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Stepan (SCL) Q2 2025 earnings results (second quarter 2025)

10-Q filed Aug 6, 2025

Stepan (SCL) reported revenue of $595M for the second quarter 2025 (Q2 2025), +7% from a year earlier and +0.2% from the quarter before. Operating margin was 3.0%, net earnings $11.3M (1.9% of revenue).

Revenue$595M
Year over year+7%
Quarter over quarter+0.2%
Operating margin3.0%
Net earnings$11.3M

Stepan, Q2 2025: revenue $595M (+7% year over year), operating margin 3.0%, net earnings $11.3M, operating cash flow $11.2M. The chart follows the revenue to costs, profit and cash.

Q2 2025AmountQ/QY/Y
Revenue$595M+0.2%+7%
Gross profit$71.9M-5%+3%
Operating profit$18.0M-36%-4%
Net earnings$11.3M-42%+19%
Operating cash flow$11.2M+61%-62%

What changed

Revenue was $594.7M in Q2 2025, up 7% year over year and roughly flat from the previous quarter. Surfactants was the largest line at 69% of revenue. Surfactants added $31.7M year over year (up 8%), 83% of the total change.

Gross margin was 12.1%, down 0.4 points from a year earlier. Operating profit was $18.0M, a 3.0% margin (down 0.3 points year over year). Operating profit fell $702K even though revenue rose $38.3M versus a year earlier, so costs grew faster than sales. Operating expenses grew 6% against revenue growth of 7%. The fastest-growing cost line was Sales & marketing (+24%). Net earnings were $11.3M, up 19% year over year. The effective tax rate was 17.7%.

Operating cash flow was $11.2M (down 62% year over year), 99% of net earnings. Non-cash charges added back $31.3M of depreciation and amortization and $1.7M of share-based compensation. Working capital and other items used $33.1M. Capital expenditures of $25.6M exceeded it, leaving free cash flow of −$14.4M.

Questions

What was Stepan's revenue in the second quarter 2025?

Stepan (SCL) reported revenue of $595M for the second quarter 2025 (Q2 2025), +7% from a year earlier and +0.2% from the quarter before.

Was Stepan profitable in the second quarter 2025?

Operating profit was $18.0M (3.0% of revenue) and net earnings $11.3M.

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Source: Stepan 10-Q on SEC EDGAR.