What changed in this filing

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Item 1. Financial Statements

2025-11-05 compared with 2025-08-06 · 126 added, 98 removed, 570 unchanged (28% of the section changed)

4 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Cost of Sales

16 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Other Comprehensive Income (Loss):

3 unchanged sentences

Total Other Comprehensive Income (Loss)

Comprehensive Income (Loss)

Comprehensive Income

The accompanying Notes to Condensed Consolidated Financial Statements are an integral part of these financial statements.

2 unchanged sentences

(Dollars in thousands)

June 30, 2025

September 30, 2025

December 31, 2024

39 unchanged sentences

(In thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

Cash Flows From Operating Activities

24 unchanged sentences

Stock option exercises

Net Cash Provided By (Used In) Financing Activities

Net Cash Provided By Financing Activities

Effect of Exchange Rate Changes on Cash

Net Decrease in Cash and Cash Equivalents

Net Increase in Cash and Cash Equivalents

Cash and Cash Equivalents at Beginning of Period

6 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

September 30, 2025

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such rules and regulations, although management believes that the disclosures are adequate and make the information presented not misleading.

In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of June 30, 2025, its results of operations for the three and six months ended June 30, 2025 and 2024 and cash flows for the six months ended June 30, 2025 and 2024, have been included.

In the opinion of management, all adjustments, consisting only of normal recurring accruals, necessary to present fairly the Company’s financial position as of September 30, 2025, its results of operations for the three and nine months ended September 30, 2025 and 2024 and cash flows for the nine months ended September 30, 2025 and 2024, have been included.

These financial statements and related footnotes should be read in conjunction with the financial statements and related footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (2024 Annual Report on Form 10-K).

RECONCILIATIONS OF EQUITY

Below are reconciliations of total equity for the three and six months ended June 30, 2025 and 2024:

Below are reconciliations of total equity for the three and nine months ended September 30, 2025 and 2024:

(In thousands, except share and per share amounts)

1 unchanged sentence

Income (Loss)

Balance, March 31, 2025

Balance, June 30, 2025

Issuance of 0 shares of

5 unchanged sentences

Common stock ($ 0.385 per share)

Balance, June 30, 2025

Balance, September 30, 2025

(In thousands, except share and per share amounts)

8 unchanged sentences

Common stock ($ 1.155 per share)

Balance, June 30, 2025

Balance, September 30, 2025

(In thousands, except share and per share amounts)

1 unchanged sentence

Income (Loss)

Balance, March 31, 2024

Balance, June 30, 2024

Issuance of 1,037 shares of

5 unchanged sentences

Common stock ($ 0.375 per share)

Balance, June 30, 2024

Balance, September 30, 2024

(In thousands, except share and per share amounts)

8 unchanged sentences

Common stock ($ 1.125 per share)

Balance, June 30, 2024

Balance, September 30, 2024

FAIR VALUE MEASUREMENTS

Cash and cash equivalents

Carrying value approximated far value because of the short maturity of the instruments.

Carrying value approximated fair value because of the short maturity of the instruments.

Fair value of cash and cash equivalents is a Level 1 measurement.

The Company's cash and cash equivalents included money market funds totaling $ 6,622,000 and $ 12,589,000 at June 30, 2025 and December 31, 2024, respectively.

The Company's cash and cash equivalents included money market funds totaling $ 11,413,000 and $ 12,589,000 at September 30, 2025 and December 31, 2024, respectively.

Derivative assets and liabilities

3 unchanged sentences

The fair value of the interest rate swap was calculated as the difference between the contracted swap rate and the floating interest rate multiplied by the present value of the notional amount of the contract.

At June 30, 2025, and December 31, 2024 , the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $ 333,000 and $ 404,000 as of June 30, 2025 and December 31, 2024, respectively):

At September 30, 2025, and December 31, 2024 , the fair values and related carrying values of debt, including current maturities, were as follows (the fair value and carrying value amounts are presented without regard to unamortized debt issuance costs of $ 303,000 and $ 404,000 as of September 30, 2025 and December 31, 2024, respectively):

(In thousands)

September 30,

Carrying value

The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of June 30, 2025, and December 31, 2024, and the level within the fair value hierarchy in which the fair value measurements fall:

The following tables present financial assets and liabilities, excluding cash and cash equivalents, measured on a recurring basis at fair value as of September 30, 2025, and December 31, 2024, and the level within the fair value hierarchy in which the fair value measurements fall:

(In thousands)

September 30,

Mutual fund assets

14 unchanged sentences

DERIVATIVE INSTRUMENTS

At June 30, 2025, and December 31, 2024 , the Company had open forward foreign currency exchange contracts to buy or sell foreign currencies with U.S.

At September 30, 2025, and December 31, 2024 , the Company had open forward foreign currency exchange contracts to buy or sell foreign currencies with U.S.

dollar equivalent amounts of $ 51,106,000 and $ 149,571,000 , respectively.

All forward foreign exchange contracts at June 30, 2025 had durations of one month to three months .

All forward foreign exchange contracts at September 30, 2025 had durations of one month to three months .

The Company is currently exposed to volatility in short-term interest rates and has mitigated certain portions of that risk by using an interest rate swap.

The interest rate swap is recognized on the balance sheet as either an asset or a liability measured at fair value.

At June 30, 2025 , the Company held an interest rate swap contract with a notional value of $ 100,000,000 that was designated as a cash flow hedge.

At September 30, 2025 , the Company held an interest rate swap contract with a notional value of $ 100,000,000 that was designated as a cash flow hedge.

Period-to-period changes in the fair value of the interest rate swap are initially recognized as gains or losses in other comprehensive income.

1 unchanged sentence

The maturity date of the current interest swap contract is March 10, 2027 , which is closely aligned with the June 24, 2027 maturity of the Company's revolving credit facility.

The fair values of the derivative instruments held by the Company on June 30, 2025, and December 31, 2024, are disclosed in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

Derivative instrument gains and losses for the three and six months ended June 30, 2025 and 2024, were immaterial.

For amounts reclassified out of AOCI into earnings for the three and six months ended June 30, 2025 and 2024, see Note 11, Accumulated Other Comprehensive Income (Loss) , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

The fair values of the derivative instruments held by the Company on September 30, 2025, and December 31, 2024, are disclosed in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

Derivative instrument gains and losses for the three and nine months ended September 30, 2025 and 2024, were immaterial.

For amounts reclassified out of AOCI into earnings for the three and nine months ended September 30, 2025 and 2024, see Note 11, Accumulated Other Comprehensive Income (Loss) , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q).

STOCK-BASED COMPENSATION

2 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Unrecognized compensation costs for stock options, performance shares, RSUs and SARs were as follows:

(In thousands)

September 30,

Stock options

1 unchanged sentence

The change in unrecognized compensation costs for stock options, performance shares, RSUs and SARs is due to new grants issued in 2025.

The Company granted the following awards in the first six months of 2025:

The Company granted the following awards in the first nine months of 2025:

Stock options

Performance shares (at target) and RSUs

The unrecognized compensation costs at June 30, 2025 , are expected to be recognized over weighted-average periods of 1.8 years for stock options, 2.3 years for performance shares and RSUs and 2.1 years for SARs.

The composition of inventories at June 30, 2025, and December 31, 2024, was as follows:

The unrecognized compensation costs at September 30, 2025 , are expected to be recognized over weighted-average periods of 1.6 years for stock options, 2.1 years for performance shares and RSUs and 2.0 years for SARs.

The composition of inventories at September 30, 2025, and December 31, 2024, was as follows:

(In thousands)

September 30,

Finished goods

4 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Operating lease cost

8 unchanged sentences

for new operating lease liabilities

The following table outlines the maturities of lease liabilities as of June 30, 2025.

The following table outlines the maturities of lease liabilities as of September 30, 2025.

(In thousands)

Undiscounted Cash Flows:

2025 (excluding the six months ended June 30, 2025)

2025 (excluding the nine months ended September 30, 2025)

Subsequent to 2029

8 unchanged sentences

Weighted-average discount rate-operating leases

As of June 30, 2025 , the Company had no leases that had not already commenced.

As of September 30, 2025 , the Company had no leases that had not already commenced.

CONTINGENCIES

13 unchanged sentences

The level of annual expenditures for remedial, monitoring and investigatory activities will change in the future as major components of planned remediation activities are completed and the scope, timing and costs of existing activities are changed.

As of June 30, 2025 , the Company estimated a range of possible environmental losses and legal losses of $ 19,516,000 to $ 44,903,000 .

As of September 30, 2025 , the Company estimated a range of possible environmental losses and legal losses of $ 19,406,000 to $ 44,696,000 .

Within the range of possible environmental losses and legal losses, management has currently concluded that no single amount is more likely to occur than any other amounts in the range and, thus, has accrued at the lower end of the range.

These accruals totaled $ 19,516,000 at June 30, 2025 and $ 19,952,000 at December 31, 2024 .

These accruals totaled $ 19,406,000 at September 30, 2025 and $ 19,952,000 at December 31, 2024 .

In the second quarter of 2025, the Company accrued an additional $ 1,754,000 for remediation expenses at the Company's Elwood, Illinois (Millsdale) facility due to a change in the scope of planned remediation activities.

A lthough the Company believes that its estimated range of possible environmental losses and legal losses and its reserves are adequate for contingencies, it is possible, due to uncertainties including those noted above, that additional reserves could be required in the future.

Cash expenditures related to environmental remediation and certain other legal matters approximated $ 3,402,000 and $ 1,982,000 for the six months ended June 30, 2025 and 2024, respectively.

Cash expenditures related to environmental remediation and certain other legal matters approximated $ 4,030,000 and $ 2,243,000 for the nine months ended September 30, 2025 and 2024, respectively.

For certain sites, the Company has responded to information requests made by federal, state or local government agencies but has received no response confirming or denying the Company’s stated positions.

3 unchanged sentences

However, in the event of one or more adverse determinations with respect to such sites in any annual or interim period, the effect on the Company’s cash flows and results of operations for those periods could be material.

Following are summaries of the Company’s major contingencies at June 30, 2025:

Following are summaries of the Company’s major contingencies at September 30, 2025:

Maywood, New Jersey Site

24 unchanged sentences

The Company is contractually obligated to contribute up to five percent of the environmental response costs incurred by the current owner, with no limitation on the ultimate amount of contributions.

The Company had paid the current owner $ 4,122,000 for the Company’s portion of environmental response costs at the Wilmington site through June 30, 2025.

The Company had paid the current owner $ 4,190,000 for the Company’s portion of environmental response costs at the Wilmington site through September 30, 2025.

The Company has recorded a liability for its portion of the estimated remediation costs for the site.

26 unchanged sentences

USEPA assessed a civil penalty of $ 1,126,000 , which the Company paid on July 2, 2025.

The Company is pursuing indemnification claims against two third parties to recover the cost of the penalty.

During the third quarter of 2025, the Company recovered $ 500,000 of the USEPA penalty from third parties and continues to pursue complete recovery.

POSTRETIREMENT BENEFIT PLANS

6 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Interest cost

5 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Interest cost

6 unchanged sentences

Approximately $ 171,000 is expected to be paid to the unfunded non-qualified plans in 2025 .

Of such amount, $ 112,000 had been paid to the non-qualified plans as of June 30, 2025.

Of such amount, $ 141,000 had been paid to the non-qualified plans as of September 30, 2025.

The Company’s U.K.

4 unchanged sentences

retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan (profit sharing plan), and one non-qualified supplemental executive plan.

In the six months ended June 30, 2025 and 2024 , the Company made contributions into the qualified retirement plans for U.S.

In the nine months ended September 30, 2025 and 2024 , the Company made contributions into the qualified retirement plans for U.S.

employees and for certain non-U.S.

8 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Retirement savings contributions

8 unchanged sentences

supplemental plan expense is recognized) when the value of the trust assets appreciate and decrease when the value of the trust assets decline (i.e., supplemental plan income is recognized).

At June 30, 2025 , the balance of the trust assets was $ 254,000 which equaled the balance of the supplemental plan liabilities.

At September 30, 2025 , the balance of the trust assets was $ 269,000 which equaled the balance of the supplemental plan liabilities.

See the long-term investments section in Note 3, Fair Value Measurements , of the notes to the Company’s condensed consolidated financial statements (included in Item 1 of this Form 10-Q) for further information regarding the Company’s mutual fund assets.

EARNINGS PER SHARE

Below are the computations of basic and diluted earnings per share for the three and six months ended June 30, 2025 and 2024:

Below are the computations of basic and diluted earnings per share for the three and nine months ended September 30, 2025 and 2024:

(In thousands, except per share amounts)

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Computation of Basic Earnings per Share

14 unchanged sentences

Diluted earnings per share

(1) Options/SARs to acquire 1,205,183 and 1,209,553 shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2025 , respectively.

(1) Options/SARs to acquire 1,206,200 and 1,208,435 shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and nine months ended September 30, 2025 , respectively.

The options/SARs' exercise prices were greater than the average market price for the Company's common stock and inclusion of the instruments would have had an antidilutive effect on the computations of the earnings per share.

899,151 and 849,588 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and six months ended June 30, 2024 , respectively.

883,188 and 860,788 options/SARs to acquire shares of the Company's common stock were excluded from the computation of dilutive earnings per share for the three and nine months ended September 30, 2024 , respectively.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the three and six months ended June 30, 2025 and 2024:

Below is the change in the Company’s accumulated other comprehensive income (loss) (AOCI) balance by component (net of income taxes) for the three and nine months ended September 30, 2025 and 2024:

(In thousands)

Balance at March 31, 2024

Other comprehensive (loss) before

Balance at June 30, 2024

Other comprehensive income (loss) before

reclassifications

1 unchanged sentence

Net current-period other comprehensive income (loss)

Balance at September 30, 2024

Balance at June 30, 2025

Balance at March 31, 2025

Other comprehensive income (loss) before

2 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at June 30, 2025

Balance at September 30, 2025

Balance at December 31, 2023

3 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at June 30, 2024

Balance at September 30, 2024

Balance at December 31, 2024

3 unchanged sentences

Net current-period other comprehensive income (loss)

Balance at June 30, 2025

Information regarding the reclassifications out of AOCI for the three and six months ended June 30, 2025 and 2024, is displayed below:

Balance at September 30, 2025

Information regarding the reclassifications out of AOCI for the three and nine months ended September 30, 2025 and 2024, is displayed below:

(In thousands)

2 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Affected Line Item in

16 unchanged sentences

The accounting policies of the reportable segments are the same as those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 .

The following is segment data for the three and six months ended June 30, 2025 and 2024, and reconciliations of segment data to the condensed consolidated financial statements:

For the Three Months Ended June 30, 2025

The following is segment data for the three and nine months ended September 30, 2025 and 2024, and reconciliations of segment data to the condensed consolidated financial statements:

For the Three Months Ended September 30, 2025

(In thousands)

10 unchanged sentences

Consolidated Depreciation and Amortization

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

(In thousands)

10 unchanged sentences

Consolidated Depreciation and Amortization

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

(In thousands)

10 unchanged sentences

Consolidated Depreciation and Amortization

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

(In thousands)

10 unchanged sentences

Consolidated Depreciation and Amortization

T he following is segment assets at June 30, 2025 and December 31, 2024, and reconciliations of segment assets to the condensed consolidated financial statements.

As of June 30, 2025

T he following is segment assets at September 30, 2025 and December 31, 2024, and reconciliations of segment assets to the condensed consolidated financial statements.

As of September 30, 2025

(In thousands)

15 unchanged sentences

REVENUE FROM CONTRACTS WITH CUSTOMERS

As of June 30, 2025 and December 31, 2024 , the Company had $ 307,000 and $ 689,000 of contract liabilities and no contract assets, respectively.

As of September 30, 2025 and December 31, 2024 , the Company had $ 282,000 and $ 689,000 of contract liabilities and no contract assets, respectively.

A contract liability would typically arise when an advance or deposit is received from a customer before the Company recognizes revenue.

1 unchanged sentence

When such situations do arise, the Company maintains a deferred revenue liability until the time a performance obligation has been satisfied.

The Company recognized $ 689,000 of revenue in the first six months of 2025 from pre-existing contract liabilities at December 31, 2024.

The Company recognized $ 689,000 of revenue in the first nine months of 2025 from pre-existing contract liabilities at December 31, 2024.

In addition, during 2020, the Company recorded $ 10,709,000 of long-term deferred revenue associated with a payment received to defray the cost of capital expenditures necessary to service a customer’s future product needs.

At June 30, 2025 , $ 3,323,000 was classified as long-term and $ 2,216,000 was classified as short-term.

This deferred revenue is being recognized over the period of the contract and $ 5,170,000 of revenue has been recognized from the beginning of the contract term through June 30, 2025.

The tables below provide a geographic disaggregation of net sales for the three and six months ended June 30, 2025 and 2024.

At September 30, 2025 , $ 2,769,000 was classified as long-term and $ 2,216,000 was classified as short-term.

This deferred revenue is being recognized over the period of the contract and $ 5,724,000 of revenue has been recognized from the beginning of the contract term through September 30, 2025.

The tables below provide a geographic disaggregation of net sales for the three and nine months ended September 30, 2025 and 2024.

The Company’s business segmentation by geographic region most effectively captures the nature and economic characteristics of the Company’s revenue streams impacted by economic factors.

(In thousands)

For the Three Months Ended June 30, 2025

For the Three Months Ended September 30, 2025

Geographic Market

2 unchanged sentences

(In thousands)

For the Six Months Ended June 30, 2025

For the Nine Months Ended September 30, 2025

Geographic Market

2 unchanged sentences

(In thousands)

For the Three Months Ended June 30, 2024

For the Three Months Ended September 30, 2024

Geographic Market

2 unchanged sentences

(In thousands)

For the Six Months Ended June 30, 2024

For the Nine Months Ended September 30, 2024

Geographic Market

1 unchanged sentence

Latin America

At June 30, 2025 and December 31, 2024, debt was comprised of the following:

At September 30, 2025 and December 31, 2024, debt was comprised of the following:

(In thousands)

September 30,

Senior unsecured notes

18 unchanged sentences

Long-term debt

The Company's long-term debt financing is comprised of certain senior unsecured notes issued to insurance companies in private placement transactions pursuant to note purchase agreements (the “Note Purchase Agreements”), totaling $ 362,524,000 as of June 30, 2025 .

These notes are denominated in U.S.

2 unchanged sentences

The Company will be required to make principal payments on the currently outstanding notes from 2025 to 2033.

On May 21, 2025, pursuant to a note purchase and private shelf agreement dated as of June 10, 2021, Stepan issued and sold $ 37,500,000 in aggregate principal amount of its 6.17 % Senior Notes, Series 2025-A, due May 21, 2033 (the Series 2025-A Notes).

On May 21, 2025, pursuant to a note purchase and master note agreement dated as of June 10, 2021, Stepan issued and sold $ 37,500,000 in aggregate principal amount of its 6.17 % Senior Notes, Series 2025-B, due May 21, 2033 (together with the Series 2025-A Notes, the Notes).

The Notes will bear interest at a fixed rate of 6.17 % with interest to be paid semi-annually.

Principal amortization for the Notes is contractually scheduled with equal annual payments beginning on May 21, 2029 and on each May 21 thereafter to and including May 21, 2032, with the final outstanding principal balance due at maturity on May 21, 2033 .

The Company’s credit agreement (the Credit Agreement) with a syndicate of banks provides for credit facilities in an initial aggregate principal amount of $ 450,000,000 , consisting of (a) a $ 350,000,000 multi-currency revolving credit facility and (b) a $ 100,000,000 delayed draw term loan credit facility, each of which matures on June 24, 2027 .

1 unchanged sentence

The facility is for the sole purpose of the issuance of standby letters of credit.

As of June 30, 2025 , the Company had an outstanding letter of credit of $ 8,694,000 under the CIC Credit Agreement.

As of September 30, 2025 , the Company had an outstanding letter of credit of $ 8,694,000 under the CIC Credit Agreement.

The Company maintains import and export letters of credit, and standby letters of credit under its workers’ compensation insurance agreements and for other purposes, as needed from time to time, which are issued under the Credit Agreement and under the CIC Credit Agreement.

As of June 30, 2025 , the Company had outstanding letters of credit totaling $ 4,884,000 and $ 293,000,000 of outstanding borrowings under the Credit Agreement, inclusive of an $ 87,500,000 delayed-draw term loan ($ 12,500,000 of the term loan principal has been permanently repaid as scheduled).

There was $ 139,616,000 available under the Credit Agreement as of June 30, 2025.

The Company's foreign subsidiaries had $ 2,506,000 of debt outstanding at June 30, 2025.

As of September 30, 2025 , the Company had outstanding letters of credit totaling $ 4,552,000 and $ 314,700,000 of outstanding borrowings under the Credit Agreement, inclusive of an $ 85,625,000 delayed-draw term loan ($ 14,375,000 of the term loan principal has been permanently repaid as scheduled).

There was $ 116,373,000 available under the Credit Agreement as of September 30, 2025.

The Company's foreign subsidiaries had $ 2,504,000 of debt outstanding at September 30, 2025.

The Company’s material debt agreements contain provisions which, among other covenants, require maintenance of certain financial ratios and place limitations on additional debt, investments and payment of dividends.

Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $ 265,723,000 and $ 251,953,000 at June 30, 2025 and December 31, 2024 , respectively.

Based on the loan agreement provisions that place limitations on dividend payments, unrestricted retained earnings (i.e., retained earnings available for dividend distribution) were $ 267,854,000 and $ 251,953,000 at September 30, 2025 and December 31, 2024 , respectively.

Other, net in the condensed consolidated statements of income included the following:

1 unchanged sentence

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Foreign exchange (loss)

3 unchanged sentences

NONCASH INVESTING AND FINANCING ACTIVITIES

Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $ 10,593,000 and $ 9,003,000 that were unpaid at June 30, 2025 and 2024 , respectively.

Noncash financing activities included the issuance of 132,057 shares of the Company’s common stock (valued at $ 7,811,000 ) and 113,184 shares of the Company’s common stock (valued at $ 10,132,000 ) under the Company’s equity incentive compensation plan during the period ended June 30, 2025 and 2024 , respectively.

Noncash investing activities included liabilities (accounts payable) incurred for property, plant and equipment expenditures of approximately $ 12,648,000 and $ 12,877,000 that were unpaid at September 30, 2025 and 2024 , respectively.

Noncash financing activities included the issuance of 134,770 shares of the Company’s common stock (valued at $ 7,945,000 ) and 118,627 shares of the Company’s common stock (valued at $ 10,617,000 ) under the Company’s equity incentive compensation plan during the period ended September 30, 2025 and 2024 , respectively.

ASSETS AND LIABILITIES HELD FOR SALE

1 unchanged sentence

(SPQI), had entered into an agreement to sell SPQI's manufacturing assets located in Bauan, Batangas, Philippines to Masurf, Inc., a subsidiary of Musim Mas Holdings Pte.

The Company plans to close the sale during the second half of 2025.

The Company plans to close the sale during the fourth quarter of 2025.

The asset disposal group includes $ 8,476,000 of assets and $ 4,571,000 of liabilities.

2 unchanged sentences

These assets and liabilities all relate to the Surfactant reportable segment.

SUBSEQUENT EVENT

tax act (H.R.1) was signed into law on July 4, 2025 (the 2025 U.S.

GAAP, the effects of changes in tax laws or rates should be recognized in the financial statements as of the enactment date.

As a result, the impact of the new tax act has not been reflected in the Company’s financial statements as of June 30, 2025.

The Company is evaluating the impact of the 2025 U.S.

tax act and anticipates that its provisions that will have the most relevance to the Company are bonus depreciation, the immediate expensing of domestic research and development costs, and the increased limitation on the deduction for interest expense.

Based on Company’s current understanding, the Company does not believe the new provisions of the 2025 U.S.

tax act will have a material impact on the Company’s financial results, financial position, liquidity, or cash flows for 2025.

RECENT ACCOUNTING PRONOUNCEMENTS

22 unchanged sentences

2024-03 will not have an impact on the Company’s financial position, results of operations and cash flow but will impact the Company’s interim and annual disclosures related to the relevant subtopics in this update.

In July 2025, the FASB issued ASU No.

2025-05, Financial Instruments-Credit Losses (Topic 326) Measurement of Credit Losses for Accounts Receivable and Contract Assets.

This update provides public companies with a practical expedient in calculating expected credit losses on current accounts receivable and/or current contract assets arising from transactions under Topic 606, Revenue from Contracts with Customers.

The expedient assumes that the current conditions as of the balance sheet date don't change for the remaining life of the asset and also allows an entity to consider cash collection activity that occurs after the balance sheet date but before the financial statements are issued.

When developing an estimate of expected credit losses for assets to which the practical expedient is applied, an entity shall continue to adjust historical loss information to reflect current conditions to the extent that historical loss information does not reflect current conditions.

The entity would need to adopt the practical expedient first to be eligible to use it.

The amendments in this update are effective for annual periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods and should be applied on a prospective basis.

The Company is in the process of evaluating ASU 2025-05 to determine its impact, if any, on the Company's financial position, results of operations and cash flows.

In September 2025, the FASB issued ASU No.

2025-06, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40) An Amendment of the FASB Accounting Standards Codification Targeted Improvements to the Accounting for Internal-Use Software.

This update removes all references to software development stages so the entities start capitalizing software costs when 1) management has authorized and committed to funding the software projects and 2) it is probable that the project will be completed and the software will be used to perform the functions intended.

Under the current rule, entities are required to capitalize development costs incurred depending on the nature of the costs and the project stage during which they occur.

The amendments in this update are effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods.

Early adoption is permitted as of the beginning of the annual reporting period.

The Company is in the process of evaluating ASU 2025-06 to determine its impact, if any, on the Company’s financial position, results of operations and cash flows.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements