Stepan Company (NYSE: SCL) reported its financial results for the third quarter ended September 30, 2026, in an 8-K filing. The company reported net income of $17.8 million for the quarter, a 64% increase compared to the prior year. Adjusted net income was $21.7 million, up 98% year-over-year. The company also reported adjusted EBITDA of $66.3 million, an increase of 18% compared to the prior year.
Stepan’s net sales for the quarter were $692.2 million, representing a 17% increase from the prior year. This growth was attributed to higher selling prices, a 3% increase in sales volume, and favorable foreign currency translation. Organic sales volume increased by 7%.
Segment performance was mixed. Surfactants adjusted EBITDA increased by 27% to $48.2 million, driven by sales volume growth and margin recovery. Polymers adjusted EBITDA increased by 4% to $23.3 million, with volume growth offset by regulatory-mandated maintenance costs at the Germany site. Specialty Products adjusted EBITDA increased by 5% to $11.7 million, driven by double-digit volume growth.
During the quarter, the company recorded a $5.6 million pre-tax restructuring charge related to Project Catalyst, which included the reduction of approximately 100 salaried positions, or 7% of global salaried headcount. Additionally, in October, Stepan closed on the sale of a parcel of land near its Millsdale site for $28.5 million, with proceeds used to pay down debt.
On the capital allocation front, the company’s Board of Directors declared a quarterly cash dividend of $0.405 per share. The dividend is payable on December 15, 2026, to common stockholders of record as of December 1, 2026.
Year-to-date, Stepan reported a net loss of $0.7 million compared to net income of $41.9 million in the prior year. The current year loss is entirely attributed to a $76.1 million pre-tax restructuring charge. Adjusted net income year-to-date was $59.1 million, up 40% from the prior year.
