Stepan(US:SCL)2025-10-29 13:00Financial 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]