第99.1展示文本

史提賓報告2024年第三季度業績

2024年10月30日，伊利諾伊州北布魯克--史提賓公司（紐交所：SCL）今日報告：

2024年第三季度業績亮點

2024年至今的亮點

「史提賓團隊在面臨重大挑戰的情況下交出了一個紮實的季度成績。第三季度調整後的EBITDA實現了兩位數增長，受到表面活性劑和特種產品業務的推動。表面活性劑在農產品、油田以及施工和工業解決方案終端市場持續恢復並實現了兩位數的成交量增長，同時與我們的分銷合作伙伴也取得了兩位數的成交量增長。拉丁美洲表面活性劑成交量在巴西的農產品終端市場需求強勁和墨西哥新的合同業務推動下增長了中位數個位數，」首席執行官路易斯·E·羅霍表示。「剛性聚醚成交量在本季度下降了13％，主要是由於需求疲軟和競爭壓力。我們認爲需求疲軟與全球宏觀經濟不確定性以及高利率環境相關。特種聚醚的成交量和利潤在本季度上升。全球利潤持續改善，並符合預期。本季度的自由現金流符合我們的預期，因爲我們爲颶風季節建立庫存水平，並預計10月進行兩個聚合物工廠的停工檢修。第三季度的成果證明了史提賓團隊的韌性，爲我們提供了一個堅實的成長基礎。」

財務總結

淨銷售額的百分比變化

2024年第三季度淨銷售額同比下降3%。 淨銷售額的下降受到成交量下降1％、銷售價格下調和外匯貨幣轉化的影響。

細分市場結果

Consolidated operating income increased $4.4 million, or 23%, year-over-year. Consolidated adjusted EBITDA increased $5.1 million, or 11%, year-over-year driven by higher Surfactant volume and margins, partially offset by demand weakness in Polymers.

Income Taxes

The Company's effective tax rate was a negative 10.7% during the third quarter of 2024 versus 20.6% in the third quarter of 2023. The decrease was primarily attributable to the Company's intention to make an election under the U.S. GILTI tax regime to exclude certain high taxed entities from the GILTI computation. The Company's effective tax rate was 18.9% for the first nine months of 2024 versus 20.5% for the first nine months of 2023.

Outlook

“Team Stepan continues to be focused on executing our strategic growth projects. We are pleased that several of our Surfactant businesses continue to deliver strong volume growth. Agricultural volumes grew double-digits in the third quarter which aligns with our expectations for a second half 2024 recovery. We remain optimistic Rigid Polyol demand will increase as the market gets more macro-economic clarity and the interest rate environment improves," said Luis E. Rojo, President and Chief Executive Officer. "Free cash flow should continue to improve versus prior year driven by the completion of our Pasadena investment, growth in market volumes, and our continued focus on cost reduction. We believe we are positioned to deliver full year Adjusted EBITDA growth and positive free cash flow.”

Notes

(1) Adjusted net income and adjusted earnings per share are non-GAAP measures which exclude deferred compensation income/expense, cash-settled stock appreciation rights (SARs) income/expense, certain environmental remediation-related costs as well as other significant and infrequent/non-recurring items. See Table II for reconciliations of non-GAAP adjusted net income and adjusted earnings per diluted share.

(2) EBITDA and adjusted EBITDA are non-GAAP measures. See Table VI for calculations and GAAP reconciliations of EBITDA and adjusted EBITDA.

(3) Free cash flow is a non-GAAP measure and reflects cash generated from operations minus capital expenditures. Cash generated from operations was $22.7 million during the third quarter of 2024 and capital expenditures were $26.7 million.

Conference Call

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 October 30, 2024. 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.

Supporting Slides

Slides supporting this press release will be made available at www.stepan.com through the Investors/Presentations page at approximately the same time as this press release is issued.

Corporate Profile

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

More information about Stepan’s sustainability program can be found on the Sustainability page at www.stepan.com

Contact: Luis E. Rojo 847-446-7500

Certain information in this news release 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. 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,” “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 news release. 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 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; our ability to identify suitable acquisition candidates and successfully complete and integrate acquisitions; 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 currency exchange rate fluctuations, legal restrictions and taxes; unfavorable resolution of litigation against us; maintaining and protecting intellectual property rights; our ability to access capital markets; global political, military, security or other instability; costs related to expansion or other capital projects; interruption or breaches of information technology systems; our ability to retain executive management and key personnel; and our debt covenants.

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.

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Tables follow

Table I

STEPAN COMPANY

For the Three and Nine Months Ended September 30, 2024 and 2023

(Unaudited – in 000's, except per share data)

Table II

Reconciliation of Non-GAAP Net Income and Earnings per Diluted Share*

* All amounts in this table are presented after-tax

The Company believes that certain non-GAAP measures, in conjunction with comparable GAAP measures, are useful for evaluating the Company’s operating performance and financial condition. The Company uses this non-GAAP information as an indicator of business performance and evaluates management’s effectiveness with specific reference to these indicators. Management believes that these non-GAAP financial measures provide useful supplemental information because they exclude non-operational items that affect comparability between years. These measures should be considered in addition to, not as substitutes for or superior to, measures of financial performance prepared in accordance with GAAP and may differ from similarly titled measures presented by other companies. The Company's Annual Report on Form 10-K for the year ended December 31, 2023 contains additional information regarding the use of non-GAAP financial measures.

Summary of Third Quarter 2024 Adjusted Net Income Items

Adjusted net income excludes non-operational deferred compensation income/expense, cash-settled SARs income/expense, certain environmental remediation costs and other significant and infrequent or non-recurring items.

Table III

Reconciliation of Pre-Tax to After-Tax Adjustments

Management uses the non-GAAP adjusted net income metric to evaluate the Company's operating performance. Management excludes the items listed in the table below because they are non-operational items. The cumulative tax effect was calculated using the statutory tax rates for the jurisdictions in which the transactions occurred.

Table IV

Deferred Compensation Plans

The full effect of the deferred compensation plans on quarterly pre-tax income was $0.5 million of income versus $2.7 million of income in the prior year. The quarter-end market prices of Company stock and the impact of deferred compensation on specific income statement line items is summarized below:

Effects of Foreign Currency Translation

The Company’s foreign subsidiaries transact business and report financial results in their respective local currencies. These results are translated into U.S. dollars at average foreign exchange rates appropriate for the reporting period. The table below presents the impact that foreign currency translation had on select income statement line items.

Corporate Expenses

Adjusted Corporate expenses increased $2.7 million, or 16% for the quarter. This increase was primarily due to $3.3 million of higher expenses associated with a criminal social engineering scheme at one of the Company's subsidiaries in Asia, partially offset by productivity measures implemented in late 2023.

Table V

Stepan Company

Consolidated Balance Sheets

September 30, 2024 and December 31, 2023