Stepan Reports Third Quarter 2026 Results
Key Highlights
- ➤Adjusted EBITDA $66.3 million, up 18% year-over-year
- ➤Adjusted net income $21.7 million, up 98% year-over-year
- ➤Net sales $692.2 million, up 17% year-over-year
- ➤Project Catalyst restructuring charge totaled $5.6 million in the quarter
- ➤Full-year 2026 outlook calls for adjusted EBITDA growth and positive free cash flow
Expert Statements
Luis E. Rojo, President and Chief Executive Officer of Stepan Company
“Quarterly earnings were up significantly, driven by improved results in all three segments. Third quarter adjusted EBITDA of $66.3 million was up 18% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. Surfactant adjusted EBITDA was up 27% in the quarter and Polymers grew single digits including one time maintenance costs. Specialty Products adjusted EBITDA was up 5% driven by double digit volume growth”
Luis E. Rojo, President and Chief Executive Officer of Stepan Company
“Surfactant organic sales volume was up 8% and Polymer sales volume was up 3% in the quarter. The Surfactant volume growth was broad-based and across most end markets. Within Polymers, the North American Rigid, Spray Foam and Phthalic Anhydride businesses delivered double digit volume growth. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We executed the organizational redesign phase of Project Catalyst during the quarter in line with expectations.”
Luis E. Rojo, President and Chief Executive Officer of Stepan Company
“We believe we are positioned to continue delivering growth and executing on our diversification strategy. Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization, is contributing to this growth,”
Luis E. Rojo, President and Chief Executive Officer of Stepan Company
“Despite the ongoing and significant market uncertainties and challenges, the organization continues to be focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first nine-month results, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026.”
NORTHBROOK, Ill., Oct. 28, 2026 /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:
* Reported net income was $17.8 million, up 64% versus the prior year. Adjusted net income((1) )was $21.7 million, up 98% versus the prior year. * EBITDA((2)) was $57.5 million versus $56.1 million in the prior year. Adjusted EBITDA((2)) was $66.3 million, up 18%, year-over-year. * Global sales volume was up 3% year-over-year. Organic sales volume was up 7% year-over-year. * Cash from Operations was $29.3 million during the quarter. Free cash flow((3)) for the quarter was $8.2 million and was negatively impacted by higher working capital requirements. * Pre-tax earnings include a $5.6 million restructuring charge, related to the Company's previously announced Project Catalyst, inclusive of approximately 100 salaried position reductions or 7% of global salaried headcount. * In October, the Company closed on its previously announced agreement to sell a parcel of land near its Millsdale site for $28.5 million. The full cash proceeds will be used to pay down debt. YTD 2026 Highlights
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