Trump announces trade deal with EU following months of negotiations
NORTHBROOK, Ill. - Stepan Company (NYSE:SCL), a leading chemical manufacturer with a market capitalization of $1.23 billion, has agreed to sell its subsidiary’s manufacturing assets in the Philippines to Masurf, Inc., a move that aligns with Stepan’s strategy to concentrate on core growth areas. The agreement involves the assets of Stepan Philippines Quaternaries, Inc. (SPQI) located in Bauan, Batangas, and is subject to customary closing conditions, with undisclosed terms. According to InvestingPro analysis, Stepan currently trades at $54.43 and shows potential upside based on its Fair Value metrics.
Luis Rojo, CEO of Stepan, expressed gratitude to the Philippines team for their contributions over the past three decades and confidence in the facility’s success under new ownership. The transaction includes a tolling agreement that will enable SPQI to continue serving its Southeast Asian customers post-sale.
Stepan Company, headquartered in Northbrook, Illinois, is recognized for its production of specialty and intermediate chemicals, notably surfactants, which are essential in cleaning and disinfection products, agricultural solutions, and oilfield operations. The company, which generates annual revenues of $2.22 billion, also supplies polyurethane polyols for thermal insulation and CASE industries. With a global manufacturing network spanning the Americas, Europe, and Asia, Stepan’s common stock is publicly traded on the New York Stock Exchange. Notably, the company has maintained an impressive 54-year streak of consecutive dividend increases, though InvestingPro data indicates current gross profit margins are relatively weak at 12.48%.
The news release also contained forward-looking statements, outlining potential risks and uncertainties that could impact the company’s future results. These include various factors such as accidents, production disruptions, changes in demand, raw material and energy costs, transportation issues, economic downturns, international business risks, litigation, intellectual property, capital market access, political instability, expansion costs, IT system breaches, key personnel retention, and debt covenants.
Investors and stakeholders are reminded that forward-looking statements are not guarantees of future performance and that actual results may differ due to a multitude of factors beyond the company’s control. Stepan Company commits to not updating or revising these statements unless new information, future events, or other circumstances necessitate such changes.
This report is based on a press release statement from Stepan Company. For comprehensive analysis and additional insights, including 8 more exclusive ProTips and detailed financial metrics, investors can access the full company research report through InvestingPro, which offers in-depth analysis of over 1,400 US stocks, including Stepan Company.
In other recent news, Stepan Company reported notable financial results for the first quarter of 2025. The company experienced a 32% increase in adjusted net income, reaching $19.3 million, and a 12% rise in adjusted EBITDA to $57.5 million compared to the previous year. The commencement of operations at Stepan’s new Pasadena site contributed to product expansion, with specialty oxalation volumes growing by 19%. Analysts noted that the company’s strategic focus on expanding product lines and operational efficiency has been effective, despite ongoing challenges in certain markets. The company remains cautiously optimistic about achieving full-year growth in adjusted EBITDA and net income, along with positive free cash flow for 2025. The market responded positively to these developments, with Stepan’s stock showing resilience. However, potential tariff impacts and high interest rates in the construction market are ongoing concerns. Stepan’s leadership emphasized their commitment to customer-centric innovation and maintaining operational improvements.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.