Stepan Company · NYSE:SCL
Stepan — Q3 2025 Earnings Presentation
20 slides from Stepan's earnings presentation, Oct 29, 2025
Slide 1: Third Quarter 2025 Earnings Results
Third Quarter 2025 Earnings Results October 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 Third Quarter Invest in OrganicHighlights Growth 2 2025 Third Quarter Financial Results 3 Strategic Outlook 4 Q&A 5 Closing Remarks 3
Slide 4: Third Quarter - Highlights
Stepan Company: Highlights Third Quarter - Highlights NET INCOME DOWN The decrease in earnings was mainly driven by a higher effective tax Reported Net Income Adjusted Net Income(1) rate and higher interest net. $10.8MM $10.9MM EBITDA GROWTH Earnings growth was driven by improved results within
Slide 5: Net Income Bridge
Stepan Company: Financial Results Net Income Bridge Q3 2024 to Q3 2025 $23.6 $0.1 $23.7 $1.2 $6.5 $10.9 $10.8 ($11.7) ($1.3) ($7.5) ($0.1) $1.03 $0.48 Adj. EPS Adj. EPS Q3 2024 Adjustments(1) Q3 2024 Surfactants Polymers Specialty Corporate Taxes Q3 2025 Adjustments(3) Q3 2025 Reported Adjusted Oper
Slide 6: Adjusted EBITDA Bridge
Stepan Company: Financial Results Adjusted EBITDA(1) Bridge Q3 2024 to Q3 2025 $4.5 $56.2 $53.1 $5.9 ($6.2) ($1.1) Q3 2024 Surfactants Polymers Specialty Products Corporate Q3 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 Q3 2024 to Q3 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $41.4 $5.5 $422.4 $44.2 $382.7 ($2.9) $38.0 ($7.3) ($2.4) ($0.9) Q3 2024 Volume Price/Mix F/X Q3 2025 Q3 2024 North America Latin America Europe Q3 2025 Net Sales Net Sales Adj. EBITDA(1) + As
Slide 8: Polymers
Stepan Company: Business Segments Polymers Q3 2024 to Q3 2025 Net Sales Bridge Adjusted EBITDA(1) Bridge $12.6 $1.2 $23.4 $149.8 $2.9 $143.9 $22.4 ($1.9) ($0.3) ($21.4) Q3 2024 Volume Price/Mix F/X Q3 2025 Q3 2024 North America Europe Asia + Q3 2025 Net Sales Net Sales Adj. EBITDA(1) Latin America A
Slide 9: Balance Sheet & Cash Flow
Stepan Company: Financial Results Balance Sheet & Cash Flow Q3 2024 to Q3 2025 Net Debt(1) / TTM Adjusted EBITDA(2) ($MM) Capital Expenditures $MM 2.7 Net 2023 260 Debt/TTM 537 Adj EBITDA Ratio(3) 2024 123 Q3 2024 26.7 200 Q3 2025 29.6 Net Debt(1) TTM Adjusted 2025 Est. 118 - 123 EBITDA(2) 2025 Work
Slide 10: Strategic Priorities and Growth Drivers
Stepan Company: Growth Strategy Strategic Priorities and Growth Drivers Creating and Delivering Shareholder Value Greater Than GDP Growth Customer Intimacy Accretive Margins Expand Tier 2 & 3 Customer Base Limited Global Risk Exposure World Class R&D & Sustainability High-Margin / Custom
Slide 11: Strategic Capital Investments Update
Stepan Company: Strategic Investments Strategic Capital Investments Update New Alkoxylation Capacity: Pasadena, Texas – Summary and Benefits Alkoxylates are a core surfactant technology consumed across Stepan’s key agricultural, oilfield, construction, and household end markets Continued sales v
Slide 12: Thank You
Stepan Company –> Growth Drivers Thank You Ruben Velasquez Vice President & Chief Financial Officer +1-224-716-4673 12
Slide 13: Appendix
Appendix Additional Sources of Information and Definitions
Slide 14: Update on Certain Expectations
Stepan Company: Appendix I Update on Certain Expectations (millions USD) 2022 Actual 2023 Actual 2024 Actual 2025 Forecast Capital Expenditures 301 260 123 118 - 123 Debt Repayments 38 38 49 69 Interest Net 10 12 14 23 - 25 Depreciation & Amortization 95 105 112 125 – 130 Effective Tax Rate(1) (%) 2
Slide 15: Reconciliations
Stepan Company: Appendix II Reconciliations Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) Three Months Ended Nine Months Ended September 30, September 30, ($ in thousands, except per share amounts) 2025 EPS 2024 EPS 2025 EPS 2024 EPS Net Income Reported $ 10,839 $
Slide 16: Adjusted EBITDA and EBITDA Reconciliations
Stepan Company: Appendix III Adjusted EBITDA and EBITDA Reconciliations Q3 2025 and Q3 2024(1) Adjusted EBITDA and EBITDA Reconciliations Q3 2025 and Q3 2024(1) Three Months Ended September 30, 2025 Specialty Unallocated ($ in millions) Surfactants Polymers Products Corporate Consolidated Operating
Slide 17: Trailing Twelve Months
Stepan Company: Appendix IV Trailing Twelve Months Adjusted EBITDA Reconciliation 9/30/2025 TTM – Adjusted EBITDA Reported Operating Income 75.7 Depreciation & Amortization 121.8 Other Net Income (Expense) 2.9 Deferred Compensation (1.7) Cash Settled SARS 0.0 Goodwill and Other Intangibles Impairmen
Slide 18: Free Cash Flow (FCF)
Stepan Company: Appendix V Free Cash Flow (FCF) Reconciliations (million USD) Q3 2025 Q3 2024 Cash Flow from Operations 69.8 22.7 Capital Expenditures (29.6) (26.7) Free Cash Flow 40.2 (4.0) (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 September June March December September September September September September (millions USD) 30, 2025 30, 2025 31, 2025 31, 2024 30, 2024 30, 2023 30, 2022 30, 2021 30, 2020 Total Debt 655.5 658.0 659.3 625.4 688.5 649.4 564.9 279.
Slide 20: Income Statement
Stepan Company: Appendix VII Income Statement Three Months Ended Nine Months Ended September 30, September 30, 2025 2024 2025 2024 Net Sales $ 590,284 $ 546,842 $ 1,778,228 $ 1,654,665 Cost of Sales 519,261 471,157 1,559,857 1,439,147 Gross Profit 71,023 75,685 218,371 215,518 Operating Expenses: Se