Stepan (NYSE:SCL) Announces Quarterly Earnings Results

Stepan (NYSE:SCL - Get Free Report) released its quarterly earnings data on Tuesday. The basic materials company reported $0.45 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.39 by $0.06, FiscalAI reports. Stepan had a negative net margin of 0.61% and a positive return on equity of 2.65%. The company had revenue of $604.51 million for the quarter, compared to analysts' expectations of $612.25 million. During the same quarter in the prior year, the firm earned $0.84 EPS. The business's revenue was up 1.9% on a year-over-year basis.

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

• Reported a GAAP net loss of $41.4 million in Q1 2026 largely from a $65.4 million pre-tax restructuring charge; Adjusted Net Income fell to $10.3 million (down 47%) and Adjusted EBITDA was $49.6 million (down 14%).
• Project Catalyst remains on track to deliver about $100 million in pre-tax savings over the next two years (≈60% expected in 2026), and the company agreed to sell non‑productive Millsdale land for $30 million to strengthen the balance sheet.
• Surfactants showed organic net sales growth (+8%) and volume gains in crop productivity, oilfield and industrial cleaning, but Surfactants Adjusted EBITDA declined ~$7 million due to temporary lower absorption and production timing in Asia, a U.S. cold snap, Mexican competitive pressure, and elevated oleochemical costs — management expects partial recovery in future quarters.
• Polymers delivered an 8% increase in Adjusted EBITDA driven by North American spray‑foam and phthalic anhydride demand despite an 11% sales decline and weak European construction; Specialty Products volumes rose 30% (MCT line) though EBITDA was slightly down on mix and raw‑material timing.
• Q1 cash from operations was $17 million and Free Cash Flow was negative $14 million (seasonal working capital build); Q1 CapEx was $31 million with a 2026 CapEx range of $105–115 million, net debt $511 million and leverage of 2.7 as management focuses on deleveraging.

Stepan Price Performance

Shares of NYSE SCL opened at $51.45 on Friday. The firm has a market cap of $1.17 billion, a price-to-earnings ratio of -82.98 and a beta of 0.95. Stepan has a 1-year low of $41.82 and a 1-year high of $68.00. The company has a current ratio of 1.26, a quick ratio of 0.84 and a debt-to-equity ratio of 0.28. The stock has a fifty day simple moving average of $50.02 and a two-hundred day simple moving average of $49.94.

Stepan Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $0.395 per share. This represents a $1.58 dividend on an annualized basis and a dividend yield of 3.1%. The ex-dividend date of this dividend is Monday, June 1st. Stepan's dividend payout ratio is currently -254.84%.

Institutional Investors Weigh In On Stepan

A number of large investors have recently added to or reduced their stakes in SCL. Invesco Ltd. lifted its holdings in Stepan by 25.4% during the fourth quarter. Invesco Ltd. now owns 163,111 shares of the basic materials company's stock valued at $7,725,000 after purchasing an additional 33,048 shares in the last quarter. Mercer Global Advisors Inc. ADV bought a new position in shares of Stepan during the fourth quarter worth $224,000. State of Tennessee Department of Treasury grew its stake in Stepan by 84.1% during the fourth quarter. State of Tennessee Department of Treasury now owns 16,858 shares of the basic materials company's stock valued at $798,000 after acquiring an additional 7,703 shares in the last quarter. Empowered Funds LLC grew its stake in Stepan by 10.8% during the fourth quarter. Empowered Funds LLC now owns 77,553 shares of the basic materials company's stock valued at $3,673,000 after acquiring an additional 7,563 shares in the last quarter. Finally, Voloridge Investment Management LLC increased its holdings in Stepan by 9.1% in the 4th quarter. Voloridge Investment Management LLC now owns 60,105 shares of the basic materials company's stock valued at $2,847,000 after acquiring an additional 5,004 shares during the last quarter. Institutional investors own 82.70% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have issued reports on SCL shares. Zacks Research downgraded Stepan from a "hold" rating to a "strong sell" rating in a research note on Wednesday, March 4th. Weiss Ratings downgraded shares of Stepan from a "hold (c-)" rating to a "sell (d+)" rating in a report on Wednesday, March 4th. Two investment analysts have rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock has a consensus rating of "Sell".

About Stepan

Stepan Company is a global manufacturer of specialty and intermediate chemicals, primarily known for its development and production of surfactants and related specialty products. The company's portfolio includes a wide range of ingredients used to enhance the performance of consumer and industrial formulations, such as emulsifiers, foam control agents, odor control agents, antimicrobial products and performance additives. These products are integral components in cleaning solutions, personal care items, agrochemical formulations, coatings, oilfield treatments and polymer systems.

Serving a diverse set of end-markets, Stepan's offerings address both consumer-facing and industrial applications.