STEPAN CO

Stepan Company reported strong second-quarter 2026 financial results, with adjusted net income increasing 126% to $27.1 million and adjusted EBITDA rising 45% to $74.4 million year-over-year. Net sales grew 15% to $684.1 million, driven by higher selling prices and a 3% increase in sales volume. The company also announced a plan to reduce its global salaried workforce by approximately 100 roles as part of its Project Catalyst efficiency initiative, expecting $4 million to $6 million in related charges. Additionally, the Board declared a quarterly cash dividend of $0.395 per share and announced management changes, including the resignation of Jan Stern Reed from the Board and the appointment of Matthew J. Eaken as Principal Accounting Officer.

Stepan Company reported a net loss of $(41.4) million, or $(1.81) per diluted share, for the first quarter of 2026, a significant decline from a net income of $19.7 million in Q1 2025. This loss was primarily driven by a $65.4 million business restructuring expense. Net sales saw a modest increase of 1.9% to $604.5 million, while gross profit decreased by 14.1%. Operating activities generated $16.9 million in cash, a substantial increase from the prior year.

Stepan Company reported a Q1 2026 net loss of $41.4 million, primarily due to a $65.4 million pre-tax restructuring charge related to facility closures. Adjusted net income decreased 47% to $10.3 million, with adjusted EBITDA down 14% to $49.6 million. Organic sales volume was flat, with strong demand in Crop Productivity, Oilfield, and Industrial Cleaning offsetting soft European Polymers demand. The Board also declared a quarterly cash dividend of $0.395 per share, payable June 15, 2026.