368 |
|
|
|
|
|
$ |
1,158 |
|
|
|
|
||||
Business Restructuring |
|
$ |
5,582 |
|
|
|
|
|
$ |
- |
|
|
|
|
|
$ |
76,127 |
|
|
|
|
|
$ |
- |
|
|
|
|
||||
Total Pre-Tax Adjustments |
|
$ |
8,796 |
|
|
|
|
|
$ |
146 |
|
|
|
|
|
$ |
80,260 |
|
|
|
|
|
$ |
426 |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cumulative Tax Effect on |
|
$ |
(4,921 |
) |
|
|
|
|
$ |
(37 |
) |
|
|
|
|
$ |
(20,525 |
) |
|
|
|
|
$ |
(106 |
) |
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
After-Tax Adjustments |
|
$ |
3,875 |
|
|
$ |
0.16 |
|
|
$ |
109 |
|
|
$ |
0.01 |
|
|
$ |
59,735 |
|
|
$ |
2.61 |
|
|
$ |
320 |
|
|
$ |
0.01 |
|
9
Table IV
Deferred Compensation Plans
The full effect of the deferred compensation plans on quarterly pre-tax income was $0.1 million of expense versus $0.2 million of income in the prior year. The quarter-end market prices of Company stock and the impact of deferred compensation on specific income statement line items is summarized below:
|
|
2026 |
|
|
2025 |
|
||||||||||||||||||||||
|
|
9/30 |
|
|
6/30 |
|
|
3/31 |
|
|
12/31 |
|
|
9/30 |
|
|
6/30 |
|
|
3/31 |
|
|||||||
Stepan Company |
|
$ |
62.38 |
|
|
$ |
55.72 |
|
|
$ |
49.98 |
|
|
$ |
47.36 |
|
|
$ |
47.70 |
|
|
$ |
54.58 |
|
|
$ |
55.04 |
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
($ in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Deferred Compensation |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income (Expense) |
|
$ |
(37 |
) |
|
$ |
(841 |
) |
|
$ |
(2,001 |
) |
|
$ |
(1,606 |
) |
Other, net – Mutual Fund Gain |
|
|
(32 |
) |
|
|
1,039 |
|
|
|
1,236 |
|
|
|
2,338 |
|
Total Pre-Tax |
|
$ |
(69 |
) |
|
$ |
198 |
|
|
$ |
(765 |
) |
|
$ |
732 |
|
Total After-Tax |
|
$ |
(52 |
) |
|
$ |
149 |
|
|
$ |
(581 |
) |
|
$ |
549 |
|
Effects of Foreign Currency Translation
The Company’s foreign subsidiaries transact business and report financial results in their respective local currencies. These results are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. The table below presents the impact that foreign currency translation had on select income statement line items.
($ in millions) |
|
Three Months Ended |
|
|
Change |
|
|
Change |
|
|
Nine Months Ended |
|
|
Change |
|
|
Change |
|
||||||||||||||
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
|
||||||||
Net Sales |
|
$ |
692.2 |
|
|
$ |
590.3 |
|
|
$ |
101.9 |
|
|
$ |
8.5 |
|
|
$ |
1,980.8 |
|
|
$ |
1,778.2 |
|
|
$ |
202.6 |
|
|
$ |
51.0 |
|
Gross Profit |
|
|
87.6 |
|
|
|
71.0 |
|
|
$ |
16.6 |
|
|
|
0.7 |
|
|
|
252.4 |
|
|
|
218.4 |
|
|
$ |
34.0 |
|
|
|
6.1 |
|
Operating Income |
|
|
26.0 |
|
|
|
21.8 |
|
|
$ |
4.2 |
|
|
|
0.4 |
|
|
|
13.5 |
|
|
|
68.0 |
|
|
$ |
(54.5 |
) |
|
|
3.8 |
|
Pretax Income |
|
|
19.8 |
|
|
|
16.5 |
|
|
$ |
3.3 |
|
|
|
0.4 |
|
|
|
(2.1 |
) |
|
|
55.0 |
|
|
$ |
(57.1 |
) |
|
|
3.9 |
|
Corporate Expenses
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||||||
($ in thousands) |
|
2026 |
|
|
2025 |
|
|
% |
|
|
2026 |
|
|
2025 |
|
|
% |
|
||||||
Total Corporate Expenses |
|
$ |
26,235 |
|
|
$ |
17,662 |
|
|
|
49 |
% |
|
$ |
132,570 |
|
|
$ |
49,649 |
|
|
|
167 |
% |
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deferred Compensation Expense |
|
$ |
37 |
|
|
$ |
841 |
|
|
|
(96 |
)% |
|
$ |
2,001 |
|
|
$ |
1,606 |
|
|
|
25 |
% |
Environmental Remediation |
|
$ |
3,145 |
|
|
$ |
344 |
|
|
|
814 |
% |
|
$ |
3,368 |
|
|
$ |
1,158 |
|
|
|
191 |
% |
Business Restructuring |
|
$ |
5,582 |
|
|
$ |
- |
|
|
NM |
|
|
$ |
76,127 |
|
|
$ |
- |
|
|
NM |
|
||
Adjusted Corporate Expenses |
|
$ |
17,471 |
|
|
$ |
16,477 |
|
|
|
6 |
% |
|
$ |
51,074 |
|
|
$ |
46,885 |
|
|
|
9 |
% |
Adjusted Corporate expenses increased $1.0 million, or 6%, for the quarter. This increase was primarily due to higher incentive-based compensation expenses.
10
Table V
Stepan Company
Consolidated Balance Sheets
September 30, 2026 and December 31, 2025
|
|
September 30, 2026 |
|
|
December 31, 2025 |
|
||
ASSETS |
|
|
|
|
|
|
||
Current Assets |
|
$ |
982,764 |
|
|
$ |
858,959 |
|
Property, Plant & Equipment, Net |
|
|
1,132,891 |
|
|
|
1,219,627 |
|
Other Assets |
|
|
274,742 |
|
|
|
279,116 |
|
Total Assets |
|
$ |
2,390,397 |
|
|
$ |
2,357,702 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities |
|
$ |
742,975 |
|
|
$ |
666,494 |
|
Deferred Income Taxes |
|
|
11,008 |
|
|
|
11,450 |
|
Long-term Debt |
|
|
341,687 |
|
|
|
340,975 |
|
Other Non-current Liabilities |
|
|
75,940 |
|
|
|
94,773 |
|
Total Stepan Company Stockholders’ Equity |
|
|
1,218,787 |
|
|
|
1,244,010 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
2,390,397 |
|
|
$ |
2,357,702 |
|
Selected Balance Sheet Information
The Company’s total debt decreased by $13.3 million and cash decreased by $15.6 million versus June 30, 2026. The Company’s net debt level increased $2.3 million versus June 30, 2026 and its net debt ratio was 31% which was constant with the prior quarter (Net Debt and Net Debt Ratio are non-GAAP measures, reconciliations of which are shown in the table below). Management uses the non-GAAP net debt metric to show a more complete picture of the Company's overall liquidity, financial flexibility and leverage level.
($ in millions) |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
||||
Net Debt |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Debt |
|
$ |
634.1 |
|
|
$ |
647.4 |
|
|
$ |
651.7 |
|
|
$ |
626.7 |
|
Cash |
|
|
98.1 |
|
|
|
113.7 |
|
|
|
140.8 |
|
|
|
132.7 |
|
Net Debt |
|
$ |
536.0 |
|
|
$ |
533.7 |
|
|
$ |
510.9 |
|
|
$ |
494.0 |
|
Equity |
|
|
1,218.8 |
|
|
|
1,212.0 |
|
|
|
1,193.0 |
|
|
|
1,244.0 |
|
Net Debt + Equity |
|
$ |
1,754.8 |
|
|
$ |
1,745.7 |
|
|
$ |
1,703.9 |
|
|
$ |
1,738.0 |
|
Net Debt / (Net Debt + Equity) |
|
|
31 |
% |
|
|
31 |
% |
|
|
30 |
% |
|
|
28 |
% |
The major working capital components were:
($ in millions) |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
||||
Net Receivables |
|
$ |
502.1 |
|
|
$ |
492.3 |
|
|
$ |
433.7 |
|
|
$ |
388.0 |
|
Inventories |
|
|
340.0 |
|
|
|
324.5 |
|
|
|
289.0 |
|
|
|
298.8 |
|
Accounts Payable |
|
|
(315.2 |
) |
|
|
(321.7 |
) |
|
|
(285.7 |
) |
|
|
(261.7 |
) |
|
|
$ |
526.9 |
|
|
$ |
495.1 |
|
|
$ |
437.0 |
|
|
$ |
425.1 |
|
11
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.
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
Surfactants |
|
|
Polymers |
|
|
Specialty |
|
|
Unallocated |
|
|
Consolidated |
|
|||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
17.8 |
|
||||
Provision for Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.0 |
|
||||
Interest Expense, Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.3 |
|
||||
EBIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
26.2 |
|
||||
Other, Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.2 |
) |
||||
Operating Income |
|
$ |
27.4 |
|
|
$ |
14.6 |
|
|
$ |
10.2 |
|
|
$ |
(26.2 |
) |
|
$ |
26.0 |
|
Depreciation and Amortization |
|
|
20.8 |
|
|
|
8.7 |
|
|
|
1.5 |
|
|
|
0.3 |
|
|
|
31.3 |
|
Other, Net Income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.2 |
|
|
|
0.2 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
57.5 |
|
||||
Deferred Compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
0.1 |
|
Environmental Remediation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.1 |
|
|
|
3.1 |
|
Business Restructuring |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5.6 |
|
|
|
5.6 |
|
Adjusted EBITDA |
|
$ |
48.2 |
|
|
$ |
23.3 |
|
|
$ |
11.7 |
|
|
$ |
(16.9 |
) |
|
$ |
66.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Three Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
Surfactants |
|
|
Polymers |
|
|
Specialty |
|
|
Unallocated |
|
|
Consolidated |
|
|||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10.8 |
|
||||
Provision for Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.7 |
|
||||
Interest Expense, Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.8 |
|
||||
EBIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
23.3 |
|
||||
Other, Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.5 |
) |
||||
Operating Income |
|
$ |
15.7 |
|
|
$ |
14.1 |
|
|
$ |
9.6 |
|
|
$ |
(17.7 |
) |
|
$ |
21.8 |
|
Depreciation and Amortization |
|
|
22.3 |
|
|
|
8.3 |
|
|
|
1.5 |
|
|
|
0.7 |
|
|
|
32.8 |
|
Other, Net Income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.5 |
|
|
|
1.5 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
56.1 |
|
||||
Deferred Compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.2 |
) |
|
|
(0.2 |
) |
Environmental Remediation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.3 |
|
|
|
0.3 |
|
Adjusted EBITDA |
|
|
38.0 |
|
|
|
22.4 |
|
|
|
11.1 |
|
|
|
(15.3 |
) |
|
|
56.2 |
|
12
|
|
Nine Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
Surfactants |
|
|
Polymers |
|
|
Specialty |
|
|
Unallocated |
|
|
Consolidated |
|
|||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(0.7 |
) |
||||
Provision for Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.4 |
) |
||||
Interest Expense, Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
17.0 |
|
||||
EBIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
14.9 |
|
||||
Other, Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1.4 |
) |
||||
Operating Income |
|
$ |
80.3 |
|
|
$ |
45.9 |
|
|
$ |
19.9 |
|
|
$ |
(132.6 |
) |
|
$ |
13.5 |
|
Depreciation and Amortization |
|
|
63.9 |
|
|
|
26.0 |
|
|
|
4.4 |
|
|
|
0.9 |
|
|
|
95.2 |
|
Other, Net Income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.4 |
|
|
|
1.4 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
110.1 |
|
||||
Deferred Compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.8 |
|
|
|
0.8 |
|
Environmental Remediation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.4 |
|
|
|
3.4 |
|
Business Restructuring |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
76.1 |
|
|
|
76.1 |
|
Adjusted EBITDA |
|
$ |
144.2 |
|
|
$ |
71.9 |
|
|
$ |
24.3 |
|
|
$ |
(50.1 |
) |
|
$ |
190.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Nine Months Ended |
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
($ in millions) |
|
Surfactants |
|
|
Polymers |
|
|
Specialty |
|
|
Unallocated |
|
|
Consolidated |
|
|||||
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
41.9 |
|
||||
Provision for Income Taxes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13.1 |
|
||||
Interest Expense, Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.4 |
|
||||
EBIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
71.4 |
|
||||
Other, Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3.3 |
) |
||||
Operating Income |
|
$ |
58.0 |
|
|
$ |
39.3 |
|
|
$ |
20.4 |
|
|
$ |
(49.6 |
) |
|
$ |
68.1 |
|
Depreciation and Amortization |
|
|
62.9 |
|
|
|
24.7 |
|
|
|
4.4 |
|
|
|
1.3 |
|
|
|
93.3 |
|
Other, Net Income |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
3.3 |
|
|
|
3.3 |
|
EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
164.7 |
|
||||
Deferred Compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.7 |
) |
|
|
(0.7 |
) |
Environmental Remediation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1.1 |
|
|
|
1.1 |
|
Adjusted EBITDA |
|
|
120.9 |
|
|
|
64.0 |
|
|
|
24.8 |
|
|
|
(44.6 |
) |
|
|
165.1 |
|
13
Exhibit 99.2
Stepan Increases Quarterly Cash Dividend, Marking the 59th Consecutive Year of Increases
Northbrook, Illinois, October 28, 2026 – Stepan Company (NYSE: SCL) today reported:
The Board of Directors of Stepan Company has declared a quarterly cash dividend on the Company's common stock of $0.405 per share. The dividend is payable on December 15, 2026, to common stockholders of record on December 1, 2026. The Company increased its quarterly cash dividend in the fourth quarter of 2026 by $0.010 per share, marking the 59th consecutive year that the Company has increased its cash dividend to stockholders.
Corporate Profile
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com.
More information about Stepan’s sustainability program can be found on the Sustainability page at www.stepan.com.
Contact: Ruben Velasquez 847-446-7500
Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company’s plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company’s actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “guidance,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “should,” “illustrative” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.
There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to: our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; risks related to restructuring activities, including the execution of facility closures and asset, decommissioning, potential operational disruptions, impacts on employees and local, communities, and environmental compliance; accidents, unplanned production shutdowns, interruptions or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs, and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology
systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants.
These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.