NYSE$SCL

Stepan Company · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Stepan's financial performance was mixed, with net income increasing but adjusted net income decreasing due to specific expenses.

Stepan Company reported a net income of $3.4 million, a significant increase compared to the prior year's net loss of $1.2 million. However, adjusted net income decreased by 63% to $2.8 million due to higher pre-commissioning expenses, a one-time tax proceeding reserve, and CEO transition costs. Cash from operations was $68.3 million, and free cash flow was $32.1 million. The company delivered $13.0 million in pre-tax cost out savings.

  • Net income increased to $3.4 million, while adjusted net income decreased by 63% to $2.8 million.
  • EBITDA was $35.8 million, and adjusted EBITDA was $35.0 million, up 39% and down 7% respectively, year-over-year.
  • Cash from operations was $68.3 million, and free cash flow was $32.1 million.
  • The company delivered $13.0 million in pre-tax cost out savings.

Headline financials

Total Revenue

$526M

Previous: $532M-1.2%
EPS (adj)

$0.12

Previous: $0.33-63.6%
Surfactant Operating Income

$16.2M

No prior period
Polymer Operating Income

$3.4M

No prior period
Specialty Product Op Income

$5.59M

No prior period
Corporate Expenses

$17.5M

No prior period
Adjusted Net Income

$2.76M

No prior period
EBITDA

$35.8M

No prior period
Adjusted EBITDA

$35M

No prior period
Total Debt

$625M

No prior period
Net Debt

$526M

No prior period
Net Debt / (Net Debt + Equity)

31.0%

No prior period
Net Receivables

$388M

No prior period
Inventories

$289M

No prior period
Accounts Payable

$259M

No prior period
Global Sales Volume Change

0.0%

No prior period
Capital Expenditures

-$36.2M

Previous: $46.7M-177.5%
Net Income

$3.35M

Previous: -$1.19M+380.8%
Operating Income

$7.7M

Previous: $230K+3245.7%
Gross Profit

$56.7M

Previous: $66.4M-14.6%
R&D Expense

$13.8M

Previous: $15.3M-10.0%

Revenue & EPS history

Stepan · Revenue · Quarterly

$526M

Q4 2024-1.2%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Stepan · $562M total across 3 segments · Q3 2023

  • Surfactants
    $374M-21.3%
  • Polymers
    $170M-21.1%
  • Specialty Products
    $18.8M-36.2%

Forward guidance

Stepan expects Adjusted EBITDA to improve in all reporting segments in 2025. The company anticipates volume growth, margin improvement, and free cash flow generation, with the Pasadena facility expected to contribute to volume growth and supply chain savings.

Tailwinds

  • Anticipated improvement in Adjusted EBITDA across all reporting segments.
  • Focus on accelerating business strategies through improved execution.
  • Expected volume growth and margin improvement.
  • Pasadena facility start-up in Q1 2025 to drive volume growth and supply chain savings.
  • Optimism for Polymer demand increase through innovation and growth plans.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

-0.5%

Avg return

Earnings day

-1.1%

Avg return

5 days after

-0.7%

Avg return

30 days after

43%

28 / 65 earnings

Positive

+12.4%

Q1 2015

Best reaction

-20.4%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%-0.7%-2.7%
Q4 2025-20.4%-24.3%-25.2%
Q3 2025-0.4%-4.1%+2.2%
Q1 2025+7.1%+13.8%+15.2%
Q4 2024+0.1%-0.0%-7.3%
Q3 2024-0.8%-0.2%+5.4%
Q2 2024-11.0%-18.9%-13.8%
Q1 2024-0.6%+1.4%+0.2%
Q4 2023-2.5%-2.3%-3.2%
Q3 2023+7.9%+9.1%+18.7%
Q2 2023-3.8%-0.6%-10.1%
Q1 2023-10.2%-7.2%-5.8%
Q4 2022-2.4%-4.5%-13.3%
Q3 2022-2.9%-0.3%+10.5%
Q2 2022+8.6%+5.4%+2.0%
Q1 2022+4.9%+3.9%+11.7%
Q4 2021-3.5%-5.6%-9.7%
Q3 2021+2.4%+1.2%+1.9%
Q2 2021-0.1%+0.2%-1.0%
Q1 2021-0.7%-0.8%+2.1%
Q4 2020-2.9%-2.1%+4.7%
Q3 2020-0.5%+2.0%+7.0%
Q2 2020+7.5%+7.6%+12.8%
Q1 2020-1.9%-0.3%+4.8%
Q4 2019-1.6%-8.3%-26.6%
Q3 2019+0.1%+3.6%+1.4%
Q2 2019+3.7%+3.2%-2.0%
Q1 2019-0.2%-0.2%-6.2%
Q4 2018+1.5%+0.9%-7.7%
Q3 2018+3.0%+1.0%-2.1%
Q2 2018+5.3%+6.4%+8.8%
Q1 2018-17.2%-18.5%-20.0%
Q4 2017+5.8%+10.3%+11.3%
Q3 2017-7.0%-7.3%-4.3%
Q2 2017-7.2%-10.2%-15.9%
Q1 2017+9.7%+4.8%+7.4%
Q4 2016-10.3%-5.9%-0.7%
Q3 2016+6.6%+2.9%+11.9%
Q2 2016+4.2%+2.4%+11.6%
Q1 2016+6.6%
Q4 2015+12.0%
Q3 2015+8.8%
Q2 2015-10.6%
Q1 2015+12.4%
Q4 2014-0.6%
Q3 2014-5.2%
Q2 2014-1.5%
Q1 2014-1.7%
Q4 2013-5.1%
Q3 2013+0.6%
Q2 2013+0.7%
Q1 2013-11.4%
Q2 2010-0.5%
Q4 2012-0.1%
Q3 2012-3.8%
Q2 2012-8.0%
Q1 2011+3.6%
Q1 2012+3.9%
Q4 2009+4.7%
Q4 2011+4.7%
Q3 2011-4.5%
Q3 2010-4.5%
Q4 2010-2.0%
Q2 2011-2.0%
Q1 2010+1.7%

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