Core Insights - Stepan Co. reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, but down from $1.03 per share a year ago, indicating an earnings surprise of +33.33% [1] - The company achieved revenues of $590.28 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.56% and up from $546.84 million year-over-year [2] - Stepan Co. shares have declined approximately 31.5% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of Stepan Co. stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $577.4 million, and for the current fiscal year, it is $2.14 on revenues of $2.35 billion [7] Industry Context - The Chemical - Diversified industry, to which Stepan Co. belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Another company in the same industry, Albemarle, is expected to report a quarterly loss of $0.92 per share, with revenues projected at $1.29 billion, down 4.6% from the previous year [9][10]

Financial Performance - Net income decreased by 54% year-over-year[12], primarily due to a higher effective tax rate and increased net interest expenses[7] - Adjusted net income also decreased by 54% year-over-year to $109 million[12] - Adjusted EBITDA increased by 6% year-over-year to $562 million[12] - Free cash flow was $402 million, a significant increase of 207% compared to a negative $40 million in the prior year, driven by reductions in working capital[10, 12] Sales Volume - Global sales volume grew by 1% year-over-year[9] - Polymers sales volume increased by 8%[31] - Surfactants sales volume decreased by 2%[26] Segment Performance - Surfactants Adjusted EBITDA decreased by $62 million, or 14%, primarily due to higher expenses associated with the Pasadena site startup, a 2% decrease in sales volume, and higher oleochemical raw material costs[19] - Polymers Adjusted EBITDA decreased by $11 million, or 4%, driven by lower unit margins and unfavorable product mix[19] - Specialty Products Adjusted EBITDA increased by $59 million due to order timing fluctuations and volume growth in the MCT product line[19] Capital Allocation and Debt - Capital expenditures for Q3 2025 were $296 million[35] - Net debt to TTM Adjusted EBITDA ratio is 27[33, 61]

Core Points - Stepan Company has approved a quarterly cash dividend increase of $0.01 per share, representing a 2.6% rise, bringing the total dividend to $0.395 per share, payable on December 15, 2025 [1] - This increase marks the 58th consecutive year of dividend growth for the company [1] Company Overview - Stepan Company is a major manufacturer of specialty and intermediate chemicals, primarily producing surfactants used in cleaning, disinfection, and agricultural solutions [2] - The company is also a leading supplier of polyurethane polyols for the thermal insulation market and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries [2] Operational Footprint - Headquartered in Northbrook, Illinois, Stepan operates modern production facilities across North and South America, Europe, and Asia [3] - The company's common stock is traded on the New York Stock Exchange under the symbol SCL [3]

Core Viewpoint - Stepan Company is set to release its third quarter 2025 earnings results on October 29, 2025, followed by a conference call to discuss financial and operational performance [1][2]. Company Overview - Stepan Company is a major manufacturer of specialty and intermediate chemicals, particularly known for its surfactants used in cleaning and disinfection products, as well as in agricultural and oilfield solutions [4]. - The company is also a leading supplier of polyurethane polyols for the thermal insulation market and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries [4]. - Headquartered in Northbrook, Illinois, Stepan operates modern production facilities across North and South America, Europe, and Asia [5]. Conference Call Details - The conference call will be hosted by Luis E. Rojo, President and CEO, and Ruben D. Velasquez, Vice President and CFO [2]. - Participants can access the call via phone or webcast, with a recommendation to join ten minutes early to avoid delays [3].

Core Insights - The article discusses the best dividend stocks for a dividend champions list, focusing on companies that have consistently increased their dividends for 25 years or more [2][5]. Dividend Champions Overview - Dividend champions are distinguished from dividend aristocrats by not needing to be part of the S&P Index, but they share a commitment to increasing dividend payouts [2]. - The ability to grow dividends through challenging times, such as the pandemic, highlights the resilience of these companies [3]. Market Trends - There is a growing interest in dividend stocks among younger investors, particularly Gen Z, who are seeking financial independence and early retirement [4]. - Income-focused ETFs have gained significant traction, capturing about one in every six dollars flowing into equity ETFs, with the sector reaching approximately $750 billion by 2025 [5]. Methodology for Stock Selection - The selection process involved analyzing over 150 dividend champions and identifying those with the highest dividend yields as of October 2 [7]. Company Highlights - **The York Water Company (NASDAQ:YORW)**: - Offers a dividend yield of 2.91% and has paid dividends since 1816, increasing payouts for 28 consecutive years [9][12]. - Operates in a monopoly-like environment, providing stable cash flow due to the high costs of establishing utility services [11]. - **The Southern Company (NYSE:SO)**: - Provides a dividend yield of 3.15% and has a strong reputation in nuclear energy, overseeing eight reactors [13][15]. - Has a record of 24 years of consecutive dividend increases and has paid dividends without interruption for 78 years [15]. - **Stepan Company (NYSE:SCL)**: - Offers a dividend yield of 3.16% and has increased its dividend for 57 straight years [16][19]. - Reported an 8% increase in adjusted EBITDA to $51.4 million in the second quarter, with strong growth in its Polymers and NCT product lines [17][18].

Summary of Stepping Company Conference Call Company Overview - Stepping Company is listed on the New York Stock Exchange under the symbol SCL [2] - The company focuses on priority growth markets with strategic tailwinds for growth and emphasizes customer-centric operations [3] Key Business Segments - The company operates in three reporting segments: Surfactants, Polymers, and Specialty Products [6] - Surfactants serve six key end markets: agricultural chemicals, oil field chemicals, construction and industrial applications, personal care products, household cleaning, and laundry [6] - The Polymers segment primarily focuses on rigid polyols for insulation products [7] - Specialty Products cater to niche markets such as beverages and baby formula [7] Growth Drivers - Demand for food is projected to grow significantly, driving agricultural chemicals [8] - Oilfield chemicals are expected to see growth due to increased productivity and energy efficiency [9] - Long-term government investments in infrastructure are anticipated to boost the construction and industrial solutions segment [9] - The shift towards natural ingredients in personal care products is a key market driver [10] Financial Performance and Investments - The company has made significant investments, including the largest capital investment in its history with a new coxylation facility in Pasadena, Texas [4][12] - Recent growth in agricultural and oilfield surfactants has been noted, with double-digit growth in the first half of the year [19] - The company aims to focus on high-margin, high-growth end markets to drive EBITDA and free cash flow [10] Customer Base Expansion - Stepping Company added approximately 1,800 new customers in the last year, indicating a strong trend in customer acquisition [15][29] - The company has a potential market of 22,000 new and existing customers for further sales opportunities [15] - The focus is on expanding into Tier two and Tier three customer bases, which are smaller accounts that can grow over time [31] Management and Strategy - The management team has undergone changes, with a new CEO appointed in October and a new CFO recently [27][43] - Executive compensation is aligned with strategic targets such as net income, EBITDA, and free cash flow growth [26] - The company is committed to returning cash to shareholders, having increased dividends for 57 consecutive years [23][39] Challenges and Market Conditions - Sales have been trending downwards over the past five years, influenced by raw material cost fluctuations and weakness in agricultural sales [17][18] - The company is focused on managing its balance sheet, currently at a net leverage of 2.9, with plans to deleverage further [25] Innovation and R&D - Stepping Company employs over 230 chemists and has 14 application centers globally, introducing 33 new products in 2024, which accounts for about 10% of revenue [12][42] - The company emphasizes customer-centric innovation, providing tailored solutions and technical support to clients [13] Conclusion - Stepping Company is positioned for growth through strategic investments, a focus on high-margin markets, and an expanding customer base, while navigating challenges in sales trends and market conditions [10][19]

Financial Data and Key Metrics Changes - The company reported a strong first half performance with underlying EBITDA of NZD 86.7 million, up 43% year-over-year [3] - Underlying NPAT increased by 48% to NZD 56.9 million, while NPAT attributable to shareholders rose by 72% to NZD 48.9 million [3][4] - Net debt decreased by NZD 14.4 million to NZD 67.5 million as of June 30, 2025, reflecting income from earnings and proceeds from the sale of orchards [7][8] Performance by Business Lines - The Global Proteins division maintained steady performance with underlying EBITDA of NZD 29.7 million, consistent with the previous year [6] - The Horticulture division achieved exceptional results with underlying EBITDA of NZD 53.2 million, up 77% due to increased apple volumes and favorable pricing [7][11] - Logistics reported underlying EBITDA of NZD 6.1 million, a 60% increase attributed to higher freight volumes [12] Market Data and Key Metrics Changes - The horticulture division's total own growing export volumes are forecasted to be 3.7 million TCEs, a projected increase of around 21% compared to 2024 [11] - The Asia and Middle East markets are expected to account for approximately 85% of total fruit sold, with strong demand anticipated due to supply shortages [11] Company Strategy and Industry Competition - The company is focused on strategic growth initiatives, particularly in horticulture and logistics, leveraging investments in premium apple varieties targeted at key markets [5][16] - The logistics division is actively seeking opportunities to expand its freight forwarding model, enhancing connections with global operations [25] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the global proteins division due to geopolitical uncertainties and tariff impacts, but remains confident in medium-term growth initiatives [15][22] - The company anticipates continued diversification of earnings and growth in global protein and logistics sectors [16] Other Important Information - The company is developing new sustainability targets following the successful delivery of 2024 milestones, focusing on emissions reduction and employee support policies [13][14] Q&A Session Summary Question: Can you discuss the performance of global proteins projects? - Management noted strong performance from the new plant in Melbourne and the second toll processing plant in North America, with ongoing projects expected to contribute positively by the end of the year [20][21] Question: What factors are included in the updated guidance range? - The guidance reflects caution around macroeconomic conditions and tariff uncertainties, with a steady demand for pet food expected to return to historical growth rates [22][23] Question: What does the growth outlook for logistics look like? - The company is optimistic about the logistics sector, actively seeking to ramp up operations and connect with global supply chains [25] Question: Can you provide specifics on horticulture's EBITDA and impact for the year? - The company expects a flat second half for horticulture, with more fixed and variable costs compared to the previous year [30] Question: What are the drivers of global proteins growth in FY 2028 and beyond? - Management indicated that both organic growth and potential acquisitions will drive future growth, with opportunities in fish and poultry markets being explored [46][48]

Financial Performance - Scales Corporation's Underlying EBITDA for 1H25 increased by 43% to $86.7 million, compared to $60.5 million in 1H24[14] - Underlying NPAT for 1H25 rose by 48% to $56.9 million, up from $38.4 million in 1H24[14] - Underlying NPATAS increased significantly by 72% to $48.9 million, compared to $28.5 million in 1H24[14] - The company anticipates Underlying NPATAS to be between $45.0 million and $50.0 million for FY25[14, 67] Divisional Results - Horticulture division experienced exceptional growth, with Underlying EBITDA increasing by 77.4% to $53.2 million in 1H25, compared to $30.0 million in 1H24[14, 23] - Logistics division also showed excellent results, with Underlying EBITDA up by 59.9% to $6.1 million in 1H25, compared to $3.8 million in 1H24[14, 23, 56] - Global Proteins division maintained a steady performance, with Underlying EBITDA at $29.7 million in 1H25, a slight increase of 0.5% from $29.6 million in 1H24[14, 23, 37] Balance Sheet - Net debt decreased to $67.5 million as of June 30, 2025, compared to $81.9 million as of June 30, 2024[25] - Approximately 55% of the Horticulture crop had been sold as of June 30, 2025, compared to 54% as of June 30, 2024[30] - Premium volumes accounted for approximately 75% of total export sale volumes, compared to 72% in 2024[52]

Core Viewpoint - Stepan Company (SCL) is currently rated as a Zacks Rank 5 (Strong Sell) due to a recent earnings miss and subsequent stock sell-off [1]. Company Overview - Stepan Company is a significant manufacturer of specialty and intermediate chemicals utilized across various industries, particularly known for producing surfactants, which are essential in consumer and industrial cleaning products [2]. Earnings History - The company has beaten the Zacks Consensus Estimate in two of the last four quarters but has also missed in two quarters, indicating mixed performance [4]. - In the most recent quarter, Stepan reported an EPS of $0.52, falling short of the consensus estimate of $0.92, resulting in a negative earnings surprise of 43.5% [5]. Earnings Estimates - Recent trends show a decline in earnings estimates for Stepan, with the current fiscal year consensus remaining at $3.33, while the next year's estimate has decreased from $4.43 to $4.01 over the past 60 days [6]. - The negative movement in earnings estimates is a key factor contributing to the stock's Zacks Rank of 5 (Strong Sell) [6]. Market Context - Many stocks within the Zacks universe are experiencing negative earnings estimate revisions, leading to a broader trend of stocks falling to a Zacks Rank 5 (Strong Sell) [7].

Core Viewpoint - The focus is on identifying high-quality companies with strong free cash flow, efficient capital allocation, and superior management teams for investment opportunities [1]. Group 1: Investment Philosophy - The company emphasizes the importance of investing in quality companies rather than chasing small, fast-growing firms with compelling stories, which may not lead to successful outcomes [1]. - The founder has extensive experience in investment analysis, having been involved since 1985 and holding qualifications such as CPA and CFA [1]. Group 2: Background and Expertise - The founder has a diverse background, including experience in retail, military service, and various management roles, providing a broad perspective on macroeconomics and detailed operational insights [1]. - The founder's investment philosophy is influenced by renowned investors like Benjamin Graham and Warren Buffett, indicating a value-oriented approach [1].