EL7.AI
StocksMediumUpdated×2•Originally published 28 October 2026•Updated 28 October 2026•
2 min read

Stepan Raises Quarterly Dividend to $0.405 a Share for 59th Consecutive Year

Key Facts

1Stepan raised its quarterly dividend by $0.010 to $0.405 a share, marking its 59th consecutive annual increase.
2Net sales rose 17% to $692.154 million in the third quarter, compared with $590.284 million a year earlier.
3Reported net income was $17.8 million, up 64%, and adjusted net income was $21.7 million, up 98%.
4The company recorded a net loss of $0.7 million in the first nine months of 2026, compared with income of $41.9 million a year earlier.
5Stepan completed the sale of a parcel of land in October for $28.5 million and will use all proceeds to repay debt.

Stepan announced on October 28 that it was raising its quarterly cash dividend by $0.010 a share to $0.405, marking the 59th consecutive year of dividend increases. The company said the payment will be made on December 15, 2026, to shareholders of record on December 1. The announcement coincided with third-quarter results, which showed reported net income rising 64% to $17.8 million and adjusted net income increasing 98% to $21.7 million. Adjusted EBITDA also rose 18% to $66.3 million. The strong quarterly results put the increase in the context of improving performance, while the nine-month figures show pressure from restructuring costs.

Net sales totaled $692.154 million in the third quarter, up 17% from $590.284 million in the same period of 2025. The company attributed sales growth to higher prices, a 3% increase in sales volume and the positive effect of currency translation. Organic sales volume also rose 7%. CEO Luis Rojo said adjusted EBITDA increased on global volume growth, margin recovery and savings from Project Catalyst. The measure reached $66.3 million, compared with $56.2 million a year earlier. The company did not directly link the dividend increase to the quarterly results in its dividend announcement.

For the first nine months of 2026, Stepan reported a net loss of $0.7 million, compared with income of $41.9 million in the same period a year earlier. The company attributed the current-period loss entirely to a $76.1 million pretax restructuring charge. Restructuring costs in the third quarter alone totaled $5.6 million before tax. The company said the plan includes eliminating about 100 salaried positions, or 7% of global employees in that category. This context highlights the contrast between improving quarterly results and the reported loss since the start of the year.

In a move related to debt, Stepan said it completed the sale in October of a parcel of land near its Millsdale site for $28.5 million. It added that all cash proceeds from the sale will be used to repay debt. Rojo said management believes the company will achieve full-year growth in adjusted EBITDA, alongside positive free cash flow and continued debt reduction in 2026. He presented these projections as management's belief amid continued uncertainty and challenges in global markets. The next dividend dates remain set: shareholders of record on December 1, followed by payment on December 15, 2026.

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