Stepan Company (NYSE:SCL) released its third-quarter 2026 earnings press release on October 28, 2026, reporting net income of $17.8 million and consolidated adjusted EBITDA of $66.3 million for the three months ended September 30, 2026.

Key Highlights

  • Net income up 64%: Reported net income was $17.8 million in Q3 2026, compared to $10.8 million in Q3 2025.
  • Adjusted net income nearly doubled: Adjusted net income was $21.7 million, up 98% versus the prior year quarter.
  • Consolidated adjusted EBITDA: Reached $66.3 million in Q3 2026, an 18% increase year-over-year.
  • Net sales grew 17%: Total net sales were $692.2 million for Q3 2026, versus $590.3 million in Q3 2025.
  • Restructuring charge recorded: Pre-tax earnings include a $5.6 million restructuring charge related to Project Catalyst, covering approximately 100 salaried position reductions, or 7% of global salaried headcount.
  • Land sale completed: In October, the company closed on the sale of a parcel of land near its Millsdale site for $28.5 million, with full cash proceeds to be used to pay down debt.
  • Year-to-date net loss: For the nine months ended September 30, 2026, the company reported a net loss of $0.7 million, attributed entirely to a $76.1 million pre-tax restructuring charge.

Stepan Company Q3 2026 Segment Performance and Financial Detail

According to the filing, Stepan Company's Q3 2026 net sales of $692.2 million reflected a 17% year-over-year increase driven by higher selling prices, a 3% rise in total sales volume, organic sales volume growth of 7%, and a favorable foreign currency translation impact of 1%. Adjusted earnings per diluted share were $0.94 in Q3 2026, up 96% from $0.48 in Q3 2025. Reported earnings per diluted share were $0.78, compared to $0.47 in the prior year quarter.

The company reported segment-level results for three business units. Surfactant net sales were $486.6 million for the quarter, up 15% year-over-year, with Surfactant adjusted EBITDA rising $10.2 million, or 27%, primarily due to sales volume growth and margin recovery. Polymer net sales were $178.7 million, a 24% increase, with adjusted EBITDA up 4% to $23.3 million. Specialty Products net sales were $26.9 million, up 12%, with sales volume up 20% and adjusted EBITDA up 5% to $11.7 million, according to the filing.

Cash from operations was $29.3 million during the quarter, and capital expenditures were $21.1 million, resulting in free cash flow of $8.2 million, which the company disclosed was "negatively impacted by higher working capital requirements." For the year-to-date period, the $76.1 million pre-tax restructuring charge had an associated cash impact of approximately $12.8 million. The company's president and CEO, Luis E. Rojo, stated in the filing that the company believes it will "deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026." These are the company's own forward-looking statements and are subject to its cautionary language.

What Was Disclosed

Stepan Company disclosed Q3 2026 and year-to-date financial results, including net income, adjusted EBITDA, and segment sales data, alongside details on a $5.6 million restructuring charge, a completed $28.5 million land sale, and non-GAAP reconciliation tables.