Stepan Company (SCL) Investor presentation summary

Strategic vision and growth drivers

• Focus on innovative chemical solutions for cleaner, healthier, and more energy-efficient outcomes, leveraging customer-driven innovation and application leadership.

• Diversification across surfactants, polymers, and specialty products, with a strong presence in North America, Europe, Latin America, and Asia.

• Emphasis on operational excellence, asset optimization, and disciplined capital allocation to drive superior shareholder value.

• Sustainability recognized through industry awards and certifications, including ISCC PLUS and EcoVadis top percentile ranking.

• Strategic partnerships and digital transformation initiatives accelerate innovation and customer-centric solutions.

Financial performance and priorities

• Net sales reached $2.33 billion in 2025, with adjusted EBITDA of $198.9 million and an 8.5% margin.

• Net income for 2025 was $46.9 million, with basic EPS of $2.05.

• Maintained a strong balance sheet with $1.24 billion in equity and net debt of $494 million at year-end 2025.

• 58 consecutive years of increasing dividends, reflecting a commitment to shareholder returns.

• Financial priorities include EBITDA growth, deleveraging, free cash flow improvement, and targeted investments in innovation and sustainability.

Operational excellence and Project Catalyst

• Project Catalyst aims to deliver $100 million in pre-tax savings over two years, with 60% expected in 2026.

• Initiatives include site closures and asset decommissioning in New Jersey, UK, and Illinois to optimize production and reduce costs.

• Standardization of global operations and enhanced performance monitoring to unlock productivity and margin expansion.

• Estimated cash impact for restructuring actions ranges from $29–$44 million, with additional non-cash asset write-offs.

• Focus on continuous improvement, automation, and data analytics to drive reliability and cost efficiency.