Brief: Stepan Q2 Adjusted EPS USD 0.52

Stepan

30/07/2025 12:01

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 expects full-year adjusted EBITDA and net income growth in 2025

Company anticipates positive free cash flow for full-year 2025

Stepan 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/Miss
Actual
Consensus Estimate
Q2 Sales
Miss
$594.69 mln
$598.20 mln (2 Analysts)
Q2 Adjusted EPS
Miss
$0.52
$0.9 (2 Analysts)
Q2 EPS
$0.5
Q2 Adjusted Net Income
Miss
$11.95 mln
$20.60 mln (2 Analysts)
Q2 Net Income
$11.34 mln
Q2 Operating Income
$17.96 mln


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: ID:nPn36Ns0ha

(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.)