# Stepan Posts 24% Polymer Growth in Q3

> Specialty chemical manufacturer Stepan Company (NYSE: SCL) delivered a strong performance for the third quarter of 2026, lifted by volume expansion, margin recovery, and structural restructuring savings. Reported net income climbed 64% year over year to $17.8 million, while adjusted net income nearly doubled to $21.7 million ($0.94 per diluted share). Organic product volumes rose 7% across all business units.

Published: 2026-11-02T14:00:00+00:00
Language: en
Categories: [Finance and Investment](https://chemexworld.com/en/categories/business-world-markets/finance-and-investment.md), [Regions](https://chemexworld.com/en/categories/regions.md), [Americas](https://chemexworld.com/en/categories/regions/americas.md)

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## Content

Specialty chemical manufacturer **Stepan Company** posted double-digit North American volume gains across its rigid-foam, spray-foam, and phthalic-anhydride businesses in the third quarter of 2026. Net sales in the company’s Polymers segment surged **24% year over year to $178.7 million**, up from $143.9 million in Q3 2025. Group net income climbed 64% to $17.8 million over the same period.

The operational momentum in Stepan’s Polymers segment was driven by North American insulation markets, counterbalancing lower demand across Europe and Asia to generate an overall 3% increase in global polymer sales volumes.

### **Pricing Mechanisms and Segment Profitability**

The segment's operational delivery reflected strong pricing discipline and cost recovery:

- **Raw Material Cost Pass-Through:** Average selling prices advanced **22%**, primarily reflecting contractual mechanisms to pass through elevated raw material feedstock costs.
- **Foreign Exchange Impact:** Negative currency translations trimmed segment sales by 1%.
- **Adjusted EBITDA:** Polymers adjusted EBITDA rose **4% to $23.3 million**, compared with $22.4 million in the prior-year period. Sustained North American volume deliveries fully absorbed the turnaround expenses tied to a statutory five-year maintenance shutdown at the company's German plant.
- **Operating Income:** Polymer operating income increased **3% to $14.6 million**.

Stepan’s polymer portfolio encompasses polyester polyols engineered for rigid polyurethane foam insulation in construction applications, alongside phthalic anhydride and specialty polyol formulations.

### **Consolidated Group Financial Highlights**

The polymer division's strength contributed directly to double-digit group-level growth metrics for the third quarter:

- **Net Sales:** Consolidated group revenue grew 17% to **$692.2 million**.
- **Volume Metrics:** Global sales volumes advanced 3%, with organic volumes expanding by **7%**.
- **Adjusted EBITDA:** Consolidated adjusted EBITDA increased 18% to **$66.3 million**.
- **Net Profit:** Reported net income surged **64% to $17.8 million**, while adjusted net income nearly doubled from $10.9 million to **$21.7 million**.