1. SCL's 2024 net sales fell 6% compared to 2023. 2. Surfactants business saw 2.5% growth; Polymer demand weakened. 3. Increased dividend marks 57th consecutive year despite challenges. 4. Pasadena site expected to enhance alkoxylation business in 2025. 5. Adjusted EBITDA decreased 7% year-over-year due to various pressures.
Future adjustments in business strategy may enhance profitability, similar to past recovery instances.
The combination of financial data and strategic outlook is likely to impact investor sentiment significantly.
Upcoming projects and market improvements may yield sustainable growth beyond one quarter.
"While we are disappointed with our overall financial performance in 2024, we advanced our strategic investments and took necessary steps to return the Company to profitable growth. I am proud of the resilience, hard work and dedication of the entire organization. Full year Adjusted EBITDA grew 4% versus prior year despite several one-time events that negatively impacted earnings and the pre-operating expenses in our new Pasadena site," said Luis E. Rojo, President and Chief Executive Officer. "Surfactants and Specialty Products delivered strong double-digit Adjusted EBITDA growth, partially offset by demand weakness in Polymers. Overall, global sales volume grew 1%, driven by 2.5% growth in our Surfactant business. We are encouraged by the Surfactant growth within several of our key strategic end markets. We delivered $39 million of free cash flow, which was in line with our expectations, and we increased our dividend for the 57th consecutive year. We completed the majority of our new Pasadena, Texas site which is critical to growing our alkoxylation business. Our strong foundation, combined with the cost reductions and strategic investments we have made, position us well to deliver future growth."
($ in thousands, except per share data)
| Category | 2024 | 2023 | % Change | 2024 | 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Sales | $525,609 | $532,131 | (1%) | $2,180,274 | $2,325,768 | (6%) |
| Operating Income | $7,695 | $230 | NM | $70,480 | $58,613 | 20% |
| Net Income | $3,350 | $(1,193) | NM | $50,370 | $40,204 | 25% |
| Earnings per Diluted Share | $0.15 | $(0.05) | NM | $2.20 | $1.75 | 26% |
| Adjusted Net Income * | $2,757 | $7,485 | (63%) | $50,470 | $50,692 | (0%) |
| Adjusted Earnings per Diluted Share * | $0.12 | $0.33 | (64%) | $2.20 | $2.21 | (0%) |
* See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.
Net sales in the fourth quarter of 2024 decreased 1% year-over-year. This slight decrease reflects higher selling prices that were more than offset by a 1% decline in sales volume and the negative impact of foreign currency translation.
| Category | Three Months Ended December 31, 2024 | Twelve Months Ended December 31, 2024 |
|---|---|---|
| Volume | (1)% | 1% |
| Selling Price & Mix | 2% | (7)% |
| Foreign Translation | (2)% | (—)% |
| Total | (1)% | (6)% |
($ in thousands)
| Category | 2024 | 2023 | % Change | 2024 | 2023 | % Change |
|---|---|---|---|---|---|---|
| Net Sales Surfactants | $378,776 | $369,468 | 3% | $1,532,115 | $1,602,819 | (4%) |
| Net Sales Polymers | $129,844 | $147,271 | (12%) | $584,905 | $642,471 | (9%) |
| Net Sales Specialty Products | $16,989 | $15,392 | 10% | $63,254 | $80,478 | (21%) |
| Total Net Sales | $525,609 | $532,131 | (1%) | $2,180,274 | $2,325,768 | (6%) |
Three Months Ended December 31, 2024.
Twelve Months Ended December 31, 2024.
Stepan Company will host a conference call to discuss its second quarter results at 9:00 a.m. ET (8:00 a.m. CT) on February 19, 2025. The call can be accessed by phone and webcast. To access the call by phone, please click on this Registration Link, complete the form and you will be provided with dial in details and a PIN. To avoid delays, we encourage participants to dial into the conference call ten minutes ahead of the scheduled start time. The webcast can be accessed through the Investors/Conference Calls page at www.stepan.com. A webcast replay of the conference call will be available at the same location shortly after the call.
Stepan Company is a major manufacturer of specialty and intermediate chemicals used in a broad range of industries. Stepan is a leading merchant producer of surfactants, which are the key ingredients in consumer and industrial cleaning and disinfection compounds and in agricultural and oilfield solutions. The Company is also a leading supplier of polyurethane polyols used in the expanding thermal insulation market, and CASE (Coatings, Adhesives, Sealants, and Elastomers) industries.
Headquartered in Northbrook, Illinois, Stepan utilizes a network of modern production facilities located in North and South America, Europe and Asia.
The Company's common stock is traded on the New York Stock Exchange (NYSE) under the symbol SCL. For more information about Stepan Company please visit the Company online at www.stepan.com