Stepan Company (SCL) 17th Annual Midwest IDEAS Conference summary

Company overview and market positioning

• Operates for 90 years as a leader in specialty and intermediate chemicals, serving diverse markets globally with 19 facilities in 11 countries.

• Main product lines are Surfactants (70% of sales), Polymers (25%), and Specialty Products, each targeting different end markets including consumer, industrial, agriculture, and pharma.

• Regional supply chain model reduces freight costs and exposure to tariffs and supply chain instability.

Strategic pillars and growth drivers

• Four main strategic pillars: customer-focused solutions, innovation, diversified growth, and operational excellence, all aimed at superior shareholder return.

• Innovation is tightly linked to customer needs, with 230 scientists and 14 application centers; 10% of annual sales come from new products.

• Diversification targets faster-growing, higher-margin segments such as oil field services, agriculture, and tier 2/3 customers.

• 75% of EBITDA now comes from priority growth segments outside legacy Surfactants commodities.

Operational excellence and Project Catalyst

• Project Catalyst aims for $100 million in savings over two years (60% in 2026, 40% in 2027) through footprint optimization, operational efficiencies, and organizational design.

• Actions include closing legacy sites, consolidating production in efficient facilities like Pasadena, Texas, and reducing 100 roles.

• Pasadena plant expected to reach 80% utilization by year-end, supporting insourcing and cost savings.