SCL STEPAN CO

Overview and Growth

In fiscal 2025, STEPAN CO recorded $2.33B of revenue, net income of $46.90M, and an operating cash inflow of $147.88M. Revenue of $2.33B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 7.0% from $2.18B in fiscal 2024, increasing the company’s operating scale. The company reported diluted EPS of $2.05, adding a shareholder-level measure to the absolute income figures considered below. The per-share result recorded a 6.8% decrease from fiscal 2024 diluted EPS of $2.20. Asset turnover was 0.99x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $269.89M as gross profit before recognizing operating expenses and other items. Gross margin was 11.6%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $78.55M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 3.4%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $46.90M, after the operating, financing, tax, and other items recognized for the period. The final earnings result represented 2.0% of revenue, connecting the absolute net income figure with the company’s top-line scale. Pretax income was $59.90M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 2.6%, adding a pre-tax profitability layer between revenue and net income. The reported income-tax provision was $13.01M, the amount recognized between pretax income and the final net-income result. Relative to pretax income, the tax provision measured 21.7%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

The company held $2.36B of assets against $1.11B of liabilities and $1.24B of equity, revealing how the asset base was financed. The near-term balance sheet paired $858.96M of current assets with $666.49M of current liabilities at the reporting date. The current ratio was 1.29x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. The company held $132.69M in cash and equivalents, a narrower liquidity measure than total current assets. The cash balance equaled 19.9% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $626.71M, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 0.5x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 26.6%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 47.2%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 5.6%, comparing reported cash and equivalents with the full positive asset balance.

Cash Flow and Earnings Quality

Cash flow from operations was $147.88M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 3.15x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $122.51M of capital expenditures, the investment amount considered after operating cash generation. Relative to operating cash flow, capital expenditures measured 82.8%, connecting investment intensity with the company’s cash-generation base. After capital spending, free cash flow was $25.37M, leaving cash available for debt reduction, shareholder returns, or further investment. Relative to revenue, free cash flow equaled 1.1%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 1.1%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.