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Jun 30, 2022
Stepan Q2 2022 Earnings Report
Stepan achieved record results driven by margin recovery, improved mix, and sales volume growth.
Key Takeaways
Stepan Company reported a record second quarter with net income reaching $52.1 million, or $2.26 per diluted share, compared to $43.3 million, or $1.85 per diluted share, in the previous year. Adjusted net income was a record $53.0 million, or $2.30 per diluted share, versus $42.2 million, or $1.81 per diluted share, in the prior year. The company experienced a slight decline in total sales volume by 1% year-over-year, but this was offset by higher selling prices and improved product mix.
Net income was a record $52.1 million, or $2.26 per diluted share, versus $43.3 million, or $1.85 per diluted share, in the prior year.
Adjusted net income was a record $53.0 million, or $2.30 per diluted share, versus $42.2 million, or $1.81 per diluted share, in the prior year.
Surfactant operating income was $48.2 million versus $45.9 million in the prior year, driven by improved product and customer mix.
Polymer operating income was a record $33.9 million versus $23.0 million in the prior year, attributable to margin recovery, improved mix, and a 2% increase in global sales volume.
Revenue by Segment
Forward Guidance
Stepan expects healthy demand across its businesses but anticipates continued challenges from inflation, raw material, and logistics constraints.
Positive Outlook
- Surfactant volumes within the Functional Products end markets will show full year growth over 2021 supported by continued elevated crop and energy prices.
- Polymers will deliver growth versus the prior year as energy conservation efforts and more stringent building codes should have a continued positive impact on demand for our Rigid polyols.
- Specialty Product results should show year over year improvement as well.
Challenges Ahead
- The Company will continue to be challenged by inflation.
- Raw material constraints are expected to continue.
- Logistics constraints are expected to continue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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