olivLaw · US equity research
Stepan Company SCL
Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics · SIC 2840 · Vertical: Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics (SIC 2840)
Stepan Company (NYSE: SCL) makes surfactants, polyurethane polyols and other intermediate chemicals sold to other manufacturers for use in detergents, personal care products, insulation and coatings. The company's 2026 story is shaped by Project Catalyst, a cost and asset-optimization plan that has brought large restructuring charges in the first half. Net sales in fiscal 2025 were 2332.1 million USD, and the second quarter of 2026 showed clear operating improvement.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Stepan Company (SCL) stock was 70.65 USD (+2.90% on the day), with market capitalisation 1.6 bn USD, P/E 374.7 on diluted EPS of 0.19 USD over the last 12 months, dividend yield 2.24%, beta 0.92, 52-week range 42.38–70.65 USD. Latest reported quarter (Q3 2026): revenue of 692.2 m USD (+17.3% YoY), net income of 17.8 m USD (+64.3% YoY), diluted EPS 0.78 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 72.0
- overbought (≥ 70)
- Bollinger (20, 2)
- 58.05 – 71.57
- in the upper half of the band · %B 0.93 · band width 20.9%
- SMA 50 / 200
- 63.43 / 57.16
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 2.00 / 1.30
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.6% | −1.1% | +13.7 pp | — |
| 3 months | +9.9% | −0.5% | +10.4 pp | — |
| 6 months | +33.6% | +4.4% | +29.2 pp | — |
| Year to date | +49.2% | +12.3% | +36.9 pp | — |
| 1 year | +67.0% | +13.5% | +53.4 pp | +5.5% |
| 3 years | −9.1% | +76.4% | −85.5 pp | +15.9% |
| 5 years | −45.0% | +63.7% | −108.7 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 525.6 m | 593.3 m | 594.7 m | 590.3 m | 553.9 m | 604.5 m | 684.1 m | 692.2 m |
| Cost of revenue | 468.9 m | 517.8 m | 522.8 m | 519.3 m | 502.4 m | 539.7 m | 584.1 m | 604.6 m |
| Gross profit | 56.7 m | 75.5 m | 71.9 m | 71.0 m | 51.5 m | 64.9 m | 100.0 m | 87.6 m |
| Operating income | 7.7 m | 28.3 m | 18.0 m | 21.8 m | 10.5 m | -49.6 m | 37.2 m | 26.0 m |
| Depreciation & amortisation | 28.5 m | 29.3 m | 31.3 m | 32.7 m | 32.7 m | 32.9 m | 30.9 m | 31.3 m |
| Pre-tax income | 2.5 m | 24.7 m | 13.8 m | 16.5 m | 4.9 m | -54.5 m | 32.5 m | 19.8 m |
| Income tax | -894.0 k | 5.0 m | 2.4 m | 5.7 m | -65.0 k | -13.1 m | 9.6 m | 2.0 m |
| Net income | 3.4 m | 19.7 m | 11.3 m | 10.8 m | 5.0 m | -41.4 m | 22.9 m | 17.8 m |
| Diluted EPS | 0.15 ≈ | 0.86 | 0.50 | 0.47 | 0.22 ≈ | -1.81 | 1.00 | 0.78 |
| Operating cash flow | 68.3 m | 6.9 m | 11.2 m ≈ | 69.8 m ≈ | 60.0 m | 16.9 m | 8.4 m ≈ | 29.3 m ≈ |
| Capex | 36.2 m | 32.7 m | 25.6 m ≈ | 29.6 m ≈ | 34.6 m | 30.9 m | 23.4 m ≈ | 21.2 m ≈ |
| Dividends paid | 8.7 m | 8.7 m | 8.7 m ≈ | 8.7 m ≈ | 8.9 m | 9.0 m | 9.0 m ≈ | 9.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 38-quarter history (min 14.1, median 21.3, max 330.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.0 bn | 1.9 bn | 1.9 bn | 2.3 bn | 2.8 bn | 2.3 bn | 2.2 bn | 2.3 bn |
| Revenue YoY | +3.6% | −6.8% | +0.6% | +25.5% | +18.2% | −16.1% | −6.3% | +7.0% |
| Net income | 111.1 m | 103.1 m | 126.8 m | 137.8 m | 147.2 m | 40.2 m | 50.4 m | 46.9 m |
| Net income YoY | +10.3% | −7.2% | +22.9% | +8.7% | +6.8% | −72.7% | +25.3% | −6.9% |
| Diluted EPS | 4.76 | 4.42 | 5.45 | 5.92 | 6.38 | 1.75 | 2.20 | 2.05 |
| Diluted EPS YoY | +10.4% | −7.1% | +23.3% | +8.6% | +7.8% | −72.6% | +25.7% | −6.8% |
| net % | 5.6% | 5.5% | 6.8% | 5.9% | 5.3% | 1.7% | 2.3% | 2.0% |
| Free cash flow | 84.5 m | 112.9 m | 109.4 m | -122.3 m | -140.8 m | -85.5 m | 39.3 m | 25.4 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 132.7 m USD
- Financial debt
- 626.7 m USD
- Net debt
- 494.0 m USD
- Equity
- 1.2 bn USD
- Total assets
- 2.4 bn USD
- Debt / equity
- 0.50x
- Current ratio
- 1.29x
- ROE
- 3.9%
- ROA
- 2.0%
- FCF margin
- 1.1%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.9 bn | 2.3 bn | 2.8 bn | 2.3 bn | 2.2 bn | 2.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 1.5 bn | 2.0 bn | 2.3 bn | 2.0 bn | 1.9 bn | 2.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 383.6 m | 395.8 m | 427.1 m | 277.6 m | 272.2 m | 269.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Research & development | 36.0 m | 38.8 m | 40.9 m | 35.7 m | 33.5 m | 34.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 171.5 m | 170.8 m | 207.3 m | 58.6 m | 70.5 m | 78.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 81.9 m | 90.9 m | 94.7 m | 105.3 m | 112.2 m | 126.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 253.4 m ≈ | 261.7 m ≈ | 302.0 m ≈ | 164.0 m ≈ | 182.7 m ≈ | 204.6 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 9.9 m | 10.1 m | 17.9 m | 29.4 m | 33.0 m | 30.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | 171.1 m | 172.5 m | 188.7 m | 48.4 m | 60.4 m | 59.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 43.4 m | 34.6 m | 41.6 m | 8.2 m | 10.1 m | 13.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 126.8 m | 137.8 m | 147.2 m | 40.2 m | 50.4 m | 46.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 5.45 | 5.92 | 6.38 | 1.75 | 2.20 | 2.05 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 23.3 m | 23.3 m | 23.1 m | 22.9 m | 22.9 m | 22.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividend per share | 1.13 | 1.25 | 1.37 | 1.47 | 1.51 | 1.55 | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 349.9 m | 159.2 m | 173.8 m | 129.8 m | 99.7 m | 132.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | 218.8 m | 305.5 m | 402.5 m | 265.6 m | 288.7 m | 298.8 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 905.7 m | 913.4 m | 1.0 bn | 851.9 m | 810.4 m | 859.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 682.7 m | 850.6 m | 1.1 bn | 1.2 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 28.0 m | 97.2 m | 95.9 m | 97.4 m | 91.4 m | 92.6 m | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 24.1 m | 60.8 m | 58.0 m | 52.6 m | 42.7 m | 39.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 1.8 bn | 2.1 bn | 2.4 bn | 2.4 bn | 2.3 bn | 2.4 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 236.8 m | 323.4 m | 375.7 m | 233.0 m | 258.8 m | 261.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Short-term debt | 37.9 m | 40.7 m | 132.1 m | 252.9 m | 292.8 m | 285.7 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 160.8 m | 322.9 m | 455.0 m | 401.2 m | 332.6 m | 341.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 416.6 m | 500.5 m | 670.6 m | 607.9 m | 669.0 m | 666.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 988.4 m | 1.1 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn † | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 235.2 m | 72.1 m | 160.8 m | 174.9 m | 162.1 m | 147.9 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 125.8 m | 194.5 m | 301.6 m | 260.3 m | 122.8 m | 122.5 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 109.4 m ≈ | -122.3 m ≈ | -140.8 m ≈ | -85.5 m ≈ | 39.3 m ≈ | 25.4 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -139.0 m | -376.8 m | -308.1 m | -258.7 m | -116.9 m | -89.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | -64.9 m | 117.3 m | 166.2 m | 33.3 m | -64.5 m | -35.4 m | SEC (XBRL)· 26 Feb 2026verified |
| Dividends paid | 25.4 m | 28.1 m | 30.6 m | 32.9 m | 34.0 m | 35.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | 15.3 m | 17.0 m | 24.9 m | — | — | — | SEC (XBRL)· 28 Feb 2023verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 15 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 1.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation4
- Returns19
- Quality36
- Balance sheet15
- Growth0
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 5.63 – 27.39 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · equity is negative: the ratio is not economically meaningful (not by itself insolvency; usually the result of buybacks)
- Peers: EV/EBITDAunavailable · not enough peers
- Peers: P/E5.63 – 7.29 (Mid 6.50)3 companies used · median multiple 34.5x · quartiles 29.8x – 38.7xCHD, ECL, PG
- Dividend discount (DDM)20.37 – 27.39 (Mid 23.36)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 15/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 1.1% | 0 (on a fixed band) | 10% |
| Net margin · Quality | 0.2% | 33 (vs peers) | 6% |
| FCF conversion · Quality | 105.6% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | -5.6% | 0 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -31.5% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 3.5x | 13 (on a fixed band) | 10% |
| Interest coverage · Balance sheet | 0.8x | 0 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.3x | 44 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 374.7x | 0 (on a fixed band) | 10% |
| EV/EBITDA · Valuation | 14.1x | 8 (on a fixed band) | 10% |
| FCF yield · Valuation | 0.3% | 4 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 2.2% | 32 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 785.8% | 0 (on a fixed band) | 4% |
Score groups
- Balance sheet15/100 · 3/3 factors with a value
- Growth0/100 · 2/2 factors with a value
- Quality36/100 · 3/3 factors with a value
- Returns19/100 · 2/2 factors with a value
- Valuation4/100 · 3/3 factors with a value
Memo
STEPAN COMPANY (SCL). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 2.3 bn USD in 2025; YoY growth 7.0%; net margin 0.2%; ROE 0.4%; net debt/EBITDA 3.5x.
The estimated value range is 13.00–17.34 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 14.93 USD, the price of 70.65 USD leaves a potential of -78.9% (value / price − 1) and a margin of safety of -373.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 15/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 105.6%
What contradicts it
- ROIC: 1.1%
- Revenue CAGR 3Y: -5.6%
- EPS CAGR 3Y: -31.5%
- Net debt / EBITDA: 3.5x
- Interest coverage: 0.8x
- P/E (TTM): 374.7x
- EV/EBITDA: 14.1x
- FCF yield: 0.3%
- Payout ratio (FCF): 785.8%
- The price is above the estimated value range
- The valuation methods diverge
Versus the vertical median
Soap, Detergents, Cleang Preparations, Perfumes, Cosmetics (SIC 2840) · same industry (4-digit SIC) · compared with 6 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| PGPROCTER & GAMBLE Co | 387.8 bn | 25.2 | 29.4% | 18.2% | +3.3% | +13% / +9% |
| ECLEcolab Inc. | 88.4 bn | 42.9 | 20.7% | 12.0% | +2.2% | +14% / +64% |
| CHDChurch & Dwight Co., Inc. | 26.4 bn | 34.5 | 17.8% | 12.4% | +1.6% | +32% / +16% |
| SCLStepan Company | 1.6 bn | 374.7 | 0.4% | 0.2% | +7.0% | +67% / −9% |
| BYAHPark Ha Biological Technology Co., Ltd. | 56.5 m | — | -885.8% | -965.0% | +6.0% | −98% / unavailable |
| WNWMeiwu Technology Company Limited | 30.8 m | — | -34.2% | -262.5% | +4,368.0% | −98% / −100% |
| ULUnilever PLC | — | — | 53.3% | 18.7% | −3.8% | −2% / +25% |
1- and 3-year price returns: for SCL from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 38.08 Total return -46% · Per year -46% | 67.67 Total return -4% · Per year -4% | 102.40 Total return 45% · Per year 45% |
| 3 years | 30.24 Total return -57% · Per year -24% | 61.07 Total return -13% · Per year -4% | 102.40 Total return 46% · Per year 13% |
| 5 years | 24.01 Total return -65% · Per year -19% | 55.12 Total return -21% · Per year -5% | 102.40 Total return 46% · Per year 8% |
- Exit P/E± 15.27
- Net margin± 10.69
- Annual revenue growth± 9.65
- Annual dilution± 0.90
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (28 Oct 2026 · results).
In brief
Stepan Company (NYSE: SCL) makes surfactants, polyurethane polyols and other intermediate chemicals sold to other manufacturers for use in detergents, personal care products, insulation and coatings. The company's 2026 story is shaped by Project Catalyst, a cost and asset-optimization plan that has brought large restructuring charges in the first half. Net sales in fiscal 2025 were 2332.1 million USD, and the second quarter of 2026 showed clear operating improvement.
SWOT
Strengths
- The company is one of the leading merchant producers of surfactants in the world and serves a diversified customer base across many industries 1.
- Competition is based on product performance and technical assistance, not only on price, which may reduce price pressure 1.
- Sales growth and margin recovery in the second quarter of 2026 show the company's ability to pass through costs and grow volumes 3.
Weaknesses
- The 2026 restructuring has generated large charges that weigh on reported net income, especially in the first half 23.
- The company depends heavily on petroleum-based and plant-based raw materials whose prices can be volatile 1.
- Operations depend on the continued running of production facilities, and shutdowns could have significant effects 1.
Opportunities
- If Project Catalyst delivers its expected savings, the company could improve its cost structure and operating efficiency 12.
- Growth in strategic end markets such as crop productivity, oilfield and insulation polyols could support sales over the medium term 23.
- Investments made to reduce 1,4 dioxane content could help the company keep existing customers and pursue new market opportunities 1.
Threats
- Environmental and chemical safety rules such as REACH and TSCA could raise compliance costs and restrict some products 1.
- Geopolitical tensions and transport disruptions could raise shipping costs and delay deliveries 12.
- Customer reformulations or new technologies could reduce demand for existing products 1.
Risks
- Restructuring and implementation costshigh
Restructuring linked to Project Catalyst could bring higher charges than expected or savings below plan, which would affect financial results 13.
- Volatility of raw material and energy costshigh
If the company cannot pass higher costs on to customers, margins could be negatively affected 1.
- Plant disruptionsmedium
Accidents, unplanned shutdowns and floods could interrupt production and cause significant losses 1.
- Transport disruptionsmedium
Reliance on rail, sea and road transport could lead to higher costs and delivery delays 1.
- Environmental and safety regulationmedium
The company is subject to extensive laws on hazardous substances, and regulatory changes could raise compliance costs 1.
Investment thesis
What would need to be true (bull case)
- If the volume recovery seen in the second quarter of 2026 holds and Project Catalyst delivers its expected savings, the company could see higher adjusted earnings and better cash generation 3.
- Its leading position in surfactants and relationships across many industries could support demand even in periods of economic uncertainty 1.
- Asset optimization, including plant sales, could focus the company on the segments with the best growth prospects 12.
What would break the thesis
- If restructuring continues to generate large charges, reported net income could remain under pressure, especially in the second half of the year 23.
- If raw material and energy prices rise again without the ability to pass costs to customers, margins could decline 1.
- Part of the second quarter growth could reflect customer pre-buying, which could mean weaker demand later 3.
What to watch
- Realization of Project Catalyst savings and full-year restructuring charges2026
- Development of organic volumes in surfactants and polymersQ3 2026
- Free cash flow and debt reduction against the stated de-leveraging goal2026
- Effect of plant closures on fixed costs and delivery capacitynext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (28 Oct 2026 · results).
The business
Stepan Company, incorporated in Delaware, produces specialty and intermediate chemicals sold to other manufacturers for use in a variety of end products. It has three reportable segments: Surfactants, Polymers and Specialty Products 1. Surfactants are the basic cleaning agents in detergents, shampoos and cosmetics, while polymers include polyurethane polyols, polyester resins and phthalic anhydride used in insulation, coatings, adhesives and sealants 1. Specialty products are used in food, flavoring, nutritional supplement and pharmaceutical applications 1.
The company does not sell directly to retail and instead serves a wide range of manufacturers in many industries, competing on product performance, price, technical assistance and available capacity 1. Stepan describes itself as one of the leading merchant producers of surfactants in the world 1. It employed 2,328 persons at December 31, 2025 1.
A central element of the current picture is Project Catalyst, announced in February 2026 to optimize the asset base and cost structure 12. Under this program the company approved the shutdown of its Fieldsboro, New Jersey site and the decommissioning of select assets at Elwood (Millsdale) and Stalybridge (U.K.) 2. The company has also announced a reduction of its global salaried workforce by about 100 positions 3.
Segments
Surfactants
Surfactants accounted for 73 percent of consolidated net sales in the first six months of 2026 and 71 percent in 2025 12. They are the principal ingredients in detergents, industrial cleaning and disinfection products, shampoos and body washes 1. In the second quarter of 2026 segment net sales rose 18 percent to 483.9 million USD 3.
Polymers
Polymers, which include polyurethane polyols, polyester resins and phthalic anhydride, accounted for 24 percent of net sales in the first six months of 2026 2. Polyols are used in rigid insulation foam for construction and as a base for coatings, adhesives, sealants and elastomers 1. In the second quarter of 2026 segment net sales rose nine percent to 178.0 million USD 3.
Specialty Products
Specialty products are flavors, emulsifiers and solubilizers used in food, nutritional supplement and pharmaceutical applications, mainly manufactured at Maywood, New Jersey 1. They represented four percent of consolidated net sales in 2025 1, and segment net sales in the second quarter of 2026 rose eight percent 3.
Market context
Stepan operates in a market of intermediate chemical producers that supply the detergent, personal care, construction and agricultural industries 13. The company describes competition in surfactants as intense, coming from large global and regional producers and from the internal divisions of larger customers 1. Demand in strategic end markets could be shaped by global economic conditions and supply chain developments 23.
Stepan indicated that part of the second quarter 2026 strength could reflect customer pre-buying linked to the geopolitical situation 3. Over the longer term, customer product reformulations or new technologies could reduce demand for some existing products 1.
Trends
- Rising raw material costs passed to customersmixed
Higher raw material costs were passed through to customers and supported sales in 2025 and in the second quarter of 2026 13. If costs fall, the ability to keep passing prices through could become harder to sustain.
- Cost reduction through Project Catalysttailwind
The program targets significant savings, and while restructuring has already brought large charges, the savings could support margins over the longer term 12.
- Recovery in surfactant volumestailwind
Organic volume growth in surfactants and polymers in the second quarter of 2026 points to a demand recovery across several regions 3.
- Global economic and trade uncertaintyheadwind
The company cites conflicts, transport disruptions and changing trade policies that could affect costs and demand 12.
Competitive position
The company competes with several large global and regional surfactant producers, with the chemical divisions of large companies, and with smaller specialty chemical manufacturers 1. Its stated advantages rest on product performance, technical assistance and the ability to meet specific customer needs, not on price alone 1.
In polymers Stepan competes with the chemical divisions of large companies and with smaller specialty producers, while in specialty products it faces several large firms and numerous small companies 1. No specific competitors are named in the supplied sources.
- Chemical divisions of large companies
Compete in polymers, as described in the annual report; the firms are not named in the source.
- Internal divisions of large customers
Can make surfactants in-house, a competitive factor noted in the annual report.
- Large global and regional surfactant producers
The main competitor group in surfactants, not named in the source.
- Smaller specialty chemical manufacturers
Compete in polymers and specialty products, often in niche product lines.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- 🇺🇦 ⚡ On October 15, 1959, Stepan Andreyevich Bandera—leader and founder of the u…Telegram — Intel Slava Z (pro-RU OSINT EN) · 15 Oct 2026 · EN
- Ukraine’s SBU accuses Russian Volunteer Corps deputy commander Stepan Kaplunov of working for the FSB and plotting an Independence Day assassination. He says he was tortured into confessing.Meduza English (independent RU/exile) · 03 Sept 2026 · EN
- Ucraina anunță că a dejucat un complot terorist al FSB pentru uciderea unui lider al opoziției ruse. Cine este Stepan KaplunovAntena 3 CNN · 02 Sept 2026 · RO
The latest news item in our archive is from 15 Oct 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report04 Nov 2026
- Current report28 Oct 2026Results of operations · Other events · Financial statements and exhibits
- Current report28 Sept 2026Material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Quarterly report05 Aug 2026
- Current report29 Jul 2026Results of operations · Exit or disposal costs · Departure or appointment of officers · Other events · Financial statements and exhibits
- Quarterly report06 May 2026
- Current report30 Apr 2026Shareholder vote
- Current report28 Apr 2026Results of operations · Other events · Financial statements and exhibits
- Proxy statement25 Mar 2026
- Annual report26 Feb 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Stepan Company · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Stepan Company · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Stepan Company · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.