Cash flow generation is highly erratic, demonstrated by a 2026Q1 net loss of $41.4 million occurring alongside $16.9 million in operating cash flow, further strained by capital expenditures that reached 16.4% of revenue in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 157.87M | 147.88M | 162.05M | 174.88M | 160.76M | 72.14M | 235.22M | 218.43M | 171.13M | 198.86M | 212.16M | 183.27M | 81.95M | 150.31M | 108.97M | 77.38M | 66.13M | 166.44M | 29.13M | 47.08M | 38.83M | 42.09M | 43.86M | 45.57M | 46.07M | 53.43M | 53.53M | 50.6M | 58.8M | 62.9M | 65.8M |
| Operating CF Margin % | - | 6.34% | 7.43% | 7.52% | 5.8% | 3.07% | 12.58% | 11.75% | 8.58% | 10.33% | 12.01% | 10.32% | 4.25% | 7.99% | 6.04% | 4.2% | 4.62% | 13.04% | 1.82% | 3.54% | 3.31% | 3.9% | 4.69% | 5.81% | 6.15% | 7.51% | 7.66% | 7.59% | 9.63% | 10.81% | 12.26% |
| Operating CF Growth % | 276.87% | -8.74% | -7.33% | 8.78% | 122.86% | -69.33% | 7.69% | 27.64% | -13.95% | -6.27% | 15.76% | 123.63% | -45.48% | 37.94% | 40.83% | 17.01% | -60.27% | 471.37% | -38.12% | 21.24% | -7.75% | -4.04% | -3.74% | -1.08% | -13.77% | -0.2% | 5.79% | -13.95% | -6.52% | -4.41% | 88% |
| Net Income | -14.22M | 46.9M | 50.37M | 40.2M | 147.15M | 137.9M | 127.66M | 103.1M | 112.75M | 91.55M | 86.2M | 76.04M | 57.08M | 72.34M | 79.69M | 72.6M | 65.59M | 63.1M | 37.17M | 15.12M | 6.67M | 13.16M | 10.32M | 4.91M | 20.13M | 16.07M | 15.01M | 22.1M | 23.5M | 20.4M | 19.1M |
| Depreciation & Amortization | 129.72M | 126.04M | 112.2M | 105.34M | 94.65M | 90.88M | 81.86M | 78.7M | 81.11M | 79.02M | 74.97M | 66.98M | 63.8M | 56.4M | 51.29M | 47.1M | 40.35M | 37.17M | 36.93M | 37.18M | 38.38M | 38.77M | 39.17M | 41.43M | 40.12M | 39.97M | 39.28M | 39.5M | 37.3M | 35.3M | 32.1M |
| Stock-Based Compensation | 8.31M | 2.15M | 5.35M | 5.74M | 13.85M | 11.72M | 10.08M | 8.87M | 6.84M | 7.15M | 12.62M | 4.37M | -68K | 2.78M | 3.12M | 3.68M | 3.79M | 4.75M | 3.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -14.72M | -1.4M | -10.29M | 18.3M | -27.45M | -33.6M | -4.51M | -5.02M | 10.86M | 550K | -8.43M | 3M | 5.31M | 259K | 134K | 5.06M | 5.37M | 8.19M | 1.28M | 4.7M | -10.14M | -5.41M | -4.31M | -5.77M | -466K | -2.43M | -3.9M | 3.7M | 4.2M | 1.1M | -1.7M |
| Other Non-Cash Items | 56.24M | -3.78M | 1.64M | 7.22M | 1.52M | 6.76M | 9.91M | 13.43M | 5.26M | 5.54M | 23.99M | 9.87M | -4.52M | 10.7M | 4.31M | 3.7M | 1.76M | 7.87M | -13.44M | 3.46M | 4.47M | 2.42M | -1.14M | 1.47M | -1.46M | 526K | 1.74M | -10.2M | -7.6M | 1.9M | 18.5M |
| Working Capital Changes | -7.46M | -22.04M | 2.79M | -1.93M | -68.96M | -141.51M | 10.21M | 19.34M | -45.69M | 15.06M | 22.82M | 23.01M | -39.64M | 7.83M | -29.58M | -54.76M | -50.73M | 45.35M | -36.51M | -13.38M | -557K | -6.85M | -182K | 5.09M | -12.11M | -574K | 1.41M | -4.5M | 1.4M | 4.9M | -2.2M |
| Change in Receivables | 17.88M | 23.72M | 9.04M | 32.01M | -54.17M | -104.23M | -23.42M | 4.89M | 5.2M | -16.36M | -17.18M | 4.16M | -21.23M | -12.75M | 3.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 28M | 500K | -37.18M | 144.85M | -99.39M | -79.26M | -15.36M | 28.46M | -26.83M | 5.66M | -3.77M | 2.85M | -18.52M | -3.79M | -50.26M | -12.85M | -16.98M | 31.82M | -24.04M | -710K | -4.61M | -1.52M | -4.01M | -2.56M | -8.65M | -167K | -8.28M | 600K | -2.8M | 1.2M | 4.1M |
| Change in Payables | -49.88M | -32.71M | 33.97M | -158.92M | 54.17M | 44.41M | 38.79M | -13.24M | -18.19M | 28.84M | 44.29M | 16.41M | 3.55M | 19.95M | 21.78M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -85.55M | -89.05M | -116.94M | -258.67M | -308.09M | -376.83M | -139.03M | -112.67M | -107.81M | -82.68M | -130.52M | -125.97M | -109.22M | -167.56M | -87.45M | -101.39M | -97.25M | -34.74M | -43.05M | -35.32M | -48.49M | -41.56M | -28.09M | -34.19M | -35.49M | -56.76M | -29.56M | -33.7M | -63.7M | -40.2M | -48.5M |
| Capital Expenditures | -177.13M | -122.51M | -122.78M | -260.33M | -301.55M | -194.48M | -125.79M | -105.57M | -86.65M | -78.61M | -103.08M | -119.35M | -101.82M | -92.86M | -83.16M | -83.17M | -73.75M | -42.63M | -49.78M | -39.81M | -45.97M | -41.52M | -33.77M | -32.87M | -36.13M | -34.01M | -28.44M | -33.2M | -44.1M | -35.6M | -44.9M |
| CapEx % of Revenue | 7.56% | 5.25% | 5.63% | 11.19% | 10.87% | 8.29% | 6.73% | 5.68% | 4.35% | 4.08% | 5.84% | 6.72% | 5.28% | 4.94% | 4.61% | 4.51% | 5.15% | 3.34% | 3.11% | 2.99% | 3.92% | 3.85% | 3.61% | 4.19% | 4.83% | 4.78% | 4.07% | 4.98% | 7.22% | 6.12% | 8.37% |
| Acquisitions | 26.59M | 26.59M | 0 | 0 | -9.69M | -184.47M | -13.52M | -9M | -22.85M | -4.34M | -23.51M | -1.87M | 0 | -68.21M | 0 | -13.56M | -20.23M | 0 | 8.91M | 5.85M | 0 | 0 | 0 | 0 | -2.19M | -24.64M | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 65M | 6.88M | 5.83M | 1.67M | 3.16M | 2.13M | 277K | 1.91M | 1.68M | 269K | -3.94M | -5.65M | -8.31M | -7.18M | -4.83M | -6.27M | -4.05M | 4.29M | -2.33M | -1.35M | -2.52M | -37K | 5.68M | -1.32M | 2.83M | 1.89M | -1.12M | -500K | -19.6M | 400K | -3.6M |
| Cash from Financing | -44.6M | -35.44M | -64.52M | 33.28M | 166.21M | 117.33M | -64.93M | -90.49M | -51.65M | -50.5M | -29.77M | 42.93M | -15.49M | 76.25M | -29.48M | -2.1M | 42.37M | -41.96M | 17.11M | -11.85M | -1.75M | 9.78M | -14.09M | -10.07M | -9.86M | 4.21M | -24.4M | -13.9M | 300K | -21.9M | -15.6M |
| Debt Issued (Net) | -7.57M | 1.24M | -28.68M | 66.86M | 223.69M | 165M | -23.57M | -53.92M | -14.67M | -26.72M | -13.78M | 60.69M | 6.49M | 87.2M | -17.69M | 19.34M | 52.87M | -38.99M | 17.4M | -5.5M | 2.73M | 17.52M | -6.71M | -2.02M | -2.64M | 14.28M | -9.03M | 600K | 13.5M | -8.5M | -6.3M |
| Equity Issued (Net) | 316K | 104K | 1.11M | 2.79M | -24.95M | -16.97M | -15.25M | -13.18M | -15.5M | -6M | -2.41M | -2M | -7.92M | -2.27M | 2.38M | 1.72M | -4.91M | -1.93M | 0 | 1.82M | 3.3M | 506K | 655K | -450K | 576K | -1.44M | -7.33M | -7.2M | -5.9M | -6.6M | -3.5M |
| Dividends Paid | -35.31M | -35.03M | -33.95M | -32.87M | -30.57M | -28.08M | -25.41M | -23.1M | -20.86M | -18.91M | -17.33M | -16.3M | -15.39M | -14.47M | -12.76M | -11.51M | -10.57M | -9.56M | -8.86M | -8.43M | -8.15M | -7.87M | -7.73M | -7.58M | -7.34M | -7.35M | -7M | -6.7M | -6.4M | -6.1M | -5.8M |
| Share Repurchases | 0 | 0 | 0 | 0 | -24.95M | -16.97M | -15.25M | -13.18M | -15.5M | -6M | -2.41M | -2M | -7.92M | -2.27M | -2.1M | -1.51M | -4.91M | -1.93M | 0 | 0 | 0 | 0 | -30K | -2.71M | -2.02M | -4.59M | -8.73M | -8.3M | -8.4M | -8.9M | -3.5M |
| Other Financing | -2.04M | -1.76M | -3M | -3.5M | -1.96M | -2.62M | -705K | -289K | -622K | 1.13M | 3.74M | 104K | 1.33M | 5.8M | -1.4M | -11.65M | 4.98M | 8.52M | 8.57M | 257K | 370K | -380K | -302K | -26K | -452K | -1.29M | -1.03M | -600K | -900K | -700K | 0 |
| Net Change in Cash | 33.28M | 33.02M | -30.16M | -43.93M | 14.56M | -190.75M | 34.55M | 15.19M | 1.3M | 73.15M | 49.6M | 90.93M | -48.13M | 56.47M | -7.22M | -27.1M | 12.68M | 90.26M | 2.52M | 370K | -11.27M | 10.38M | 2.03M | 1.05M | -1.04M | 688K | -433K | 3M | 300K | -21.9M | -15.6M |
| Free Cash Flow | -19.26M | 25.37M | 39.28M | -85.46M | -140.79M | -122.35M | 109.42M | 112.86M | 84.48M | 120.25M | 109.09M | 63.92M | -19.86M | 57.45M | 25.81M | -5.79M | -7.62M | 123.81M | -20.65M | 7.26M | -7.14M | 573K | 10.1M | 12.7M | 9.93M | 19.41M | 25.09M | 17.4M | 14.7M | 27.3M | 20.9M |
| FCF Margin % | -0.82% | 1.09% | 1.8% | -3.67% | -5.08% | -5.22% | 5.85% | 6.07% | 4.24% | 6.25% | 6.18% | 3.6% | -1.03% | 3.05% | 1.43% | -0.31% | -0.53% | 9.7% | -1.29% | 0.55% | -0.61% | 0.05% | 1.08% | 1.62% | 1.33% | 2.73% | 3.59% | 2.61% | 2.41% | 4.69% | 3.89% |
| FCF Growth % | -121.72% | -35.41% | 145.96% | 39.3% | -15.07% | -211.81% | -3.04% | 33.58% | -29.74% | 10.23% | 70.65% | 421.81% | -134.58% | 122.58% | 545.85% | 24.05% | -106.16% | 699.62% | -384.41% | 201.65% | -1346.42% | -94.33% | -20.47% | 27.83% | -48.84% | -22.63% | 44.2% | 18.37% | -46.15% | 30.62% | 597.62% |
| FCF per Share | -0.84 | 1.11 | 1.71 | -3.72 | -6.10 | -5.25 | 4.71 | 4.84 | 3.62 | 5.14 | 4.72 | 2.80 | -0.87 | 2.51 | 1.14 | -0.26 | -0.34 | 5.73 | -0.98 | 0.36 | -0.38 | 0.03 | 0.56 | 0.70 | 0.51 | 1.00 | 1.28 | 0.89 | 0.69 | 1.24 | 0.94 |
| FCF Conversion (FCF/Net Income) | 1.35x | 3.15x | 3.22x | 4.35x | 1.09x | 0.52x | 1.86x | 2.12x | 1.52x | 2.17x | 2.46x | 2.41x | 1.44x | 2.06x | 1.37x | 1.08x | 1.01x | 2.64x | 0.78x | 3.11x | 5.82x | 3.20x | 4.25x | 9.28x | 2.29x | 3.32x | 3.57x | 2.29x | 2.50x | 3.08x | 3.45x |
| Interest Paid | 6.7M | 0 | 0 | 27.95M | 16.53M | 9.54M | 9.33M | 12.25M | 12.83M | 13.89M | 14.73M | 11.94M | 12.45M | 11.28M | 10.49M | 8.65M | 6.63M | 6.89M | 9.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -525K | 0 | 0 | 29.56M | 41.62M | 92.87M | 39.02M | 29.33M | 32.97M | 25.66M | 30.58M | 21.78M | 23.14M | 22.69M | 29.7M | 24.33M | 25.09M | 28.81M | 7.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Feedstock cost volatility
As reported in recent financial statements, the relationship between net income and operating cash flow is highly erratic, evidenced by a 2026Q1 net loss of $41.4 million alongside positive operating cash flow of $16.9 million, suggesting significant non-cash adjustments and accrual-based distortions in reported earnings.
The wide divergence between net income and operating cash flow indicates that reported profitability is frequently decoupled from actual cash generation. Investors should monitor this disconnect, as it suggests that accounting earnings may not be a reliable proxy for the company's underlying ability to fund operations through internal cash flows.
Based on quarterly data, Stepan's free cash flow trajectory is inconsistent, with negative FCF margins reaching -5.6% in 2025Q4, which highlights the company's struggle to maintain positive cash generation after accounting for necessary capital expenditures in a cyclical and capital-intensive chemical manufacturing environment.
The inability to consistently generate positive free cash flow suggests that the company's capital requirements often outpace its operational cash generation. This trend warrants further investigation into whether current capital spending is truly growth-oriented or merely required to maintain existing, low-margin production capacity.
According to recent SEC filings, working capital changes have been a major source of cash flow volatility, with a $44.0 million outflow in 2025Q1 followed by a $32.3 million inflow in 2025Q4, indicating that inventory and receivables management remains highly sensitive to fluctuating feedstock and demand cycles.
These sharp swings in working capital suggest that the company's cash position is heavily influenced by the timing of raw material purchases and customer payments. Such volatility complicates cash flow forecasting and may indicate that the company lacks the leverage to optimize its cash conversion cycle effectively.
As reported in financial statements, capital expenditures have remained elevated, peaking at 16.4% of revenue in 2025Q4, which suggests that the company is forced to commit significant capital to maintain its infrastructure despite the thin operating margins currently characterizing its core surfactant and polymer business segments.
The high capital intensity relative to revenue appears to be a structural burden that limits the company's financial flexibility. If these expenditures do not lead to a meaningful improvement in operating margins, the company may face continued pressure on its ability to sustain dividends and internal investment.
Quick answers to the most common questions about buying SCL stock.
Stepan Company (SCL) generated $147.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Stepan Company (SCL) generated $25.4M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Stepan Company (SCL) spent $122.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Stepan Company (SCL) returned $35.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.