Skip to content
SCL

STEPAN CO

STEPAN CO Q4 FY2024 earnings call

February 19, 2025 · fiscal period ended 2024-12

EPS · actual vs est

$0.12 / $0.45Miss -73.3%

Revenue · actual vs est

$525.6M / $581.4MMiss -9.6%
Ask about this call

Summary

Generated 2025-02-19

Management highlights

Customer Focus

  • Tier one customers are a solid foundation; continuing to acquire tier two and three customers as a key growth channel.

End Market Diversification

  • Ag business grew 30% in 2024 second half; oilfield and construction/industrial solutions grew double digits in 2024.

Polymers Strategy

  • Focus on developing rigid polytechnologies for energy efficiency; introducing new products in the spray foam end market.

Cost and Operational Excellence

  • Recognized $48 million in pretax cost savings in 2024; invested in supply chain resiliency.

Pasadena Facility

  • Near completion, expected to start up in Q1 2025; full contribution run rate expected in H2 2025.
View in transcript ↓

Segment performance

Surfactant: Q4 net sales were $379 million, a 3% increase vs prior year. Adjusted EBITDA increased $3 million or 10% vs prior year. Full year, surfactant Specialty Products delivered strong double-digit adjusted EBITDA growth. Polymer: Q4 net sales were $130 million, a 12% decrease vs prior year. Adjusted EBITDA decreased $9 million or 44% vs prior year. Specialty Products: Q4 net sales were $17 million, a 10% increase vs prior year. Adjusted EBITDA increased 65%.

View in transcript ↓

Guidance

2025 Outlook

  • Expect adjusted EBITDA improvement in all reporting segments.
  • Pasadena facility start-up in Q1 2025 to enable volume growth and supply chain savings.
  • Aim for full-year adjusted EBITDA and adjusted net income growth and positive free cash flow in 2025.
View in transcript ↓

Risks

  • Prospects for foreign operations, global and regional economic conditions.
  • Currency fluctuations, particularly the euro.
  • Impact of one-time events affecting earnings in prior years.
View in transcript ↓

Q&A highlights

Q: Dave Storms asked about the runway for Ag in surfactants.

A: Luis Rojo said ag grew 30% in 2024 second half and expects double-digit growth in 2025 first half.

Q: Mike Harrison inquired about surfactants price mix and 2025 EBITDA.

A: Luis Rojo discussed customer and product mix, and the impact of one-time events on 2024 EBITDA.

Q: Kevin Holder asked about Pasadena depreciation and currency sensitivity.

A: Luis Rojo talked about depreciation guidance and euro currency risk as a key concern.

View in transcript ↓

Key numbers

Reported versus consensus

Earnings calendar feed

MetricReportedConsensusDeltaPrior year
EPS$0.12$0.45-73.3%$0.33
Revenue$525.6M$581.4M-9.6%$532.1M

Transcript

February 19, 2025

Full transcript unavailable for redistribution

The structured summary above covers the available call sections. Full transcript text is not included on this page.

Continue exploring

Prior quarters

This page presents the stored structured earnings-call summary and deterministic earnings calendar values. How this is generated. For informational purposes only; not investment advice.