Stepan Reports Third Quarter 2025 Results

Rhea-AI Summary

Stepan (NYSE: SCL) reported third-quarter 2025 results on October 29, 2025. Net income was $10.8 million, down 54% year‑over‑year, while adjusted EBITDA rose 6% to $56.2 million. Net sales increased 8% to $590.3 million driven by selling price/mix; global sales volume was up 1% for the quarter and 2% year‑to‑date. Free cash flow for Q3 was $40.2 million and cash from operations was $69.8 million. The company cited $8.6 million of higher costs tied to start‑up of its new alkoxylation site in Pasadena, Texas and a higher effective tax rate (23.8% YTD vs 18.9% prior YTD). Board/management said an asset sale in the Philippines is expected to close in Q4 2025.

Positive

• Adjusted EBITDA +6% to $56.2 million in Q3 2025
• Net sales +8% to $590.3 million in Q3 2025
• Free cash flow of $40.2 million in Q3 2025
• Specialty Products net sales +68% and adjusted EBITDA +113% in Q3 2025
• Year-to-date adjusted EBITDA +9% to $165.1 million

Negative

• Reported net income down 54% to $10.8 million in Q3 2025
• Surfactants adjusted EBITDA down 14% in Q3 2025
• Pre-tax earnings negatively impacted by $8.6 million start-up costs in Pasadena
• Effective tax rate increased to 23.8% YTD from 18.9% prior YTD

Insights

Equity Analyst

Stepan shows stronger EBITDA and cash flow but materially lower net income due to taxes, interest, and Pasadena start-up costs.

Stepan Company delivered consolidated adjusted EBITDA of $56.2 million in Q3, up 6% year‑over‑year, and year‑to‑date adjusted EBITDA of $165.1 million, up 9%. Cash from operations was strong at $69.8 million and free cash flow for the quarter was $40.2 million, aided by working capital reduction and $29.6 million of capex. These metrics show operating cash generation and adjusted profitability improvements independent of GAAP net income.

The reported net income fell to $10.8 million in Q3, down 54%, driven by a higher effective tax rate, increased interest expense, higher depreciation, and $8.6 million of incremental pre‑tax costs tied to the Pasadena alkoxylation start‑up; management says some impacts had no cash effect. Segment performance was mixed: Surfactants sales rose but adjusted EBITDA declined 14% due to start‑up costs, lower unit margins and raw material cost pressure; Polymers saw volume growth but lower prices and margins; Specialty Products delivered strong sales and EBITDA gains largely from order timing.

Key dependencies and risks include the magnitude and duration of Pasadena start‑up expenses, the higher effective tax rate noted for the first nine months, and raw material cost pass‑through effectiveness. Concrete items to watch: progression of Pasadena site costs and capitalization, reported tax rate in upcoming quarters, quarterly adjusted EBITDA trends by segment, and the planned asset sale in the Philippines expected to close in Q4 2025. Monitor these over the next 1–4 quarters for clarity on margin restoration and sustainability of cash generation.

NORTHBROOK, Ill., Oct. 29, 2025 /PRNewswire/ -- Stepan Company (NYSE: SCL) today reported:

Third Quarter 2025 Highlights

• Reported net income was $10.8 million, down 54% versus the prior year. Adjusted net income⁽¹⁾ was $10.9 million, down 54% versus the prior year, largely due to a higher effective tax rate and higher interest expense.
• EBITDA⁽²⁾ was $56.1 million and Adjusted EBITDA⁽²⁾ was $56.2 million, both up 6% respectively, year-over-year.
• Global sales volume was up 1% year-over-year.
• Cash from Operations was $69.8 million during the quarter. Free cash flow⁽³⁾ for the quarter was $40.2 million, driven by a reduction in working capital.
• Year-over-year pre-tax earnings were negatively impacted by $8.6 million due to higher costs associated with the start-up our new alkoxylation site in Pasadena, Texas and lower capitalized interest income recognition due to the Pasadena start-up.

YTD 2025 Highlights

• Reported net income was $41.9 million, down 11% versus the prior year. Adjusted net income⁽¹⁾ was $42.2 million, down 12% versus the prior year.
• EBITDA⁽²⁾  was $164.7 million and Adjusted EBITDA⁽²⁾ was $165.1 million, both up 9% respectively, year-over-year.
• Global sales volume was up 2% year-over-year.

"Third quarter adjusted EBITDA grew 6% and free cash flow improved to $40.2 million dollars for the quarter.  Year-to-date adjusted EBITDA is up 9% with volumes up 2%.  We achieved these positive results despite higher start-up expenses at our Pasadena site and a significant run up in oleochemical raw material costs," said Luis E. Rojo, President and Chief Executive Officer.  "Third quarter Adjusted Net Income was negatively impacted by a higher effective tax rate, higher depreciation and higher interest net versus prior year, none of which had a cash impact.  From a segment perspective, Polymer volume was up 8% as our Rigid, Specialty Polyols and Phthalic Anhydride businesses all delivered volume growth.  Within Surfactants, we experienced double digit volume growth within the Agricultural and Industrial Cleaning end markets and mid-single digit growth within the Oilfield end markets.  This growth was offset by lower demand in the global commodity Consumer Products end markets. Specialty Products delivered earnings growth during the quarter due to order timing differences. We are encouraged by volume growth across several key strategic end markets, and we remain focused on gradually restoring margins while maintaining a healthy balance between volume and margins."

Financial Summary

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands, except per share data)		2025				2024				% Change				2025				2024				% Change
Net Sales		$	590,284			$	546,842				8	%		$	1,778,228			$	1,654,665				7	%
Operating Income		$	21,794			$	23,949				(9)	%		$	68,047			$	62,785				8	%
Net Income		$	10,839			$	23,606				(54)	%		$	41,891			$	47,020				(11)	%
Earnings per Diluted Share		$	0.47			$	1.03				(54)	%		$	1.83			$	2.05				(11)	%
Adjusted Net Income *		$	10,948			$	23,661				(54)	%		$	42,211			$	47,713				(12)	%
Adjusted Earnings per    Diluted Share *		$	0.48			$	1.03				(53)	%		$	1.84			$	2.08				(12)	%

* See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.

Percentage Change in Net Sales

Net sales in the third quarter of 2025 increased 8% year-over-year.  This increase was primarily driven by higher selling prices that were mainly attributable to the pass-through of higher raw material costs and more favorable product mix.   

		Three Months Ended September 30, 2025				Nine Months Ended September 30, 2025
Volume			1	%			2	%
Selling Price & Mix			6	%			6	%
Foreign Translation			1	%			(1)	%
Total			8	%			7	%

Segment Results

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands)		2025				2024				% Change				2025				2024				% Change
Net Sales
Surfactants		$	422,358			$	382,724				10	%		$	1,264,151			$	1,153,339				10	%
Polymers		$	143,928			$	149,796				(4)	%		$	452,795			$	455,061				0	%
Specialty Products		$	23,998			$	14,322				68	%		$	61,282			$	46,265				32	%
Total Net Sales		$	590,284			$	546,842				8	%		$	1,778,228			$	1,654,665				7	%
		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands, all amounts pre-tax)		2025				2024				% Change				2025				2024				% Change
Operating Income
Surfactants		$	15,718			$	26,303				(40)	%		$	58,015			$	69,445				(16)	%
Polymers		$	14,104			$	15,248				(8)	%		$	39,281			$	37,227				6	%
Specialty Products		$	9,634			$	3,727				158	%		$	20,400			$	15,314				33	%
Total Segment    Operating Income		$	39,456			$	45,278				(13)	%		$	117,696			$	121,986				(4)	%
Corporate Expenses		$	(17,662)			$	(21,329)				(17)	%		$	(49,649)			$	(59,201)				(16)	%
Consolidated    Operating Income		$	21,794			$	23,949				(9)	%		$	68,047			$	62,785				8	%
		Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions)		2025				2024				% Change				2025				2024				% Change
EBITDA		$	56.1			$	53.0				6	%		$	164.7			$	151.0				9	%
Adjusted EBITDA
Surfactants		$	38.0			$	44.2				(14)	%		$	120.9			$	122.9				(2)	%
Polymers		$	22.4			$	23.4				(4)	%		$	64.0			$	61.6				4	%
Specialty Products		$	11.1			$	5.2				113	%		$	24.8			$	19.8				25	%
Unallocated Corporate		$	(15.3)			$	(19.7)				(22)	%		$	(44.6)			$	(52.4)				(15)	%
Consolidated Adjusted EBITDA		$	56.2			$	53.1				6	%		$	165.1			$	151.9				9	%

Consolidated adjusted EBITDA⁽²⁾ increased $3.1 million, or 6%, in the quarter.  This increase was primarily driven by strong Specialty Products results and the non-recurrence of expenses associated with the external criminal social engineering fraud event in 2024.  Surfactant adjusted EBITDA declined due to a 2% decline in sales volume, lower unit margins and higher costs associated with the start-up of our new alkoxylation site in Pasadena, Texas.

• Surfactant net sales were $422.4 million for the quarter, a 10% increase versus the prior year. Selling prices were up 11% primarily due to improved product and customer mix and the pass through of higher raw material costs. Sales volume declined 2% year-over-year primarily due to lower demand within the commodity Laundry and Cleaning end markets that was largely offset by double digit growth within the Agricultural and Industrial Cleaning end markets. Foreign currency translation positively impacted net sales by 1%. Surfactant adjusted EBITDA⁽²⁾ for the quarter decreased $6.2 million, or 14%, versus the prior year. This decrease was primarily due to higher expenses associated with the start-up of our new alkoxylation facility in Pasadena, Texas, a 2% decrease in sales volume and higher oleochemicals raw material costs.
  
  
• Polymer net sales were $143.9 million for the quarter, a 4% decrease versus the prior year. Selling prices decreased 14%, primarily due to the pass-through of lower raw material costs and competitive pressures. Sales volume increased 8% in the quarter. North American Rigid and commodity Phthalic Anhydride sales volume was up double digits year-over-year. Foreign currency translation positively impacted net sales by 2% during the quarter. Polymer adjusted EBITDA⁽²⁾ decreased $1.0 million, or 4%, versus the prior year primarily due to lower unit margins.
  
  
• Specialty Product net sales were $24.0 million for the quarter, a 68% increase versus the prior year, primarily due to higher sales volume and product mix. Specialty Product adjusted EBITDA⁽²⁾ increased $5.9 million, or 113%. The increase in adjusted EBITDA⁽²⁾ was primarily due to order timing fluctuations within the pharmaceutical business.

Income Taxes

The Company's effective tax rate was 23.8% in the first nine months of 2025 versus 18.9% in the first nine months of 2024.  This increase was primarily attributable to the recently enacted U.S. Tax Act (H.R.1), lower anticipated R&D tax credits and the expected tax impact of certain cash repatriations to the United States.

Outlook

"Looking forward, we remain focused on accelerating our business strategies through enhanced operational excellence, improved product and customer mix and accelerated free cash flow generation.  We believe our Surfactant business will experience continued growth in our key strategic end markets and that Polymer demand will continue improving as we get more market certainty and we execute our innovation and growth plans," said Luis E. Rojo, President and Chief Executive Officer.  "We remain on track to close our asset sale in the Philippines during the fourth quarter. In parallel, we are analyzing opportunities to optimize our footprint and asset base.  Despite the ongoing market and tariff uncertainties, we remain optimistic about delivering full-year Adjusted EBITDA growth and generating positive free cash flow in 2025."

Notes

(1) Adjusted net income and adjusted earnings per share are non-GAAP measures which exclude deferred compensation income/expense, certain environmental remediation-related costs as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.

(2) EBITDA and adjusted EBITDA are non-GAAP measures.  See Table VI for calculations and GAAP reconciliations of EBITDA and adjusted EBITDA.

(3) Free cash flow is a non-GAAP measure and reflects cash generated from operations minus capital expenditures.  Cash generated from operations was $69.8 million during the third quarter of 2025 and capital expenditures were $29.6 million. 

Conference Call

Stepan Company will host a conference call to discuss its third quarter results at 9:00 a.m. ET (8:00 a.m. CT) on October 29, 2025. The call can be accessed by phone and webcast. To access the call by phone, please click on this Registration Link, complete the form and you will be provided with dial in details and a PIN.  To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time.  The webcast can be accessed through the Investors/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.

Supporting Slides

Slides supporting this press release will be made available at www.stepan.com through the Investors/Presentations page at approximately the same time as this press release is issued.

Corporate Profile

Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.

Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia. 

The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com

More information about Stepan's sustainability program can be found on the Sustainability page at www.stepan.com 

Certain information in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements include statements about Stepan Company's plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company's actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "guidance," "predict," "potential," "continue," "likely," "will," "would," "should," "illustrative" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements.

There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this news release. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to  accidents, unplanned production shutdowns or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including currency exchange rate fluctuations, changes in global trade policies, including tariffs; legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to access capital markets; global political, military, security or other instability; costs related to expansion or other capital projects; interruption or breaches of information technology systems; our ability to retain executive management and key personnel; and our debt covenants.

These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

* * * * *

Tables follow

Table I
STEPAN COMPANY
For the Three and Nine Months Ended September 30, 2025 and 2024
(Unaudited – in 000's, except per share data)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2025				2024				2025				2024
Net Sales		$	590,284			$	546,842			$	1,778,228			$	1,654,665
Cost of Sales			519,261				471,157				1,559,857				1,439,147
Gross Profit			71,023				75,685				218,371				215,518
Operating Expenses:
Selling			11,299				11,394				38,064				34,610
Administrative			22,864				26,254				67,079				73,513
Research, Development and Technical Services			14,225				13,532				43,575				41,881
Deferred Compensation Expense			841				556				1,606				2,729
			49,229				51,736				150,324				152,733
Operating Income			21,794				23,949				68,047				62,785
Other Income (Expense):
Interest, Net			(6,815)				(3,621)				(16,426)				(9,353)
Other, Net			1,536				989				3,344				4,551
			(5,279)				(2,632)				(13,082)				(4,802)
Income Before Provision for Income Taxes			16,515				21,317				54,965				57,983
Provision for Income Taxes			5,676				(2,289)				13,074				10,963
Net Income			10,839				23,606				41,891				47,020
Net Income Per Common Share
Basic		$	0.47			$	1.03			$	1.83			$	2.06
Diluted		$	0.47			$	1.03			$	1.83			$	2.05
Shares Used to Compute Net Income Per    Common Share
Basic			22,875				22,836				22,869				22,829
Diluted			22,893				22,923				22,888				22,936

 

Table II
Reconciliation of Non-GAAP Net Income and Earnings per Diluted Share*
		Three Months Ended September 30,																Nine Months Ended September 30,
($ in thousands, except per share amounts)		2025				EPS				2024				EPS				2025				EPS				2024				EPS
Net Income Reported		$	10,839			$	0.47			$	23,606			$	1.03			$	41,891			$	1.83			$	47,020			$	2.05
Deferred Compensation (Income)		$	(149)			$	-			$	(350)			$	(0.02)			$	(549)			$	(0.02)			$	(1,043)			$	(0.05)
Environmental Remediation     Expense		$	258			$	0.01			$	405			$	0.02			$	869			$	0.03			$	1,736			$	0.08
Adjusted Net Income		$	10,948			$	0.48			$	23,661			$	1.03			$	42,211			$	1.84			$	47,713			$	2.08

* All amounts in this table are presented after-tax

The Company believes that certain non-GAAP measures, in conjunction with comparable GAAP measures, are useful for evaluating the Company's operating performance and financial condition.  The Company uses this non-GAAP information as an indicator of business performance and evaluates management's effectiveness with specific reference to these indicators.  Management believes that these non-GAAP financial measures provide useful supplemental information because they exclude non-operational items that affect comparability between years.  These measures should be considered in addition to, not as substitutes for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from similarly titled measures presented by other companies.  The Company's Annual Report on Form 10-K for the year ended December 31, 2024 contains additional information regarding the use of non-GAAP financial measures.

Summary of Third Quarter 2025 Adjusted Net Income Items

Adjusted net income excludes non-operational deferred compensation income/expense, certain environmental remediation costs and other significant and infrequent or non-recurring items.

• Deferred Compensation: The third quarter of 2025 reported net income includes $0.1 million of after-tax income versus $0.4 million of after-tax income in the prior year.
  
  
• Environmental Remediation: The third quarter of 2025 reported net income includes $0.3 million of after-tax expense versus $0.4 million of after-tax expense in the prior year.

Table III
Reconciliation of Pre-Tax to After-Tax Adjustments
Management uses the non-GAAP adjusted net income metric to evaluate the Company's operating performance.  Management excludes the items listed in the table below because they are non-operational items.  The cumulative tax effect was calculated using the statutory tax rates for the jurisdictions in which the transactions occurred.
		Three Months Ended September 30,																Nine Months Ended September 30,
($ in thousands, except per share amounts)		2025				EPS				2024				EPS				2025				EPS				2024				EPS
Pre-Tax Adjustments
Deferred Compensation (Income)		$	(198)							$	(466)							$	(732)							$	(1,390)
Environmental Remediation Expense		$	344							$	541							$	1,158							$	2,315
Total Pre-Tax Adjustments		$	146							$	75							$	426							$	925
Cumulative Tax Effect on Adjustments		$	(37)							$	(20)							$	(106)							$	(232)
After-Tax Adjustments		$	109			$	0.01			$	55			$	-			$	320			$	0.01			$	693			$	0.03

 

Table IV
Deferred Compensation Plans
The full effect of the deferred compensation plans on quarterly pre-tax income was $0.2 million of income versus $0.5 million of income in the prior year.  The quarter-end market prices of Company stock and the impact of deferred compensation on specific income statement line items is summarized below:
		2025												2024
		9/30				6/30				3/31				12/31				9/30				6/30				3/31
Stepan Company		$	47.70			$	54.58			$	55.04			$	64.70			$	77.25			$	83.96			$	90.04

 

		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2025				2024				2025				2024
Deferred Compensation
Operating Income (Expense)		$	(841)			$	(556)			$	(1,606)			$	(2,729)
Other, net – Mutual Fund Gain (Loss)			1,039				1,022				2,338				4,119
Total Pre-Tax		$	198			$	466			$	732			$	1,390
Total After-Tax		$	149			$	350			$	549			$	1,043

Effects of Foreign Currency Translation

The Company's foreign subsidiaries transact business and report financial results in their respective local currencies. These results are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period.  The table below presents the impact that foreign currency translation had on select income statement line items. 

($ in millions)		Three Months Ended September 30,								Change				Change Due to Foreign Currency Translation				Nine Months Ended September 30,								Change				Change Due to Foreign Currency Translation
		2025				2024												2025				2024
Net Sales		$	590.3			$	546.8			$	43.5			$	8.6			$	1,778.2			$	1,654.7			$	123.5			$	(11.6)
Gross Profit			71.0				75.7			$	(4.7)				1.0				218.4				215.5			$	2.9				(1.9)
Operating Income			21.8				23.9			$	(2.1)				0.5				68.0				62.8			$	5.2				(1.5)
Pretax Income			16.5				21.3			$	(4.8)				0.5				55.0				58.0			$	(3.0)				(1.6)

Corporate Expenses

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands)		2025				2024				% Change				2025				2024				% Change
Total Corporate Expenses		$	17,662			$	21,329				(17)	%		$	49,649			$	59,201				(16)	%
Less:
Deferred Compensation Expense		$	841			$	556				51	%		$	1,606			$	2,729				(41)	%
Environmental Remediation       Expense		$	344			$	541				(36)	%		$	1,158			$	2,315				(50)	%
Adjusted Corporate Expenses		$	16,477			$	20,232				(19)	%		$	46,885			$	54,157				(13)	%

Adjusted Corporate expenses decreased $3.8 million, or 19% for the quarter.  This decrease was primarily due to the non-recurrence of expenses associated with a criminal social engineering scheme in 2024.

Table V
Stepan Company
Consolidated Balance Sheets
September 30, 2025 and December 31, 2024
		September 30, 2025				December 31, 2024
ASSETS
Current Assets		$	920,604			$	810,429
Property, Plant & Equipment, Net			1,213,862				1,198,454
Other Assets			297,818				295,765
Total Assets		$	2,432,284			$	2,304,648
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities		$	713,923			$	669,034
Deferred Income Taxes			10,294				9,612
Long-term Debt			357,107				332,632
Other Non-current Liabilities			104,188				123,436
Total Stepan Company Stockholders' Equity			1,246,772				1,169,934
Total Liabilities and Stockholders' Equity		$	2,432,284			$	2,304,648

Selected Balance Sheet Information 

The Company's total debt decreased by $2.5 million and cash increased by $29.6 million versus June 30, 2025.  The Company's net debt level decreased $32.1 million versus June 30, 2025 and the net debt ratio was 30% versus 31% in the prior quarter (Net Debt and Net Debt Ratio are non-GAAP measures, reconciliations of which are shown in the table below).  Management uses the non-GAAP net debt metric to show a more complete picture of the Company's overall liquidity, financial flexibility and leverage level. 

($ in millions)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Net Debt
Total Debt		$	655.5			$	658.0			$	659.3			$	625.4
Cash			118.5				88.9				107.5				99.7
Net Debt		$	537.0			$	569.1			$	551.8			$	525.7
Equity			1,246.8				1,241.7				1,200.5				1,169.9
Net Debt + Equity		$	1,783.8			$	1,810.8			$	1,752.3			$	1,695.6
Net Debt / (Net Debt + Equity)			30	%			31	%			31	%			31	%

The major working capital components were:

($ in millions)		September 30, 2025				June 30, 2025				March 31, 2025				December 31, 2024
Net Receivables		$	436.1			$	442.2			$	436.5			$	388.0
Inventories			324.3				329.5				309.3				288.7
Accounts Payable			(289.4)				(281.8)				(298.1)				(258.8)
		$	471.0			$	489.9			$	447.7			$	417.9

 

Table VI
Reconciliations of Non-GAAP EBITDA and Adjusted EBITDA
Management uses the non-GAAP EBITDA and adjusted EBITDA metrics to evaluate the Company's operating performance.  Management excludes the items listed in the table below because they are non-operational items.  Refer to the Income Statement on Table I for a bridge between Operating Income and Net Income.
		Three Months Ended September 30, 2025
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Operating Income		$	15.7			$	14.1			$	9.6			$	(17.7)			$	21.8
Depreciation and Amortization		$	22.3			$	8.3			$	1.5			$	0.7			$	32.8
Other, Net Income		$	-			$	-			$	-			$	1.5			$	1.5
EBITDA																		$	56.1
Deferred Compensation		$	-			$	-			$	-			$	(0.2)			$	(0.2)
Environmental Remediation		$	-			$	-			$	-			$	0.3			$	0.3
Adjusted EBITDA		$	38.0			$	22.4			$	11.1			$	(15.3)			$	56.2
		Three Months Ended September 30, 2024
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Operating Income		$	26.3			$	15.2			$	3.7			$	(21.3)			$	23.9
Depreciation and Amortization		$	17.9			$	8.2			$	1.5			$	0.5			$	28.1
Other, Net Income		$	-			$	-			$	-			$	1.0			$	1.0
EBITDA																		$	53.0
Deferred Compensation		$	-			$	-			$	-			$	(0.4)			$	(0.4)
Environmental Remediation		$	-			$	-			$	-			$	0.5			$	0.5
Adjusted EBITDA		$	44.2			$	23.4			$	5.2			$	(19.7)			$	53.1
		Nine Months Ended September 30, 2025
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Operating Income		$	58.0			$	39.3			$	20.4			$	(49.6)			$	68.1
Depreciation and Amortization		$	62.9			$	24.7			$	4.4			$	1.3			$	93.3
Other, Net Income		$	-			$	-			$	-			$	3.3			$	3.3
EBITDA																		$	164.7
Deferred Compensation		$	-			$	-			$	-			$	(0.7)			$	(0.7)
Environmental Remediation		$	-			$	-			$	-			$	1.1			$	1.1
Adjusted EBITDA		$	120.9			$	64.0			$	24.8			$	(44.6)			$	165.1
		Nine Months Ended September 30, 2024
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Operating Income		$	69.4			$	37.2			$	15.3			$	(59.2)			$	62.7
Depreciation and Amortization		$	53.5			$	24.4			$	4.5			$	1.3			$	83.7
Other, Net Income		$	-			$	-			$	-			$	4.6			$	4.6
EBITDA																		$	151.0
Deferred Compensation		$	-			$	-			$	-			$	(1.4)			$	(1.4)
Environmental Remediation		$	-			$	-			$	-			$	2.3			$	2.3
Adjusted EBITDA		$	122.9			$	61.6			$	19.8			$	(52.4)			$	151.9

   

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SOURCE Stepan Company

FAQ

What was Stepan's (SCL) Q3 2025 net income and how did it compare year‑over‑year?

Stepan reported Q3 2025 net income of $10.8 million, a 54% decrease versus Q3 2024.

How did Stepan's (SCL) adjusted EBITDA perform in Q3 2025?

Consolidated adjusted EBITDA was $56.2 million in Q3 2025, up 6% year‑over‑year.

What drove Stepan's (SCL) Q3 2025 revenue growth to 8%?

Revenue growth was primarily driven by higher selling prices and mix and pass‑through of higher raw material costs.

How much free cash flow did Stepan (SCL) generate in Q3 2025?

Stepan reported $40.2 million of free cash flow in Q3 2025.

What impact did the Pasadena site start‑up have on Stepan (SCL) Q3 2025 results?

Start‑up costs for the Pasadena alkoxylation site reduced pre‑tax earnings by $8.6 million in the period.

Did Stepan (SCL) report any material segment changes in Q3 2025?

Yes: Surfactants net sales rose 10% but adjusted EBITDA fell 14%; Specialty Products sales rose 68% with adjusted EBITDA up 113%.

Is Stepan (SCL) expecting any asset sales or closings in Q4 2025?

The company stated it remains on track to close an asset sale in the Philippines during Q4 2025.