Highlights

  • Third quarter 2026 net sales were $692,154 thousand, and net income was $17.8 million, or $0.78 per diluted share.
  • Non-GAAP adjusted EBITDA was $66.3 million in the third quarter, and net debt was $536.0 million at September 30, 2026.
  • A $5.6 million Project Catalyst restructuring charge included approximately 100 salaried position reductions, or 7% of global salaried headcount.
  • The board declared a $0.405 quarterly cash dividend per share, payable December 15, 2026, the 59th consecutive year of increases.

Stepan Company (NYSE:SCL) shares were trading at USD 66.70 on October 28, 2026, up 2.28%, with a relative volume at time of 4.76. The specialty chemicals maker reported third quarter 2026 results on October 28, disclosed restructuring charges under Project Catalyst, closed a land sale in October and declared a quarterly dividend.

Stepan Company is incorporated in Delaware and lists its principal executive offices in Northbrook, Illinois. It manufactures specialty and intermediate chemicals used in a broad range of industries. It reports three segments: Surfactants, Polymers and Specialty Products. Surfactants are key ingredients in consumer and industrial cleaning and disinfection products and in agricultural and oilfield solutions. Polymers include polyurethane polyols used in thermal insulation and in Coatings, Adhesives, Sealants and Elastomers industries. The company uses production facilities in North and South America, Europe and Asia.

Third Quarter Results

Stepan reported net sales of $692,154 thousand for the third quarter ended September 30, 2026, compared with $590,284 thousand a year earlier. The company said net sales increased 17%, reflecting higher selling prices, a 3% increase in sales volume and foreign currency translation. Organic sales volume was up 7%.

Operating income was $25,959 thousand, compared with $21,794 thousand. Net income was $17.8 million, compared with $10.8 million, and earnings per diluted share were $0.78, compared with $0.47. On a non-GAAP basis, adjusted net income was $21.7 million and adjusted earnings per diluted share were $0.94, compared with $0.48. EBITDA was $57.5 million, compared with $56.1 million, and adjusted EBITDA was $66.3 million.

For the nine months, the company reported a net loss of $0.7 million, compared with net income of $41.9 million, and said the loss was entirely due to a $76.1 million pre-tax restructuring charge. Nine-month adjusted net income was $59.1 million, and adjusted EBITDA was $190.3 million.

Segment Results

Surfactants net sales were $486,633 thousand, compared with $422,358 thousand, and adjusted EBITDA was $48.2 million, compared with $38.0 million. Polymers net sales were $178,650 thousand, compared with $143,928 thousand, and adjusted EBITDA was $23.3 million, compared with $22.4 million. The company said Polymers results included regulatory-mandated maintenance turnaround costs at its Germany site.

Specialty Products net sales were $26,871 thousand, compared with $23,998 thousand, and adjusted EBITDA was $11.7 million, compared with $11.1 million. The company said Specialty Products sales volume increased 20%.

Restructuring, Cash Flow and Debt

Stepan recorded a $5.6 million restructuring charge in the quarter under Project Catalyst. The company said the year-to-date cash impact of the restructuring charge was approximately $12.8 million. On the call, management said the savings run rate was approximately $23 million in the third quarter.

Cash from operations was $29.3 million in the third quarter, and capital expenditures were $21.1 million. Free cash flow, a non-GAAP measure, was $8.2 million, which the company said was negatively impacted by higher working capital requirements.

Total debt was $634.1 million and cash was $98.1 million at September 30, 2026, giving reported net debt of $536.0 million. In October, the company closed an agreement to sell a parcel of land near its Millsdale site for $28.5 million, and it said the full cash proceeds will be used to pay down debt.

Dividend and Outlook

The board declared a quarterly cash dividend of $0.405 per share, payable December 15, 2026, to stockholders as of December 1, 2026. The company said it increased the quarterly dividend by $0.010 per share, marking the 59th consecutive year of increases.

Stepan did not publish numerical full-year guidance. Management said it believes the company will deliver full-year adjusted EBITDA growth, positive free cash flow and continued deleveraging of the balance sheet in 2026. On the call, management said it expects lower volume growth in the fourth quarter.