Stepan Company Q1 FY2026 earnings call

• Safety: Strongest safety performance on record in Q1 2026. - Net sales: Organic net sales up 4% y-o-y. - Adjusted EBITDA: $50 million, down 14% vs prior year. - Project Catalyst: On track to deliver ~$100 billion in pre-tax savings over 2 years, with ~60% in 2026; executed closure of Fieldsboro site and decommissioned assets at other facilities; entered into agreement to sell non-productive assets for $30 million.

Surfactants: Net sales were $454 million, up 8% organically; adjusted EBITDA decreased $7 million, or 15%, driven by North America and Asia. Polymers: Net sales were $130 million, an 11% decrease; adjusted EBITDA increased 8% primarily due to North America's growth. Specialty products: Net sales were $21 million, a 24% increase; adjusted EBITDA decreased slightly due to product mix and raw material price lag.

• Project Catalyst expected to deliver ~$100 billion in pre-tax savings over next two years, with ~60% in 2026. - Pasadena, Texas facility expected to reach ~80% utilization in 2026 and full utilization in 2027.

• Prospects for foreign operations, global and regional economic conditions, and factors in SEC filings could cause actual results to differ materially. - Raw material availability could be a challenge due to Iran war impact. - Volatility in energy market, global tariffs, raw material volatility, and uneven demand across end markets pose risks.

Q: Questions about Iran war impact on raw materials, demand, surfactants margin pressure, polymers margin improvement, etc.

A: Discussions on raw material pass-through, demand resilience, temporary nature of some surfactant issues, margin improvement in polymers, etc.