Stepan Q2 net sales rise on surfactant, polymer growth; to cut jobs

Stepan

29/07/2026 12:16

Overview
U.S. specialty chemicals maker's Q2 net sales rose 15% year-over-year
Adjusted EPS for Q2 more than doubled from prior year
Company to cut about 100 salaried jobs under Project Catalyst initiative

Outlook
Stepan expects full-year adjusted EBITDA growth in 2026
Company anticipates positive free cash flow for full-year 2026
Stepan aims to continue deleveraging its balance sheet in 2026

Result Drivers
SURFACTANT AND POLYMER GROWTH - Co said higher sales volumes and margin recovery in Surfactant and Polymer segments drove earnings gains
HIGHER SELLING PRICES - Co attributed increased net sales to higher selling prices from passing through raw material costs and improved product mix
CUSTOMER PRE-BUYS - Co said quarter benefited from customer pre-buys due to global geopolitical situation

Company press release: ID:nPn7kZRLLa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$684.11 mln
$635.85 mln (2 Analysts)
Q2 Adjusted EPS
Beat
$1.18
$0.61 (2 Analysts)
Q2 EPS
 
$1
 
Q2 Adjusted Net Income
 
$27.05 mln
 
Q2 Net Income
 
$22.91 mln
 
Q2 Operating Income
 
$37.21 mln
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Stepan Co is $75.00, about 29.3% above its July 28 closing price of $58.01
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

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(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.)