Stepan reports Q3 adjusted EPS $1.03, consensus 65c

Reports Q3 revenue $546.84M, consensus $585M. “Team Stepan (SCL) delivered a solid quarter despite significant challenges. Third quarter adjusted EBITDA grew double digits driven by the Surfactant and Specialty Product businesses. Surfactants continued its volume recovery and experienced double-digit volume growth within the Agricultural, Oilfield and the Construction and Industrial Solutions end markets and also with our Distribution partners. Latin America Surfactant volume grew mid-single digits driven by strong demand within the Agricultural end markets in Brazil and new contracted business in Mexico,” said Luis E. Rojo, President and Chief Executive Officer. “Rigid Polyol volume was down 13% during the quarter due to soft demand and competitive pressures. We believe the sluggish demand is related to global macro-economic uncertainties including the high interest rate environment. Specialty Polyols volume and margins were up during the quarter. Global margins continue to improve and remain in line with expectations. Free Cash Flow for the quarter was in line with our expectations as we built inventory levels for the hurricane season and in anticipation of two Polymer plant turnarounds in October. The third quarter results are a testament to the resilience of Team Stepan and give us a strong base to grow from.”