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Dec 31, 2024
Stepan Q4 2024 Earnings Report
Stepan's financial performance was mixed, with net income increasing but adjusted net income decreasing due to specific expenses.
Key Takeaways
Stepan Company reported a net income of $3.4 million, a significant increase compared to the prior year's net loss of $1.2 million. However, adjusted net income decreased by 63% to $2.8 million due to higher pre-commissioning expenses, a one-time tax proceeding reserve, and CEO transition costs. Cash from operations was $68.3 million, and free cash flow was $32.1 million. The company delivered $13.0 million in pre-tax cost out savings.
Net income increased to $3.4 million, while adjusted net income decreased by 63% to $2.8 million.
EBITDA was $35.8 million, and adjusted EBITDA was $35.0 million, up 39% and down 7% respectively, year-over-year.
Cash from operations was $68.3 million, and free cash flow was $32.1 million.
The company delivered $13.0 million in pre-tax cost out savings.
Revenue by Segment
Forward Guidance
Stepan expects Adjusted EBITDA to improve in all reporting segments in 2025. The company anticipates volume growth, margin improvement, and free cash flow generation, with the Pasadena facility expected to contribute to volume growth and supply chain savings.
Positive Outlook
- Anticipated improvement in Adjusted EBITDA across all reporting segments.
- Focus on accelerating business strategies through improved execution.
- Expected volume growth and margin improvement.
- Pasadena facility start-up in Q1 2025 to drive volume growth and supply chain savings.
- Optimism for Polymer demand increase through innovation and growth plans.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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