Stepan Q2 net sales rise on surfactant, polymer growth; to cut jobs
SCL•Guidance and job cuts
Stepan expects full-year adjusted EBITDA growth in 2026 and anticipates positive free cash flow for the full year. The company also said it aims to continue deleveraging its balance sheet in 2026.
As part of its Project Catalyst initiative, Stepan said it will cut about 100 salaried jobs.
Key quarterly figures
| 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 and valuation
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.
Q2 results rise on surfactant and polymer growth
Stepan said second-quarter net sales rose 15% year-over-year, as higher sales volumes and margin recovery in its Surfactant and Polymer segments drove earnings gains.
