Stepan (NYSE:SCL) Releases Quarterly Earnings Results, Beats Expectations By $0.21 EPS

Stepan (NYSE:SCL) released its quarterly earnings results on Wednesday. The basic materials company reported $0.94 earnings per share for the quarter, topping analysts’ consensus estimates of $0.73 by $0.21, FiscalAI reports. The business had revenue of $692.15 million during the quarter, compared to analyst estimates of $634.30 million. The business’s revenue for the quarter was up 17.3% compared to the same quarter last year. During the same period in the previous year, the company posted $0.48 EPS.

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

• Third-quarter adjusted EBITDA rose 18% to $66.3 million, while adjusted EPS nearly doubled to $0.94, supported by 7% organic volume growth, margin recovery, and productivity savings across all three segments.
• Surfactants led performance with adjusted EBITDA up 27%, while Specialty Products benefited from 20% volume growth in MCT products and North American Polymers delivered double-digit volume growth.
• Project Catalyst savings are running ahead of plan, with a $23 million quarterly run rate and expectations to exceed the 2026 savings target; management also expects to surpass $25 million in average quarterly savings during 2027.
• Stepan improved net leverage to 2.4 times and expects continued deleveraging, aided by $28.5 million of land-sale proceeds earmarked for debt repayment; management also raised the quarterly dividend for the 59th consecutive year.
• Free cash flow was only $8 million despite stronger earnings because working capital absorbed $32 million, while Europe and China remained weak in Polymers, crop productivity demand softened, and ongoing raw-material volatility and maintenance costs remain headwinds.

Stepan Trading Up 1.5%

NYSE:SCL traded up $1.00 during trading hours on Wednesday, hitting $66.21. 136,785 shares of the stock were exchanged, compared to its average volume of 158,313. The firm’s fifty day moving average price is $62.67 and its 200 day moving average price is $56.61. Stepan has a 52-week low of $41.82 and a 52-week high of $70.00. The company has a market cap of $1.51 billion, a P/E ratio of -549.12 and a beta of 0.94.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Seaport Research Partners reissued a “buy” rating and issued a $85.00 price target on shares of Stepan in a report on Friday, August 7th. Zacks Research raised shares of Stepan from a “hold” rating to a “strong-buy” rating in a report on Tuesday, September 29th. Wall Street Zen upgraded shares of Stepan from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings reissued a “sell (d+)” rating on shares of Stepan in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, Stepan has a consensus rating of “Moderate Buy”.

About Stepan

Stepan Company (NYSE:SCL) is a global manufacturer of specialty and intermediate chemicals. Founded in 1932 and headquartered in Northfield, Illinois, the company develops products used by manufacturers in consumer and industrial markets.

Stepan’s principal products include surfactants, which are used in detergents, cleaners, personal-care products, agricultural formulations and other applications. The company also produces polyurethane polyols, phthalic anhydride and other specialty chemicals used in insulation, construction materials, coatings, plastics, food packaging and related industrial products.

Stepan serves customers across North America, Latin America, Europe and Asia through a network of manufacturing facilities, research and development operations, and sales organizations.