Stepan’s 3Q25 results reflected continued execution discipline and operational resilience amid persistent oleochemical cost inflation and market normalization across key end markets. Net sales were up 8% y/y, driven by improved pricing and mix and a 1% increase in global sales volumes. Adjusted EBITDA rose 6% y/y while adjusted EPS increased 54% y/y due to a higher effective tax rate, increased depreciation from the Pasadena, TX alkoxylation facility start-up, and higher interest expense. Operating margins remained pressured by elevated feedstock costs, with coconut oil up roughly 70% from 2024 levels, though management noted prices have begun to moderate. The ongoing ramp-up of the Pasadena site is expected to enhance internal capacity, product flexibility, and margin recovery in FY26.
