Stepan Reports Q4 Revenue of $553.89M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy SCL?
Reports Q4 revenue $553.89M vs. $525.61M last year. "2025 was a transformational year for Stepan as we divested two plant sites and completed preliminary work that has positioned us to further optimize our footprint and asset base in 2026. Despite many challenges in 2025, we delivered growth in several of our core businesses, advanced several strategic initiatives and have an operational plan in place to accelerate profitable growth moving forward. Full year adjusted EBITDA grew 6% versus prior year despite a significant increase in oleochemical raw material costs and start-up expenses at our Pasadena site. Volume grew 1%, organic volume grew 2% and net sales were up 7% driven by pricing actions and favorable product and customer mix. We delivered $25.4 million of free cash flow and increased our dividend for the 58th consecutive year, while reducing our Net Debt by $31.7 million and our Leverage Ratio to 2.5," said Luis E. Rojo, President and CEO. "Fourth quarter adjusted EBITDA was down 3% primarily due to a challenging North American Surfactant environment. We continue to recover margins in Surfactants despite an unprecedented run-up in raw material costs. Polymer volume was up 11% as our Rigid, Specialty Polyols and Phthalic Anhydride businesses all delivered volume growth. I want to personally thank all of our Stepan colleagues around the world for their hard work and resilience during the year."
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Analyst Views on SCL
About SCL
Stepan Company produces and sells intermediate chemicals that are used in a variety of applications. Its segment includes Surfactants, Polymers and Specialty Products. Surfactants are used in various consumer and industrial cleaning and disinfection products, such as detergents for washing clothes, dishes, floors and walls. Its other applications include fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients, emulsifiers for spreading agricultural products and industrial applications, such as latex systems, plastics and composites. Polymers include polyurethane polyols, polyester resins and phthalic anhydride. Polyurethane polyols are used in the manufacture of rigid foam for thermal insulation in the construction industry and are also a base raw material for coatings, adhesives, sealants and elastomers. Specialty Products include flavors, emulsifiers and solubilizers used in food, flavoring, nutritional supplements and pharmaceutical applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Increase: Stepan Company has declared a quarterly dividend of $0.395 per share, representing a 2.6% increase from the previous $0.385, indicating the company's ongoing commitment to stable cash flow and shareholder returns, which is likely to boost investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 3.0%, providing investors with a relatively attractive return rate, reflecting the company's financial health in the current economic environment.
- Record Dates: The dividend will be payable on June 15, with a record date of June 1 and an ex-dividend date also set for June 1, offering investors a clear timeline for their investment decisions.
- Cost Savings Initiative: Stepan is implementing a $100 million cost savings plan, which is expected to drive EBITDA growth in 2026 amid restructuring efforts, demonstrating the company's strategic commitment to optimizing operations and enhancing profitability.
See More
Stepan Company Q1 Earnings Analysis
- Performance Overview: Stepan Company's Q1 Non-GAAP EPS of $0.45 beats expectations by $0.06, indicating some resilience in profitability despite market pressures.
- Revenue Performance: The revenue for Q1 stands at $604.51 million, reflecting a 1.9% year-over-year increase, yet it misses expectations by $7.74 million, highlighting challenges in market demand.
- Adjusted EBITDA Decline: Adjusted EBITDA is reported at $49.6 million, down 14% year-over-year, suggesting pressures on cost control and profitability that may impact future investment decisions.
- Cash Flow Situation: Cash from operations was $16.9 million, while free cash flow was negative $14.0 million, indicating challenges in cash management that could affect the company's financial flexibility moving forward.
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- Strong Earnings Expectations: Albemarle is projected to report quarterly earnings of $1.00 per share, reflecting a staggering year-over-year increase of 655.6%, with revenues expected to reach $1.29 billion, up 19.7% from the previous year, showcasing the company's strong profitability.
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