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Sales of Assets
12 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Sales of Assets

20. Sales of Assets

On May 27, 2025 Stepan Company announced that its subsidiary, Stepan Philippines Quaternaries, Inc. (SPQI), 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. Ltd. During the second and third quarters of 2025, the asset disposal group was presented on the line items Assets held for sale and Liabilities held for sales on the Condensed Consolidated Balance Sheets as of June 30, 2025 and September 30, 2025. On November 20, 2025 the Company announced that its subsidiary, SPQI, had successfully closed the sale of SPQI's manufacturing assets. As part of the transaction, SPQI entered into a tolling agreement with Masurf, Inc. to continue to serve its customers in Southeast Asia and support growth opportunities in this region. The Company sold these assets for $11,500,000. The asset disposal group was mostly comprised of $3,753,000 in property, plant and equipment (net) and $1,707,000 in prepaid assets, mostly supplies and parts. The Company recognized a $5,144,000 of pre-tax gain on the sale of assets. The gain was not included in Segment operating results and is recorded on the Gain on sales of assets line of the Consolidated Statements of Income for the year ended December 31, 2025. See Note 17, Segment Reporting, of the notes to the Company’s consolidated financial statements (included in Item 8 of this Form 10-K) for additional details.

In December 2025, the Company announced that it sold its assets located in Lake Providence, Louisiana. The Company sold these assets (Lake Providence plant site) for $15,087,000 and recognized a $10,751,000 pre-tax gain. The assets disposal group was mostly comprised of $3,500,000 of property, plant and equipment. The gain was not included in Segment operating results and is recorded on the Gain on sales of assets line of the Consolidated Statements of Income for the year ended December 31, 2025. See Note 17, Segment Reporting, of the notes to the Company’s consolidated financial statements (included in Item 8 of this Form 10-K) for additional details.

Transactions listed above were the result of the Company’s ongoing optimization efforts and focus on core growth opportunities.