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 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 Insights - The company reported a 7% increase in net sales for the second quarter of 2025, driven by higher selling prices and improved product mix, despite a decline in global commodity consumer products demand [6][14][21] - Adjusted EBITDA grew by 8% in the second quarter and 10% for the first half of 2025, reflecting strong performance in the Polymer and Crop Productivity segments [2][5][11] - The effective tax rate decreased significantly to 19.2% in the first half of 2025 from 36.1% in the same period of 2024, contributing to improved net income [10][21] Financial Performance - Net sales for Q2 2025 were $594.7 million, up from $556.4 million in Q2 2024, while net income increased by 19% to $11.3 million [3][5][21] - Adjusted net income for Q2 2025 was $12.0 million, a 27% increase year-over-year, driven by growth in Polymers and Crop Productivity [5][23] - The company experienced a negative free cash flow of $14.4 million in Q2 2025, primarily due to inventory builds [5][13] Segment Performance - Surfactants segment net sales increased by 8% to $411.5 million, with selling prices up 11% but sales volume down 1% due to lower demand in commodity markets [8][14] - Polymers segment net sales rose by 2% to $162.8 million, with a 7% increase in sales volume, although selling prices decreased by 7% [8][14] - Specialty Products segment saw a significant 22% increase in net sales to $20.5 million, primarily due to higher sales volume [8][14] Operational Developments - The new alkoxylation site in Pasadena, Texas is now operational and is expected to contribute positively to volume growth and supply chain savings in the second half of 2025 [2][11] - The company is on track to close an asset sale in the Philippines in Q4 2025, aiming to optimize its global footprint [11] Outlook - The company remains optimistic about achieving full-year growth in adjusted EBITDA and adjusted net income, despite market uncertainties and tariff impacts [11][21] - Focus will be on enhancing operational excellence, improving product and customer mix, and accelerating free cash flow generation [11]

Core Viewpoint - Stepan Company is set to release its second quarter 2025 earnings results on July 30, 2025, followed by a conference call to discuss financial and operational performance [1][2]. Group 1: Earnings Release Details - The earnings results will be issued at approximately 7:00 a.m. ET (6:00 a.m. CT) on July 30, 2025 [1]. - Supporting slides will be available on the Investors/Presentations page of the company's website at the same time [1]. - A conference call will take place at 9:00 a.m. ET (8:00 a.m. CT) on the same day to discuss the results [1]. Group 2: Conference Call Access - The call will be hosted by Luis E. Rojo, President and CEO, and Ruben Velasquez, Vice President and CFO [2]. - Participants can access the call via phone or webcast, with a registration link provided for phone access [3]. - A replay of the conference call will be available shortly after the call on the company's website [3]. Group 3: Company Overview - Stepan Company is a major manufacturer of specialty and intermediate chemicals, particularly known for surfactants used in cleaning and disinfection products [4]. - The company is also a leading supplier of polyurethane polyols for the thermal insulation market and CASE industries [4]. - Headquartered in Northbrook, Illinois, Stepan operates modern production facilities across North and South America, Europe, and Asia [5].

Group 1 - Stepan Company announced the appointment of Ruben Velasquez as Vice President and Chief Financial Officer, effective July 15, 2025, succeeding Samuel Hinrichsen [1] - Mr. Velasquez has over two decades of global finance leadership experience across various industries, including industrial conglomerates and oil and gas [3] - The company is a major manufacturer of specialty and intermediate chemicals, leading in surfactants and polyurethane polyols for various markets [3][4] Group 2 - Stepan Company is headquartered in Northbrook, Illinois, and operates modern production facilities across North and South America, Europe, and Asia [4] - The company's common stock is traded on the New York Stock Exchange under the symbol SCL [4]

Core Viewpoint - Stepan Company has announced the sale of its manufacturing assets in the Philippines to Masurf, Inc., aligning with its strategy to focus on core growth areas and maintain service to its customer base in Southeast Asia [1][2]. Group 1: Transaction Details - The manufacturing assets located in Bauan, Batangas, Philippines will be sold to Masurf, a subsidiary of Musim Mas Holdings Pte. Ltd. [1] - A tolling agreement will be established between Stepan Philippines Quaternaries, Inc. (SPQI) and Masurf to continue serving customers post-transaction [2]. - The terms of the transaction have not been disclosed, and it is subject to normal closing conditions [2]. Group 2: Company Profile - Stepan Company is a major manufacturer of specialty and intermediate chemicals, particularly known for its surfactants used in cleaning, disinfection, and agricultural solutions [3]. - The company also supplies polyurethane polyols for the thermal insulation market and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries [3]. - Headquartered in Northbrook, Illinois, Stepan operates a network of modern production facilities across North and South America, Europe, and Asia [4].

Core Insights - The company reported strong earnings and volume growth in Q1 2025, with adjusted EBITDA growing double digits, driven by the Surfactant and Specialty Product businesses [2][6][9] - Net sales increased by 8% year-over-year, reflecting a 4% increase in sales volume and higher selling prices, despite a negative impact from foreign currency translation [4][6] - The company is optimistic about continued growth in key strategic end markets and expects to improve free cash flow generation in 2025 [9] Financial Performance - Net Sales for Q1 2025 were $593.3 million, up from $551.4 million in Q1 2024, marking an 8% increase [3][19] - Operating Income rose to $28.3 million, a 40% increase from $20.2 million in the previous year [3][19] - Net Income was reported at $19.7 million, a 42% increase compared to $13.9 million in Q1 2024 [3][19] Segment Performance - Surfactants segment net sales increased by 10% to $430.3 million, driven by a 12% increase in selling prices and a 3% increase in sales volume [7][14] - Polymers segment net sales remained flat at $146.1 million, with a 7% increase in sales volume offset by a 7% decrease in selling prices [14] - Specialty Products segment net sales grew by 11% to $16.8 million, primarily due to higher selling prices [14] Cash Flow and Working Capital - Cash from operations was $6.9 million, while free cash flow was negative at $25.8 million due to higher working capital requirements [6][11] - The company’s total debt increased by $33.9 million, with net debt rising by $26.1 million compared to the end of 2024 [32][33] Tax and Corporate Expenses - The effective tax rate decreased to 20.1% in Q1 2025 from 28.6% in Q1 2024, attributed to favorable discrete items from a tax audit settlement [8] - Total corporate expenses decreased by 24% to $14.2 million, with adjusted corporate expenses down by 1% [29]

Core Viewpoint - Stepan Company will release its first quarter 2025 earnings results on April 29, 2025, followed by a conference call to discuss financial and operational performance [1][2]. Company Profile - Stepan Company is a major manufacturer of specialty and intermediate chemicals, particularly known for its surfactants used in cleaning, disinfection, and agricultural products [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 Samuel S. Hinrichsen, Vice President and Interim CFO [2]. - Participants can access the call via phone or webcast, with a recommendation to join ten minutes early to avoid delays [3].