STEPAN CO SEC 10-Q Report

Stepan Co, a leading manufacturer of specialty and intermediate chemicals, has released its Form 10-Q report for the first quarter of 2025. The report highlights significant growth in both financial and operational metrics, driven by higher average selling prices, increased sales volumes, and strategic business initiatives.

Financial Highlights

• Net Sales: $593.3 million, increased by 8% compared to the prior year quarter, driven by higher average selling prices and increased sales volume.
• Gross Profit: $75.5 million, reflecting a 7% increase from the previous year, primarily due to higher sales and improved product mix.
• Operating Income: $28.3 million, up 40% from the first quarter of 2024, with significant contributions from the Surfactants and Specialty Products segments.
• Net Income: $19.7 million, an increase from $13.9 million in the first quarter of 2024, attributed to higher operating income and a lower effective tax rate.
• Net Income Per Common Share (Diluted): $0.86, compared to $0.61 in the prior year, reflecting improved profitability and operational efficiency.

Business Highlights

• Revenue Segments: Surfactants accounted for 72% of consolidated net sales, Polymers for 25%, and Specialty Products for 3% in the first three months of 2025. Surfactants saw a 10% increase in net sales, driven by higher average selling prices and a 3% increase in sales volume. Polymers experienced a slight increase in net sales due to a 7% increase in sales volume, despite lower average selling prices. Specialty Products saw an 11% increase in net sales, primarily due to higher average selling prices.
• Geographical Performance: North American surfactant sales increased by 10%, driven by higher selling prices and a 3% increase in sales volume. European surfactant sales rose by 15%, with a 5% increase in sales volume. Latin American surfactant sales increased by 6%, despite a 2% decrease in sales volume, due to higher selling prices. Asian surfactant sales grew by 13%, with a 14% increase in sales volume.
• Sales Units: Surfactant sales volume increased by 3%, Polymer sales volume increased by 7%, and Specialty Products sales volume decreased by 13% year-over-year.
• New Production Launches: The company started production at its new specialty alkoxylation facility in Pasadena, Texas, in early April 2025, which is expected to impact future operational performance positively.
• Future Outlook: The company anticipates that cash from operations, committed credit facilities, and cash on hand will be sufficient to fund anticipated capital expenditures, working capital, dividends, and other planned financial commitments for the foreseeable future. The company estimates total capital expenditures for 2025 to be in the range of $125.0 million to $135.0 million.

SEC Filing: STEPAN CO [ SCL ] - 10-Q - May. 07, 2025