Overview

* Stepan Q2 2025 net sales up 7% yr/yr, but missed analyst expectations

* Adjusted EPS for Q2 missed analyst expectations, per LSEG data

* Adjusted EBITDA grew 8% driven by Polymer sales volume growth

Outlook

* Stepan ( SCL ) expects full-year adjusted EBITDA and net income growth in 2025

* Company anticipates positive free cash flow for full-year 2025

* Stepan ( SCL ) sees continued growth in Surfactant strategic markets

* Company plans to close Philippines asset sale in Q4 2025

Result Drivers

* POLYMERS GROWTH - 7% increase in Polymer sales volume drove adjusted EBITDA growth, despite competitive pressures on selling prices

* SURFACTANTS MIX - Surfactants segment saw higher selling prices due to improved product and customer mix, offsetting a 1% decline in sales volume

* SPECIALTY PRODUCTS - 22% increase in net sales driven by higher sales volume, though adjusted EBITDA decreased due to order timing changes

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Miss $594.69 $598.20

mln mln (2

Analysts

)

Q2 Miss $0.52 $0.9 (2

Adjusted Analysts

EPS )

Q2 EPS $0.5

Q2 Miss $11.95 $20.60

Adjusted mln mln (2

Net Analysts

Income )

Q2 Net $11.34

Income mln

Q2 $17.96

Operatin mln

g Income

Analyst Coverage

* The one available analyst rating on the shares is "hold"

* The average consensus recommendation for the specialty chemicals peer group is "buy."

* The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)