Stepan Co (SCL)

Stepan Co.'s stock has been impacted by several events in the past six months. The company reported lower than expected Q2 2025 earnings per share and revenue, leading to a negative stock reaction. Weiss Ratings upgraded Stepan's stock to "hold", while Wall Street Zen lowered its rating to "hold", and Zacks Research raised its rating to "hold". The stock has underperformed the US Chemicals industry and the broader US Market over the past year. Samuel S. Hinrichsen resigned as CFO effective October 31, 2025. A company director, F. Quinn Stepan Jr., sold shares worth $501,569 in August 2025. Stepan declared a quarterly dividend of $0.385 per share, payable in September 2025. Stepan announced a 25% increase in its Alpha Olefin Sulfonates (AOS) production capacity in June 2025. The company's Q1 2025 results showed adjusted net income up 32% and adjusted EBITDA up 12% year-over-year, with volume growth in Surfactants, Polymers, and Specialty Products.

Demand for Stepan Co.'s products is influenced by various factors. Demand for cleaning agents and energy-saving insulation remains consistently solid. The company's performance is heavily dependent on the health of the manufacturing sector and can be affected by broad economic slowdowns. There has been lower demand in the global commodity consumer products market, while the agricultural and oilfield end markets have shown double-digit volume growth. Growth in North American and European rigid polyols volume has been restrained by global macroeconomic uncertainties and high interest rates. The Specialty Products segment's adjusted EBITDA has been impacted by changes in order timing.

Stepan Co. is a global specialty chemicals manufacturer founded in 1932 and headquartered in Northfield, Illinois. The company operates in three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment produces ingredients for cleaning products, agricultural chemicals, and oilfield solutions. The Polymers segment focuses on materials used in thermal insulation, coatings, adhesives, and sealants. The Specialty Products segment offers niche chemicals for food, flavoring, nutritional supplements, and pharmaceutical applications.

Stepan Co. operates globally with facilities in over 20 countries. The company offers its products and services across four major regions: North America, Europe, Latin America, and APAC.

Stepan Co. faces potential reputational damage from product liability claims and litigation. A criminal social engineering scheme resulted in a $6.8 million one-time expense, impacting administrative expenses and one of the company's operations in Asia. Explicit details on how these events have specifically impacted Stepan Co.'s overall brand reputation in the public eye or with customers beyond financial implications are not readily available.

Institutional investors hold a significant portion of Stepan Co.'s shares, with approximately 82.70% owned by institutional investors. Major institutional owners include BlackRock, Inc., Vanguard Group Inc., HighTower Advisors, LLC, Westwood Holdings Group Inc., iShares Core S&P Small-Cap ETF, Dimensional Fund Advisors Lp, State Street Corp, First Trust Advisors Lp, Deprince Race & Zollo Inc., and VTSMX - Vanguard Total Stock Market Index Fund Investor Shares. Key individual owners include F. Quinn Stepan Jr., F. Quinn Stepan, and Gregory Servatius.