Stepan Company · NYSE:SCL
Stepan — Q1 2025 Earnings Presentation
20 slides from Stepan's earnings presentation, Apr 29, 2025
Slide 1: First Quarter 2025 Earnings Results
First Quarter 2025 Earnings Results April 29, 2025
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 FirstInvest Quarter Highlights in Organic Growth 2 2025 First Quarter Financial Results 3 Strategic Outlook 4 Q&A 5 Closing Remarks 3
Slide 4: First Quarter - Highlights
Stepan Company: Highlights First Quarter - Highlights NET INCOME UP Reported net income was $19.7 million, up 42% versus the prior year. Reported Net Income Adjusted Net Income(1) Adjusted net income(1) was $19.3 million, up 32% versus prior year, primarily due to volume growth in Surfactants, Pol
Slide 5: Net Income Bridge
Stepan Company: Financial Results Net Income Bridge Q1 2024 to Q1 2025 $2.0 $19.3 $0.4 $19.7 $0.9 $2.0 ($0.1) $0.8 $14.7 ($0.3) $13.9 $0.64 $0.84 Adj. EPS Adj. EPS Q1 2024 Adjustments(1) Q1 2024 Surfactants Polymers Specialty Corporate Taxes Q1 2025 Adjustments(3) Q1 2025 Reported Adjusted Operating
Slide 6: Adjusted EBITDA Bridge
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge Q1 2024 to Q1 2025 $4.5 $1.2 $0.9 $57.5 $51.2 ($0.3) Q1 2024 Surfactants Polymers Specialty Products Corporate Q1 2025 Adj. EBITDA(1) Adj. EBITDA(1) Note: All amounts are in millions of U.S. dollars. Surfactants Adjusted EBITDA(1) growth
Slide 7: Surfactants
Stepan Company: Business Segments Surfactants Q1 2024 to Q1 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $47.0 $3.4 $48.3 $430.3 $1.7 $390.8 $10.6 $43.8 ($18.1) ($0.6) Q1 2024 Volume Price/Mix F/X Q1 2025 Q1 2024 North America Latin America Europe Q1 2025 Net Sales Net Sales Adj. EBITDA(1) + Asia
Slide 8: Polymers
Stepan Company: Business Segments Polymers Q1 2024 to Q1 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $10.1 $16.4 $1.1 $16.1 $145.5 $146.1 ($0.3) ($9.1) ($0.3) ($1.2) Q1 2024 Volume Price/Mix F/X Q1 2025 Q1 2024 North America Europe Asia + Q1 2025 Net Sales Net Sales Adj. EBITDA(1) Latin America
Slide 9: Balance Sheet & Cash Flow
Stepan Company: Financial Results Balance Sheet & Cash Flow Q1 2024 to Q1 2025 Net Debt(1) / TTM Adjusted EBITDA(2) ($MM) Capital Expenditures ($MM) 2.9 Net Debt/TTM Adj EBITDA 552 Ratio(3) 193 Net Debt(1) TTM Adjusted EBITDA(2) 2024 Working Capital(5) Free Cash Flow(4) ($MM) (1) Net Debt is a Non-G
Slide 10: Strategic Priorities and Growth Drivers
Stepan Company: Growth Strategy Strategic Priorities and Growth Drivers Creating and Delivering Shareholder Value Greater Than GDP Growth Customer Intimacy Accretive Margins Expand Tier 2 & 3 Customer Base Limited Global Risk Exposure World Class R&D & Sustainability High-Margin / Custom
Slide 11: Strategic Capital Investments Update
Stepan Company: Strategic Investments Strategic Capital Investments Update New Alkoxylation Capacity: Pasadena, Texas Summary & Benefits $265MM CapEx Alkoxylates are a core surfactant technology consumed across Stepan’s key agricultural, oilfield, construction, and household end use markets 75KTA
Slide 12: Thank You
Stepan Company –> Growth Drivers Thank You Samuel S. Hinrichsen VP and Interim Chief Financial Officer 847-446-7500 12
Slide 13: Appendix
Appendix Additional Sources of Information and Definitions
Slide 14: Update on Certain Expectations
Stepan Company: Appendix I Update on Certain Expectations (millions USD) 2022 Actual 2023 Actual 2024 Actual 2025 Forecast Capital Expenditures 301 260 123 125 - 135 Debt Repayments 38 38 49 69 Interest Net 10 12 14 24-26 Depreciation & Amortization 95 105 112 125 – 130 Effective Tax Rate (%) 22% 17
Slide 15: Reconciliations
Stepan Company: Appendix II Reconciliations Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share Three Months Ended March 31, ($ in thousands, except per share amounts) 2025 EPS 2024 EPS Net Income Reported $ 19,711 $ 0.86 $ 13,893 $ 0.61 Deferred Compensation (Income) Expen
Slide 16: Adjusted EBITDA and EBITDA Reconciliations
Stepan Company: Appendix III Adjusted EBITDA and EBITDA Reconciliations Q1 2025 and Q1 2024(1) Adjusted EBITDA and EBITDA Reconciliations Q1 2025 and Q1 2024(1) Three Months Ended March 31, 2025 Specialty Unallocated ($ in millions) Surfactants Polymers Products Corporate Consolidated Operating Inco
Slide 17: Trailing Twelve Months
Stepan Company: Appendix IV Trailing Twelve Months Adjusted EBITDA Reconciliation 3/31/2025 TTM – Adjusted EBITDA Reported Operating Income 78.6 Depreciation & Amortization 113.9 Other Net Income (Expense) 2.3 Deferred Compensation (2.5) Cash Settled SARS 0.0 Goodwill and Other Intangibles Impairmen
Slide 18: Free Cash Flow (FCF) Reconciliations
Stepan Company: Appendix V Free Cash Flow (FCF) Reconciliations (million USD) Q1 2025 Q1 2024 Cash Flow from Operations 6.9 41.6 Capital Expenditures (32.7) (30.2) Free Cash Flow (25.8) 11.4 (million USD) 2024 2023 Cash Flow from Operations 162.1 174.9 Capital Expenditures (122.8) (260.3) Free Cash
Slide 19: Net Debt to Total Capitalization Ratio
Stepan Company: Appendix VI Net Debt to Total Capitalization Ratio March December March 31, March 31, March 31, March 31, (millions USD) 31, 2025 31, 2024 2023 2022 2021 2020 Total Debt 659.3 625.4 711.0 537.1 248.4 222.1 Cash 107.5 99.7 127.0 236.0 150.7 254.3 Net Debt 551.8 525.7 584.0 301.1 97.7
Slide 20: Income Statement
Stepan Company: Appendix VII Income Statement Three Months Ended March 31, 2025 2024 Net Sales $ 593,255 $ 551,418 Cost of Sales 517,792 481,137 Gross Profit 75,463 70,281 Operating Expenses: Selling 12,108 11,388 Administrative 21,414 22,690 Research, Development and Technical Services 14,649 14,25