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July 29, 2026 Second Quarter 2026 Earnings Results
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Safe Harbor 2 Certain information in this presentation consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). These statements include statements about Stepan Company’s plans, objectives, strategies, financial performance and outlook, trends, the amount and timing of future cash distributions, prospects or future events and involve known and unknown risks that are difficult to predict. As a result, Stepan Company’s actual financial results, performance, achievements or prospects may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “aim,” “anticipate,” “believe,” “estimate,” “guidance,” “predict,” “potential,” “continue,” “likely,” “will,” “would,” “should,” “illustrative” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by Stepan Company and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. These statements are not guarantees of future performance, and stockholders should not place undue reliance on forward-looking statements. There are a number of risks, uncertainties and other important factors, many of which are beyond Stepan Company's control, that could cause actual results to differ materially from the forward-looking statements contained in this presentation. Such risks, uncertainties and other important factors include, among other factors, the risks, uncertainties and factors described in Stepan Company's Form 10-K, Form 10-Q and Form 8-K reports and exhibits to those reports, and include (but are not limited to) risks and uncertainties related to: our ability to realize cost savings or operating efficiencies associated with strategic initiatives, including Project Catalyst; accidents, unplanned production shutdowns or disruptions in manufacturing facilities; reduced demand due to customer product reformulations or new technologies; our inability to successfully develop or introduce new products; compliance with laws and other legal restrictions, including those relating to the international scope of our business; domestic and global competition; volatility of raw material and energy costs and supply; disruptions in transportation or significant changes in transportation costs; downturns in certain industries and general economic downturns; international business risks, including changes in global trade policies, tariffs, and retaliatory measures and countermeasures; currency exchange rate fluctuations; changes in tax policy and potential adverse tax consequences due to the international scope of our business; downgrades in our credit ratings or our ability to access the credit or capital markets if and when necessary; global political, military, security or other instability and increased security regulations; costs, delays and miscalculations in capacity needs related to expansion or other capital projects; interruption or breaches of information technology systems; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; our ability to retain executive management and key personnel; and issues relating to compliance with our debt covenants. In addition to the risks described in the Company's periodic reports, the restructuring actions described herein may involve risks related to the execution of facility closures and asset decommissioning, potential operational disruptions, impacts on employees and local communities, environmental compliance, and the realization of anticipated cost savings and efficiencies. These forward-looking statements are made only as of the date hereof, and Stepan Company undertakes no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.
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(1) EBITDA and Adjusted EBITDA are Non-GAAP measures. See Appendices IV and V for GAAP reconciliations. 3 Q2 2026 Highlights Stepan Company: Quarter Highlights Adjusted EBITDA(1) of $74.4MM, up 45% YoY Broad-based organic volume growth (+6%), margin recovery and Catalyst savings Solid pricing execution in an inflationary market Well-executed price increases and pass-through mechanisms offsetting raw material inflation from global supply chain disruption Project Catalyst on track Savings ramping as planned; workforce reduction announced for the second half of 2026 Cash and Balance Sheet deleveraging focus Working capital build on raw material costs and strong demand, offset by solid cash from operations before working capital. Net leverage ratio at 2.5X Safety Performance Record Performance in the last 12 months
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4 Stepan Company: Macro Environment Regional production close to our customers Manufacturing across all key Regions/Markets. Great advantage in the U.S. with a broad Footprint. Acting decisively on price to protect margins Pass-through mechanisms and targeted increases expected to offset feedstock inflation Securing feedstocks and prioritizing customer supply Dual petrochemical and oleochemical raw material streams provide flexibility against disruption Maintaining financial and operational discipline Focused on cost reduction, working capital efficiency, and free cash flow generation Stepan is well-positioned to manage disruption from the Middle East Conflict
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Stepan Company: Financial Results (1) Adjusted Net Income/Loss and Adjusted EPS are Non-GAAP measures that exclude certain significant, non-recurring items. See Appendix II for GAAP reconciliations. (2) See Appendix III for Adjustments Details. (3) Corporate Expenses & All Other consists of the following buckets: I. Corporate Expense of ($2.7) million, II. Other, net of $0.0 million, and III. Interest Expense of ($0.2) million. Adjusted Net Income(1) Bridge 5 Q2 2025 to Q2 2026 Note: All amounts are in millions of U.S. dollars. $12.0 $14.6 $37.8 $27.1 $2.6 $21.0 $5.3 Q2 2025 Adjusted Net Income(1) Tax Provision Q2 2025 Pre-Tax Income Surfactants Operating Income Tax Provision Q2 2026 Adjusted Net Income(1) Q2 2026 Pre-Tax Income Corporate Expenses & All Other(3) ($2.8) Specialty Products Operating Income ($0.3) Polymers Operating Income ($10.8) +126% $0.52 Adj. EPS(2) $1.18 Adj. EPS(2)
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Stepan Company: Financial Results Adjusted EBITDA(1) Bridge 6 Note: All amounts are in millions of U.S. dollars. (1) EBITDA and Adjusted EBITDA are Non-GAAP measures. See Appendices IV and V for GAAP reconciliations. Q2 2025 to Q2 2026 Surfactants: +$20.4MM (+59%) – Broad-based organic volume growth and margin recovery; strategic end markets (Tier 2 / Tier 3, Oilfield services, and Crop Productivity) combined grew high single digits. Polymers: +$5.7MM (+22%) – Volume growth and global margin improvement. North American Rigid and Phthalic Anhydride businesses delivered double digit growth. Specialty Products: ($0.3MM) (-3%) – Volume growth; margin impacted by less favorable product mix within MCT product line, mostly offset by stronger food & flavor earnings. Corporate Expenses: ($2.7MM) – Normal inflation and higher incentive-based compensation reflecting stronger results. $51.4 $74.4 $20.4 $5.7 Q2 2025 Adj. EBITDA(1) Surfactants Polymers ($0.3) Specialty Products ($2.7) Corporate Q2 2026 Adj. EBITDA(1) +45%
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Stepan Company: Business Segments 7 Adjusted EBITDA(1) BridgeNet Sales Bridge Note: All amounts are in millions of U.S. dollars. Note: All amounts are in millions of U.S. dollars. Surfactants Q2 2025 to Q2 2026 (1) EBITDA and Adjusted EBITDA are Non-GAAP measures. See Appendices IV and V for GAAP reconciliations. $411.5 $483.9 $9.9 $47.3 $15.2 Q2 2025 Net Sales Volume Price/Mix F/X Q2 2026 Net Sales +18% $34.5 $54.9 $8.8 $10.8 $0.7 Q2 2025 Adj. EBITDA(1) North America + Asia Latin America Europe Q2 2026 Adj. EBITDA(1) +59% Organic Volume (ex-divestitures) increased 7% year-over-year; broad-based organic growth across all end markets and regions; led by Industrial Cleaning, Laundry, Construction and Industrial and Oilfield. Price/Mix increased 12%, driven by disciplined pass-through of higher raw material costs, improved product and customer mix, and pricing actions. F/X positively impacted net sales by 4%. North America and Asia earnings improved on Industrial Cleaning and Oilfield growth and recovery of Q1 production timing and absorption. Latin America earnings increase driven by double-digit organic volume growth, pricing execution and margin recovery. Europe earnings up modestly on organic growth in the quarter; anchored in Laundry, HI&I, and Construction & Industrial segments.
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8 Stepan Company: Business Segments Net Sales Bridge Adjusted EBITDA(1) Bridge Note: All amounts are in millions of U.S. dollars. Note: All amounts are in millions of U.S. dollars. Polymers Q2 2025 to Q2 2026 (1) EBITDA and Adjusted EBITDA are Non-GAAP measures. See Appendices IV and V for GAAP reconciliations. $162.8 $178.0 $7.4 $6.0 $1.9 Q2 2025 Net Sales Volume Price/Mix F/X Q2 2026 Net Sales +9% $25.5 $31.2 $5.0 $0.9 Q2 2025 Adj. EBITDA(1) North America Europe Asia + Latin America Q2 2026 Adj. EBITDA(1) ($0.2) +22% Volume increased 5% year-over-year — North America up strong double-digit driven by Rigid Polyol and Phthalic Anhydride, partially offset by Europe and Asia. Price/Mix increased 4% on pass-through of higher raw material costs and margin recovery. F/X positively impacted net sales by 1%. North America EBITDA up $5.0MM on strong Rigid Polyol and Phthalic Anhydride volume growth and margin improvement. Spray foam product line volume growth of >3X year on year. Europe improved modestly as margin recovery offset continued soft construction demand. Asia and Latin America slightly lower on softer demand in China.
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Stepan Company: Financial Results Balance Sheet & Cash Flow 9 (1) Net Debt is a Non-GAAP measure. See Appendix VII for a GAAP reconciliation. (2) TTM Adjusted EBITDA is a Non-GAAP measure. See Appendix VIII for a GAAP reconciliation. (3) Net Debt / TTM Adjusted EBITDA Ratio is a Non-GAAP measure. See Appendix VII for a GAAP reconciliation. Q2 2025 to Q2 2026 FREE CASH FLOW(5) – Quarterly LEVERAGE RATIO — Net Debt(1) / TTM Adj. EBITDA(2) (4) Includes the following components of Working Capital: accounts receivable, inventory, accounts payable. (5) Free Cash Flow is a Non-GAAP measure. See Appendix VI for GAAP reconciliations. WORKING CAPITAL(4) – Quarter-End Balances -26 -14 40 25 -14 -15 -$40M -$20M $0M $20M $40M Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 448 490 471 425 437 495 $300M $400M $500M Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 2.9x 2.9x 2.7x 2.5x 2.7x 2.5x 1.0 2.0 3.0 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 + $58MM Investment Net Debt $534MM vs. $569MM Q2 2025 TTM Adjusted EBITDA $214MM vs. $197MM Q2 2025 2.5x Leverage Ratio(3) vs. 2.9x Q2 2025
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Stepan Company: Strategy Delivering Superior Shareholder Value Through a Balanced Growth Strategy 10
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Stepan Company: Project Catalyst 11 Project Catalyst Strengthening our Foundation for Long-Term Excellence Project Catalyst is a comprehensive operational and efficiency initiative designed to deliver approximately $100 million in pre-tax savings over the next two years, with an expected ~60% realized in 2026. This program will streamline our global manufacturing footprint and strengthen the foundation for sustainable and profitable growth. Operational Efficiency & Cost Optimization Optimize production and reduce cost by consolidating volumes into our network at efficient sites and high- performing assets, enhancing scale, reliability and productivity Footprint Optimization Organizational Effectiveness Implement clear accountabilities across businesses and functions and focus resources to capture market opportunities to advance the Company’s growth strategy. Around 100 roles of salaried workforce to be reduced by end of year. Capturing procurement savings while advancing productivity through end-to-end operational excellence $~100MM In Pre-Tax Savings
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Stepan Company –> Growth Drivers 12 Thank You Ruben Velasquez Vice President & Chief Financial Officer +1-847-446-7500
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Appendix Additional Sources of Information and Definitions
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Stepan Company: Appendix I (millions USD) 2024 Actual 2025 Actual 2026 Forecast Capital Expenditures 123 123 100 – 110 Debt Repayments* 49 63 59 Interest Net 14 22 24 – 26 Depreciation & Amortization 112 126 125 – 130 Effective Tax Rate (%) 17% 22% 24 – 26% 14 Update on Certain Expectations * Scheduled Principal Payments of Private Placement Notes
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Stepan Company: Appendix II Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) Reconciliation of Pre-Tax to After-Tax Adjustments 15 (1) All amounts in this table are presented after-tax Reconciliations Q2 2025 to Q2 2026
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Stepan Company: Appendix III Reconciliation of Non-GAAP Adjusted Net Income and Earnings Per Diluted Share(1) 16 (1) All amounts in this table are presented after-tax Q2 2025 to Q2 2026 Reconciliations – Cont.
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Stepan Company: Appendix IV Adjusted EBITDA and EBITDA Reconciliations Q2 2026 and Q2 2025(1) (1) Refer to Income Statement on appendix V for a bridge between Operating Income and Net Income. 17 Reconciliations – Cont. Q2 2025 to Q2 2026
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Stepan Company: Appendix V 18 Income Statement Q2 2025 to Q2 2026
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Stepan Company: Appendix VI (million USD) 2025 2024 2023 Cash Flow from Operations 147.9 162.1 174.9 Capital Expenditures (122.5) (122.8) (260.3) Free Cash Flow 25.4 39.3 (85.5) (million USD) Q2 2026 Q2 2025 Cash Flow from Operations Before Working Capital 1 56.1 44.9 Cash Flow from Operations 8.4 11.2 Capital Expenditures (23.4) (25.6) Free Cash Flow (15.0) 2 (14.4) 19 Free Cash Flow (FCF) Reconciliations – Cont. (1) Includes the following components of Working Capital: accounts receivable, inventory, accounts payable & other accrued liabilities and other current assets (2) Includes $6.0 million of cash payments related to restructuring activities
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Stepan Company: Appendix VII (millions USD) June 30, 2026 March 31, 2026 December 31, 2025 June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 Total Debt 647.4 651.7 626.7 658.0 646.0 711.0 537.1 Cash 113.7 140.8 132.7 88.9 125.8 127.0 236.0 Net Debt 533.7 510.9 494.0 569.1 520.2 584.0 301.1 Equity 1,212.0 1,193.0 1,244.0 1,241.7 1,214.5 1,189.9 1,116.7 Net Debt + Equity 1,745.7 1,703.9 1,738.0 1,810.8 1,734.7 1,773.9 1,417.8 Net Debt / (Net Debt + Equity) 31% 30% 28% 31% 30% 33% 21% Net Debt/TTM Adjusted EBITDA Ratio = 534/214 = 2.5 20 Net Debt to Capital Trend June 2022 – Q2 2026 (Quarterly)
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Stepan Company: Appendix VIII 06/30/2026 TTM – Adjusted EBITDA Reported Operating Income 19.9 Depreciation & Amortization 129.3 Other Net Income (Expense) 2.8 Deferred Compensation 0.6 Cash Settled SARS 0.0 Goodwill and Other Intangibles Impairment Expense 6.2 Business Restructuring & Asset Impairment Expense 70.5 Environmental Remediation Expense 0.7 Adjusted EBITDA 214.2 21 Trailing Twelve Months Reconciliations – Cont.
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(USD millions) Total Cash Impact Estimate 1 Non-Cash Impact 2026 Cash Expense 2026 Q2 YTD Cash Expense Full Year 2026 Cash Expense 2027-2035 Low High Low High Decommissioning, Dismantling & Environmental 2 $24 $34 - $3 $6 - $8 $18 $26 Severance and People Related 3 $8 $10 - $4 $8 - $10 - - Asset Write-Offs/Accelerated Depreciation - - $62 - - - - Total $32 $44 $62 $7 $14 - $18 $18 $26 2 Decommissioning, dismantling and environmental costs reflect estimated cash expenditures associated with site closures, asset decommissioning and related compliance activities. Estimates are subject to variability based on the scope and timing of environmental assessments, regulatory review processes and remediation requirements . 1 Estimates reflect a preliminary range and are subject to change. Variability within the range is primarily driven by uncertai nties associated with the scope, timing and outcomes of environmental testing at the Fieldsboro, NJ facility, including the potential identification of conditions requiring additional remediation or regulatory actions. 3 Severance and people related costs include employee separation, transition and benefit costs, as well as other costs directly related to the restructuring and organizational effectiveness actions undertaken as part of Project Catalyst. These costs exclude ongoing operating expenses and costs not directly associated with the restructu ring actions described herein. 22 Stepan Company: Appendix IX Estimated Cash Impact – Site Closure & Select Asset Decommissioning (Project Catalyst) NOTE: The company anticipates recognizing restructuring charges in the range of $75 to $80 million in 2026; consistent with the February 2026 press release.