Stepan Company Delivers Strong Q3 Results Amid Global Uncertainty
Stepping into a complex global economic landscape, Stepan Company has demonstrated its resilience and ability to adapt, delivering strong third quarter results for 2026. In a conference call on October 28, 2026, the company's leadership shared highlights from the quarter, showcasing growth in all three segments: Surfactants, Polymers, and Specialty Products.
President and Chief Executive Officer Luis Rojo emphasized the importance of safety, stating that it remains the top priority for the company. Notably, Stepan's safety performance over the last 12 months has remained strong, with a robust commitment from teams worldwide.
Organic volume growth was a notable highlight, reaching 7% across all segments. Surfactant organic volume grew 8%, with broad-based growth across most end markets. Polymers volume increased by 3%, driven by strong double-digit growth in North America. Specialty Products delivered an impressive 20% volume growth behind a solid innovation plan in their MCT product line.
Despite ongoing global economic uncertainties and supply chain disruptions, Stepan's pricing discipline and contractual pass-through mechanism effectively offset higher raw material costs. The company's Project Catalyst initiative continued to deliver savings, with projections exceeding the 60% target for 2026.
In addition to financial performance, Stepan's commitment to cash generation and balance sheet deleveraging remains a priority. Net leverage improved to 2.4 times, and free cash flow was positive at $8 million. The company also closed the sale of land near its Millsdale site for $28.5 million, which will be used to pay down debt.
Through the first nine months of 2026, adjusted EBITDA is up 15%, and adjusted earnings per share are up 40% versus the prior year. Stepan's leadership remains committed to a balanced approach to capital allocation, investing in working capital, executing its capital plan across sites, and paying dividends.
The company's quarterly dividend was increased by $, reflecting its dedication to returning value to shareholders.
