Stepan Company ( (SCL) ) has released its Q4 earnings. Here is a breakdown of the information Stepan Company presented to its investors.
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Stepan Company, a manufacturer of specialty and intermediate chemicals, is a leader in producing surfactants and polyurethane polyols, serving various industries including consumer cleaning and thermal insulation. In the fourth quarter of 2024, Stepan reported a net income of $3.4 million, a significant improvement from a net loss of $1.2 million in the previous year. However, adjusted net income fell by 63% due to increased pre-commissioning expenses and a one-time tax reserve in Latin America. Despite these setbacks, EBITDA increased by 39% year-over-year to $35.8 million.
The company’s surfactants segment saw a 3% increase in sales, driven by growth in agricultural and oilfield markets. In contrast, the polymers segment experienced a 12% decline in sales due to reduced demand and competitive pricing. Specialty products showed a strong 10% sales increase, attributed to higher sales volume and improved pricing. Despite these mixed results, Stepan achieved $13 million in pre-tax cost savings for the quarter and $48 million for the year.
Looking ahead to 2025, Stepan’s management is optimistic about improving adjusted EBITDA across all segments. The company plans to enhance execution to drive growth and margin improvement. With the upcoming start of operations at the Pasadena facility, Stepan expects to achieve volume growth and supply chain efficiencies, positioning the company for further financial gains.
