Stepan (NYSE:SCL) Announces Earnings Results

Stepan (NYSE:SCL) posted its earnings results on Monday. The basic materials company reported ($0.02) EPS for the quarter, missing the consensus estimate of $0.35 by ($0.37), FiscalAI reports. The firm had revenue of $553.89 million during the quarter, compared to the consensus estimate of $570.60 million. Stepan had a net margin of 2.01% and a return on equity of 3.38%. Stepan’s revenue for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.12 earnings per share.

Here are the key takeaways from Stepan’s conference call:

• Project Catalyst announced — a transformation targeting ~$100 million in pre-tax savings over two years (≈60% of savings in 2026), with footprint consolidation (Fieldsboro closure, decommissioning at Millsdale and Stalybridge) and ramp-up of the Pasadena sulfonation plant to ~70–80% utilization in 2026 to lower costs and improve competitiveness.
• 2025 showed financial resilience — full-year adjusted EBITDA of $199 million (up 6%), reported EBITDA $208M (up 11%), organic volume +2%, positive free cash flow of $25.4M, net debt down to $494M and leverage improved to ~2.5x, and a board-declared dividend increase of 2.6% (58th consecutive year).
• Near-term headwinds remain — Q4 adjusted EBITDA declined to $33.8M (−3% YoY) as surfactants volumes fell ~3% and oleochemical raw material inflation pressured margins; management signaled inventory/lag effects and an estimated ~$6M EBITDA impact from unusual winter weather in Q1 2026 with recovery skewed toward H2.
• Mix of growth areas — Polymers delivered strong volume (Q4 +11%) and EBITDA (+9%) led by rigid polyols and phthalic anhydride, Specialty Products were modestly down due to order timing while MCTs grew double digits, and the company is prioritizing Tier 2/3, ag and oilfield segments as growth engines.

Stepan Stock Down 1.9%

Shares of NYSE SCL opened at $52.51 on Wednesday. The company has a market capitalization of $1.19 billion, a P/E ratio of 25.61 and a beta of 1.05. Stepan has a 52-week low of $41.82 and a 52-week high of $68.00. The company has a debt-to-equity ratio of 0.27, a quick ratio of 0.84 and a current ratio of 1.29. The company’s 50 day moving average price is $54.90 and its 200-day moving average price is $49.77.

Stepan Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Monday, March 2nd will be issued a dividend of $0.395 per share. The ex-dividend date is Monday, March 2nd. This represents a $1.58 annualized dividend and a yield of 3.0%. Stepan’s dividend payout ratio (DPR) is presently 79.80%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings upgraded shares of Stepan from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, February 18th. Two equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company currently has a consensus rating of “Hold”.

Hedge Funds Weigh In On Stepan

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Goldman Sachs Group Inc. boosted its position in Stepan by 195.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 299,970 shares of the basic materials company’s stock valued at $14,207,000 after acquiring an additional 198,457 shares during the last quarter. Bridgeway Capital Management LLC bought a new stake in shares of Stepan during the 2nd quarter valued at about $5,573,000. UBS Group AG boosted its position in shares of Stepan by 338.9% during the 3rd quarter. UBS Group AG now owns 125,004 shares of the basic materials company’s stock valued at $5,963,000 after purchasing an additional 96,526 shares in the last quarter. AQR Capital Management LLC grew its stake in Stepan by 114.9% during the fourth quarter. AQR Capital Management LLC now owns 154,903 shares of the basic materials company’s stock worth $7,336,000 after purchasing an additional 82,825 shares during the period. Finally, Russell Investments Group Ltd. increased its holdings in Stepan by 36.7% in the fourth quarter. Russell Investments Group Ltd. now owns 285,918 shares of the basic materials company’s stock worth $13,541,000 after purchasing an additional 76,711 shares in the last quarter. Institutional investors and hedge funds own 82.70% of the company’s stock.

Stepan Company Profile

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company’s portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan’s offerings address both consumer-facing and industrial applications.