Stepan Q2 net sales rise on surfactant, polymer growth; to cut jobs 

Overview

• U.S. specialty chemicals maker's Q2 net sales rose 15% year-over-year

• Adjusted EPS for Q2 more than doubled from prior year

• Company to cut about 100 salaried jobs under Project Catalyst initiative

Outlook

• Stepan expects full-year adjusted EBITDA growth in 2026

• Company anticipates positive free cash flow for full-year 2026

• Stepan aims to continue deleveraging its balance sheet in 2026

Result Drivers

• SURFACTANT AND POLYMER GROWTH - Co said higher sales volumes and margin recovery in Surfactant and Polymer segments drove earnings gains

• HIGHER SELLING PRICES - Co attributed increased net sales to higher selling prices from passing through raw material costs and improved product mix

• CUSTOMER PRE-BUYS - Co said quarter benefited from customer pre-buys due to global geopolitical situation

Company press release: ID:nPn7kZRLLa

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Stepan Co is $75.00, about 29.3% above its July 28 closing price of $58.01

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)