Stepan posts stronger Q2 2026 profit and plans job cuts

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Q: What were Stepan (SCL) Q2 2026 sales and earnings?

Q: How did Stepan (SCL) Q2 2026 adjusted EBITDA and segments perform?

Q: What dividend did Stepan (SCL) declare for shareholders?

Q: What leadership changes did Stepan (SCL) report in July 2026?

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Earnings Snapshot

What were Stepan (SCL) Q2 2026 sales and earnings?

How did Stepan (SCL) Q2 2026 adjusted EBITDA and segments perform?

What restructuring charges and workforce reductions did Stepan (SCL) outline?

What dividend did Stepan (SCL) declare for shareholders?

What leadership changes did Stepan (SCL) report in July 2026?

Stepan (SCL) reported Q2 2026 net sales of $684.1 million, up 15% year‑over‑year. Diluted EPS was $1.00, double the prior‑year quarter, and adjusted EPS was $1.18, reflecting significantly improved profitability versus 2025.

Q2 2026 consolidated adjusted EBITDA was $74.4 million, up 45% year‑over‑year. Surfactant adjusted EBITDA reached $54.9 million, up 59%, while Polymers delivered $31.2 million, up 22%, driven by volume growth and margin recovery across key markets.

The Board declared a quarterly cash dividend of $0.395 per share on Stepan common stock. The dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026, marking the 58th consecutive year of cash dividend increases.

Director Jan Stern Reed resigned from the Board and all committees without any disagreement. The Board named Randall S. Dearth Human Capital and Compensation Committee Chair, Susan M. Lewis Compliance Committee Chair, and appointed Matthew J. Eaken as Principal Accounting Officer.

Stepan Company reported strong second‑quarter 2026 results, with net sales of $684.1 million, up 15% year‑over‑year.

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Stepan Company reported strong second‑quarter 2026 results, with net sales of $684.1 million, up 15% year‑over‑year. Net income more than doubled, with diluted earnings per share of $1.00. Adjusted earnings per share were $1.18, more than double the prior‑year quarter, and consolidated adjusted EBITDA rose 45% to $74.4 million, driven mainly by Surfactants and Polymers volume growth and margin recovery.

For the first half of 2026, reported results reflected $70,545 thousand of Business Restructuring expense tied to Project Catalyst, leading to a reported net loss even as adjusted net income rose 20%. The Board approved a plan to reduce the global salaried workforce by around 100 roles, expecting approximately $4–6 million of primarily cash restructuring charges, largely in the second half of 2026, within the previously disclosed $75–80 million full‑year Project Catalyst range.

Director Jan Stern Reed resigned from the Board and its committees without a disagreement, and new committee chairs were appointed. Matthew J. Eaken was named Principal Accounting Officer. The Board declared a quarterly dividend of $0.395 per share, payable September 15, 2026. Management stated that, despite macro uncertainties, they believe the company will deliver full‑year adjusted EBITDA growth, positive free cash flow and continued balance‑sheet de‑leveraging in 2026.

Q2 adjusted EBITDA rose 45% year‑over‑year to $74.4 million.
Q2 adjusted EPS increased to $1.18, up 127% from 2025.

First‑half 2026 included $70,545 thousand of Business Restructuring expense.
Project Catalyst plan reduces about 100 salaried roles with $4–6 million charges.

At June 30, 2026, Stepan reported higher net debt and a higher net-debt ratio than at March 31.

At June 30, 2026, Stepan reported a higher net-debt position. Compared with March 31, 2026, cash was down $27.1 million, net debt was up $22.8 million and the reported net-debt ratio rose from 30% to 31%.

The filing presents net debt and the net-debt ratio as non-GAAP measures used to describe liquidity, financial flexibility and leverage; the figures therefore add a current balance-sheet condition to the company’s forward-looking de-leveraging statement.

For the second quarter, the company reports $8.4 million of cash generated from operations and $23.4 million of capital expenditures, and defines free cash flow as cash generated from operations minus capital expenditures.

5 items: 2.02, 2.05, 5.02, 8.01, 9.01

5 items

Item 2.02 Results of Operations and Financial Condition Financial

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

Item 2.05 Costs Associated with Exit or Disposal Activities Financial

The company committed to an exit plan involving layoffs, facility closures, or restructuring charges.

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers Governance

Key personnel changes including departures, elections, or appointments of directors and executive officers.

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.

Net sales Q2 2026: $684.1 million Diluted EPS Q2 2026: $1.00 Adjusted EPS Q2 2026: $1.18 +5 more

8 metrics

Net sales Q2 2026 $684.1 million Three months ended June 30, 2026; up 15% year-over-year

Diluted EPS Q2 2026 $1.00 Three months ended June 30, 2026; 100% higher than 2025

Adjusted EPS Q2 2026 $1.18 Adjusted earnings per diluted share for quarter ended June 30, 2026

Consolidated adjusted EBITDA Q2 2026 $74.4 million Quarterly adjusted EBITDA, 45% higher than prior-year quarter

Business Restructuring expense H1 2026 $70,545 thousand Business Restructuring line item for six months ended June 30, 2026

Estimated workforce reduction charges $4–6 million Expected charges for around 100-role global salaried workforce reduction

Quarterly dividend per share $0.395 per share Declared dividend payable September 15, 2026 to holders of record September 1, 2026

Net debt ratio June 30, 2026 31% Net Debt / (Net Debt + Equity) as of June 30, 2026

Project Catalyst, Adjusted EBITDA, Business Restructuring, free cash flow, +1 more

5 terms

Project Catalyst financial

"as part of Project Catalyst, the Company’s comprehensive operational and efficiency initiative"

Adjusted EBITDA financial

"Second quarter adjusted EBITDA of $74.4 million was up 45% year-over-year"

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.

Business Restructuring financial

"Business Restructuring $70,545 for six months ended June 30, 2026"

free cash flow financial

"we believe we will deliver full year Adjusted EBITDA growth, positive free cash flow"

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

"its net debt ratio was 31% versus 30% in the prior quarter"

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.

Net sales: $684.1 million · Guidance included

quarter ended June 30, 2026

Net sales $684.1 million up 15% year-over-year

Net income $22,911 thousand up 102% year-over-year

Diluted EPS $1.00 up 100% year-over-year

Adjusted EPS $1.18 up 127% year-over-year

Consolidated adjusted EBITDA $74.4 million up 45% year-over-year

Net income first half 2026 $(18,495) thousand compared with $31,052 thousand in first half 2025

Guidance

Management stated they believe they will deliver full year adjusted EBITDA growth, positive free cash flow and continued balance-sheet de-leveraging in 2026.

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Stepan (SCL) reported Q2 2026 net sales of $684.1 million, up 15% year‑over‑year. Diluted EPS was $1.00, double the prior‑year quarter, and adjusted EPS was $1.18, reflecting significantly improved profitability versus 2025.

Q2 2026 consolidated adjusted EBITDA was $74.4 million, up 45% year‑over‑year. Surfactant adjusted EBITDA reached $54.9 million, up 59%, while Polymers delivered $31.2 million, up 22%, driven by volume growth and margin recovery across key markets.

The company expects full‑year Project Catalyst restructuring charges of $75–80 million. It plans to cut around 100 global salaried roles, incurring an additional $4–6 million of primarily cash charges, with most recognized in the second half of 2026.

The Board declared a quarterly cash dividend of $0.395 per share on Stepan common stock. The dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026, marking the 58th consecutive year of cash dividend increases.

Director Jan Stern Reed resigned from the Board and all committees without any disagreement. The Board named Randall S. Dearth Human Capital and Compensation Committee Chair, Susan M. Lewis Compliance Committee Chair, and appointed Matthew J. Eaken as Principal Accounting Officer.

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Available on EDGAR 07/29/2026 - 07:00 AM Accepted by SEC EDGAR 07/29/2026 - 07:00 AM

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): July 27, 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

The 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 July 29, 2026, Stepan Company (the “Company”) issued a press release providing its financial results for the quarter ended June 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 2.05.

Costs Associated with Exit or Disposal Activities.

On July 28, 2026, the Board of Directors (the “Board”) of the Company approved a plan to reduce the Company’s global salaried workforce by around 100 roles during the third quarter of 2026 as part of Project Catalyst, the Company’s previously announced comprehensive operational and efficiency initiative.

As previously disclosed, the Company anticipates recognizing full-year restructuring charges in the range of $75.0 million to $80.0 million in connection with Project Catalyst. Of that amount, the Company currently estimates that it will incur approximately $4 million to $6 million of charges in connection with the workforce reduction described above, consisting primarily of employee severance, benefits and related costs. The Company expects substantially all of these workforce reduction charges to result in cash expenditures. The Company expects to recognize the majority of these charges during the second half of 2026.

The estimated charges that the Company expects to incur are subject to several assumptions, and actual results may differ materially from these estimates. The Company may incur additional costs due to events associated with or resulting from Project Catalyst and the workforce reduction described above.

Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Resignation of Jan Stern Reed as a Director

On July 27, 2026, Jan Stern Reed notified the Company of her resignation from the Board of the Company, effective immediately following the conclusion of the Board and committee meetings held on July 27, 2026. Ms. Reed also resigned from all committees of the Board on which she served.

At the time of her resignation, Ms. Reed served as Chair of the Human Capital and Compensation Committee and as a member of the Audit Committee, the Compliance Committee, and the Nominating and Corporate Governance Committee.

Ms. Reed’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, or practices.

The Company thanks Ms. Reed for her service to the Board and her contributions to the Company.

In connection with Ms. Reed’s departure, effective July 28, 2026, the Board appointed Randall S. Dearth as Chair of the Human Capital and Compensation Committee and Susan M. Lewis as Chair of the Compliance Committee. Lorinda A. Burgess continues to serve as Chair of the Audit Committee and Joaquin Delgado continues to serve as Chair of the Nominating and Corporate Governance Committee.

Appointment of Matthew J. Eaken as Principal Accounting Officer

On July 28, 2026, the Board appointed Matthew J. Eaken to serve as the Company’s Principal Accounting Officer, effective July 28, 2026. Mr. Eaken, age 63, has served as the Company’s Vice President and Corporate Controller since January 2011. Mr. Eaken joined the Company in June 1998 and has served in various accounting and finance leadership roles, including as Interim Vice President and Chief Financial Officer from January 2018 until April 2018.

There are no arrangements or understandings between Mr. Eaken and any other person pursuant to which he was appointed as Principal Accounting Officer. Mr. Eaken does not have any family relationship with any director or executive officer of the Company, and there are no transactions involving Mr. Eaken that would require disclosure under Item 404(a) of Regulation S-K.

Item 8.01.

Other Events

On July 29, 2026, the Company issued a press release announcing that the Board had declared a quarterly cash dividend on the Company’s common stock of $0.395 per share. The dividend will be paid on September 15, 2026, to common stockholders of record as of September 1, 2026. A copy of the press release is attached as Exhibit 99.2 hereto and incorporated herein by reference.

Forward-Looking Statements

The information included in this Current Report on Form 8-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements about the Company’s plans, objectives, strategies, financial performance and outlook, trends, prospects, and future events. Actual results may differ materially from those expressed or implied by such forward-looking statements due to various risks and uncertainties, including those described in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements are made only as of the date hereof, and the 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.

Item 9.01.

Financial Statements and Exhibits

(d)

Exhibits

Exhibit Number: 99.1

Description: Press Release of Stepan Company dated July 29, 2026, announcing second quarter 2026 financial results.

Exhibit Number: 99.2

Description: Press Release of Stepan Company dated July 29, 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.

Exhibit 99.1

Stepan Reports Second Quarter 2026 Results

Northbrook, Illinois, July 29, 2026 — Stepan Company (NYSE: SCL) today reported:

Second Quarter 2026 Highlights

•

Reported net income was $22.9 million, up 102% versus the prior year. Adjusted net income⁽¹⁾was $27.1 million, up 126% versus the prior year.

•

EBITDA⁽²⁾was $69.1 million and Adjusted EBITDA⁽²⁾ was $74.4 million, up 37% and 45% respectively, year-over-year.

•

Global sales volume was up 3% year-over-year. Organic sales volume was up 6% year-over-year.

•

Cash from Operations was $8.4 million during the quarter. Free cash flow⁽³⁾ for the quarter was a negative $15.0 million, driven by higher working capital requirements. Excluding the impact of higher working capital, free cash flow was $32.7 million, up 69% versus the prior year.

•

Pre-tax earnings include a $5.1 million restructuring charge largely related to the previously announced closure of the Company’s Fieldsboro, NJ site and decommissioning of select assets at its Elwood (Millsdale), IL and Stalybridge, UK facilities.

•

The Company announced today a plan to reduce its global salaried workforce by approximately 100 positions. This action is part of the previously announced Project Catalyst efficiency initiative. The majority of this restructuring expense is expected to be recognized during the second half of 2026. The Company anticipates full year restructuring charges in the range of $75.0 to $80.0 million, which is in line with prior communications, with a projected cash impact between $14.0 and $18.0 million.

First Half 2026 Highlights

•

Reported net income was a $18.5 million loss versus $31.1 million of income in the prior year. The current year loss is entirely due to a $70.5 million pre-tax restructuring charge. The cash impact associated with this restructuring charge was approximately $7.0 million year-to-date. Adjusted net income⁽¹⁾was $37.4 million, up 20% versus the prior year.

•

EBITDA⁽²⁾was $52.7 million and Adjusted EBITDA⁽²⁾ was $124.1 million. Adjusted EBITDA was up 14% year-over-year.

•

Organic sales volume was up 3% year-over-year.

“Quarterly earnings were up significantly driven by improved Surfactant and Polymer results. Second quarter adjusted EBITDA of $74.4 million was up 45% year-over-year due to global volume growth, margin recovery and Project Catalyst savings. We believe the quarter also benefited from customer pre-buys as a result of the global geopolitical situation. Surfactant and Polymer adjusted EBITDA were up 59% and 22%, respectively,” said Luis E. Rojo, President and Chief Executive Officer. “Surfactant organic sales volume was up 7% and Polymer sales volume was up 5% in the quarter. The Surfactant volume growth was broad-based and across all end markets and all regions. Within Polymers, the North American Rigid and Phthalic Anhydride businesses delivered double digit 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 continue to execute Project Catalyst safely and in line with expectations. As part of the organizational-effectiveness component of Project Catalyst, today we announced a plan to reduce the Company’s global salaried workforce by around 100 roles before the end of the year. During the past few quarters, we took a disciplined and deliberate approach to minimize the impact of these actions through normal attrition, pausing external hiring and emphasizing internal talent. We are committed to supporting our affected colleagues through this transition in line with our People First culture.”

Financial Summary


	Three Months Ended June 30,							Six Months Ended June 30,
($ in thousands, except per share data)	2026		2025		% Change			2026			2025		% Change
Net Sales	$	684,109	$	594,689		15	%	$	1,288,618		$	1,187,944		8	%
Operating Income (Loss)	$	37,210	$	17,965		107	%	$	(12,412	)	$	46,253		NM
Net Income (Loss)	$	22,911	$	11,341		102	%	$	(18,495	)	$	31,052		NM
Earnings per Diluted Share	$	1.00	$	0.50		100	%	$	(0.81	)	$	1.36		NM
Adjusted Net Income *	$	27,052	$	11,952		126	%	$	37,365		$	31,262		20	%
Adjusted Earnings per Diluted Share *	$	1.18	$	0.52		127	%	$	1.63		$	1.37		19	%

*	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 second quarter of 2026 increased 15% year-over-year. This increase reflects higher selling prices, mainly attributable to the pass-through of higher raw material costs and more favorable product mix, a 3% increase in sales volume and the favorable impact of foreign currency translation. Organic sales volume was up 6% year-over-year.


	Three Months Ended June 30, 2026			Six Months Ended June 30, 2026
Volume		3	%		(—	)%
Selling Price & Mix		9	%		5	%
Foreign Translation		3	%		3	%

Total		15	%		8	%

Segment Results


	Three Months Ended June 30,							Six Months Ended June 30,
($ in thousands)	2026		2025		% Change			2026		2025		% Change
Net Sales
Surfactants	$	483,902	$	411,456		18	%	$	937,589	$	841,793		11	%
Polymers	$	178,007	$	162,751		9	%	$	308,036	$	308,867		(0	)%
Specialty Products	$	22,200	$	20,482		8	%	$	42,993	$	37,284		15	%

Total Net Sales	$	684,109	$	594,689		15	%	$	1,288,618	$	1,187,944		8	%


	Three Months Ended June 30,									Six Months Ended June 30,
($ in thousands, all amounts pre-tax)	2026			2025			% Change			2026			2025			% Change
Operating Income (Loss)
Surfactants	$	34,362		$	13,367			157	%	$	52,910		$	42,297			25	%
Polymers	$	22,469		$	17,159			31	%	$	31,291		$	25,177			24	%
Specialty Products	$	5,007		$	5,258			(5	)%	$	9,722		$	10,766			(10	)%

Total Segment Operating Income	$	61,838		$	35,784			73	%	$	93,923		$	78,240			20	%
Corporate Expenses	$	(24,628	)	$	(17,819	)		38	%	$	(106,335	)	$	(31,987	)		232	%

Consolidated Operating Income (Loss)	$	37,210		$	17,965			107	%	$	(12,412	)	$	46,253			NM


	Three Months Ended June 30,									Six Months Ended June 30,
($ in millions)	2026			2025			% Change			2026			2025			% Change
EBITDA	$	69.1		$	50.6			37	%	$	52.7		$	108.6			(51	)%
Adjusted EBITDA
Surfactants	$	54.9		$	34.5			59	%	$	96.0		$	82.9			16	%
Polymers	$	31.2		$	25.6			22	%	$	48.6		$	41.6			17	%
Specialty Products	$	6.5		$	6.7			(3	)%	$	12.6		$	13.7			(8	)%
Unallocated Corporate	$	(18.1	)	$	(15.4	)		18	%	$	(33.1	)	$	(29.3	)		13	%

Consolidated Adjusted EBITDA	$	74.4		$	51.4			45	%	$	124.1		$	108.9			14	%

Consolidated adjusted EBITDA⁽²⁾ increased $23.0 million, or 45%, in the quarter. This increase was primarily due to higher Surfactant and Polymer earnings driven by sales volume growth and margin recovery.

•

Surfactant net sales were $483.9 million for the quarter, up 18% versus the prior year. Selling prices were up 12% primarily due to pass through of higher raw material costs, improved product and customer mix, along with pricing actions. Global Sales volume was up 2% and organic sales volume increased 7%. All global regions recognized organic volume growth and our strategic end markets combined grew high single digits. Foreign currency translation positively impacted net sales by 4%. Surfactant adjusted EBITDA⁽²⁾for the quarter increased $20.4 million, or 59%, versus the prior year. This increase was primarily due to sales volume growth and margin recovery.

•

Polymer net sales were $178.0 million for the quarter, a 9% increase versus the prior year. Selling prices were up 3%, primarily due to the pass-through of higher raw material costs and margin recovery. Sales volume increased 5% 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 positively impacted net sales by 1% during the quarter. Polymer adjusted EBITDA⁽²⁾ increased $5.6 million, or 22%, versus the prior year primarily due to sales volume growth and global margin improvement.

•

Specialty Products net sales were $22.2 million for the quarter, an 8% increase versus the prior year. Specialty Products volume increased 4% while adjusted EBITDA⁽²⁾ decreased $0.2 million, or 3%. The slight decrease in adjusted EBITDA⁽²⁾ was primarily due to less favorable product mix within the medium chain triglycerides product line that was mostly offset by higher earnings in the food and flavor business.

Outlook

“We believe we are positioned to continue delivering growth in all our key strategic businesses such as Crop Productivity, Oilfield, Tier 2/3 Surfactants and North American Polymers. We continue to execute on Project Catalyst, which is our comprehensive plan designed to further optimize our asset base and create a more productive and agile organization to enable balanced growth,” said Luis E. Rojo, President and Chief Executive Officer. “Despite the ongoing and significant market uncertainties and challenges, the organization is focused on executing our growth opportunities, productivity plans and cash interventions. With these actions and the strong first half 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 $8.4 million during the second quarter of 2026 and capital expenditures were $23.4 million.

Conference Call

Stepan Company will host a conference call to discuss its second quarter results at 9:00 a.m. ET (8:00 a.m. CT) on July 29, 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.

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.

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.

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

Table I

STEPAN COMPANY

For the Three and Six Months Ended June 30, 2026 and 2025

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Net Sales	$	684,109		$	594,689		$	1,288,618		$	1,187,944

Cost of Sales		584,127			522,804			1,123,785			1,040,596

Gross Profit		99,982			71,885			164,833			147,348
Operating Expenses:
Selling		14,866			14,657			27,032			26,765
Administrative		24,203			22,801			45,516			44,215
Research, Development and Technical Services		17,195			14,701			32,188			29,350
Deferred Compensation		1,402			1,761			1,964			765

		57,666			53,920			106,700			101,095
Business Restructuring		5,106			—			70,545			—

Operating Income (Loss)		37,210			17,965			(12,412	)		46,253
Other Income (Expense):
Interest, Net		(5,682	)		(5,485	)		(10,693	)		(9,611	)
Other, Net		1,021			1,306			1,165			1,808

		(4,661	)		(4,179	)		(9,528	)		(7,803	)
Income (Loss) Before Provision for Income Taxes		32,549			13,786			(21,940	)		38,450
Provision for Income Taxes		9,638			2,445			(3,445	)		7,398

Net Income (Loss)		22,911			11,341			(18,495	)		31,052
Net Income (Loss) Per Common Share
Basic	$	1.00		$	0.50		$	(0.81	)	$	1.36

Diluted	$	1.00		$	0.50		$	(0.81	)	$	1.36

Shares Used to Compute Net Income Per Common Share
Basic		22,897			22,865			22,893			22,866

Diluted		22,924			22,879			22,893			22,885

Table II

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


	Three Months Ended June 30,								Six Months Ended June 30,
*($ in thousands, except per share amounts)*	2026		EPS		2025		EPS		2026			EPS			2025			EPS
Net Income (Loss) Reported	$	22,911	$	1.00	$	11,341	$	0.50	$	(18,495	)	$	(0.81	)	$	31,052		$	1.36
Deferred Compensation (Income) Expense	$	52	$	—	$	69	$	—	$	529		$	0.02		$	(401	)	$	(0.02	)
Environmental Remediation Expense	$	92	$	—	$	542	$	0.02	$	170		$	0.01		$	611		$	0.03
Business Restructuring	$	3,997	$	0.18	$	—	$	—	$	55,161		$	2.41		$	—		$	—

Adjusted Net Income	$	27,052	$	1.18	$	11,952	$	0.52	$	37,365		$	1.63		$	31,262		$	1.37

*	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 Second 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 second quarter of 2026 reported net income includes $0.1 million of after-tax expense versus $0.1 million of after-tax expense in the prior year.

•

Environmental Remediation: The second quarter of 2026 reported net income includes $0.1 million of after-tax expense versus $0.5 million of after-tax expense in the prior year.

•

Business Restructuring: The second quarter of 2026 reported net income includes $4.0 million of after-tax expense related to restructuring charges. There were no restructuring charges recognized in the prior year quarter.

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 June 30,										Six Months Ended June 30,
*($ in thousands, except per share amounts)*	2026			EPS		2025			EPS		2026			EPS		2025			EPS
Pre-Tax Adjustments
Deferred Compensation (Income) Expense	$	68				$	92				$	696				$	(534	)
Environmental Remediation Expense	$	121				$	722				$	223				$	814
Business Restructuring	$	5,106				$	—				$	70,545				$	—

Total Pre-Tax Adjustments	$	5,295				$	814				$	71,464				$	280
Cumulative Tax Effect on Adjustments	$	(1,154	)			$	(203	)			$	(15,604	)			$	(70	)

After-Tax Adjustments	$	4,141		$	0.18	$	611		$	0.02	$	55,860		$	2.44	$	210		$	0.01

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 $0.1 million of expense 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
	6/30		3/31		12/31		9/30		6/30		3/31
Stepan Company	$	55.72	$	49.98	$	47.36	$	47.70	$	54.58	$	55.04


	Three Months Ended June 30,						Six Months Ended June 30,
*($ in thousands)*	2026			2025			2026			2025
Deferred Compensation
Operating Income (Expense)	$	(1,402	)	$	(1,761	)	$	(1,964	)	$	(765	)
Other, net – Mutual Fund Gain		1,334			1,669			1,268			1,299

Total Pre-Tax	$	(68	)	$	(92	)	$	(696	)	$	534

Total After-Tax	$	(52	)	$	(69	)	$	(529	)	$	401

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.


	Three Months Ended June 30,				Change		Change Due to Foreign Currency Translation		Six Months Ended June 30,					Change			Change Due to Foreign Currency Translation
*($ in millions)*	2026		2025						2026			2025
Net Sales	$	684.1	$	594.7	$	89.4	$	17.1	$	1,288.6		$	1,187.9	$	100.7		$	42.4
Gross Profit		100.0		71.9	$	28.1		2.9		164.8			147.3	$	17.5			5.4
Operating Income (Loss)		37.2		18.0	$	19.2		2.1		(12.4	)		46.3	$	(58.7	)		3.4
Pretax Income (Loss)		32.5		13.8	$	18.7		2.1		(21.9	)		38.5	$	(60.4	)		3.5

Corporate Expenses


	Three Months Ended June 30,							Six Months Ended June 30,
*($ in thousands)*	2026		2025		% Change			2026		2025		% Change
Total Corporate Expenses	$	24,628	$	17,819		38	%	$	106,335	$	31,987		232	%
Less:
Deferred Compensation Expense	$	1,402	$	1,761		(20	)%	$	1,964	$	765		157	%
Environmental Remediation Expense	$	121	$	722		(83	)%	$	223	$	814		(73	)%
Business Restructuring	$	5,106	$	—		NM		$	70,545	$	—		NM

Adjusted Corporate Expenses	$	17,999	$	15,336		17	%	$	33,603	$	30,408		11	%

Adjusted Corporate expenses increased $2.7 million, or 17% for the quarter. This increase was primarily due to higher incentive-based compensation expenses.

Table V

Stepan Company

Consolidated Balance Sheets

June 30, 2026 and December 31, 2025


	June 30, 2026		December 31, 2025
ASSETS
Current Assets	$	974,764	$	858,959
Property, Plant & Equipment, Net		1,142,612		1,219,627
Other Assets		275,290		279,116

Total Assets	$	2,392,666	$	2,357,702

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities	$	846,998	$	666,494
Deferred Income Taxes		10,998		11,450
Long-term Debt		244,069		340,975
Other Non-current Liabilities		78,555		94,773
Total Stepan Company Stockholders’ Equity		1,212,046		1,244,010

Total Liabilities and Stockholders’ Equity	$	2,392,666	$	2,357,702

Selected Balance Sheet Information

The Company’s total debt decreased by $4.3 million and cash decreased by $27.1 million versus March 31, 2026. The Company’s net debt level increased $22.8 million versus March 31, 2026 and its net debt ratio was 31% versus 30% 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)	June 30, 2026			March 31, 2026			December 31, 2025
Net Debt
Total Debt	$	647.4		$	651.7		$	626.7
Cash		113.7			140.8			132.7

Net Debt	$	533.7		$	510.9		$	494.0
Equity		1,212.0			1,193.0			1,244.0

Net Debt + Equity	$	1,745.7		$	1,703.9		$	1,738.0

Net Debt / (Net Debt + Equity)		31	%		30	%		28	%

The major working capital components were:


($ in millions)	June 30, 2026			March 31, 2026			December 31, 2025
Net Receivables	$	492.3		$	433.7		$	388.0
Inventories		324.5			289.0			298.8
Accounts Payable		(321.7	)		(285.7	)		(261.7	)

	$	495.1		$	437.0		$	425.1

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 June 30, 2026
($ in millions)	Surfactants		Polymers		Specialty Products		Unallocated Corporate			Consolidated
Operating Income	$	34.4	$	22.5	$	5.0	$	(24.6	)	$	37.2
Depreciation and Amortization		20.5		8.7		1.5		0.2			30.9
Other, Net Income		—		—		—		1.0			1.0

EBITDA										$	69.1
Deferred Compensation		—		—		—		0.1			0.1
Environmental Remediation		—		—		—		0.1			0.1
Business Restructuring		—		—		—		5.1			5.1

Adjusted EBITDA	$	54.9	$	31.2	$	6.5	$	(18.1	)	$	74.4


	Three Months Ended June 30, 2025
($ in millions)	Surfactants		Polymers		Specialty Products		Unallocated Corporate			Consolidated
Operating Income	$	13.4	$	17.2	$	5.2	$	(17.8	)	$	18.0
Depreciation and Amortization		21.1		8.4		1.5		0.3			31.3
Other, Net Income		—		—		—		1.3			1.3

EBITDA										$	50.6
Deferred Compensation		—		—		—		0.1			0.1
Environmental Remediation		—		—		—		0.7			0.7

Adjusted EBITDA	$	34.5	$	25.6	$	6.7	$	(15.4	)	$	51.4


	Six Months Ended June 30, 2026
($ in millions)	Surfactants		Polymers		Specialty Products		Unallocated Corporate			Consolidated
Operating Income	$	52.9	$	31.3	$	9.7	$	(106.3	)	$	(12.4	)
Depreciation and Amortization		43.1		17.3		2.9		0.6			63.9
Other, Net Income		—		—		—		1.2			1.2

EBITDA										$	52.7
Deferred Compensation		—		—		—		0.7			0.7
Environmental Remediation		—		—		—		0.2			0.2
Business Restructuring		—		—		—		70.5			70.5

Adjusted EBITDA	$	96.0	$	48.6	$	12.6	$	(33.1	)	$	124.1


	Six Months Ended June 30, 2025
($ in millions)	Surfactants		Polymers		Specialty Products		Unallocated Corporate			Consolidated
Operating Income	$	42.3	$	25.2	$	10.8	$	(32.0	)	$	46.3
Depreciation and Amortization		40.6		16.4		2.9		0.6			60.5
Other, Net Income		—		—		—		1.8			1.8

EBITDA										$	108.6
Deferred Compensation		—		—		—		(0.5	)		(0.5	)
Environmental Remediation		—		—		—		0.8			0.8

Adjusted EBITDA	$	82.9	$	41.6	$	13.7	$	(29.3	)	$	108.9

Exhibit 99.2

Stepan Declares Quarterly Dividend

Northbrook, Illinois, July 29, 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 $0.395 per share. The dividend is payable on September 15, 2026, to common stockholders of record on September 1, 2026. The Company increased its quarterly cash dividend in the fourth quarter of 2025 by $0.010 per share, marking the 58th 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

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.

Source: View Original Filing on SEC EDGAR

STEPAN COMPANY

Date: July 29, 2026

/s/ Shawn G. Lisle

Shawn G. Lisle

Vice President, General Counsel and Secretary

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