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SCL

Stepan Company

SCL

Stepan Company • NYSE
$45.33 ▲ 0.70% (+0.32)
Market Cap $1.03 B
52w High $77.76
52w Low $41.82
Dividend Yield 1.55%
P/E 22.89
Volume 59.21K
Outstanding Shares 22.62M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $590.284M ▼ $49.229M ▼ $10.839M ▼ 1.836% ▼ $0.47 ▼ $56.076M ▲
Q2-2025 $594.689M ▲ $53.92M ▲ $11.341M ▼ 1.907% ▼ $0.5 ▼ $49.507M ▼
Q1-2025 $593.255M ▲ $47.175M ▼ $19.711M ▲ 3.323% ▲ $0.86 ▲ $57.813M ▲
Q4-2024 $525.609M ▼ $49.001M ▼ $3.35M ▼ 0.637% ▼ $0.15 ▼ $35.587M ▼
Q3-2024 $546.842M $51.736M $23.606M 4.317% $1.03 $52.423M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $118.537M ▲ $2.432B ▲ $1.186B ▲ $1.247B ▲
Q2-2025 $88.904M ▼ $2.416B ▲ $1.174B ▼ $1.242B ▲
Q1-2025 $107.5M ▲ $2.39B ▲ $1.189B ▲ $1.201B ▲
Q4-2024 $99.665M ▼ $2.305B ▼ $1.135B ▼ $1.17B ▼
Q3-2024 $147.28M $2.414B $1.194B $1.219B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $10.839M ▼ $69.756M ▲ $-29.55M ▼ $-10.998M ▼ $29.633M ▲ $40.206M ▲
Q2-2025 $11.341M ▼ $11.193M ▲ $-25.057M ▲ $-9.503M ▼ $-18.588M ▼ $-14.405M ▲
Q1-2025 $19.711M ▲ $6.942M ▼ $-26.411M ▲ $22.761M ▲ $7.827M ▲ $-25.806M ▼
Q4-2024 $3.35M ▼ $68.286M ▲ $-36.204M ▼ $-71.449M ▼ $-47.615M ▼ $32.082M ▼
Q3-2024 $23.606M $22.711M $-26.705M $22.934M $22.572M $82.578M

Revenue by Products

Product Q3-2024Q1-2025Q2-2025Q3-2025
Polymers
Polymers
 $150.00M ▲$150.00M ▲$160.00M ▲$140.00M ▼
Specialty Products
Specialty Products
 $10.00M ▲$20.00M ▲$20.00M ▲$20.00M ▲
Surfactants
Surfactants
 $380.00M ▲$430.00M ▲$410.00M ▼$420.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown over the longer period but has cooled off in the last two years after peaking, suggesting a move from a strong upcycle into a more normal or slightly softer demand environment. The more important story is margin pressure: gross profit and operating profit have fallen much faster than sales, which points to higher input costs, less favorable pricing, or mix shifting away from the highest‑margin products. Earnings per share are now well below the levels seen a few years ago, though there was a small recovery in the most recent year. Overall, the income statement shows a profitable company, but one working through a period of weaker profitability compared with its recent peak years.

Balance Sheet

Balance Sheet The balance sheet shows a business that has expanded its asset base meaningfully over the last few years, reflecting capacity additions and growth investments. This build‑out has been funded in part by higher debt, so leverage is notably higher than it was earlier in the period, even though shareholders’ equity has also grown over time. Cash levels have drifted down from prior highs, which modestly reduces the liquidity cushion but do not suggest immediate stress. In short, Stepan looks like it has a stronger, more capital‑intensive platform than a few years ago, but with a more leveraged and somewhat less liquid balance sheet that needs to be watched as new projects ramp up.

Cash Flow

Cash Flow Operating cash generation has been reasonably steady in recent years, but not especially strong relative to the scale of the business. At the same time, Stepan has been spending heavily on capital projects for several consecutive years, leading to negative free cash flow for much of the period and only a modest return to positive territory most recently. This pattern is typical of an investment cycle: cash is being pulled into new plants and technologies, such as the large alkoxylation facility, rather than accumulating on the balance sheet. The key question going forward is whether these investments translate into stronger and more stable cash flows once the new capacity is fully utilized.

Competitive Edge

Competitive Edge Stepan operates in specialty chemicals, where success depends on more than just scale. Its advantages include a wide, global manufacturing footprint, a broad set of end markets, and deep technical relationships with customers. The company is embedded in customers’ formulations, particularly in cleaning, personal care, agriculture, and construction, which makes switching to competitors slower and more costly for those customers. Its emphasis on sustainability and regulatory readiness also matters, as large consumer and industrial clients increasingly demand greener and compliant ingredients. Overall, Stepan appears to occupy a solid, if not flashy, competitive position: it is not alone in its markets, but it combines scale, technical know‑how, and sustainability credentials in a way that is not easy for smaller rivals to copy quickly.

Innovation and R&D

Innovation and R&D Innovation is a clear strategic focus. Stepan is shifting its portfolio toward bio‑based and more sustainable solutions, such as fermentation‑based surfactants and bio‑containing polyols, which align well with tightening regulation and customer demand for greener chemistries. The company supports this with a sizable global R&D footprint, dedicated BioSolutions teams, and specialized centers for agricultural and other applications. Large capital projects like the new alkoxylation facility in Texas, as well as digital tools such as its processing optimization technology for construction materials, show a willingness to invest in both chemistry and process innovation. The opportunity is to capture higher‑value, more differentiated business; the risk is execution—ensuring these new technologies scale economically and gain widespread customer adoption.

Summary

Stepan today looks like a specialty chemical company in the middle of a strategic transition. Financially, it remains profitable but is earning considerably less than it did at its recent peak, due to margin pressure and the cost of building out new capacity. The balance sheet and cash flows reflect a heavy investment phase, with more debt and years of subdued free cash flow as projects are built and ramped. Strategically, however, the company appears to be strengthening its long‑term position through sustainable, bio‑based innovation, deeper customer integration, and a more capable global manufacturing network. The coming years will likely hinge on how effectively Stepan can convert these investments into higher‑margin, more resilient earnings and cash flow, while carefully managing leverage and execution risks along the way.

NEWS

November 20, 2025 · 4:01 PM UTC

Stepan Company Completes Sale of Philippine Assets, Advancing Strategic Focus on Core Growth

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October 29, 2025 · 7:00 AM UTC

Stepan Increases Quarterly Cash Dividend, Marking the 58th Consecutive Year of Increases

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October 8, 2025 · 7:00 AM UTC

Stepan to Announce Third Quarter 2025 Results on October 29, 2025

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