Stepan's Business Segments

Stepan Company, which was incorporated under the laws of the state of Delaware on February 19, 1959, and its subsidiaries (the “Company”) produce specialty and intermediate chemicals, which are sold to other manufacturers and used in a variety of end products. The Company has three reportable segments: Surfactants, Polymers and Specialty Products.
Surfactants are chemical agents that affect the interaction between two surfaces; they can provide actions such as detergency (i.e., the ability of water to remove soil from another surface), wetting and foaming, dispersing, emulsification (aiding two dissimilar liquids to mix), demulsification, viscosity modifications and biocidal disinfectants. Surfactants are the basic cleaning agent in detergents for washing clothes, dishes, carpets, fine fabrics, floors and walls. Surfactants are also used for the same purpose in shampoos, body wash and conditioners, fabric softeners, toothpastes, cosmetics and other personal care products. Commercial and industrial applications include emulsifiers for agricultural products, emulsion polymers such as floor polishes and latex foams and coatings, wetting and foaming agents for wallboard manufacturing and surfactants for enhanced oil recovery.

The registrant operates through three reportable segments: Surfactants, Polymers, and Specialty Products. In 2025, Surfactants represented 71% of consolidated net sales and are utilized in consumer and industrial cleaning and disinfection products, fabric softeners, germicidal compounds, disinfectants, lubricants, emulsifiers, and various industrial applications. Surfactants are produced at multiple locations in the United States, Europe (United Kingdom and France), Latin America (Colombia, Brazil, Mexico), and Asia (Singapore). The company sold its Stepan Philippines Quaternaries, Inc. manufacturing assets to Masurf, Inc., a subsidiary of Musim Mas Holdings Pte. Ltd., and divested manufacturing assets in Lake Providence, Louisiana, as part of footprint optimization. Polymers accounted for 25% of consolidated net sales in 2025 and include polyurethane polyols, polyester resins, and phthalic anhydride used in construction, coatings, adhesives, sealants, elastomers, and plasticizers. Polymer manufacturing sites are located in the United States (Elwood, Illinois; Wilmington, North Carolina; Columbus, Georgia), Europe (Germany, Netherlands, Poland), and Asia (Nanjing, China). Specialty Products represented 4% of consolidated net sales in 2025 and consist of flavors, emulsifiers, and solubilizers used in food, flavoring, nutritional supplements, and pharmaceuticals, primarily manufactured at the Maywood, New Jersey facility.