Did Stepan beat or miss consensus estimates last quarter?

What is the market's earnings forecast for Stepan next quarter?

What does Stepan do and what are its main business segments?

What is the revenue and EPS growth rate for Stepan year over year?

What guidance did Stepan's management provide for the next earnings period?

What were the key takeaways from Stepan's earnings call?

What is Stepan's gross profit margin?

What were the key takeaways from Stepan’s earnings call?

- **2025 Performance**: Adjusted EBITDA up 6% to $199 million; free cash flow positive at $25.4 million; dividend increased 2.6%.
- **Project Catalyst**: $100M savings over two years ($60M in 2026), targeting cost efficiency and growth flexibility.
- **Q1 2026 Challenges**: $6M EBITDA impact from winter weather, with recovery potential in later quarters.
- **Growth Drivers**: Tier 2/Tier 3 segment expansion and sulfate-free personal care solutions.

**【CEO Summary Section】**
- 2025 was a transformative year with adjusted EBITDA growth of 6% to $199 million, driven by pricing discipline and cost management. Organic volume increased 2% year-over-year, supported by growth in crop productivity, oilfield, Tier 2/Tier 3 customers, polymers, and specialty products.
- Free cash flow improved to $25.4 million, with net debt reduced by $32 million to $494 million, lowering the leverage ratio to 2.5x.
- Project Catalyst aims to deliver $100 million in pretax savings over two years, with $60 million expected in 2026. This includes footprint optimization (e.g., closing Fieldsboro, NJ site), operational efficiency, and organizational effectiveness.
- Dividend increased 2.6% to $0.395 per share, marking the 58th consecutive year of dividend growth.

**【CFO Financial Commentary】**
- Q4 2025 adjusted EBITDA was $33.8 million, down 3% from prior year due to lower Surfactants demand and elevated raw material costs. Full-year adjusted EBITDA rose 6% to $199 million.
- Cash from operations was $148 million for the year, generating positive free cash flow despite inflationary pressures.
- 2025 capital expenditures were $105 million, with 2026 guidance of $105-115 million, focusing on sustaining and growth projects.

**【Q&A Key Highlights】**
- **Project Catalyst Savings**: $60 million of $100 million savings expected in 2026, partially offset by 3%+ inflation in fixed costs. Second-half 2026 will see benefits from lower oleochemical prices and demand recovery.
- **Weather Impact**: Q1 2026 EBITDA reduced by $6 million due to historic U.S. winter weather, with potential recovery in subsequent quarters.
- **Tier 2/Tier 3 Growth**: Mid-single-digit growth in 2025, with investments in automation and systems to enhance customer engagement.
- **Tariff Management**: Diversified supply chain mitigates tariff risks; focus on refunds for previously paid tariffs.

Stepan Company (SCL) Q4 2025 Earnings Call Transcript

- **Adjusted EBITDA growth**: +9% YTD to $165M, driven by Specialty Products (+113%) and Polymers (+8% volumes)
- **Free cash flow turnaround**: $40.2M Q3 vs -$4.2M prior year, dividend +2.6%
- **Strategic momentum**: 350 new customers Q3, Pasadena facility ramping to full contribution in 2026
- **Challenges**: 70% oleochemical cost increase, European construction weakness
- **Outlook**: Full year EBITDA growth, double-digit Surfactant margins achievable in 2-3 years

**【CEO Opening Remarks】**
- Year-to-date 2025: Adjusted EBITDA up 9% to $165 million, despite challenges from 70% oleochemical raw material cost increase and $10 million Pasadena start-up costs.
- Q3 2025 highlights:
  - Specialty Products EBITDA +113% on 68% sales growth (pharma order timing)
  - Polymers volumes +8% (North America Rigid Polyol +20%, Europe -15%)
  - Surfactants volumes -2% (crop productivity +20%, oilfield +mid-single, offset by consumer products -)
- Free cash flow $40M (vs -$4M prior year), dividend +2.6% to $0.395/share
- Strategic priorities: End market diversification (crop productivity, oilfield), Tier 2/3 customer growth (+350 new Q3), Pasadena ramp-up (41 SKUs produced)

**【CFO Financial Commentary】**
- Q3 2025: Adjusted net income $10.9M (-54% vs prior year) due to:
  - Higher tax rate (23.8% vs 18.9%) from U.S. tax law
  - $1.5M lower capitalized interest
  - $1.3M higher depreciation (Pasadena)
- EBITDA breakdown:
  - Specialty Products +$5.9M (113%)
  - Surfactants -$6.2M (14%)
  - Polymers -$1M (4%)
- Free cash flow $40.2M (vs -$4.2M prior year) from working capital reduction
- 2025 outlook: Full year adjusted EBITDA growth, positive free cash flow

**【Q&A Highlights】**
- **Oleochemical recovery**: Coconut oil prices down from $3,000/ton peak to $2,500, but 70% higher than 2024. Full margin recovery expected by 2026
- **Surfactant margins**: Target double-digit EBITDA margin in 2-3 years (currently ~10%)
- **Polymers demand**: Spray foam growth (0% share → +), Europe construction lagging due to macro uncertainty
- **Asset optimization**: Philippines site sale Q4 2025, evaluating further footprint rationalization
- **Dividend policy**: 58-year streak, 2.6% increase to $0.395/share

Stepan Company (SCL) Q3 2025 Earnings Call Transcript

- **Adjusted EBITDA growth**: 8% YoY to $51.4M, driven by Polymers and crop productivity. Surfactant margins strained by 110%+ raw material price increases.
- **New facility impact**: Pasadena site to deliver full benefits in 2026, with H2 2025 incremental contributions.
- **Key risks**: Global macroeconomic uncertainty restraining Rigid Polyol growth, $6M one-time costs in Q2.
- **Tax benefit**: 19.2% effective rate in H1 vs. 24-26% norm, but one-time audit settlements unlikely to recur.

**【CEO Summary Section】**
- Q2 2025 adjusted EBITDA of $51.4 million, up 8% YoY, driven by double-digit growth in Polymers and crop productivity. Surfactant EBITDA remained flat due to raw material inflation and volume declines in global commodity markets.
- Volume growth of 1% overall, with Polymers up 7% and NCT product line up 49%, offset by 1% decline in Surfactants. Crop productivity and oilfield end markets saw double-digit growth.
- New Pasadena, Texas facility ramping up, contributing incremental benefits in H2 2025. EPA penalty ($1M) expected to be recovered from third parties.
- Dividend of $0.385 per share declared, maintaining 57-year dividend streak.
- Strategic focus on end market diversification (crop productivity, oilfield), new customer acquisition (400+ new customers in Q2), and operational excellence.

**【CFO Financial Commentary】**
- Adjusted net income $12M ($0.52 EPS), up 27% YoY, driven by Polymers and crop productivity growth, lower tax rate (19.2% vs. 24-26% norm). Free cash flow negative at -$14.4M due to inventory builds and start-up costs.
- Surfactant segment: Net sales $411.5M (+8% YoY), EBITDA down $0.5M due to raw material costs, EPA penalty, and start-up expenses. Polymer EBITDA up $3.8M (17%) on volume growth. Specialty Products EBITDA down 24% due to order timing.
- Key one-time costs: $6M total (Pasadena start-up, EPA penalty, environmental reserve adjustment).

Stepan Company (SCL) Q2 2025 Earnings Call Transcript

- **Q1 EBITDA Growth**: 12% YoY to $57.5M, driven by Surfactants (+10% sales) and Specialty Products. Polymers lagged due to inventory costs.
- **Volume Expansion**: 4% total volume growth, with standout gains in agricultural (+19% alkoxylation), oilfield, and MCT (+4%).
- **New Site Progress**: Pasadena, TX site operational, producing 6 products. Full contribution expected H2 2025; Q1 pre-op costs $4M.
- **Free Cash Flow Outlook**: Negative Q1 ($25.8M) but cautiously optimistic for full-year positive flow.
- **Tariff Strategy**: Passing through raw material costs; local production (USMCA-compliant) mitigates U.S. import risks.
- **Polymers Recovery**: Margins to improve Q2+ as high-cost inventory clears; specialty polyol growth offsets rigid polyol macro challenges.


**【CEO Performance Overview】**
- Q1 2025 adjusted EBITDA reached $57.5 million, up 12% YoY, driven by double-digit growth in Surfactants and Specialty Products. Polymers saw slight EBITDA decline due to unfavorable product mix and inventory costs.
- Volume growth of 4% was broad-based: Surfactants +3%, Polymers +7%, MCT +4%. Agricultural and oilfield end markets contributed double-digit growth, while Rigid Polyol growth in North America and Europe was constrained by macroeconomic factors.
- New Pasadena, Texas site operational, producing 6 products with full contribution expected in H2 2025. Q1 pre-operating expenses at the site were $4 million.
- Q1 adjusted net income of $19.3 million (+32% YoY) supported by tax rate reduction and margin improvements.

**【CFO Financial Breakdown】**
- Q1 GAAP net income: $19.3 million ($0.84 EPS) vs. $14.7 million ($0.64 EPS) YoY, driven by volume growth, improved margins in Surfactants, and lower tax rate (20% vs. 24-26% range).
- Cash from operations: $6.9 million; free cash flow: -$25.8 million (due to working capital build and raw material purchases). Full-year positive free cash flow cautiously expected.
- Segment performance:
  - **Surfactants**: +10% net sales ($430.3M) with 12% price increase (raw material pass-through), 3% volume growth. Adjusted EBITDA +$4.5M (10% YoY).
  - **Polymers**: Flat net sales ($146.1M) with 7% volume growth offset by -7% price decline. Adjusted EBITDA -$0.3M (2% YoY) due to inventory carryover and mix issues.
  - **Specialty Products**: +11% net sales ($16.8M), +21% EBITDA driven by MCT margin recovery.

**【Q&A Key Takeaways】**
- **Pasadena Site Ramp-Up**: Full contribution expected in H2 2025; Q1 pre-operating expenses ($4M) will decline as production scales. Q2 EBITDA impact expected to improve from Q1.
- **Tariff Impact**: Direct costs on raw materials being passed through to customers. Indirect risks include potential demand slowdown in construction and consumer sectors.
- **Polymers Recovery**: Margins to improve in Q2 as high-cost inventory is depleted. PA business growth (commodity, lower margin) driving volume but weighing on margins.
- **Customer Mix Shift**: Strategic focus on Tier 2/3 customers in Surfactants, with 400+ new customers added in Q1. Agricultural and oilfield end markets showing resilience despite macro challenges.
- **Tariff Mitigation**: Local-for-local production strategy limits exposure; USMCA-covered Mexico production insulated from U.S. tariffs.


Stepan Company (SCL) Q1 2025 Earnings Call Transcript

- **Surfactant Strength**: 15% EBITDA growth in 2024, driven by +32% Specialty Products and 30% H2 ag recovery. 
- **Polymers Turnaround**: 2025 spray foam launch targets North America construction; China polymers + despite macro. 
- **2025 Outlook**: $4M/Q Pasadena savings to offset costs; +EBITDA in all segments. 
- **Risk Management**: $48M cost savings vs. $30M+ one-time 2024 charges; Euro FX hedging. 
- **Free Cash Flow**: $39M 2024, targeting positive 2025 with Pasadena ramp. 
- **Dividend Resilience**: 57-year streak continues with $0.385/Q dividend.

**【CEO Summary Section】**
- **2024 Full Year Performance**: Adjusted EBITDA of $187 million (+4% YoY), driven by double-digit growth in Surfactants and Specialty Products, offset by softer Polymers demand. Free cash flow of $39 million (+$125M YoY). 
- **Strategic Highlights**: 
  - Surfactants grew 15% in adjusted EBITDA, with 32% volume growth in Specialty Products. 
  - $48M in pre-tax cost savings vs. $4.4M in Pasadena pre-operating expenses. 
  - New Pasadena alkoxylation plant to start Q1 2025, targeting full run-rate by H2 2025. 
- **2025 Outlook**: Optimistic on Surfactant growth in agriculture/oilfield, Polymer innovation in spray foam, and $4M/Q Pasadena savings offsetting costs. 

**【CFO Financial Commentary】**
- **Q4 2024 Results**: 
  - Adjusted EBITDA: $35M (-7% YoY) due to $4.4M Pasadena expenses and $2.9M tax reserve. 
  - Surfactants: +10% EBITDA from volume/mix; Polymers: -9% volume but +44% EBITDA margin. 
  - Free cash flow: $32M (Q4) vs. $68M in 2023. 
- **Full Year 2024**: 
  - Adjusted EBITDA: $187M (+4% YoY). 
  - $48M cost savings offset $30M+ one-time costs (Millsdale flood, Asia fraud, CEO transition). 
  - Net income: $50.5M flat YoY. 

**【Q&A Key Points】**
1. **Surfactant Growth**: 
   - Ag business +30% H2 2024, expects double-digit 2025 growth. 
   - Oilfield and industrial solutions driving 2.5% global volume growth. 
2. **Polymers Recovery**: 
   - Specialty Polyols up YoY; China polymers growing despite macro challenges. 
   - Spray foam launch in 2025 targets North America construction recovery. 
3. **2025 EBITDA Outlook**: 
   - Excluding one-time costs, 2024 EBITDA would have been ~$185M. 
   - 2025 target: +EBITDA in all segments via Pasadena savings and cost control. 
4. **FX & China Risks**: 
   - Euro sensitivity remains key; China polymers diversified into LNG/industrial uses. 
   - No direct exposure to Chinese residential construction slowdown. 
5. **Pasadena Impact**: 
   - Q1 2025: $4M EBITDA headwind; H2 2025: full run-rate with supply chain savings. 
   - 2025 capex ~$128M-$132M, mostly for Pasadena depreciation.

Actual											1.04	1.65	1.56	1.42	1.82	1.81	1.57	0.97	1.76	2.3	2.01	0.59	0.71	0.53	0.64	0.33	0.64	0.41	1.03	0.12	0.84	0.52	0.48	-0.02
Forecast											0.7833	1.2	1.3967	1.0833	1.4325	1.835	1.3925	1.005	1.3125	1.895	1.605	0.5375	0.9425	1.1675	0.755	0.37	0.3525	0.67	0.6533	0.3333	0.596	0.9	0.615	0.395
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+32.77%	+37.50%	+11.69%	+31.08%	+27.05%	-1.36%	+12.75%	-3.48%	+34.10%	+21.37%	+25.23%	+9.77%	-24.67%	-54.60%	-15.23%	-10.81%	+81.56%	-38.81%	+57.66%	-64.00%	+40.94%	-42.22%	-21.95%	-105.06%

SCL

SCL fundamentals

SCL Q4 2025 Earnings

Earnings Call

You can ask Aime

SCL

SCL fundamentals

SCL Q4 2025 Earnings

Earnings Call

SCL Earnings Call Summary for Q4/20259:00 AM on Feb 23, 2026

SCL Earnings Call Summary for Q3/20259:00 AM on Oct 29, 2025

SCL Earnings Call Summary for Q2/20259:00 AM on Jul 30, 2025

SCL Earnings Call Summary for Q1/20258:00 AM on Apr 29, 2025

SCL Earnings Call Summary for Q4/20249:00 AM on Feb 19, 2025

You can ask Aime