AI Earnings Predictions for Stepan Company (SCL)

EX-99.1

2 scl-ex99_1.htm

EX-99.1

EX-99.1

Exhibit 99.1

Stepan Reports First Quarter 2026 Results

Northbrook, Illinois, April 28, 2026 -- Stepan Company (NYSE: SCL) today reported:

First Quarter 2026 Highlights

• Reported net income was a $41.4 million loss versus $19.7 million of income in the prior year. The current year loss resulted from a previously announced $65.4 million pre-tax restructuring charge. Adjusted net income(1) was $10.3 million, down 47% versus the prior year, largely due to lower Surfactant earnings and higher interest expense. The higher interest expense reflects lower capitalized interest income due to the start-up of the Pasadena, TX site.

• EBITDA(2) was a negative $16.5 million versus $58.0 million in the prior year. Current year EBITDA was negatively impacted by the $65.4 million restructuring charge. Adjusted EBITDA(2) was $49.6 million, down 14% year-over-year.

• Organic sales volume was flat year-over-year as strong demand within Crop Productivity, Oilfield and Industrial Cleaning was offset by soft European Polymers demand.

• Cash from Operations was $16.9 million during the quarter. Free cash flow(3) for the quarter was a negative $14.0 million, driven by higher working capital requirements which are typical during the first quarter.

• Pre-tax earnings include a $65.4 million restructuring charge related to the previously announced closure of the Company's Fieldsboro, NJ site and select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities. The cash impact associated with this restructuring charge was less than $1.0 million during the quarter.

• The Company has entered into an agreement to sell a parcel of land near its Millsdale site for $30 million. This agreement is subject to customary closing conditions and the transaction is expected to close during the second half of the year.

“We are executing Project Catalyst safely and in line with expectations despite early quarter weather-related impacts and the new geopolitical challenges. Global adjusted EBITDA was down $7.9 million, or 14%, driven by our Surfactants business. Surfactants EBITDA was down due to higher oleochemicals prices, the cold snap in the U.S., production timing differences in Asia along with competitive pressures in Mexico. Polymers adjusted EBITDA grew 8% on the strength of North American volume growth and margin recovery that more than offset ongoing challenges within the European business. Specialty Products volume was up 30% versus prior year while EBITDA was down due to product mix and higher raw material costs," said Luis E. Rojo, President and Chief Executive Officer. "On a total Company basis, organic net sales, which exclude the impact of the asset divestiture in the Philippines, were up 4% and organic sales volume was flat year-over-year. Strong growth in Crop Productivity, Oilfield and Industrial Cleaning was offset by European Polymers

1

volume. 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 are continuing our efforts to further optimize our asset base and create a more productive and agile organization to enable balanced growth."

Financial Summary

Three Months Ended March 31,

($ in thousands, except per share data)

2026

2025

% Change

Net Sales

$

604,509

$

593,255

2

%

Operating Income (Loss)

$

(49,622

)

$

28,288

NM

Net Income (Loss)

$

(41,406

)

$

19,711

NM

Earnings per Diluted Share

$

(1.81

)

$

0.86

NM

Adjusted Net Income *

$

10,313

$

19,310

(47

)%

Adjusted Earnings per Diluted Share *

$

0.45

$

0.84

(46

)%

* 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 first quarter of 2026 increased 2% year-over-year. This increase reflects higher selling prices and the favorable impact of foreign currency translation. A 3% decline in sales volume partially offset the above. Organic volume was flat and organic net sales were up 4% year-over-year.

Three Months Ended March 31, 2026

Volume

(3

)%

Selling Price & Mix

1

%

Foreign Translation

4

%

Total

2

%

Segment Results

Three Months Ended March 31,

($ in thousands)

2026

2025

% Change

Net Sales

Surfactants

$

453,687

$

430,337

5

%

Polymers

$

130,029

$

146,116

(11

)%

Specialty Products

$

20,793

$

16,802

24

%

Total Net Sales

$

604,509

$

593,255

2

%

2

Three Months Ended March 31,

($ in thousands, all amounts pre-tax)

2026

2025

% Change

Operating Income (Loss)

Surfactants

$

18,548

$

28,930

(36

)%

Polymers

$

8,822

$

8,018

10

%

Specialty Products

$

4,715

$

5,508

(14

)%

Total Segment Operating Income

$

32,085

$

42,456

(24

)%

Corporate Expenses

$

(81,707

)

$

(14,168

)

477

%

Consolidated Operating Income (Loss)

$

(49,622

)

$

28,288

(275

)%

Three Months Ende

8-K

0000094049false00000940492026-02-232026-02-23

\

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 23, 2026

STEPAN COMPANY

(Exact name of registrant as specified in its charter)

Commission File Number: 1-4462

Delaware

36-1823834

(State or other jurisdiction of incorporation)

(IRS Employer Identification No.)

1101 Skokie Boulevard, Suite 500, Northbrook, IL 60062 (Address of principal executive offices, including zip code) (847) 446-7500 (Registrant’s telephone number, including area code) (Former name or former address, if changed since last report)

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):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of Each exchange on which registered

Common Stock, $1 par value

SCL

New York Stock Exchange

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 February 23, 2026, Stepan Company (“Stepan”) issued a press release providing its financial results for the quarter and the year ended December 31, 2025. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 8.01. Other Events

On February 23, 2026, Stepan issued a press release announcing that its Board of Directors had declared a quarterly cash dividend on its common stock of $0.395 per share. The dividend will be paid on March 13, 2026, to common stockholders of record as of March 2, 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 February 23, 2026

Exhibit Number: 99.2 Description: Press Release of Stepan Company dated February 23, 2026

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.

STEPAN COMPANY

Date: February 23, 2026

By:

/s/ Shawn Lisle

Shawn Lisle

Vice President, General Counsel and Secretary

8-K

0000094049false00000940492025-07-302025-07-30

\

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): July 30, 2025

STEPAN COMPANY

(Exact name of registrant as specified in its charter)

Commission File Number: 1-4462

Delaware

36-1823834

(State or other jurisdiction of incorporation)

(IRS Employer Identification No.)

1101 Skokie Boulevard, Suite 500, Northbrook, IL 60062 (Address of principal executive offices, including zip code) (847) 446-7500 (Registrant’s telephone number, including area code) (Former name or former address, if changed since last report)

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):

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of Each exchange on which registered

Common Stock, $1 par value

SCL

New York Stock Exchange

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 July 30, 2025, Stepan Company (“Stepan”) issued a press release providing its financial results for the quarter ended June 30, 2025. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.

Item 8.01. Other Events

On July 30, 2025, Stepan issued a press release announcing that its Board of Directors had declared a quarterly cash dividend on its common stock of $0.385 per share. The dividend will be paid on September 15, 2025, to common stockholders of record as of August 29, 2025. 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 July 30, 2025

Exhibit Number: 99.2 Description: Press Release of Stepan Company dated July 30, 2025

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.

STEPAN COMPANY

Date: July 30, 2025

By:

/s/ Kamel Aranki

Kamel Aranki

Interim General Counsel and Interim Assistant Secretary