Stepan's Q4 performance fell short of expectations, and the stock price rose slightly

LootboxPhobia · 2026-02-23T23:37:26+00:00

Stepan Company announced its Q4 results, with an adjusted EPS of -$0.02 and revenue of $553.9 million, both below expectations. The decline in performance was mainly due to increased interest expenses and decreased earnings from the surfactant business. The company plans to achieve approximately $100 million in savings through the "Catalyst Project."

LootboxPhobia

2026-02-23 23:37:26

Abstract generation in progress

Northbrook, Illinois – On Monday, Stepan Company (NYSE:SCL) announced its fourth-quarter results, which fell short of analyst expectations, with an adjusted earnings per share of -$0.02, compared to the market consensus of $0.40.

Revenue reached $553.9 million, below the expected $570.6 million, representing a 5% increase from $525.6 million in the same period last year.

The company’s stock rose 1.13% in pre-market trading following the earnings release, a modest gain that suggests investors may have anticipated weaker results or are focusing on the company’s restructuring plans.

This chemical manufacturer reported an adjusted net loss of $500,000, a decline of 119% from $2.8 million in Q4 2024.

The decline in performance was mainly due to reduced capitalized interest income following the startup of the Pasadena, Texas plant, increased interest expenses, unfavorable effective tax rate, and lower surfactant business earnings.

Global sales volume decreased 3% year-over-year, but excluding the impact of the divestment of Philippine assets, sales volume was flat.

The surfactant division’s adjusted EBITDA declined 7% to $32.1 million, while the polymer division’s adjusted EBITDA grew 9% to $12.4 million driven by an 11% increase in sales volume. Consolidated adjusted EBITDA decreased 3% from $35 million last year to $33.8 million.

Stepan announced “Project Catalyst,” a comprehensive optimization plan expected to generate approximately $100 million in pre-tax savings over two years through facility closures and asset decommissioning.

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