Stepan Company · NYSE:SCL
Stepan — Q2 2025 Earnings Presentation
20 slides from Stepan's earnings presentation, Jul 30, 2025
Slide 1: Second Quarter 2025 Earnings Results
Second Quarter 2025 Earnings Results July 30, 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 Second Quarter Invest in Highlights Organic Growth 2 2025 Second Quarter Financial Results 3 Strategic Outlook 4 Q&A 5 Closing Remarks 3
Slide 4: Second Quarter - Highlights
Stepan Company: Highlights Second Quarter - Highlights NET INCOME and EBITDA GROWTH Earnings growth was driven by improved results within Polymers and Reported Net Income Adjusted Net Income(1) our Crop Productivity businesses, as well as a lower tax rate. $11.3MM $12.0MM +19% YoY +27% YoY VOLUME
Slide 5: Net Income Bridge
Stepan Company: Financial Results Net Income Bridge Q2 2024 to Q2 2025 $3.9 $12.0 $11.3 ($0.6) $9.5 $9.4 $2.0 ($0.1) ($1.1) ($0.1) ($2.0) $0.41 $0.52 Adj. EPS Adj. EPS Q2 2024 Adjustments(1) Q2 2024 Surfactants Polymers Specialty Corporate Taxes Q2 2025 Adjustments(3) Q2 2025 Reported Adjusted Opera
Slide 6: Adjusted EBITDA Bridge
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge Q2 2024 to Q2 2025 $3.8 $2.5 $51.4 $47.7 ($0.5) ($2.1) Q2 2024 Surfactants Polymers Specialty Products Corporate Q2 2025 Adj. EBITDA(1) Adj. EBITDA(1) Note: All amounts are in millions of U.S. dollars. Surfactants Adjusted EBITDA(1) decre
Slide 7: Surfactants
Stepan Company: Business Segments Surfactants Q2 2024 to Q2 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $40.9 $411.5 $35.0 $0.2 $1.0 $34.5 $379.8 ($5.5) ($1.6) ($3.7) Q2 2024 Volume Price/Mix F/X Q2 2025 Q2 2024 North America Latin America Europe Q2 2025 Net Sales Net Sales Adj. EBITDA(1) + Asia
Slide 8: Polymers
Stepan Company: Business Segments Polymers Q2 2024 to Q2 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $11.6 $1.2 $0.1 $25.6 $159.8 $3.6 $162.8 $2.5 $21.8 ($12.2) Q2 2024 Volume Price/Mix F/X Q2 2025 Q2 2024 North America Europe Asia + Q2 2025 Net Sales Net Sales Adj. EBITDA(1) Latin America Adj.
Slide 9: Balance Sheet & Cash Flow
Stepan Company: Financial Results Balance Sheet & Cash Flow Q2 2024 to Q2 2025 Net Debt(1) / TTM Adjusted EBITDA(2) ($MM) Capital Expenditures $MM 2.9 Net Debt/TTM 2023 260 Adj EBITDA 569 Ratio(3) 2024 123 197 Q2 2024 29.7 Net Debt(1) TTM Adjusted Q2 2025 25.6 EBITDA(2) 2025 Working Capital(5) Free
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 and Benefits Alkoxylates are a core surfactant technology consumed across Stepan’s key agricultural, oilfield, construction, and household end markets Business continue
Slide 12: Thank You
Stepan Company –> Growth Drivers Thank You Samuel S. Hinrichsen Global VP Finance & Investor Relations 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 301 260 123 120 - 125 Debt Repayments 38 38 49 69 Interest Net 10 12 14 23-25 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* * All amounts in this table are presented after-tax Reconciliation of Pre-Tax to After-Tax Adjustments 15
Slide 16: Adjusted EBITDA and EBITDA Reconciliations
Stepan Company: Appendix III Adjusted EBITDA and EBITDA Reconciliations Q2 2025 and Q2 2024(1) Adjusted EBITDA and EBITDA Reconciliations Q2 2025 and Q2 2024(1) (1) Refer to Income Statement on appendix VII for a bridge between Operating Income and Net Income. 16
Slide 17: Trailing Twelve Months
Stepan Company: Appendix IV Trailing Twelve Months Adjusted EBITDA Reconciliation 6/30/2025 TTM – Adjusted EBITDA Reported Operating Income 77.9 Depreciation & Amortization 117.1 Other Net Income (Expense) 2.4 Deferred Compensation (2.0) 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) Q2 2025 Q2 2024 Cash Flow from Operations 11.2 29.5 Capital Expenditures (25.6) (29.7) Free Cash Flow (14.4) (0.2) (million USD) 2024 2023 Cash Flow from Operations 162.1 174.9 Capital Expenditures (122.8) (260.3) Free Cas
Slide 19: Net Debt to Total Capitalization Ratio
Stepan Company: Appendix VI Net Debt to Total Capitalization Ratio June March December June 30, June 30, June 30, June 30, (millions USD) 30, 2025 31, 2025 31, 2024 2023 2022 2021 2020 Total Debt 658.0 659.3 625.4 682.6 526.0 238.9 207.9 Cash 88.9 107.5 99.7 133.9 194.6 127.1 272.9 Net Debt 569.1 55
Slide 20: Income Statement
Stepan Company: Appendix VII Income Statement 20