Stepan Q3 revenue rises on higher prices, volume

Overview

• Specialty chemicals maker's Q3 revenue rose 17% yr/yr

• Adjusted EPS for Q3 nearly doubled from prior year

• Company recorded $5.6 mln restructuring charge tied to Project Catalyst job cuts

Outlook

• Company expects full-year 2026 adjusted EBITDA growth

• Stepan expects positive free cash flow for full-year 2026

• Company aims to continue reducing balance sheet leverage in 2026

Result Drivers

• VOLUME GROWTH - Co said global and organic sales volume increases contributed to higher earnings

• HIGHER SELLING PRICES - Co said increased selling prices, mainly from passing through higher raw material costs and pricing actions, drove revenue

• PROJECT CATALYST - Co attributed margin recovery and cost savings to Project Catalyst restructuring

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Stepan Co is $76.95, about 18% above its October 27 closing price of $65.21

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 28 - Germany's Symrise Q3 organic sales rise 5.3% on higher volumes

• Oct 27 - Sherwin-Williams Q3 sales beat estimates on higher pricing

• Oct 28 - Netherlands' Corbion Q3 revenue rises year-on-year, maintains 2026 outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)