What is Stepan's latest dividend and current dividend yield?

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

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

What is Stepan's gross profit margin?

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

Did Stepan beat or miss consensus estimates last quarter?

What factors drove the changes in Stepan's revenue and profit?

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

- **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

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