Stepan Company · NYSE:SCL
Stepan — Q1 2026 Earnings Presentation
21 slides from Stepan's earnings presentation, Apr 28, 2026
Slide 1: First Quarter 2026 Earnings Results
First Quarter 2026 Earnings Results April 28, 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: Stepan Company: Highlights - Q1 2026 Key Messages
Stepan Company: Highlights Q1 2026 – Key Messages Reported EBITDA(1) -$16.5MM Adj. EBITDA(1) $49.6MM 1 Adjusted EBITDA(1) was -14% vs. Q1 2025 — surfactants earnings impacted by 9% lower absorption and production timing differences in Asia, competitive pressures in Mexico, severe weather impacts in
Slide 4: Adjusted Net Income Bridge
Stepan Company: Financial Results Adjusted Net Income(1) Bridge Q1 2025 to Q1 2026 $4.8 $24.1 $19.3 $0.8 ($10.4) ($0.8) $11.7 $10.3 ($2.1) ($1.4) (2) (2) Q1 2025 Tax Q1 2025 Surfactants Polymers Specialty Corporate Q1 2026 Tax Q1 2026 Adjusted Provision Pre-Tax Operating Operating Products Expenses
Slide 5: Adjusted EBITDA Bridge
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge Q1 2025 to Q1 2026 $57.5 $1.3 $49.6 ($7.2) ($0.8) ($1.1) Q1 2025 Surfactants Polymers Specialty Products Corporate Q1 2026 Adj. EBITDA(1) Adj. EBITDA(1) Note: All amounts are in millions of U.S. dollars. Surfactants: Adjusted EBITDA decli
Slide 6: Surfactants
Stepan Company: Business Segments Surfactants Q1 2025 to Q1 2026 Net Sales Bridge Adjusted EBITDA(1) Bridge $20.6 $453.7 $48.4 $430.3 $9.5 ($6.7) $0.3 $41.1 ($5.6) ($1.9) Q1 2025 Volume Price/Mix F/X Q1 2026 Q1 2025 North America Latin America Europe Q1 2026 Net Sales Net Sales Adj. EBITDA(1) + Asia
Slide 7: Polymers
Stepan Company: Business Segments Polymers Q1 2025 to Q1 2026 Net Sales Bridge Adjusted EBITDA(1) Bridge $146.1 $5.2 $4.4 $130.0 ($9.4) $17.4 ($11.1) $16.1 ($3.6) ($0.3) Q1 2025 Volume Price/Mix F/X Q1 2026 Q1 2025 North America Europe Asia + Q1 2026 Net Sales Net Sales Adj. EBITDA(1) Latin America
Slide 8: Balance Sheet & Cash Flow
Stepan Company: Financial Results Balance Sheet & Cash Flow Q1 2025 to Q1 2026 LEVERAGE RATIO — Net Debt(1) / TTM Adj. EBITDA(2) FREE CASH FLOW(5) – Quarterly (3) Net Debt TTM Adjusted EBITDA Leverage Ratio(3) FY2026 Capex Guidance Q1 2026 Working Capital(4) $511MM $191MM 2.7x $105-115MM $437MM vs.
Slide 9: Delivering Superior Shareholder Value Through a Balanced Growth Strategy
Stepan Company: Strategy Delivering Superior Shareholder Value Through a Balanced Growth Strategy 9
Slide 10: 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 11: Thank You
Stepan Company –> Growth Drivers Thank You Ruben Velasquez Vice President & Chief Financial Officer +1-847-446-7500 11
Slide 12: Appendix
Appendix Additional Sources of Information and Definitions
Slide 13: Update on Certain Expectations
Stepan Company: Appendix I Update on Certain Expectations (millions USD) 2024 Actual 2025 Actual 2026 Forecast Capital Expenditures 123 122.5 105 – 115 Debt Repayments* 49 63 59 Interest Net 14 22 25 – 27 Depreciation & Amortization 112 126 125 – 130 Effective Tax Rate (%) 17% 22% 24 – 26% * Schedul
Slide 14: Reconciliations
Stepan Company: Appendix II Reconciliations Q1 2025 to Q1 2026 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 14
Slide 15: Reconciliations – Cont.
Stepan Company: Appendix III Reconciliations – Cont. Q1 2025 to Q1 2026 Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) (1) All amounts in this table are presented after-tax 15
Slide 16: Reconciliations – Cont.
Stepan Company: Appendix IV Reconciliations – Cont. Q1 2025 to Q1 2026 (1) Refer to Income Statement on appendix V for a bridge between Operating Income and Net Income. 16
Slide 17: Income Statement
Stepan Company: Appendix V Income Statement Q1 2025 to Q1 2026 Three Months Ended March 31, 2026 2025 Net Sales $ 604,509 $ 593,255 Cost of Sales 539,658 517,792 Gross Profit 64,851 75,463 Operating Expenses: Selling 12,166 12,108 Administrative 21,313 21,414 Research, Development and Technical Serv
Slide 18: Free Cash Flow (FCF)
Stepan Company: Appendix VI Free Cash Flow (FCF) Reconciliations – Cont. (million USD) Q1 2026 Q1 2025 Cash Flow from Operations 16.9 6.9 Capital Expenditures (30.9) (32.7) Free Cash Flow (14.0) (25.8) (million USD) 2025 2024 2023 Cash Flow from 147.9 162.1 174.9 Operations Capital Expenditures (122
Slide 19: Net Debt to Capital Trend
Stepan Company: Appendix VII Net Debt to Capital Trend March 2021 – Q1 2026 (Quarterly) March December March March March March March (millions USD) 31, 2026 31, 2025 31, 2025 31, 2024 31, 2023 31, 2022 31, 2021 Total Debt 651.7 626.7 659.3 646.0 711.0 537.1 248.4 Cash 140.8 132.7 107.5 125.8 127.0 2
Slide 20: Trailing Twelve Months
Stepan Company: Appendix VIII Trailing Twelve Months Reconciliations – Cont. 03/31/2026 TTM – Adjusted EBITDA Reported Operating Income 0.6 Depreciation & Amortization 129.7 Other Net Income (Expense) 3.1 Deferred Compensation 0.6 Cash Settled SARS 0.0 Goodwill and Other Intangibles Impairment Expen
Slide 21: 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