斯捷潘公司第二季度淨收入飆升102% 調整後每股盈利1.18美元翻倍

EX-99.1
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d139905dex991.htm
EX-99.1

EX-99.1

 

 Exhibit 99.1 

Stepan Reports Second Quarter 2026 Results 

Northbrook, Illinois, July 29, 2026 — 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. 

  
 1 

 

 “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 EndedJune 30,
 
 
Six Months EndedJune 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 EndedJune 30, 2026
 
 
Six Months EndedJune 30, 2026
 

 Volume

  
 
3
% 
 
 
(—
)% 

 Selling Price & Mix

  
 
9
% 
 
 
5
% 

 Foreign Translation

  
 
3
% 
 
 
3
% 

  
  

  

 
 
  

  

 

 Total

  
 
15
% 
 
 
8
% 

  
  

  

 
 
  

  

 

  
 2 

 

 Segment Results 
  

 
  
Three Months EndedJune 30,
 
 
Six Months EndedJune 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 EndedJune 30,
 
 
Six Months EndedJune 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 EndedJune 30,
 
 
Six Months EndedJune 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. 

  
 3 

 

 
•
 
 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. 

  
 4 

 

 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 
 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; 

  
 5 

 

 
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 

  
 6 

 

 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 EndedJune 30,
 
 
Six Months EndedJune 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
 

  
  

  

 
 
  

  

 
 
  

  

 
 
  

  

 

  
 7 

 

 Table II 

Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share* 

 

 
  
Three Months EndedJune 30,
 
  
Six Months EndedJune 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. 

  
 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 EndedJune 30,
 
  
Six Months EndedJune 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
 

  
  

  

 
 
  

  

 
  
  

  

 
 
  

  

 
  
  

  

 
 
  

  

 
  
  

  

 
 
  

  

 

  
 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 $0.1 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 EndedJune 30,
 
 
Six Months EndedJune 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. 

 

 
  
Three Months EndedJune 30,
 
  
Change
 
  
ChangeDue toForeignCurrencyTranslation
 
  
Six Months EndedJune 30,
 
  
Change
 
 
ChangeDue toForeignCurrencyTranslation
 

($ in millions)
  
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 EndedJune 30,
 
 
Six Months EndedJune 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. 

  
 10 

 

 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
 

  
  

  

 
 
  

  

 
 
  

  

 

  
 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. Refer to the Income Statement on Table I for a bridge between Operating Income and Net Income. 

 

 
  
Three Months EndedJune 30, 2026
 

($ in millions) 
  
Surfactants
 
  
Polymers
 
  
SpecialtyProducts
 
  
UnallocatedCorporate
 
 
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 EndedJune 30, 2025
 

($ in millions) 
  
Surfactants
 
  
Polymers
 
  
SpecialtyProducts
 
  
UnallocatedCorporate
 
 
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 EndedJune 30, 2026
 

($ in millions) 
  
Surfactants
 
  
Polymers
 
  
SpecialtyProducts
 
  
UnallocatedCorporate
 
 
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 EndedJune 30, 2025
 

($ in millions) 
  
Surfactants
 
  
Polymers
 
  
SpecialtyProducts
 
  
UnallocatedCorporate
 
 
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
 

  
  

  

 
  
  

  

 
  
  

  

 
  
  

  

 
 
  

  

 

  
 12