Stepan (SCL) Reports 42% Net Income Increase

By Tamara Parker • Tuesday, April 29 10:31 • Permanent Link

Stepan Company (NYSE: SCL) has reported its first quarter 2025 results, showing significant growth across various financial metrics. The reported net income for the first quarter was $19.7 million, marking a notable 42% increase compared to the prior year. Adjusted net income also saw a substantial rise, reaching $19.3 million, up 32% versus the prior year.

The company's EBITDA was reported at $58.0 million, reflecting a 16% increase year-over-year, while adjusted EBITDA reached $57.5 million, up 12% compared to the prior year. Global sales volume also experienced growth, rising by 4% year-over-year.

In terms of net sales, there was an 8% increase, reaching $593.3 million for the first quarter of 2025 compared to $551.4 million in the prior year. Operating income saw a significant surge, reaching $28.3 million, up 40% versus the prior year.

Surfactants, polymers, and specialty products segments all contributed to the overall growth in net sales. Surfactants net sales were up 10% at $430.3 million, while polymers saw flat net sales at $146.1 million, and specialty products experienced an 11% increase, reaching $16.8 million.

The company's financial performance was further illustrated through its segment operating income. Surfactants, polymers, and specialty products reported operating incomes of $28.9 million (up 11%), $8.0 million (down 4%), and $5.5 million (up 29%) respectively for the first quarter of 2025.

The positive financial results were also reflected in the earnings per diluted share, which stood at $0.86, marking a 41% increase compared to the prior year. Adjusted earnings per diluted share reached $0.84, up 31% versus the prior year.

Notably, the company's effective tax rate decreased to 20.1% in the first quarter of 2025 from 28.6% in the first quarter of 2024, primarily due to favorable discrete items associated with a tax audit settlement.

Despite facing market uncertainties, including the impact of tariffs, Stepan Company remains cautiously optimistic about delivering full-year adjusted EBITDA and adjusted net income growth, as well as positive free cash flow in 2025.

The market has reacted to these announcements by moving the company's shares 8.6% to a price of $52.34. For more information, read the company's full 8-K submission here.

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