Stepan Company (SCL) Q3 2026 Earnings Call: EBITDA Up 18%, Volume Up 7%
Source Tradingkey
Key Takeaways
- Stepan Company reported Q3 2026 adjusted EBITDA of $66.3 million, up 18% year over year, as organic volume growth, margin recovery and Project Catalyst savings offset higher corporate expenses.
- Adjusted net income rose 98% to $21.7 million, while adjusted diluted EPS increased to $0.94 from $0.48. Reported diluted EPS was $0.78 versus $0.47 a year earlier.
- Organic volume grew 7% across all three segments. Surfactants increased 8%, Polymers rose 3%, and Specialty Products advanced 20%.
- Surfactants led earnings growth, with adjusted EBITDA up 27% to $48 million. Pricing actions and contractual pass-through mechanisms offset higher raw material costs.
- Free cash flow was $8 million after $21 million of capital expenditures and a $32 million working capital build. Net leverage improved to 2.4x from 2.7x a year ago.
- Management expects full-year 2026 adjusted EBITDA growth, positive free cash flow and continued deleveraging. It also expects Project Catalyst savings of approximately $66 million to $70 million in 2026, above the original 60% milestone toward its two-year $100 million target.
Key Financial Data
| Metric | Q3 2026 | Year-over-year change / context |
|---|---|---|
| Reported net income | $17.8 million | Up 64% from $10.8 million |
| Reported diluted EPS | $0.78 | Up from $0.47 |
| Adjusted net income | $21.7 million | Up 98% from $10.9 million |
| Adjusted diluted EPS | $0.94 | Up from $0.48 |
| Adjusted EBITDA | $66.3 million | Up $10.1 million, or 18% |
| Organic volume | — | Up 7% |
| Free cash flow | $8 million | After $21 million of capital expenditures |
| Net debt | $536 million | Quarter-end balance |
| Net leverage | 2.4x | Improved from 2.7x a year earlier |
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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