Stepan Company ( (SCL) ) has realeased its Q3 earnings. Here is a breakdown of the information Stepan Company presented to its investors.
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Stepan Company is a prominent manufacturer specializing in specialty and intermediate chemicals, with a key focus on surfactants and polyurethane polyols, serving a wide range of industries including consumer, industrial, and agricultural sectors globally.
In its third-quarter 2024 earnings report, Stepan Company showcased a significant improvement in financial performance, with a reported net income of $23.6 million, marking an 88% increase from the previous year. The company’s adjusted net income rose by 61%, primarily driven by higher margins and a favorable effective tax rate.
The company’s EBITDA and adjusted EBITDA also saw year-over-year growth, rising by 18% and 11% respectively. Despite a 1% decline in global sales volume, the company achieved double-digit growth in several surfactant end markets, counterbalanced by weakness in polymer demand. Notably, Stepan is progressing towards its 2024 cost reduction target of $50 million, already realizing $13.3 million in savings in the third quarter.
Looking ahead, Stepan Company’s management remains focused on strategic growth initiatives, particularly within the surfactant segment, which is experiencing robust volume growth. The company is optimistic about demand recovery in the Rigid Polyol market as macroeconomic conditions stabilize, and anticipates continued improvement in free cash flow and adjusted EBITDA for the full year.
