What factors are driving pre-buying behavior among Stepan's customers in Q2 and potentially Q3?

Pre-buying is being driven by customer concerns about raw material availability amid geopolitical uncertainties caused by the Middle East conflict, leading them to adopt a hybrid inventory strategy—'a mix of just-in-time and just-in-case'—that is less extreme than the pandemic-era shift but still reflects ongoing supply chain caution.

How is Stepan planning to improve its margins and what specific actions has it taken under 'Project Catalyst'?

Stepan plans to improve margins by raising selling prices to offset higher raw material costs and by generating $100 million in savings over two years through 'Project Catalyst', which has already included closing its Fieldsboro, NJ surfactants site, decommissioning select assets in Millsdale, IL and Stalybridge, UK, and reducing its global workforce by about 100 positions in the current quarter.

Stepan may see more pre-buying in Q3, depending on Middle East conflict – CEO

Jul 29, 2026

Stepan CEO Luis Rojo stated Middle East tensions may drive continued customer pre-buying in Q3 after strong Q2 earnings. The company launched a $100 million efficiency initiative involving asset closures and 100 job cuts to offset rising raw material costs.

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