Stepan posts $700K nine-month loss; Q3 profit rises

The $0.405 quarterly dividend is payable December 15, 2026, to shareholders of record December 1.

Rhea-AI Filing Summary

Stepan Company (SCL) reported third-quarter 2026 net sales of $692.2 million, up 17% year over year. Reported net income was $17.8 million, up 64%; adjusted net income was $21.7 million, up 98%; and adjusted EBITDA was $66.3 million, up 18%. Cash from operations was $29.3 million, while free cash flow was $8.2 million and was negatively impacted by higher working capital requirements. A $5.6 million pre-tax restructuring charge related to Project Catalyst included approximately 100 salaried position reductions, or 7% of global salaried headcount.

For the first nine months, Stepan reported a $0.7 million net loss versus $41.9 million of income a year earlier; it said the current-year loss was entirely due to a $76.1 million pre-tax restructuring charge. Adjusted net income was $59.1 million, up 40%, and adjusted EBITDA was $190.3 million, up 15%. In October, Stepan closed the sale of a parcel near its Millsdale site for $28.5 million; full cash proceeds will be used to pay down debt. The board declared a $0.405-per-share quarterly dividend, payable December 15, 2026, to holders of record December 1; the dividend increased by $0.010 per share, marking the 59th consecutive year of increases.

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Positive

• Moderate pointThird-quarter net sales increased 17% to $692.2 million.
• Moderate pointThird-quarter reported net income rose 64% to $17.8 million.
• Moderate pointThird-quarter adjusted EBITDA increased 18% to $66.3 million.
• Minor pointQuarterly dividend rose $0.010 per share, extending 59 years of increases.

Negative

• Moderate pointNine-month net income shifted to a $0.7 million loss from $41.9 million income.
• Moderate pointNine-month EBITDA declined 33% to $110.1 million.
• Moderate pointNine-month operating income declined 80% to $13.5 million.

8-K Event Classification

3 items: 2.02, 8.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Third-quarter net sales: $692.2 million Third-quarter reported net income: $17.8 million Third-quarter adjusted EBITDA: $66.3 million +5 more

8 metrics

Third-quarter net sales $692.2 million Three months ended September 30, 2026; up 17% year over year

Third-quarter reported net income $17.8 million Three months ended September 30, 2026; up 64% year over year

Third-quarter adjusted EBITDA $66.3 million Three months ended September 30, 2026; up 18% year over year

Free cash flow $8.2 million Third quarter 2026; negatively impacted by higher working capital requirements

Nine-month reported net income $0.7 million loss Nine months ended September 30, 2026, versus $41.9 million of income in the prior year

Restructuring charge $76.1 million Pre-tax charge for the first nine months of 2026

Land sale $28.5 million Parcel near the Millsdale site; full cash proceeds will be used to pay down debt

Quarterly cash dividend $0.405 per share Payable December 15, 2026, to holders of record December 1, 2026

Key Terms

Adjusted EBITDA, Free cash flow, Net Debt Ratio, Organic sales volume

4 terms

Adjusted EBITDA financial

"Consolidated adjusted EBITDA increased $10.1 million, or 18%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

Free cash flow financial

"Free cash flow for the quarter was $8.2 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

Net Debt Ratio financial

"Net Debt and Net Debt Ratio are non-GAAP measures"

Net debt ratio shows how much debt a company effectively carries after using its cash and short-term investments, expressed as a share of its size or earning power (commonly compared to total assets, equity or annual earnings). Think of it like a household’s mortgage minus its savings, shown as a proportion of the home’s value or the family’s income; higher values mean more financial strain. Investors use it to judge how risky a company's balance sheet is and how easily it can meet obligations or fund growth.

Organic sales volume financial

"Organic sales volume was up 7% year-over-year"

Earnings Snapshot

Net sales: $692.2 million · Guidance included

Third quarter 2026

Net sales $692.2 million Up 17% year over year

Reported net income $17.8 million Up 64% year over year

Adjusted net income $21.7 million Up 98% year over year

Adjusted EBITDA $66.3 million Up 18% year over year

Guidance

Stepan said it believes it will deliver full-year Adjusted EBITDA growth, positive free cash flow, and continue to de-leverage the balance sheet in 2026.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Stepan (SCL)'s third-quarter 2026 results?

Stepan reported third-quarter net sales of $692.2 million, up 17% year over year. Reported net income was $17.8 million, up 64%; adjusted net income was $21.7 million, up 98%; and adjusted EBITDA was $66.3 million, up 18%.

What is Stepan's quarterly dividend and when is it paid?

Stepan declared a quarterly cash dividend of $0.405 per share, payable December 15, 2026, to common stockholders of record December 1, 2026. The company increased the dividend by $0.010 per share, marking its 59th consecutive year of increases.

Which segments drove Stepan's third-quarter adjusted EBITDA?

Surfactants reported adjusted EBITDA of $48.2 million, up 27%; Polymers reported $23.3 million, up 4%; and Specialty Products reported $11.7 million, up 5%.

What did Stepan say about its full-year 2026 outlook?

Stepan said it believes it will deliver full-year Adjusted EBITDA growth, positive free cash flow, and continued balance-sheet deleveraging in 2026.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Available on EDGAR 10/28/2026 - 07:00 AM EDT Accepted by SEC EDGAR 10/28/2026 - 07:00 AM EDT Learn about SEC filing dates

false000009404900000940492026-10-282026-10-28

\

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 28, 2026

STEPAN COMPANY

(Exact name of registrant as specified in its charter)

Commission File Number: 1-4462

Delaware		36-1823834
(State or other jurisdiction of incorporation)		(IRS Employer Identification No.)

1101 Skokie Boulevard, Suite 500, Northbrook, IL 60062

(Address of principal executive offices, including zip code)

(847) 446-7500

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Each exchange on which registered
Common Stock, $1 par value	SCL	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition

On October 28, 2026, Stepan Company (“Stepan”) issued a press release providing its financial results for the quarter ended September 30, 2026. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference into this Item 2.02.

The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as expressly set forth by specific reference in such filing.

Item 8.01. Other Events

On October 28, 2026, Stepan issued a press release announcing that its Board of Directors had declared a quarterly cash dividend on its common stock of $0.405 per share. The dividend will be paid on December 15, 2026, to common stockholders of record as of December 1, 2026. A copy of the press release is attached as Exhibit 99.2 hereto and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

Exhibit Number: 99.1

Description: Press Release of Stepan Company dated October 28, 2026, announcing third quarter 2026 financial results.

Exhibit Number: 99.2

Description: Press Release of Stepan Company dated October 28, 2026, announcing quarterly cash dividend.

Exhibit Number: 104

Description: Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

						STEPAN COMPANY
Date: October 28, 2026				By:		/s/ Shawn Lisle
						Shawn Lisle
						Vice President, General Counsel and Secretary

Exhibit 99.1

Stepan Reports Third Quarter 2026 Results

Northbrook, Illinois, October 28, 2026 -- Stepan Company (NYSE: SCL) today reported:

Third Quarter 2026 Highlights

•Reported net income was $17.8 million, up 64% versus the prior year. Adjusted net income(1) was $21.7 million, up 98% versus the prior year.

•EBITDA(2) was $57.5 million versus $56.1 million in the prior year. Adjusted EBITDA(2) was $66.3 million, up 18%, year-over-year.

•Global sales volume was up 3% year-over-year. Organic sales volume was up 7% year-over-year.

•Cash from Operations was $29.3 million during the quarter. Free cash flow(3) for the quarter was $8.2 million and was negatively impacted by higher working capital requirements.

•Pre-tax earnings include a $5.6 million restructuring charge, related to the Company's previously announced Project Catalyst, inclusive of approximately 100 salaried position reductions or 7% of global salaried headcount.

•In October, the Company closed on its previously announced agreement to sell a parcel of land near its Millsdale site for $28.5 million. The full cash proceeds will be used to pay down debt.

YTD 2026 Highlights

•Reported net income was a $0.7 million loss versus $41.9 million of income in the prior year. The current year loss is entirely due to a $76.1 million pre-tax restructuring charge. The cash impact associated with this restructuring charge was approximately $12.8 million year-to-date. Adjusted net income(1) was $59.1 million, up 40% versus the prior year.

•EBITDA(2) was $110.1 million and Adjusted EBITDA(2) was $190.3 million. Adjusted EBITDA was up 15% year-over-year.

•Organic sales volume was up 4% year-over-year.

“Quarterly earnings were up significantly, driven by improved results in all three segments. Third quarter adjusted EBITDA of $66.3 million was up 18% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. Surfactant adjusted EBITDA was up 27% in the quarter and Polymers grew single digits including one time maintenance costs. Specialty Products adjusted EBITDA was up 5% driven by double digit volume growth," said Luis E. Rojo, President and Chief Executive Officer. "Surfactant organic sales volume was up 8% and Polymer sales volume was up 3% in the quarter. The Surfactant volume growth was broad-based and across most end markets. Within Polymers, the North American Rigid, Spray Foam and Phthalic Anhydride businesses delivered double digit

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volume growth. We are pleased with the growth we achieved in several of our key strategic end markets despite ongoing global economic uncertainties and supply chain disruptions. We executed the organizational redesign phase of Project Catalyst during the quarter in line with expectations."

Financial Summary

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands, except per share data)		2026				2025				% Change				2026				2025				% Change
Net Sales		$	692,154			$	590,284				17	%		$	1,980,772			$	1,778,228				11	%
Operating Income		$	25,959			$	21,794				19	%		$	13,547			$	68,047				(80	)%
Net Income (Loss)		$	17,813			$	10,839				64	%		$	(682	)		$	41,891				(102	)%
Earnings per Diluted Share		$	0.78			$	0.47				66	%		$	(0.03	)		$	1.83				(102	)%
Adjusted Net Income *		$	21,688			$	10,948				98	%		$	59,053			$	42,211				40	%
Adjusted Earnings per    Diluted Share *		$	0.94			$	0.48				96	%		$	2.58			$	1.84				40	%

* 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 2026 increased 17% year-over-year. This increase reflects higher selling prices, mainly attributable to the pass-through of higher raw material costs and pricing actions, a 3% increase in sales volume and the favorable impact of foreign currency translation. Organic sales volume was up 7% year-over-year.

		Three Months Ended September 30, 2026				Nine Months Ended September 30, 2026
Volume			3	%			1	%
Selling Price & Mix			13	%			7	%
Foreign Translation			1	%			3	%
Total			17	%			11	%

Segment Results

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands)		2026				2025				% Change				2026				2025				% Change
Net Sales
Surfactants		$	486,633			$	422,358				15	%		$	1,424,222			$	1,264,151				13	%
Polymers		$	178,650			$	143,928				24	%		$	486,686			$	452,795				7	%
Specialty Products		$	26,871			$	23,998				12	%		$	69,864			$	61,282				14	%
Total Net Sales		$	692,154			$	590,284				17	%		$	1,980,772			$	1,778,228				11	%

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		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands, all amounts pre-tax)		2026				2025				% Change				2026				2025				% Change
Operating Income (Loss)
Surfactants		$	27,440			$	15,718				75	%		$	80,350			$	58,015				38	%
Polymers		$	14,569			$	14,104				3	%		$	45,860			$	39,281				17	%
Specialty Products		$	10,185			$	9,634				6	%		$	19,907			$	20,400				(2	)%
Total Segment    Operating Income		$	52,194			$	39,456				32	%		$	146,117			$	117,696				24	%
Corporate Expenses		$	(26,235	)		$	(17,662	)			49	%		$	(132,570	)		$	(49,649	)			167	%
Consolidated    Operating Income     (Loss)		$	25,959			$	21,794				19	%		$	13,547			$	68,047				(80	)%

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in millions)		2026				2025				% Change				2026				2025				% Change
EBITDA		$	57.5			$	56.1				2	%		$	110.1			$	164.7				(33	)%
Adjusted EBITDA
Surfactants		$	48.2			$	38.0				27	%		$	144.2			$	120.9				19	%
Polymers		$	23.3			$	22.4				4	%		$	71.9			$	64.0				12	%
Specialty Products		$	11.7			$	11.1				5	%		$	24.3			$	24.8				(2	)%
Unallocated Corporate		$	(16.9	)		$	(15.3	)			10	%		$	(50.1	)		$	(44.6	)			12	%
Consolidated Adjusted EBITDA		$	66.3			$	56.2				18	%		$	190.3			$	165.1				15	%

Consolidated adjusted EBITDA(2) increased $10.1 million, or 18%, in the quarter. This increase was primarily due to higher Surfactant earnings driven by sales volume growth and margin recovery.

•Surfactant net sales were $486.6 million for the quarter, up 15% versus the prior year. Selling prices were up 10% primarily due to pass through of higher raw material costs and pricing actions. Global Sales volume was up 3% and organic sales volume increased 8%. Double digit growth in the Consumer Products, Construction & Industrial and Oilfield end markets and to our Tier 2/3 customer base was partially offset by lower Crop Productivity demand. Foreign currency translation positively impacted net sales by 2%. Surfactant adjusted EBITDA(2) for the quarter increased $10.2 million, or 27%, versus the prior year. This increase was primarily due to sales volume growth and margin recovery.

•Polymer net sales were $178.7 million for the quarter, a 24% increase versus the prior year. Selling prices were up 22%, primarily due to the pass-through of higher raw material costs. Sales volume increased 3% in the quarter. North American sales volume was up double digits, inclusive of significant growth in Spray Foam, partially offset by lower volumes in Europe and Asia. Foreign currency translation negatively impacted net sales by 1% during the quarter. Polymer adjusted EBITDA(2) increased $0.9 million, or 4%, versus the prior year primarily due to sales volume growth that more than offset regulatory-mandated maintenance turnaround costs, that occur every 5 years, at the Company's Germany site.

•Specialty Products net sales were $26.9 million for the quarter, a 12% increase versus the prior year. Specialty Products sales volume increased 20% while

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adjusted EBITDA(2) increased $0.6 million, or 5%. The increase in adjusted EBITDA(2) was primarily due to higher sales volume in the medium chain triglycerides product line that was partially offset by less favorable product mix.

Outlook

“We believe we are positioned to continue delivering growth and executing on our diversification strategy. Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization, is contributing to this growth," said Luis E. Rojo, President and Chief Executive Officer. "Despite the ongoing and significant market uncertainties and challenges, the organization continues to be focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first nine-month results, we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow and continue to de-leverage the balance sheet in 2026."

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 $29.3 million during the third quarter of 2026 and capital expenditures were $21.1 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 28, 2026. 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.

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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

Contact: Ruben Velasquez 847-446-7500

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 our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; 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 and other legal restrictions, including those relating to the international scope of our business; domestic and 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 changes in global trade policies, tariffs and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants. In addition to the risks described in the Company's periodic reports, the restructuring actions described herein may involve risks related to the execution of facility closures and asset decommissioning, potential operational disruptions, impacts on employees and local communities, environmental compliance, and the realization of anticipated cost savings and efficiencies.

5

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, except to the extent required by applicable laws.

* * * * *

Tables follow

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Table I

STEPAN COMPANY

For the Three and Nine Months Ended September 30, 2026 and 2025

(Unaudited – in 000's, except per share data)

		Three Months Ended September 30,								Nine Months Ended September 30,
		2026				2025				2026				2025
Net Sales		$	692,154			$	590,284			$	1,980,772			$	1,778,228
Cost of Sales			604,573				519,261				1,728,358				1,559,857
Gross Profit			87,581				71,023				252,414				218,371
Operating Expenses:
Selling			13,726				11,299				40,758				38,064
Administrative			26,607				22,864				72,123				67,079
Research, Development and Technical Services			15,670				14,225				47,858				43,575
Deferred Compensation			37				841				2,001				1,606
			56,040				49,229				162,740				150,324
Business Restructuring			5,582				-				76,127				-
Operating Income			25,959				21,794				13,547				68,047
Other Income (Expense):
Interest, Net			(6,344	)			(6,815	)			(17,037	)			(16,426	)
Other, Net			212				1,536				1,377				3,344
			(6,132	)			(5,279	)			(15,660	)			(13,082	)
Income (Loss) Before Provision for Income   Taxes			19,827				16,515				(2,113	)			54,965
Provision for Income Taxes			2,014				5,676				(1,431	)			13,074
Net Income (Loss)			17,813				10,839				(682	)			41,891
Net Income (Loss) Per Common Share
Basic		$	0.78			$	0.47			$	(0.03	)		$	1.83
Diluted		$	0.78			$	0.47			$	(0.03	)		$	1.83
Shares Used to Compute Net Income Per    Common Share
Basic			22,906				22,875				22,897				22,869
Diluted			22,978				22,893				22,897				22,888

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Table II

Reconciliation of Non-GAAP Net Income (Loss) and Earnings per Diluted Share*

		Three Months Ended September 30,																Nine Months Ended September 30,
($ in thousands, except per share amounts)		2026				EPS				2025				EPS				2026				EPS				2025				EPS
Net Income (Loss) Reported		$	17,813			$	0.78			$	10,839			$	0.47			$	(682	)		$	(0.03	)		$	41,891			$	1.83
Deferred Compensation (Income)     Expense		$	52			$	-			$	(149	)		$	-			$	581			$	0.03			$	(549	)		$	(0.02	)
Environmental Remediation     Expense		$	2,391			$	0.10			$	258			$	0.01			$	2,561			$	0.11			$	869			$	0.03
Business Restructuring		$	1,432			$	0.06			$	-			$	-			$	56,593			$	2.47			$	-			$	-
Adjusted Net Income		$	21,688			$	0.94			$	10,948			$	0.48			$	59,053			$	2.58			$	42,211			$	1.84

* 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, 2025 contains additional information regarding the use of non-GAAP financial measures.

Summary of Third Quarter 2026 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 2026 reported net income includes $0.1 million of after-tax expense versus $0.1 million of after-tax income in the prior year.

•Environmental Remediation: The third quarter of 2026 reported net income includes $2.4 million of after-tax expense versus $0.3 million of after-tax expense in the prior year. The higher current year expense primarily reflects a reserve adjustment related to the Company's Maywood, NJ site.

•Business Restructuring: The third quarter of 2026 reported net income includes $1.4 million of after-tax expense related to restructuring charges. There were no restructuring charges recognized in the prior year quarter.

8

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 is typically 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)		2026				EPS				2025				EPS				2026				EPS				2025				EPS
Pre-Tax Adjustments
Deferred Compensation (Income)      Expense		$	69							$	(198	)						$	765							$	(732	)
Environmental Remediation      Expense		$	3,145							$	344							$	3,368							$	1,158
Business Restructuring		$	5,582							$	-							$	76,127							$	-
Total Pre-Tax Adjustments		$	8,796							$	146							$	80,260							$	426
Cumulative Tax Effect on       Adjustments		$	(4,921	)						$	(37	)						$	(20,525	)						$	(106	)
After-Tax Adjustments		$	3,875			$	0.16			$	109			$	0.01			$	59,735			$	2.61			$	320			$	0.01

9

Table IV

Deferred Compensation Plans

The full effect of the deferred compensation plans on quarterly pre-tax income was $0.1 million of expense versus $0.2 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:

		2026												2025
		9/30				6/30				3/31				12/31				9/30				6/30				3/31
Stepan Company		$	62.38			$	55.72			$	49.98			$	47.36			$	47.70			$	54.58			$	55.04

		Three Months Ended September 30,								Nine Months Ended September 30,
($ in thousands)		2026				2025				2026				2025
Deferred Compensation
Operating Income (Expense)		$	(37	)		$	(841	)		$	(2,001	)		$	(1,606	)
Other, net – Mutual Fund Gain			(32	)			1,039				1,236				2,338
Total Pre-Tax		$	(69	)		$	198			$	(765	)		$	732
Total After-Tax		$	(52	)		$	149			$	(581	)		$	549

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
		2026				2025												2026				2025
Net Sales		$	692.2			$	590.3			$	101.9			$	8.5			$	1,980.8			$	1,778.2			$	202.6			$	51.0
Gross Profit			87.6				71.0			$	16.6				0.7				252.4				218.4			$	34.0				6.1
Operating Income			26.0				21.8			$	4.2				0.4				13.5				68.0			$	(54.5	)			3.8
Pretax Income     (Loss)			19.8				16.5			$	3.3				0.4				(2.1	)			55.0			$	(57.1	)			3.9

Corporate Expenses

		Three Months Ended September 30,												Nine Months Ended September 30,
($ in thousands)		2026				2025				% Change				2026				2025				% Change
Total Corporate Expenses		$	26,235			$	17,662				49	%		$	132,570			$	49,649				167	%
Less:
Deferred Compensation Expense		$	37			$	841				(96	)%		$	2,001			$	1,606				25	%
Environmental Remediation       Expense		$	3,145			$	344				814	%		$	3,368			$	1,158				191	%
Business Restructuring		$	5,582			$	-			NM				$	76,127			$	-			NM
Adjusted Corporate Expenses		$	17,471			$	16,477				6	%		$	51,074			$	46,885				9	%

Adjusted Corporate expenses increased $1.0 million, or 6%, for the quarter. This increase was primarily due to higher incentive-based compensation expenses.

10

Table V

Stepan Company

Consolidated Balance Sheets

September 30, 2026 and December 31, 2025

		September 30, 2026				December 31, 2025
ASSETS
Current Assets		$	982,764			$	858,959
Property, Plant & Equipment, Net			1,132,891				1,219,627
Other Assets			274,742				279,116
Total Assets		$	2,390,397			$	2,357,702
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities		$	742,975			$	666,494
Deferred Income Taxes			11,008				11,450
Long-term Debt			341,687				340,975
Other Non-current Liabilities			75,940				94,773
Total Stepan Company Stockholders’ Equity			1,218,787				1,244,010
Total Liabilities and Stockholders’ Equity		$	2,390,397			$	2,357,702

Selected Balance Sheet Information

The Company’s total debt decreased by $13.3 million and cash decreased by $15.6 million versus June 30, 2026. The Company’s net debt level increased $2.3 million versus June 30, 2026 and its net debt ratio was 31% which was constant with 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, 2026				June 30, 2026				March 31, 2026				December 31, 2025
Net Debt
Total Debt		$	634.1			$	647.4			$	651.7			$	626.7
Cash			98.1				113.7				140.8				132.7
Net Debt		$	536.0			$	533.7			$	510.9			$	494.0
Equity			1,218.8				1,212.0				1,193.0				1,244.0
Net Debt + Equity		$	1,754.8			$	1,745.7			$	1,703.9			$	1,738.0
Net Debt / (Net Debt + Equity)			31	%			31	%			30	%			28	%

The major working capital components were:

($ in millions)		September 30, 2026				June 30, 2026				March 31, 2026				December 31, 2025
Net Receivables		$	502.1			$	492.3			$	433.7			$	388.0
Inventories			340.0				324.5				289.0				298.8
Accounts Payable			(315.2	)			(321.7	)			(285.7	)			(261.7	)
		$	526.9			$	495.1			$	437.0			$	425.1

11

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.

		Three Months Ended September 30, 2026
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Net Income																		$	17.8
Provision for Income Taxes																			2.0
Interest Expense, Net																			6.3
EBIT																		$	26.2
Other, Net Income																			(0.2	)
Operating Income		$	27.4			$	14.6			$	10.2			$	(26.2	)		$	26.0
Depreciation and Amortization			20.8				8.7				1.5				0.3				31.3
Other, Net Income			-				-				-				0.2				0.2
EBITDA																		$	57.5
Deferred Compensation			-				-				-				0.1				0.1
Environmental Remediation			-				-				-				3.1				3.1
Business Restructuring			-				-				-				5.6				5.6
Adjusted EBITDA		$	48.2			$	23.3			$	11.7			$	(16.9	)		$	66.3
		Three Months Ended September 30, 2025
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Net Income																		$	10.8
Provision for Income Taxes																			5.7
Interest Expense, Net																			6.8
EBIT																		$	23.3
Other, Net Income																			(1.5	)
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

12

		Nine Months Ended September 30, 2026
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Net Income																		$	(0.7	)
Provision for Income Taxes																			(1.4	)
Interest Expense, Net																			17.0
EBIT																		$	14.9
Other, Net Income																			(1.4	)
Operating Income		$	80.3			$	45.9			$	19.9			$	(132.6	)		$	13.5
Depreciation and Amortization			63.9				26.0				4.4				0.9				95.2
Other, Net Income			-				-				-				1.4				1.4
EBITDA																		$	110.1
Deferred Compensation			-				-				-				0.8				0.8
Environmental Remediation			-				-				-				3.4				3.4
Business Restructuring			-				-				-				76.1				76.1
Adjusted EBITDA		$	144.2			$	71.9			$	24.3			$	(50.1	)		$	190.3
		Nine Months Ended September 30, 2025
($ in millions)		Surfactants				Polymers				Specialty Products				Unallocated Corporate				Consolidated
Net Income																		$	41.9
Provision for Income Taxes																			13.1
Interest Expense, Net																			16.4
EBIT																		$	71.4
Other, Net Income																			(3.3	)
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

13

Exhibit 99.2

Stepan Increases Quarterly Cash Dividend, Marking the 59th Consecutive Year of Increases

Northbrook, Illinois, October 28, 2026 – Stepan Company (NYSE: SCL) today reported:

The Board of Directors of Stepan Company has declared a quarterly cash dividend on the Company's common stock of $0.405 per share. The dividend is payable on December 15, 2026, to common stockholders of record on December 1, 2026. The Company increased its quarterly cash dividend in the fourth quarter of 2026 by $0.010 per share, marking the 59th consecutive year that the Company has increased its cash dividend to stockholders.

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 products 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.

Contact: Ruben Velasquez 847-446-7500

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: our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; risks related to restructuring activities, including the execution of facility closures and asset, decommissioning, potential operational disruptions, impacts on employees and local, communities, and environmental compliance; accidents, unplanned production shutdowns, interruptions 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 and other legal restrictions, including those relating to the international scope of our business; domestic and 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 changes in global trade policies, tariffs, and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology

systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with 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.

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