Stepan Company ( (SCL) ) has released its Q1 earnings. Here is a breakdown of the information Stepan Company presented to its investors.
Stepan Company is a leading manufacturer of specialty and intermediate chemicals, primarily known for its production of surfactants used in consumer and industrial cleaning, agricultural, and oilfield solutions, as well as polyurethane polyols for thermal insulation and CASE industries. Headquartered in Northbrook, Illinois, the company operates globally with a network of modern production facilities.
In the first quarter of 2025, Stepan Company reported a significant increase in net income, reaching $19.7 million, a 42% rise compared to the previous year. The company’s adjusted net income also saw a 32% increase, while EBITDA and adjusted EBITDA grew by 16% and 12%, respectively. Global sales volume increased by 4%, contributing to an 8% rise in net sales year-over-year.
The company’s Surfactants segment experienced a 10% increase in net sales, driven by a 12% rise in selling prices and a 3% increase in sales volume, despite a negative impact from foreign currency translation. The Specialty Products segment also performed well, with an 11% increase in net sales and a 29% rise in operating income. However, the Polymers segment remained flat in net sales, with a slight decrease in operating income due to less favorable product mix and high-cost inventory carryover.
Looking ahead, Stepan Company remains focused on accelerating its business strategies to grow volume, improve product and customer mix, and enhance free cash flow generation. The company is optimistic about continued growth in its Surfactant business and anticipates improved Polymer demand. The new Pasadena facility is expected to contribute to volume growth and supply chain savings in the latter half of the year, despite ongoing market uncertainties.