Stepan Q3 Net Income Up 64%, Adjusted EBITDA Up 18%; Dividend Raised for 59th Straight Year
SCL sits 55% above its 52-week low of $41.82 on elevated volume (2.0× avg).
Summary
Stepan posted Q3 net sales of $692.2M (up 17%) and adjusted EBITDA of $66.3M (up 18%), with adjusted EPS of $0.94 nearly doubling. The board also raised the quarterly dividend to $0.405 per share, the 59th consecutive annual increase.
Key Events · Earnings and Guidance · SCL
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Q3 Earnings Rebound Across All Segments
Net sales rose 17% to $692.2M, and reported net income was $17.8M, up 64% year-over-year; adjusted net income was $21.7M, up 98%.
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Adjusted EBITDA Up 18%
Consolidated adjusted EBITDA was $66.3M versus $56.2M a year ago, led by Surfactants at $48.2M (up 27%) on 8% organic volume growth and margin recovery.
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Restructuring Charge Distorts Nine-Month GAAP
A $76.1M pre-tax Project Catalyst charge drove a nine-month net loss of $0.7M; the Q3 portion was $5.6M and included roughly 100 salaried position reductions, or 7% of global salaried headcount.
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Dividend Raised for 59th Consecutive Year
The quarterly cash dividend increased by $0.010 to $0.405 per share, payable December 15, 2026 to holders of record December 1, 2026.
Analysis · SCL · Industrial Applications And Services
The recovery at Stepan is broadening: third-quarter net sales rose 17% to $692.2M and adjusted EBITDA climbed 18% to $66.3M, with all three segments improving and Surfactants adjusted EBITDA up 27%. Adjusted net income of $21.7M ($0.94 per diluted share) nearly doubled year-over-year, and management still expects full-year Adjusted EBITDA growth, positive free cash flow and further debt reduction in 2026. The GAAP picture remains distorted by the $76.1M year-to-date Project Catalyst restructuring charge, which pushed the nine-month result to a $0.7M loss; the quarter itself carried only $5.6M of that charge. Separately, the board raised the quarterly dividend to $0.405 per share — the 59th consecutive annual increase — and the company closed a $28.5M land sale near Millsdale with proceeds earmarked for debt paydown. Net debt of $536.0M and a 31% net debt ratio were roughly flat versus June 30.
How filings like this one have moved
In the 30 days to Oct 28, 2026, 30.5% of the 1494 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.03%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SCL was trading at $64.70 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $41.82 to $68.00. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.