Stepan Company reported a net income of $50.4 million for the fiscal year ending December 31, 2024, reflecting a 25% increase from the previous year's net income of $40.2 million. This translates to earnings of $2.20 per diluted share, compared to $1.75 per diluted share in 2023. The company's revenue for 2024 was $2.18 billion, a decrease of 6% from $2.33 billion in 2023, primarily due to lower average selling prices and foreign currency translation impacts. The company’s EBITDA also saw an increase, rising to $186.8 million, up 13% from $165.8 million in the prior year.
In terms of operational performance, Stepan Company experienced a 1% increase in consolidated sales volume, which positively impacted net sales by $17.3 million. The surfactants segment, which accounted for 70% of total sales, reported a 4% decline in net sales to $1.53 billion, while the polymers segment saw a 9% decrease to $584.9 million. The specialty products segment, however, reported a 21% decline in net sales to $63.3 million, despite a 7% increase in sales volume. The company attributed the overall revenue decline to competitive pricing pressures and the pass-through of lower raw material costs.
Strategically, Stepan Company has focused on enhancing its product offerings and market presence. The company is in the process of completing a new alkoxylation plant in Pasadena, Texas, expected to start operations in the first quarter of 2025. This facility is anticipated to bolster the company’s production capabilities and support its surfactants business. Additionally, the company has made significant capital investments, totaling $122.8 million in 2024, down from $260.3 million in 2023, primarily due to reduced expenditures related to the Pasadena facility.
As of December 31, 2024, Stepan Company employed 2,396 individuals, a slight increase from 2,389 in the previous year. The company continues to prioritize employee safety and development, investing in training and competitive benefits to attract and retain talent. The company’s total debt decreased to $625.4 million from $654.1 million in 2023, with a net debt to equity ratio of 31%. Looking ahead, Stepan Company anticipates continued challenges from market conditions but remains optimistic about its growth prospects, particularly with the upcoming operational capabilities of the new plant and ongoing product development initiatives.
About STEPAN CO
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