SCL · Stepan Company

Stepan Company reported a challenging first quarter of 2026, with a GAAP net loss of $41.4 million compared to net income of $19.7 million in the prior year. The loss was driven by a $65.4 million pre-tax restructuring charge related to the closure of the Fieldsboro, NJ site and decommissioning of select assets at the Elwood (Millsdale), IL and Stalybridge, UK facilities. On an adjusted basis, net income fell 47% to $10.3 million, or $0.45 per diluted share, reflecting lower Surfactant earnings and higher interest expense due to reduced capitalized interest from the Pasadena, TX site startup. Adjusted EBITDA declined 14% to $49.6 million. Organic sales volume was flat year-over-year, with strong demand in Crop Productivity, Oilfield, and Industrial Cleaning offset by soft European Polymers demand. Surfactants segment adjusted EBITDA fell 15% due to higher oleochemicals prices, a U.S. cold snap, production timing in Asia, and competitive pressures in Mexico. Polymers adjusted EBITDA grew 8% on North American volume growth and margin recovery, while Specialty Products adjusted EBITDA declined 11% due to product mix and higher raw material costs. Management expressed confidence in delivering full-year adjusted EBITDA growth, positive free cash flow, and deleveraging, despite ongoing uncertainties. The company also declared a quarterly dividend of $0.395 per share and disclosed an agreement to sell a parcel of land near its Millsdale site for $30 million, expected to close in the second half of 2026.