Stepan Company · NYSE:SCL
Stepan — Q4 2025 Earnings Presentation
26 slides from Stepan's earnings presentation, Feb 23, 2026
Slide 1: Fourth Quarter 2025 Earnings Results
Fourth Quarter 2025 Earnings Results February 23, 2026
Slide 2: Safe Harbor
Safe Harbor Certain information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Excha
Slide 3: Agenda
Stepan Company: Agenda AGENDA 1 2025 Fourth InvestQuarter Financial Results in Organic Growth 2 2025 Full Year Financial Results 3 Strategic Outlook – Project Catalyst 4 Q&A 5 Closing Remarks 3
Slide 4: CEO Remarks - 2025 Full Year Highlights
Stepan Company: Highlights CEO Remarks - 2025 Full Year Highlights ▪ Record Year on Safety Performance. Reported Net Income Adjusted Net Income(1) ▪ Delivered Adjusted EBITDA growth despite a $46.9MM $41.7MM challenging operating environment. -7% YoY -17% YoY ▪ Delivered strong volume growth in all
Slide 5: Fourth Quarter - Highlights
Stepan Company: Highlights Fourth Quarter - Highlights ADJUSTED NET INCOME DOWN ▪ Reported net income was $5.0 million, up 49% versus the prior year. Adjusted net income(1) was a $0.5 million loss, down 119% versus the Reported Net Income Adjusted Net Loss(1) prior year. The decrease in earnings was
Slide 6: Adj. Net Income Bridge Q4 2024 to Q4 2025
Stepan Company: Financial Results Adj. Net Income Bridge Q4 2024 to Q4 2025 $2.8 $1.7 ($1.1) $4.0 ($0.5) $0.12 ($0.02) Adj. $0.6 $0.4 Adj. EPS(1) EPS(1) ($4.5) ($6.8) ($0.4) Q4 2024 Tax Q4 2024 Surfactants Polymers Specialty Corporate Q4 2025 Tax Q4 2025 Adjusted Provision Pre-Tax Operating Operatin
Slide 7: Adjusted EBITDA Bridge Q4 2024 to Q4 2025
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge Q4 2024 to Q4 2025 $35.0 $0.8 $33.8 $1.0 ($2.6) ($0.4) Q4 2024 Surfactants Polymers Specialty Products Corporate Q4 2025 Adj. EBITDA(1) Adj. EBITDA(1) Note: All amounts are in millions of U.S. dollars. ▪ Surfactants Adjusted EBITDA(1) decre
Slide 8: Surfactants
Stepan Company: Business Segments Surfactants Q4 2024 to Q4 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $38.1 $12.5 $401.8 $34.7 $378.8 $32.1 ($1.6) ($1.2) $0.2 ($27.5) Q4 2024 Volume Price/Mix F/X Q4 2025 Q4 2024 North America Latin America Europe Q4 2025 Net Sales Net Sales Adj. EBITDA(1) + As
Slide 9: Polymers
Stepan Company: Business Segments Polymers Q4 2024 to Q4 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $14.4 $1.9 $3.5 $131.7 $1.4 $12.4 $129.8 $11.4 ($16.0) ($2.4) Q4 2024 Volume Price/Mix F/X Q4 2025 Q4 2024 North America Europe Asia + Q4 2025 Net Sales Net Sales Adj. EBITDA(1) Latin America Adj
Slide 10: Adj. Net Income Bridge FY 2024 to FY 2025
Stepan Company: Financial Results Adj. Net Income Bridge FY 2024 to FY 2025 $10.1 $60.6 $50.5 $4.7 $1.3 $50.9 $2.6 $41.7 ($18.3) ($9.2) $2.20 $1.82 Adj. Adj. EPS(1) EPS(1) FY 2024 Tax FY 2024 Surfactants Polymers Specialty Corporate FY 2025 Tax FY 2025 Adjusted Provision Pre-Tax Operating Operating
Slide 11: Adjusted EBITDA Bridge FY 2024 to FY 2025
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge FY 2024 to FY 2025 $8.5 $198.9 $4.7 $187.0 $3.3 ($4.6) FY 2024 Surfactants Polymers Specialty Products Corporate FY 2025 Adj. EBITDA(1) Adj. EBITDA(1) Note: All amounts are in millions of U.S. dollars. ▪ Surfactants Adjusted EBITDA(1) decli
Slide 12: Balance Sheet & Cash Flow
Stepan Company: Financial Results Balance Sheet & Cash Flow Q4 2024 to Q4 2025 Net Debt(1) / TTM Adjusted EBITDA(2) ($MM) Capital Expenditures $MM 2.5 Net 2023 260 Debt/TTM 494 Adj EBITDA Ratio(3) 2024 123 Q4 2024 29.7 199 Q4 2025 34.6 Net Debt(1) TTM Adjusted 2025 122.5 EBITDA(2) 2025 Working Capit
Slide 13: Delivering Superior Shareholder Value Through a Balanced Growth Strategy
Stepan Company: Strategy Delivering Superior Shareholder Value Through a Balanced Growth Strategy ile & Accountable Org Ag an d, iza ge tio ga n En Sa e fe t c y, S l ia n t e w a r ds p & C o m p 13 hi
Slide 14: Project Catalyst
Stepan Company: Project Catalyst Project Catalyst Strengthening our Foundation for Long-Term Excellence Project Catalyst is a comprehensive operational and efficiency initiative designed to deliver approximately $100 million in pre-tax savings over the next two years, with an expected ~60% realized
Slide 15: Footprint Optimization
Stepan Company: Footprint Optimization Footprint Optimization These initiatives are intended to optimize production and reduce cost by consolidating volumes into our network at efficient sites and high-performing assets, enhancing scale, reliability and productivity. These actions follow the previou
Slide 16: Thank You
Stepan Company –> Growth Drivers Thank You Ruben Velasquez Vice President & Chief Financial Officer +1-847-446-7500 16
Slide 17: Appendix
Appendix Additional Sources of Information and Definitions
Slide 18: Update on Certain Expectations
Stepan Company: Appendix I Update on Certain Expectations (millions USD) 2022 Actual 2023 Actual 2024 Actual 2025 Actual 2026 Forecast Capital Expenditures 301 260 123 122.5 105 - 115 Debt Repayments 38 38 49 63 59 Interest Net 10 12 14 22 27 – 29 Depreciation & Amortization 95 105 112 126 125 – 130
Slide 19: Reconciliations
Stepan Company: Appendix II Reconciliations Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) (1) All amounts in this table are presented after-tax Reconciliation of Pre-Tax to After-Tax Adjustments 19
Slide 20: Adjusted EBITDA and EBITDA
Stepan Company: Appendix III Adjusted EBITDA and EBITDA Reconciliations Q4 2025 and Q4 2024(1) Adjusted EBITDA and EBITDA Reconciliations Q4 2025 and Q4 2024(1) (1) Refer to Income Statement on appendix VII for a bridge between Operating Income and Net Income. 20
Slide 21: 2025 and 2024 Full Year Adjusted EBITDA Reconciliation
Stepan Company: Appendix IV 2025 and 2024 Full Year Adjusted EBITDA Reconciliation Adjusted EBITDA and EBITDA Reconciliations 2025 and 2024 Full Year(1) (1) Refer to Income Statement on appendix VII for a bridge between Operating Income and Net Income. 21
Slide 22: Free Cash Flow (FCF) Reconciliations
Stepan Company: Appendix V Free Cash Flow (FCF) Reconciliations (million USD) Q4 2025 Q4 2024 Cash Flow from Operations 60.0 29.5 Capital Expenditures (34.6) (29.7) Free Cash Flow 25.4 (0.2) (million USD) 2025 2024 2023 Cash Flow from 147.9 162.1 174.9 Operations Capital Expenditures (122.5) (122.8)
Slide 23: Net Debt to Total Capitalization Ratio
Stepan Company: Appendix VI Net Debt to Total Capitalization Ratio December September June March December December December December December (millions USD) 31, 2025 30, 2025 30, 2025 31, 2025 31, 2024 31, 2023 31, 2022 31, 2021 31, 2020 Total Debt 626.7 655.5 658.0 659.3 625.4 654.1 587.1 363.6 198
Slide 24: Income Statement
Stepan Company: Appendix VII Income Statement 24
Slide 25: Adjustments Details
Stepan Company: Appendix VIII Adjustments Details Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) (1) All amounts in this table are presented after-tax 25
Slide 26: Estimated Cash Impact – Site Closure & Select Asset Decommissioning
Stepan Company: Appendix IX Estimated Cash Impact – Site Closure & Select Asset Decommissioning (Project Catalyst) Total Cash Non-Cash Cash Cash Expense Cash Expense Impact Estimate 1 Impact Expense Full Year 2026 2027-2035 (USD millions) Q1 2026 Low High Low High Decommissioning, Dismantling & $24