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Stepan Company (SCL)
NYSE:SCL
US Market
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EarningsQ2 2026 Earnings Report

Stepan Company (SCL) Q2 2026 Earnings Report

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SCL Q2 2026 EPS Results

Actual EPS$1.18
Consensus EPS$0.61
Beat/MissBeat by +$0.57
One Year Ago EPS$0.52

SCL Q2 2026 Revenue Results

Actual Revenue$684.11M
Expected Revenue$635.85M
Beat/MissBeat by +$48.26M
YoY Revenue Growth+15.04%

Earnings Announcement Details

QuarterQ2 2026
Date07/29/2026
TimeBefore Open
Conference CallWednesday, July 29, 2026
SCL Upcoming Earnings
Stepan Company's next earnings date is estimated for October 28, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

SCL Q2 2026 Earnings Call
0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026
Earnings Call Date:Jul 29, 2026|
% Change Since:
|
Earnings Call Sentiment|Positive
The call presented strong operational and financial performance: double-digit revenue growth, a 45% increase in adjusted EBITDA, and substantial improvements in adjusted earnings per share. Project Catalyst savings are ramping and balance sheet deleveraging is progressing. However, the quarter also included meaningful restructuring charges and a negative free cash flow impacted by a large working capital build and ongoing raw material volatility. Management signaled some portion of Q2 strength may reflect customer pre-buying ($5–$10 million of EBITDA) and flagged H2 maintenance and restructuring cash impacts. On balance, the positive drivers (broad-based volume growth, margin recovery, and on-track cost savings) outweigh the transitional challenges and one-time charges.
Company Guidance
Management's forward-looking guidance emphasized Project Catalyst and balance‑sheet improvement: Catalyst remains on track to deliver about $100M of pre‑tax savings over two years with ~60% (~$60M+) expected in 2026, a current savings run‑rate of ~$18–20M per quarter and a target of roughly $22M per quarter by year‑end; they reaffirm full‑year adjusted EBITDA growth, positive free cash flow and continued deleveraging (net debt $534M; net leverage 2.5x at Q2, down from 2.7x in Q1 and 2.9x a year ago). They expect full‑year restructuring charges of $75–80M (Q2 restructuring cash ~ $6M; ~100 salaried roles to be reduced in Q3), noted H2 polymer maintenance turnarounds of ~$4–5M, and cautioned that Q2 benefited from roughly $5–10M of EBITDA from customer pre‑buying; Q2 operating metrics cited were adjusted EBITDA $74.4M, adjusted net income $27.1M ($1.18 adj. EPS), net sales $684M, working capital build $58M, capex $23M and free cash flow of negative $15M.
Strong EBITDA and Earnings Expansion
Adjusted EBITDA of $74.4 million, up 45% year-over-year. Adjusted net income of $27.1 million (adjusted EPS $1.18), up 126% versus prior year. Reported net income was $22.9 million or $1.00 per diluted share, up 102% year-over-year.
Revenue Growth
Consolidated net sales of $684 million, up 15% versus prior year, driven by higher selling prices, higher volumes, favorable product/customer mix, and currency translation.
Broad-Based Volume Growth
Organic volume growth of 6% consolidated, with surfactants organic volume +7% and polymers sales volume +5%. Growth was broad-based across end markets including industrial cleaning, laundry, construction, oil field and Tier 2/Tier 3 customers.
Surfactants Segment Outperformance
Surfactants net sales $484 million, up 18% year-over-year; selling prices up 12%; reported volume up 3% and organic volume up 7%. Surfactant adjusted EBITDA $55 million, up 59% versus prior year.
Polymers Segment Momentum
Polymers net sales $178 million, up 9% year-over-year; selling prices up 3%; volume up 5%. Polymer adjusted EBITDA $31 million, up 22% year-over-year, driven by North American rigid polyols and spray foam growth.
Project Catalyst Progress
Project Catalyst on track: program expected to deliver ~$100 million pre-tax savings over two years with ~60% of savings in 2026. Company indicated delivering more than the committed ~$60 million pre-tax savings for the year, with current run-rate savings of $18–$20 million per quarter and an expected ~22 million quarterly run-rate by year-end.
Balance Sheet and Deleveraging Progress
Net debt of $534 million and net leverage ratio improved to 2.5x (from 2.7x in Q1 and 2.9x year-ago), demonstrating progress on deleveraging efforts.
Operational and Safety Achievements
Strong safety performance (best on record over the last 12 months). Pasadena ramp-up nearing target (reported ~75–80% utilization), Millsdale production and operating metrics improving, and continued execution of capex plan.

SCL Earnings History

Report Date
Fiscal Quarter
Forecast / EPS
Last Year's EPS
EPS YoY Change
Press Release
Oct 28, 2026
2026 (Q3)
0.72 / -
0.48―
2026 (Q2)
0.61 / 1.18
0.52126.92% (+0.66)
2026 (Q1)
0.39 / 0.45
0.84-46.43% (-0.39)
2025 (Q4)
0.40 / -0.02
0.12-116.67% (-0.14)
2025 (Q3)
0.61 / 0.48
1.03-53.40% (-0.55)
2025 (Q2)
0.90 / 0.52
0.4126.83% (+0.11)
2025 (Q1)
0.60 / 0.84
0.6431.25% (+0.20)
2024 (Q4)
0.33 / 0.12
0.33-63.64% (-0.21)
2024 (Q3)
0.65 / 1.03
0.6460.94% (+0.39)
2024 (Q2)
0.67 / 0.41
0.53-22.64% (-0.12)
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed