Stepan Raises Quarterly Dividend to $0.405 Per Share for 59th Consecutive Year
Key Facts
Stepan’s board of directors announced on October 28, 2026, that it would raise the quarterly cash dividend by $0.010 per share to $0.405 in the fourth quarter. The move marks the 59th consecutive year the company has increased its cash dividend, according to a statement published via PR Newswire. The dividend will be paid on December 15, 2026, to shareholders of record on December 1, 2026. The announcement came the same day the company released its third-quarter results, which showed improvement in net income and adjusted earnings. That places the increase in the context of stronger operating results, alongside the company’s indication of pressure on free cash flow during the quarter.
Net income in the third quarter was $17.8 million, up 64% from the same period a year earlier, according to the company’s results. Adjusted net income rose to $21.7 million, posting annual growth of 98%. Adjusted earnings before interest, taxes, depreciation and amortization were $66.3 million, up 18% year over year. Stepan attributed the improvement in this measure to global volume growth, margin recovery and savings from Project Catalyst. The results provide financial context for the dividend increase, though the dividend statement did not specify a direct link between the increase and quarterly performance.
Global sales volume increased 3% year over year in the third quarter, while organic sales volume rose 7%, the company said. The difference between the two figures indicates that the organic volume measure grew faster than the overall global measure during the period, while the published facts provided no further detail on the gap. Volume growth was among the factors the company cited to explain the rise in adjusted earnings before interest, taxes, depreciation and amortization. It also cited margin recovery and savings tied to Project Catalyst. The company’s explanation thus combined increased activity, improved margins and lower costs, alongside annual growth in adjusted operating earnings.
On liquidity, cash from operations was $29.3 million in the third quarter, while free cash flow reached $8.2 million. The company said free cash flow was negatively affected by higher working capital requirements during the period. The figure provides additional context for the dividend increase, as the results showed growth in adjusted earnings at the same time as working capital weighed on free cash flow. Stepan’s net income in 2025 was $46.895 million, compared with $50.370 million in 2024 and $40.204 million in 2023, according to its annual report filed with the U.S. Securities and Exchange Commission. These figures place the third-quarter results within a yearly record in which net income declined from 2024 to 2025 after rising from 2023 to 2024.
For the remainder of the year, Chief Executive Officer Luis Rojo said the company believes it will deliver full-year growth in adjusted earnings before interest, taxes, depreciation and amortization, alongside positive free cash flow and continued balance-sheet deleveraging in 2026. Rojo said: "We believe we will deliver full-year growth in adjusted earnings before interest, taxes, depreciation and amortization, positive free cash flow, and continue to deleverage the balance sheet in 2026." The outlook follows free cash flow of $8.2 million in the third quarter, which was affected by working capital requirements. The announced dividend is scheduled to be paid on December 15 to shareholders listed in the company’s register on December 1. Stepan describes itself as a global manufacturer of specialty and intermediate chemicals, producing surfactants and polyurethane polyols used in cleaning and thermal insulation products.
Stepan shares, listed under the ticker SCL, closed at $63.90 on October 21, then $64.32 on October 22 and $63.91 on October 23. The stock closed at $64.77 on October 26, before ending the October 27 session at $65.21. The closes show an increase from $63.90 on October 21 to $65.21 on October 27, with a decline in the October 23 close from the previous day. The dividend announcement did not include the stock’s trading range during the October 27 session. The December 1 record date and December 15 payment date remain the key dates specified for shareholders regarding the dividend.