$SCL

STEPAN CO

CIK:0000094049|SEC Filings

Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Net Sales	$ 684,109	$ 594,689	$ 1,288,618	$ 1,187,944
Cost of Sales	584,127	522,804	1,123,785	1,040,596
Gross Profit	99,982	71,885	164,833	147,348
Operating Expenses:
Selling	14,866	14,657	27,032	26,765
Administrative	24,203	22,801	45,516	44,215
Research, development and technical services	17,195	14,701	32,188	29,350
Deferred compensation expense	1,402	1,761	1,964	765
Total Operating expenses	57,666	53,920	106,700	101,095
Business restructuring (Note 16)	5,106		70,545
Operating Income (Loss)	37,210	17,965	(12,412)	46,253
Other Income (Expense):
Interest, net	(5,682)	(5,485)	(10,693)	(9,611)
Other, net (Note 15)	1,021	1,306	1,165	1,808
Nonoperating Income (Expense), Total	(4,661)	(4,179)	(9,528)	(7,803)
Income (Loss) Before Provision for Income Taxes	32,549	13,786	(21,940)	38,450
Provision for Income Taxes	9,638	2,445	(3,445)	7,398
Net Income (Loss)	$ 22,911	$ 11,341	$ (18,495)	$ 31,052
Net Income (Loss) Per Common Share (Note 10):
Basic	$ 1	$ 0.5	$ (0.81)	$ 1.36
Diluted	$ 1	$ 0.5	$ (0.81)	$ 1.36
Shares Used to Compute Net Income Per Common Share (Note 10):
Basic	22,897	22,865	22,893	22,866
Diluted	22,924	22,879	22,893	22,885

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows From Operating Activities
Net income (loss)	$ (18,495)	$ 31,052
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	63,867	60,559
Deferred compensation (income) expense	1,964	765
Realized and unrealized loss on long-term investments	(1,085)	(1,074)
Stock-based compensation	3,620	3,064
Deferred income taxes	(10,855)	496
Business restructuring	63,537
Other non-cash items	662	412
Changes in assets and liabilities:
Receivables, net	(104,289)	(31,753)
Inventories	(24,229)	(30,652)
Other current assets	(5,116)	(10,765)
Accounts payable and accrued liabilities	56,407	(1,570)
Pension liabilities	(116)	(472)
Environmental and legal liabilities	348	(436)
Deferred revenues	(922)	(1,491)
Net Cash Provided By Operating Activities	25,298	18,135
Cash Flows From Investing Activities
Expenditures for property, plant and equipment	(54,294)	(58,346)
Other, net	7,978	6,878
Net Cash Used In Investing Activities	(46,316)	(51,468)
Cash Flows From Financing Activities
Revolving debt and bank overdrafts, net (Note 14)	41,300	(18,200)
Other debt borrowings		75,000
Other debt repayments	(20,714)	(24,286)
Dividends paid	(17,942)	(17,386)
Stock option exercises	294	104
Other, net	(1,738)	(1,974)
Net Cash Provided By Financing Activities	1,200	13,258
Effect of Exchange Rate Changes on Cash	835	9,314
Net Decrease in Cash and Cash Equivalents	(18,983)	(10,761)
Cash and Cash Equivalents at Beginning of Period	132,688	99,665
Cash and Cash Equivalents at End of Period	113,705	88,904
Supplemental Cash Flow Information
Cash payments of income taxes, net of refunds	9,629	4,590
Cash payments of interest	$ 14,208	$ 13,628

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current Assets:
Cash and cash equivalents	$ 113,705	$ 132,688
Receivables, net	492,342	387,959
Inventories (Note 6)	324,463	298,827
Other current assets	44,254	39,485
Total current assets	974,764	858,959
Property, Plant and Equipment:
Cost	2,764,435	2,787,036
Less: Accumulated depreciation	(1,621,823)	(1,567,409)
Property, plant and equipment, net	1,142,612	1,219,627
Goodwill, net	91,741	92,570
Other intangible assets, net	36,130	39,526
Long-term investments (Note 3)	14,507	21,270
Operating lease assets (Note 7)	58,071	62,494
Other non-current assets	74,841	63,256
Total assets	2,392,666	2,357,702
Current Liabilities:
Current maturities of debt (Note 14)	403,285	285,735
Accounts payable	321,664	261,723
Accrued liabilities	122,049	119,036
Total current liabilities	846,998	666,494
Deferred income taxes	10,998	11,450
Long-term debt, less current maturities (Note 14)	244,069	340,975
Non-current operating lease liabilities (Note 7)	45,028	49,340
Other non-current liabilities	33,527	45,433
Commitments and Contingencies (Note 8)
Equity:
Common stock, $1 par value; authorized 60,000,000 shares; 27,467,526 issued shares in 2026 and 27,301,177 issued shares in 2025	27,468	27,301
Additional paid-in capital	265,273	259,820
Accumulated other comprehensive loss (Note 11)	(136,676)	(138,974)
Retained earnings	1,249,315	1,285,752
Less: Common treasury stock, at cost, 4,735,033 shares in 2026 and 4,676,739 shares in 2025	(193,334)	(189,889)
Total Stepan Company stockholders’ equity	1,212,046	1,244,010
Total liabilities and equity	$ 2,392,666	$ 2,357,702