Revenue growth remains inconsistent, fluctuating from a 15.4% contraction in 2024Q1 to a modest 1.9% expansion by 2026Q1, while gross margins have compressed to 10.7%.
| 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 |
|---|
| Sales/Revenue | 2.34B | 2.33B | 2.18B | 2.33B | 2.77B | 2.35B | 1.87B | 1.86B | 1.99B | 1.93B | 1.77B | 1.78B | 1.93B | 1.88B | 1.8B | 1.84B | 1.43B | 1.28B | 1.6B | 1.33B | 1.17B | 1.08B | 935.82M | 784.86M | 748.54M | 711.52M | 698.94M | 666.8M | 610.5M | 581.9M | 536.6M |
| Revenue Growth % | 5.46% | 6.96% | -6.26% | -16.14% | 18.21% | 25.47% | 0.59% | -6.78% | 3.58% | 8.99% | -0.56% | -7.84% | 2.47% | 4.27% | -2.14% | 28.79% | 12.12% | -20.23% | 20.32% | 13.42% | 8.74% | 15.23% | 19.23% | 4.85% | 5.2% | 1.8% | 4.82% | 9.22% | 4.91% | 8.44% | 1.59% |
| Cost of Goods Sold | 2.08B | 2.06B | 1.91B | 2.05B | 2.35B | 1.95B | 1.49B | 1.52B | 1.65B | 1.59B | 1.43B | 1.47B | 1.68B | 1.6B | 1.51B | 1.59B | 1.2B | 1.04B | 1.43B | 1.19B | 1.05B | 955.51M | 824.85M | 681.12M | 626.01M | 604.29M | 547.63M | 506.3M | 461.6M | 442.5M | 408.3M |
| COGS % of Revenue | - | 88.43% | 87.51% | 88.06% | 84.6% | 83.13% | 79.48% | 81.72% | 82.87% | 82.43% | 80.83% | 82.65% | 87.05% | 85.02% | 83.84% | 86.13% | 83.51% | 81.74% | 89.4% | 89.37% | 89.27% | 88.61% | 88.14% | 86.78% | 83.63% | 84.93% | 78.35% | 75.93% | 75.61% | 76.04% | 76.09% |
| Gross Profit | 259.28M | 269.89M | 272.21M | 277.6M | 427.07M | 395.81M | 383.61M | 339.71M | 341.5M | 338.26M | 338.55M | 308.24M | 249.56M | 281.69M | 291.55M | 255.55M | 235.98M | 233.1M | 169.54M | 141.4M | 125.79M | 122.86M | 110.97M | 103.74M | 122.53M | 107.23M | 151.3M | 160.5M | 148.9M | 139.4M | 128.3M |
| Gross Margin % | 11.06% | 11.57% | 12.49% | 11.94% | 15.4% | 16.87% | 20.52% | 18.28% | 17.13% | 17.57% | 19.17% | 17.35% | 12.95% | 14.98% | 16.16% | 13.87% | 16.49% | 18.26% | 10.6% | 10.63% | 10.73% | 11.39% | 11.86% | 13.22% | 16.37% | 15.07% | 21.65% | 24.07% | 24.39% | 23.96% | 23.91% |
| Gross Profit Growth % | - | -0.85% | -1.94% | -35% | 7.9% | 3.18% | 12.92% | -0.52% | 0.96% | -0.08% | 9.83% | 23.51% | -11.4% | -3.38% | 14.09% | 8.3% | 1.23% | 37.49% | 19.9% | 12.41% | 2.38% | 10.72% | 6.97% | -15.33% | 14.27% | -29.13% | -5.73% | 7.79% | 6.81% | 8.65% | 0.39% |
| Operating Expenses | 202.37M | 200.51M | 201.73M | 218.99M | 219.73M | 225.03M | 212.09M | 212.45M | 187.5M | 191.33M | 205.29M | 188.31M | 154.86M | 171.49M | 162.84M | 137.1M | 128.08M | 128.22M | 117.25M | 110.49M | 109.93M | 97.39M | 91.79M | 93.94M | 88.6M | 76.4M | 119.28M | 118.7M | 103.5M | 95.1M | 87.9M |
| OpEx % of Revenue | - | 8.6% | 9.25% | 9.42% | 7.92% | 9.59% | 11.34% | 11.43% | 9.4% | 9.94% | 11.62% | 10.6% | 8.04% | 9.12% | 9.03% | 7.44% | 8.95% | 10.05% | 7.33% | 8.31% | 9.38% | 9.03% | 9.81% | 11.97% | 11.84% | 10.74% | 17.07% | 17.8% | 16.95% | 16.34% | 16.38% |
| Selling, General & Admin | 139.51M | 139.56M | 143.91M | 141.57M | 161.21M | 152.09M | 142.91M | 139.53M | 135.56M | 129.71M | 131.79M | 131.57M | 121.31M | 115.19M | 117.12M | 96.57M | 89.77M | 91.72M | 82.82M | 75.57M | 80.3M | 67.81M | 65.82M | 69.22M | 63.7M | 53.53M | 57.32M | 56.6M | 45.2M | 39.4M | 36.1M |
| SG&A % of Revenue | - | 5.98% | 6.6% | 6.09% | 5.81% | 6.48% | 7.64% | 7.51% | 6.8% | 6.74% | 7.46% | 7.41% | 6.29% | 6.12% | 6.49% | 5.24% | 6.27% | 7.19% | 5.18% | 5.68% | 6.85% | 6.29% | 7.03% | 8.82% | 8.51% | 7.52% | 8.2% | 8.49% | 7.4% | 6.77% | 6.73% |
| Research & Development | 59.62M | 59.28M | 55.67M | 59.04M | 66.63M | 62.69M | 57.99M | 55.04M | 54.26M | 53.87M | 56.09M | 50.24M | 45.45M | 46.81M | 45.71M | 40.52M | 38.31M | 36.49M | 34.44M | 31.46M | 29.64M | 29.59M | 25.97M | 24.72M | 24.9M | 22.87M | 22.68M | 22.6M | 21M | 20.4M | 19.7M |
| R&D % of Revenue | - | 2.54% | 2.55% | 2.54% | 2.4% | 2.67% | 3.1% | 2.96% | 2.72% | 2.8% | 3.18% | 2.83% | 2.36% | 2.49% | 2.53% | 2.2% | 2.68% | 2.86% | 2.15% | 2.37% | 2.53% | 2.74% | 2.77% | 3.15% | 3.33% | 3.21% | 3.24% | 3.39% | 3.44% | 3.51% | 3.67% |
| Other Operating Expenses | 2.47M | 1.67M | 2.15M | 18.38M | -8.11M | 10.25M | 11.2M | 17.88M | -725K | 3.32M | 828K | 1.58M | 1.29M | 2.17M | 1.33M | 0 | 0 | 0 | 0 | 3.47M | 0 | 0 | 0 | 0 | 0 | 0 | 39.28M | 39.5M | 37.3M | 35.3M | 32.1M |
| Operating Income | 56.91M | 69.38M | 70.48M | 58.61M | 207.34M | 170.78M | 171.52M | 127.26M | 151.42M | 154.84M | 126.19M | 122.79M | 90.69M | 109.15M | 128.72M | 118.46M | 107.9M | 104.89M | 70.68M | 35.09M | 15.85M | 25.47M | 19.18M | 9.8M | 33.93M | 30.83M | 32.03M | 41.8M | 45.4M | 44.3M | 40.4M |
| Operating Margin % | 2.43% | 2.98% | 3.23% | 2.52% | 7.48% | 7.28% | 9.17% | 6.85% | 7.59% | 8.04% | 7.14% | 6.91% | 4.71% | 5.8% | 7.14% | 6.43% | 7.54% | 8.22% | 4.42% | 2.64% | 1.35% | 2.36% | 2.05% | 1.25% | 4.53% | 4.33% | 4.58% | 6.27% | 7.44% | 7.61% | 7.53% |
| Operating Income Growth % | - | -1.56% | 20.25% | -71.73% | 21.4% | -0.43% | 34.78% | -15.96% | -2.21% | 22.7% | 2.77% | 35.39% | -16.91% | -15.2% | 8.66% | 9.79% | 2.87% | 48.4% | 101.4% | 121.38% | -37.75% | 32.79% | 95.78% | -71.13% | 10.05% | -3.73% | -23.38% | -7.93% | 2.48% | 9.65% | 23.17% |
| EBITDA | 186.68M | 195.42M | 182.68M | 163.95M | 301.99M | 261.66M | 253.38M | 205.96M | 232.53M | 233.86M | 201.16M | 189.78M | 154.5M | 165.55M | 180.01M | 165.56M | 148.25M | 142.06M | 107.61M | 72.27M | 54.24M | 64.24M | 58.35M | 51.22M | 74.05M | 70.8M | 71.31M | 81.3M | 82.7M | 79.6M | 72.5M |
| EBITDA Margin % | 7.97% | 8.38% | 8.38% | 7.05% | 10.89% | 11.15% | 13.55% | 11.08% | 11.66% | 12.15% | 11.39% | 10.68% | 8.02% | 8.8% | 9.98% | 8.98% | 10.36% | 11.13% | 6.73% | 5.43% | 4.63% | 5.96% | 6.24% | 6.53% | 9.89% | 9.95% | 10.2% | 12.19% | 13.55% | 13.68% | 13.51% |
| EBITDA Growth % | -3% | 6.98% | 11.42% | -45.71% | 15.41% | 3.27% | 23.02% | -11.43% | -0.57% | 16.26% | 6% | 22.83% | -6.68% | -8.03% | 8.73% | 11.67% | 4.36% | 32.02% | 48.9% | 33.25% | -15.57% | 10.09% | 13.91% | -30.83% | 4.58% | -0.7% | -12.29% | -1.69% | 3.89% | 9.79% | 14.72% |
| D&A (Non-Cash Add-back) | 129.77M | 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 |
| EBIT | 10.16M | 86.13M | 79.9M | 64.34M | 199.59M | 179.54M | 178.65M | 137.55M | 150.64M | 160.4M | 128.27M | 117.61M | 87.24M | 106.05M | 125.43M | 114.35M | 108.26M | 103.4M | 64.39M | 30.91M | 15.85M | 25.47M | 19.18M | 9.8M | 33.93M | 31.23M | 32.03M | 41.8M | 45.4M | 44.3M | 40.4M |
| Net Interest Income | -19.99M | -22.11M | -14.18M | -12.1M | -9.81M | -5.75M | -5.41M | -5.93M | -10.77M | -11.44M | -13.21M | -14.53M | -11.44M | -10.36M | -9.6M | -9.1M | -6.34M | -6.27M | -9.51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 121K | 4.11M | 5.28M | 3.84M | 1.08M | 1.25M | 2.17M | 5.72M | 1.83M | 2.08M | 1.25M | 217K | 262K | 57K | 112K | 359K | 439K | 0 | 284K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 20.11M | 26.23M | 19.46M | 15.95M | 10.89M | 7.01M | 7.58M | 11.65M | 12.6M | 13.52M | 14.45M | 14.75M | 11.7M | 10.41M | 9.71M | 9.45M | 6.78M | 6.27M | 9.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -76.16M | -9.48M | -10.04M | -10.22M | -18.63M | 1.76M | -455K | -1.36M | -11.5M | -15.6M | -14.01M | -19.93M | -15.16M | -13.52M | -12.99M | -13.56M | -6.42M | -7.76M | -15.8M | -11.38M | -8.46M | -7.82M | -4.55M | -4.53M | -3.66M | -5.3M | -7.63M | -7M | -6.6M | -9.4M | -8.1M |
| Pretax Income | -19.25M | 59.9M | 60.44M | 48.39M | 188.7M | 172.54M | 171.07M | 125.9M | 137.77M | 139.24M | 113.82M | 102.86M | 75.53M | 95.63M | 115.72M | 104.89M | 101.48M | 97.13M | 54.88M | 23.71M | 7.39M | 17.65M | 14.63M | 5.27M | 30.27M | 25.93M | 24.4M | 34.8M | 38.8M | 34.9M | 32.3M |
| Pretax Margin % | -0.82% | 2.57% | 2.77% | 2.08% | 6.8% | 7.35% | 9.15% | 6.77% | 6.91% | 7.23% | 6.44% | 5.79% | 3.92% | 5.08% | 6.42% | 5.69% | 7.09% | 7.61% | 3.43% | 1.78% | 0.63% | 1.64% | 1.56% | 0.67% | 4.04% | 3.64% | 3.49% | 5.22% | 6.36% | 6% | 6.02% |
| Income Tax | -5.03M | 13.01M | 10.07M | 8.19M | 41.55M | 34.64M | 43.41M | 22.8M | 26.66M | 47.69M | 27.62M | 26.82M | 18.45M | 23.29M | 36.03M | 32.29M | 35.89M | 34.03M | 17.61M | 8.69M | 900K | 4.17M | 4.32M | 360K | 10.14M | 9.73M | 9.39M | 12.7M | 15.3M | 14.5M | 13.2M |
| Effective Tax Rate % | 26.12% | 21.72% | 16.66% | 16.92% | 22.02% | 20.08% | 25.38% | 18.11% | 19.35% | 34.25% | 24.27% | 26.07% | 24.43% | 24.36% | 31.14% | 30.79% | 35.36% | 35.03% | 32.1% | 36.63% | 12.18% | 23.63% | 29.52% | 6.83% | 33.5% | 37.51% | 38.5% | 36.49% | 39.43% | 41.55% | 40.87% |
| Net Income | -14.22M | 46.9M | 50.37M | 40.2M | 147.15M | 137.8M | 126.77M | 103.13M | 112.76M | 91.58M | 86.19M | 75.97M | 57.1M | 72.83M | 79.4M | 71.98M | 65.43M | 63.05M | 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 |
| Net Margin % | -0.61% | 2.01% | 2.31% | 1.73% | 5.31% | 5.87% | 6.78% | 5.55% | 5.66% | 4.76% | 4.88% | 4.28% | 2.96% | 3.87% | 4.4% | 3.91% | 4.57% | 4.94% | 2.32% | 1.14% | 0.57% | 1.22% | 1.1% | 0.63% | 2.69% | 2.26% | 2.15% | 3.31% | 3.85% | 3.51% | 3.56% |
| Net Income Growth % | -125.31% | -6.9% | 25.29% | -72.68% | 6.78% | 8.7% | 22.92% | -8.54% | 23.13% | 6.25% | 13.46% | 33.04% | -21.59% | -8.27% | 10.31% | 10.01% | 3.77% | 69.61% | 145.88% | 126.66% | -49.31% | 27.46% | 110.22% | -75.6% | 25.24% | 7.09% | -32.09% | -5.96% | 15.2% | 6.81% | 18.63% |
| Net Income (Continuing) | -14.22M | 46.9M | 50.37M | 40.2M | 147.15M | 137.9M | 127.66M | 103.1M | 111.11M | 91.55M | 86.2M | 76.04M | 57.08M | 72.34M | 79.69M | 72.6M | 65.59M | 63.1M | 37.26M | 15.12M | 6.49M | 13.16M | 10.32M | 4.91M | 20.13M | 16.15M | 15.01M | 22.1M | 23.5M | 20.4M | 19.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 1.67M | 713K | 760K | 818K | 1.31M | 1.4M | 1.4M | 1.46M | 1.9M | 4.25M | 3.58M | 1.14M | 1.09M | 676K | 751K | 905K | 934K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.62 | 2.05 | 2.20 | 1.75 | 6.38 | 5.92 | 5.45 | 4.42 | 4.83 | 4.31 | 3.73 | 3.32 | 2.49 | 3.18 | 3.49 | 3.21 | 2.95 | 2.92 | 1.76 | 0.75 | 0.32 | 0.68 | 0.53 | 0.23 | 1.02 | 0.83 | 0.77 | 1.11 | 1.11 | 0.93 | 0.86 |
| EPS Growth % | -125.2% | -6.82% | 25.71% | -72.57% | 7.77% | 8.62% | 23.3% | -8.49% | 12.06% | 15.55% | 12.35% | 33.33% | -21.7% | -8.88% | 8.72% | 8.81% | 1.03% | 65.91% | 134.67% | 134.38% | -52.94% | 28.3% | 130.43% | -77.45% | 22.89% | 7.79% | -30.63% | 0% | 19.35% | 8.14% | 17.81% |
| EPS (Basic) | - | 2.05 | 2.21 | 1.77 | 6.46 | 6.01 | 5.52 | 4.47 | 4.90 | 4.39 | 3.78 | 3.34 | 2.51 | 3.22 | 3.71 | 3.44 | 3.18 | 3.16 | 1.91 | 0.77 | 0.32 | 0.69 | 0.53 | 0.23 | 1.09 | 0.87 | 0.84 | 1.18 | 1.24 | 0.99 | 0.90 |
| Diluted Shares Outstanding | 22.89M | 22.89M | 22.93M | 22.95M | 23.06M | 23.29M | 23.26M | 23.32M | 23.32M | 23.38M | 23.09M | 22.86M | 22.92M | 22.92M | 22.73M | 22.44M | 22.18M | 21.59M | 21.1M | 20.23M | 18.57M | 19.45M | 18.08M | 18.17M | 19.6M | 19.44M | 19.62M | 19.64M | 21.27M | 21.93M | 22.34M |
| Basic Shares Outstanding | 22.89M | 22.87M | 22.89M | 22.78M | 22.78M | 22.92M | 22.95M | 23.05M | 23.02M | 22.95M | 22.79M | 22.73M | 22.76M | 22.62M | 21.27M | 20.73M | 20.33M | 19.74M | 19.13M | 18.63M | 18.27M | 18.01M | 17.94M | 17.78M | 17.72M | 17.67M | 17.9M | 18.46M | 19M | 20.71M | 21.22M |
| Dividend Payout Ratio | - | 74.7% | 67.4% | 81.75% | 20.78% | 20.38% | 20.04% | 22.4% | 18.5% | 20.65% | 20.11% | 21.46% | 26.95% | 19.87% | 16.07% | 16% | 16.16% | 13.96% | 21.77% | 50.56% | 110.34% | 53.75% | 67.13% | 154.33% | 36.46% | 45.73% | 46.67% | 30.32% | 27.23% | 29.9% | 30.37% |
Feedstock cost volatility
According to quarterly financial data, Stepan's revenue growth has fluctuated significantly, moving from a 15.4% contraction in 2024Q1 to a modest 1.9% expansion by 2026Q1, suggesting that the company struggles to maintain a consistent top-line trajectory amidst shifting demand in its core surfactant and polymer segments.
The erratic revenue performance appears to reflect the company's sensitivity to cyclical end-markets like commercial construction and the inherent volatility of raw material pass-through pricing. Investors should monitor whether the recent return to positive growth is sustainable or merely a reflection of temporary pricing adjustments rather than genuine volume expansion.
As reported in recent income statements, Stepan's gross margin has compressed to 10.7% in 2026Q1, highlighting a persistent inability to expand profitability despite its role as a critical supplier to global consumer packaged goods firms, which suggests limited pricing power in a high-volume, commodity-linked processing environment.
The thin gross margin profile indicates that the company functions more as a high-volume processor than a specialty chemical innovator. This structural limitation leaves the firm highly vulnerable to feedstock inflation, as the current margin levels provide little buffer to absorb unexpected cost spikes without immediate and full price pass-throughs.
Based on the provided financial figures, operating income has failed to scale effectively with revenue, reaching only 2.6% in 2026Q1, which suggests that the company's fixed cost base remains heavy relative to its current gross profit generation, limiting the potential for meaningful operating leverage during periods of revenue growth.
The inability to drive significant operating margin expansion during revenue-positive quarters warrants further investigation into the company's cost structure. It appears that the firm's operational efficiency is currently hampered by high overheads that do not fluctuate in tandem with top-line performance, potentially signaling a need for structural cost rationalization.
Data from recent filings reveals that Stepan's net income has experienced extreme volatility, including a net loss of $41.4 million in 2026Q1, which suggests that non-operating items or tax anomalies may be significantly distorting the underlying quality of earnings reported to shareholders in any given quarter.
The wide variance between operating income and net income indicates that investors should look beyond headline EPS to understand the core business health. The recent net loss, despite positive operating income, suggests that external factors or accounting adjustments are creating noise that obscures the true operational performance of the surfactant and polymer divisions.
Based on the reported 2.98% operating margin, short-sellers may focus on the company's extreme sensitivity to feedstock price volatility, as the thin profitability buffer suggests that any sustained increase in raw material costs could rapidly erode the firm's ability to generate positive net income for shareholders.
The market's tendency to view Stepan as a defensive consumer staple play may be misplaced given its heavy reliance on volatile commodity inputs. If the company cannot successfully navigate the lag between raw material price changes and contract adjustments, the risk of further margin compression appears significant and warrants a cautious outlook.
Quick answers to the most common questions about buying SCL stock.
For fiscal year 2025, Stepan Company (SCL) reported total revenue of $2.33B. This represents a 334.6% increase compared to $536.6M in 1996.
Stepan Company (SCL) is profitable, generating $46.9M in net income for the fiscal year ending 2025 with a net profit margin of 2.0%.
Stepan Company (SCL) reported an operating income of $69.4M, resulting in an operating profit margin of 3.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Stepan Company (SCL) generated $269.9M in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.