Earnings analysis · 10-Q
SCL earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Stepan Company reported Q1 2026 revenues of $604.5 million, slightly below estimates of $615.9 million, while adjusted EPS of $0.45 exceeded the consensus estimate of $0.35. The company faced a significant restructuring…
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Stepan Company reported Q1 2026 revenues of $604.5 million, slightly below estimates of $615.9 million, while adjusted EPS of $0.45 exceeded the consensus estimate of $0.35. The company faced a significant restructuring charge of $65.4 million that contributed to a net loss of $41.4 million for the quarter, but organic sales increased 4% year-over-year.
Reported figures
- Earnings per share
- $0.45
- Segment
- Surfactants
- Segment
- Polymers
- Segment
- Specialty Products
What stood out
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Adjusted EPS Beats Estimates
Adjusted EPS was $0.45, surpassing the estimate of $0.35.
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Revenue Growth Despite Miss
Revenues increased by $11.2 million YoY to $604.5 million.
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Positive Operating Cash Flow
Operating cash flow improved to $16.9 million, up from $6.9 million YoY.
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Segment Growth in Specialty Products
Specialty Products revenue grew 24% year-over-year.
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Cash Increase
Cash and cash equivalents rose by $8.1 million to $140.8 million.
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Higher Selling Prices Impact Revenue
Sales benefited from a $25.3 million favorable foreign currency translation.
What to watch
-
Significant Restructuring Costs
The company recognized a $65.4 million pre-tax business restructuring charge.
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Net Loss Increased
Net loss was $41.4 million versus a profit of $19.7 million in 2025 Q1.
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Debt Levels Increased
Debt rose by $25 million to $651.7 million on March 31, 2026, from $626.7 million.
Management's outlook
The Company maintains positive guidance for full-year adjusted EBITDA growth and expects to achieve positive free cash flow.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.