Stepan Co (SCL) 2025 Q1 法說會逐字稿

Good morning and welcome to the STEPAN COMPANY First Quarter 2025 Earnings Conference Call.

早安，歡迎參加 STEPAN COMPANY 2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

It is now my pleasure to turn the call over to Mr. Samuel S. Hinrichsen, Vice President and Interim Chief Financial Officer of Stepan Company. Mr. Hinrichsen, please go ahead.

現在我很高興將電話轉給 Stepan 公司副總裁兼臨時財務長 Samuel S. Hinrichsen 先生。欣里克森先生，請繼續。

Good morning and thank you for joining Stepan Company's First Quarter of 2025 Financial Review.

早安，感謝您參加 Stepan Company 2025 年第一季財務回顧。

Before we begin, please note that information in this conference call contains forward-looking statements which are not historical facts. These statements involve risk and uncertainties that could cause actual results to differ materially, including but not limited to prospects for our foreign operations, global and regional economic conditions, and factors detailed in our Securities and Exchange Commission.

在我們開始之前，請注意，本次電話會議中的資訊包含前瞻性陳述，這些陳述並非歷史事實。這些聲明涉及風險和不確定性，可能導致實際結果大不相同，包括但不限於我們海外業務的前景、全球和地區經濟狀況以及美國證券交易委員會詳細說明的因素。

In addition, this conference call will include discussions of adjusted net income, adjusted EBITDA, and free cash flow, which are non-GAAP measures. We provide reconciliation to the comparable GAAP measures in the earnings presentation and press release, which we have made available at www.steen.com under the investors section of our website.

此外，本次電話會議還將討論調整後淨收入、調整後 EBITDA 和自由現金流等非 GAAP 指標。我們在收益報告和新聞稿中提供了與可比較 GAAP 指標的對賬，這些對帳可在我們網站 www.steen.com 的投資者專區中查閱。

Whether you're joining us online or over the phone, we encourage you to review the investor's presentation. We make these slits available at approximately the same time as when the earnings release is issued, and we hope that you find the information and perspectives helpful.

無論您是透過線上方式還是電話加入我們，我們都鼓勵您查看投資者的簡報。我們會在收益報告發佈時大約同時提供這些內容，希望這些資訊和觀點對您有所幫助。

With that, I would like to turn the call over to Mr. Luis Rojo, our President and Chief Executive Officer.

接下來，我想將電話轉給我們的總裁兼執行長路易斯·羅霍先生。

Thank you, Sam. Good morning and thank you all for joining us today to discuss our First Quarter, 2025 results.

謝謝你，山姆。早安，感謝大家今天加入我們討論 2025 年第一季的業績。

I plan to share highlights of the quarterly performance, and we'll also share updates on our key strategic priorities while Sam will provide additional details on our financial results.

我計劃分享季度業績的亮點，我們還將分享我們關鍵策略重點的最新情況，而 Sam 將提供有關我們財務業績的更多詳細資訊。

We are pleased with the start of 2025 and I'm proud of our team that is committed to further improving earnings going forward.

我們對 2025 年的開始感到高興，我為我們致力於進一步提高未來收益的團隊感到自豪。

The company reported first quarter adjusted EBITDA of $57.5 million, up 12% versus the prior year. So, fact and specialty products delivered double digit adjusted EBITDA growth. While polymers adjusted EBITDA decrease slightly year over year.

該公司公佈第一季調整後 EBITDA 為 5,750 萬美元，較上年增長 12%。因此，事實和特色產品實現了兩位數的調整後 EBITDA 成長。而聚合物調整後的EBITDA則較去年同期略有下降。

Volume grew 4% and the growth was broad-based with Surfactants of 3%, volume was up 7%, and our MCT product line up 4%.

銷量成長了 4%，成長範圍廣泛，其中表面活性劑成長了 3%，銷量成長了 7%，我們的 MCT 產品線成長了 4%。

We continue to experience double digit volume growth within the agricultural and oil fields and markets and with our distribution partners in Surfactants.

我們在農業和石油領域及市場以及表面活性劑分銷合作夥伴的銷售量持續保持兩位數成長。

North America and the European Rigid Polyol volume grew single digits, while the Specialty Polyols and commodity PA businesses deliver a strong growth year over year.

北美和歐洲硬質多元醇銷售成長個位數，而特種多元醇和商品聚醯胺業務則較去年同期強勁成長。

We believe that Rigid Polyol growth in North America and Europe continues to be restrained by global macroeconomic uncertainties and the high-interest rate environment.

我們認為，北美和歐洲硬質多元醇的成長持續受到全球宏觀經濟不確定性和高利率環境的限制。

We're encouraged by the broad-based volume growth across several of our key strategic and markets.

我們對我們的幾個關鍵策略市場和市場的廣泛銷售成長感到鼓舞。

We finished the first quarter of 2025 with $19.3 million of adjust the net income of 32% versus the prior year, driven by earnings growth in fact and specialty products and a lower tax rate.

2025 年第一季度，我們的調整淨收入為 1,930 萬美元，較上年增長 32%，這得益於事實和特種產品的盈利增長以及較低的稅率。

We executed the safest startup of our new Pasadena, Texas site, which is now operational. During the first quarter of 2025, the company paid $8.7 million in dividends to shareholders. Our board of directors declared a quarterly cash dividend on the common stock of $0.385 per share, payable on June 13, 2025.

我們對位於德克薩斯州帕薩迪納的新工廠進行了最安全的啟動，該工廠現已投入運作。2025年第一季度，該公司向股東支付了870萬美元的股息。我們的董事會宣布普通股季度現金股利為每股 0.385 美元，於 2025 年 6 月 13 日支付。

The Stepan has paid and increase its dividends for 57 consecutive years.

Stepan 已連續 57 年發放並增加股利。

Sam will now share some details about our First Quarter Results.

Sam 現在將分享有關我們第一季業績的一些細節。

Thank you, Luis. My comments would generally follow the slide presentation. Let's start with slide 4 till we cap the quarter.

謝謝你，路易斯。我的評論通常會在幻燈片演示之後進行。讓我們從幻燈片 4 開始，直到本季結束。

First quarter of 2025, just the net income was $19.3 million or $0.84 per diluted share versus $14.7 million or $0.64 per diluted share for the first quarter of last year, a 32% increase. The increase was driven by broad-based volume growth, higher margins and surfactants, and a lower tax rate.

2025 年第一季度，淨收入為 1,930 萬美元，即每股攤薄收益 0.84 美元，而去年第一季的淨收入為 1,470 萬美元，即每股攤薄收益 0.64 美元，增長了 32%。成長的動力來自於廣泛的銷售成長、更高的利潤率和表面活性劑以及更低的稅率。

Adjusted EBITDA for the quarter was $57.5 million at 12% year by year, driven by volume growth and improved surfactants product and customer mix, which was partially offset by higher pre-operating expenses at our Pasadena, Texas site.

本季調整後的 EBITDA 為 5,750 萬美元，年成長 12%，這得益於銷售成長以及表面活性劑產品和客戶組合的改善，但我們位於德克薩斯州帕薩迪納工廠的預營運費用增加部分抵消了這一增長。

Cash from operations was $6.9 million for the quarter, and free cash flow was negative at $25.8 million.

本季經營現金流為 690 萬美元，自由現金流為負 2,580 萬美元。

Slide 5 shows the total company net income bridge for the first quarter of 2025 compared to last year's first quarter and breaks down the increase in adjust net income.

幻燈片 5 顯示了 2025 年第一季與去年第一季相比的公司總淨收入橋，並細分了調整後淨收入的成長。

Because this net income, the figures noted on an after-tax basis.

因為這個淨收入，數字是用稅後計算的。

We will cover each segment in more detail, but to summarize, we delivered operating income growth in surfactants and specialty products partially offset by lower operating results in polymers.

我們將更詳細地介紹每個部分，但總而言之，我們在表面活性劑和特殊產品方面實現了營業收入增長，但部分被聚合物的經營業績下降所抵消。

The first quarter results benefited from a lower effective tax rate.

第一季業績受惠於較低的有效稅率。

The effective tax rate was 20% versus our normal range of 24% to 26%.

有效稅率為 20%，而我們的正常稅率範圍為 24% 至 26%。

This decrease was primarily attributable to favorable discrete items associated with the tax audit settlement in the US.

這一下降主要歸因於與美國稅務審計和解相關的有利單項項目。

Slide 6 shows the total company adjusted EBITDA for the 1st quarter compared to last year's 1 quarter.

投影片 6 顯示了第一季與去年第一季相比的公司調整後 EBITDA 總額。

Adjusted EBITDA $57.5 million versus $51.2 million in the prior year, a 12% increase.

調整後 EBITDA 為 5,750 萬美元，而去年同期為 5,120 萬美元，成長 12%。

We will cover each segment in more detail, but to summarize, we delivered adjusted EBITDA growth in surfactants and specialty products partially offset by global polymers.

我們將更詳細地介紹每個部分，但總而言之，我們實現了表面活性劑和特殊產品的調整後 EBITDA 成長，但部分被全球聚合物所抵消。

Adjusted EBITDA results also benefited from lower corporate expenses compared to prior year.

調整後的 EBITDA 結果也受惠於與前一年相比較低的企業費用。

Slide 7 focuses on the surfactants segment results. Surfactant net sales were $430.3 million for the quarter, a 10% increase versus the prior year.

投影片 7 重點介紹界面活性劑細分市場的結果。本季表面活性劑淨銷售額為 4.303 億美元，較上年增長 10%。

Selling prices were up 12%, primarily due to the improved product and customer mix and the pass through of higher raw material costs.

銷售價格上漲了 12%，主要原因是產品和客戶結構的改善以及原材料成本上漲的轉嫁。

Sales volume 3% year by year, mainly due to double digit growth within the agricultural and also and markets, along with our with our distribution partners. This growth was partially offset by lower demand within the commodity consumer product and markets.

銷售額年增 3%，主要得益於農業和市場以及我們與分銷合作夥伴的兩位數成長。這一增長被大宗商品消費品和市場需求的下降部分抵消。

Foreign currency translation negatively impacted net sales by 5%.

外幣折算對淨銷售額產生了 5% 的負面影響。

The fact and adjusted EBITDA increased $4.5 million or 10% versus the prior year. This increase was primarily driven by the 3% growth in sales volume and improved product and customer mix, which was partially offset by pre-operating expenses at our Pasadena, Texas.

事實和調整後的 EBITDA 比上年增加了 450 萬美元，即 10%。這一成長主要得益於銷售量 3% 的成長以及產品和客戶組合的改善，但這部分被我們位於德克薩斯州帕薩迪納的預營運費用所抵消。

Now on slide 8, polymer net sales were $146.1 million for the quarter. That versus the prior year.

第 8 張投影片顯示，本季聚合物淨銷售額為 1.461 億美元。與去年同期相比。

Selling prices decreased 7%, primarily due to the pass through of lower raw material costs and competitive pressures.

銷售價格下降了 7%，主要由於原材料成本下降和競爭壓力的影響。

Sales volume increased 7% in the quarter. North American and European Rigid Polyol or volume were losing the digits despite the continued challenging overall environment.

本季銷售量成長了7%。儘管整體環境依然充滿挑戰，但北美和歐洲硬質多元醇的產量仍在下降。

Especially polyols and commodity metallic and hydride volume delivered strong growth year by year.

特別是多元醇和商品金屬及氫化物產量逐年強勁成長。

China polymer's volume was up low single digits.

中國聚合物的銷量上漲了個位數。

Foreign currency translation had a nominal impact on net sales during the quarter.

外幣折算對本季淨銷售額的影響不大。

Polymer adjusted EBITDA decreased $0.3 million or 2% versus the prior year, primarily due to less favourable product mix and the high costs inventory carryover, which was partially offset by the 7% volume growth.

聚合物調整後的 EBITDA 與上年相比減少了 30 萬美元，即 2%，這主要是由於產品組合不太有利以及高成本庫存結轉，但 7% 的銷售成長部分抵消了這一影響。

Finally, specialty products, net sales were $16.8 million for the quarter, and 11% increase versus the prior year, primarily due to higher selling prices.

最後，特色產品本季淨銷售額為 1,680 萬美元，比上年增長 11%，主要原因是銷售價格上漲。

Especially product adjusted EBITDA that increased 1.2 million or 21%.

特別是產品調整後的EBITDA增加了120萬，即21%。

The increase in adjusted EBITDA was primarily due to marginal recovery and volume growth within the medium chain triglycerides product line.

調整後 EBITDA 的成長主要歸因於中鏈甘油三酯產品線的邊際復甦和產量成長。

Next on slide 9, free cash flow was negative at $25.8 million for the first quarter, down $37.2 million year by year, reflecting typically higher working capital requirements during the first quarter, as well as increased purchases of raw materials in anticipation of tariffs and to support business growth.

接下來在第 9 張投影片中，第一季的自由現金流為負 2,580 萬美元，年減 3,720 萬美元，這反映了第一季營運資本需求通常較高，以及預期關稅和支持業務成長而增加的原物料購買量。

We are cautiously optimistic in our ability to deliver positive free cash flow for the full year 2025.

我們對 2025 年全年實現正自由現金流的能力持謹慎樂觀的態度。

During the first quarter, we deployed $32.7 million against capital investments and $8.7 million for dividends.

第一季度，我們部署了 3,270 萬美元用於資本投資，870 萬美元用於股息。

Now on slide 10 and 11, Luis will update you on our strategic priorities.

現在在第 10 和 11 張投影片上，路易斯將向您介紹我們的策略重點。

Thanks Sam, I will focus my comment on our strategic priorities. Our customers will always remain at the centre of our strategy and innovation efforts. Our tier one customer base remains a solid foundation of our business.

謝謝 Sam，我的評論將重點放在我們的策略重點。我們的客戶永遠是我們策略和創新努力的中心。我們的一級客戶群仍然是我們業務的堅實基礎。

Continue our new customer acquisition with Tier 2 and Tier 3 customere remains a key priority.

繼續吸引二級和三級新客戶仍然是我們的首要任務。

This is an important and profitable growth channel within our fact and business. For the first quarter of 2025, our volume grew mid single digits year over year, and we added over 400 new customers. Our end market diversification strategy remains a key focus area. For the first quarter, we grew double digits in our agricultural and oil field businesses.

這是我們事實和業務中一個重要且有利可圖的成長管道。2025 年第一季度，我們的業務量年增了中個位數，並增加了 400 多名新客戶。我們的終端市場多元化策略仍然是重點關注領域。第一季度，我們的農業和油田業務實現了兩位數的成長。

We are pleased to see our North American and European bringing oil business return to year over year growth after a challenging 2023 and 2024.

我們很高興看到，在經歷了充滿挑戰的 2023 年和 2024 年後，我們的北美和歐洲石油業務恢復了同比增長。

Insulation remains a critical enabler of a more sustainable and energy efficient world, and we are confident in the long-term growth prospect of this business. Our focus continues to be on developing the next generation of polio technologies that can increase the energy efficiency and cost performance of our customer insulation products.

隔熱材料仍然是實現更永續和節能的世界的關鍵推動因素，我們對該業務的長期成長前景充滿信心。我們將繼續致力於開發下一代小兒麻痺技術，以提高客戶絕緣產品的能源效率和成本效益。

Additionally, we're excited about the new products we are introducing in the growing spray foam and market.

此外，我們對在不斷成長的噴塗泡棉市場中推出的新產品感到非常興奮。

Within polymers, we were able to achieve a strong growth in our specialty polio and our commodity PA business.

在聚合物領域，我們的專科小兒麻痺藥物和商品 PA 業務實現了強勁成長。

This will enable us to deliver earnings growth in 2025.

這將使我們能夠在 2025 年實現獲利成長。

Our supply chain operation and resiliency continues to improve, and we deliver a solid quarter in all our key operational metrics. We're continuing to make the necessary investments in our mills outside to ensure reliable operations both today and in the future.

我們的供應鏈營運和彈性持續改善，我們在所有關鍵營運指標中均取得了穩健的成績。我們將繼續對外部工廠進行必要的投資，以確保現在和將來的可靠運作。

Moving to slide 11, safely start up our new Pasadena, Texas site. We have made 6 different products today.

移至第 11 張投影片，安全啟動我們位於德州帕薩迪納的新網站。今天我們製作了 6 種不同的產品。

We expect to achieve the full contribution rate of the plan during the second half of 2025.

我們預計在2025年下半年實現該計劃的全部繳費率。

Our commercial teams continue to develop and deliver new specialty consolation opportunities.

我們的商業團隊繼續開發並提供新的專業安慰機會。

Specialty consolation volume grew a strong double digit in the first quarter.

第一季度，專業安慰品銷售強勁成長了兩位數。

To conclude, we remain focused on accelerating our business strategy to improve executions, to grow volume, improve product and customer needs, and accelerate free cash flow generation.

總而言之，我們仍然專注於加速我們的業務策略，以提高執行力，增加產量，改善產品和客戶需求，並加速自由現金流的產生。

We believe Stepan will experience continued growth in our key strategic markets, and that polymer demand will continue improving as we get more market certainty and we execute our innovation and growth plans.

我們相信，Stepan 將在我們的主要策略市場中持續成長，並且隨著我們獲得更多的市場確定性並實施我們的創新和成長計劃，聚合物需求將繼續改善。

In addition, our Pasadena facility is now operational, and as privily communicated, we believe this will enable us to deliver volume growth and supply chain savings during the second half of the year.

此外，我們的帕薩迪納工廠現已投入運營，正如私下溝通的那樣，我們相信這將使我們能夠在今年下半年實現產量成長和供應鏈節約。

Despite all the current market uncertainties, including the impact of tariffs, we remain cautious casually optimistic that we will deliver full year adjusted EBITDA and adjust the net income growth and positive free cash flow in 2025.

儘管目前市場存在各種不確定性，包括關稅的影響，但我們仍然謹慎樂觀地認為，我們將在 2025 年實現全年調整後的 EBITDA，並調整淨收入成長和正自由現金流。

This concludes our prepared remarks. At this point, we would like to turn the call over for questions. Steven, please review the instructions for the questions portion of today's call.

我們的準備好的演講到此結束。現在，我們想將電話轉交給大家提問。史蒂文，請查看今天電話會議中提問部分的說明。

Thank you. At this time, we will conduct the question-and-answer session.

謝謝。此時，我們將進行問答環節。

(Operator Instructions)

（操作員指示）

The first question comes from the line of Mike Harrison of Seaport Research Partners. Your line is now open.

第一個問題來自 Seaport Research Partners 的 Mike Harrison。您的線路現已開通。

Hi, good morning.

嗨，早安。

Good morning, Mike.

早上好，麥克。

Congratulations on the Pasadena [Alciation] startup. I was hoping that maybe you could answer a few questions about that facility and kind of the timing of how we should think about the contribution there. First of all, you said it, I believe you said it was producing 6 products. Is that kind of the limit, or there's still some products that you're bringing online, and can you talk at all about how we should think about the utilization and customer qualification, ramp up process? Is that something that gets wrapped up in in the next few months or is that something that's continuing kind of through the end of the year?

恭喜帕薩迪納 [Alciation] 啟動。我希望您能回答一些有關該設施的問題，以及我們應該如何考慮在那裡做出貢獻的時間。首先，您說了，我相信您說的是生產 6 種產品。這是限制嗎？或者您仍會上線一些產品，您能否談談我們應該如何考慮利用率和客戶資格以及提升流程？這是會在接下來的幾個月內完成的事情嗎，還是會持續到今年年底？

Great question, Mike, we are very excited, with the news and with Pasadena, starting up.

很好的問題，麥克，我們對這個消息和帕薩迪納的啟動感到非常興奮。

Only 6 products we have shared in the past that we're planning to produce more than 60 products in Pasadena, so we are in the process of qualifying, one by one. This is going to take a few months, okay, so that's why we're saying the full contribution starting more in the second half of the year and of course the full contribution from the plant in 2026 and as we have talked in the past. We expect to fill up the plant pretty quick in a few quarters, right, because we have a lot of the volumes already, but of course we want to continue growing and if we can keep some of that volume in the site for growth. That is coming and keeping the other supply chain options that we have available, that will be even better for us. But we will see how the next few quarters develop. But as I said in my prepared remarks, especially consulates are growing strong we believe and to give you the exact number is 19% growth in in Q1. So, very strong growth. So, its early days, and we still spend $4 million in Q1 in pre-operating expenses in Pasadena. That's why if you exclude that we are above the $60 million EBITDA, but that's something of course that we will mitigate with the supply chain savings going forward in future quarters.

我們過去只分享了 6 種產品，但我們計劃在帕薩迪納生產 60 多種產品，因此我們正在逐一進行資格審查。這將需要幾個月的時間，好吧，這就是為什麼我們說從今年下半年開始全面貢獻，當然到 2026 年工廠也會全面貢獻，就像我們過去談到的那樣。我們預計幾個季度後工廠的產量會很快填滿，對吧，因為我們已經有很多產量了，但當然我們希望繼續成長，如果我們可以將一部分產量留在工廠以實現成長。這將會發生，並保留我們現有的其他供應鏈選項，這對我們來說會更好。但我們將觀察接下來幾季的發展。但正如我在準備好的發言中所說的那樣，我們相信領事館的數量正在強勁增長，確切的數字是第一季增長了 19%。因此，成長非常強勁。所以，現在還處於早期階段，我們在第一季仍在帕薩迪納花費 400 萬美元的營運前費用。這就是為什麼如果你排除我們的 EBITDA 超過 6000 萬美元，但這當然是我們會在未來幾季透過供應鏈節省來緩解的。

That's I appreciate that color. That's helpful. So, in terms of the how we should think about the earnings contribution, at least directionally, it sounds like maybe in Q1 it was maybe $3 million or $4 million to the negative in operating income or beta and then should we assume that Q2 is still negative but better than that and then it's Q3 and Q4 when we start to see. The positive earnings contribution ramp up.

這就是我欣賞那種顏色的原因。這很有幫助。因此，就我們應該如何看待獲利貢獻而言，至少從方向上看，聽起來可能在第一季度，營業收入或貝塔值可能為負 300 萬美元或 400 萬美元，然後我們是否應該假設第二季度仍然為負，但會比這更好，然後我們開始看到第三季度和第四季度的情況。正收益貢獻不斷增加。

Yeah, I think you are thinking that directionally the right way. I think Q2 is still, is again, we're just starting out, so we are still investing, and you're not going to see the help in Q2, but for sure you're not going to see the such a negative like in Q1.

是的，我認為你的思考方向是正確的。我認為第二季度仍然，我們才剛剛起步，所以我們仍在投資，你不會在第二季度看到幫助，但可以肯定的是，你不會看到像第一季那樣的負面情況。

Perfect. So moving on to a couple other questions that I had, one of them is surfactants, you mentioned the weakness in the commodity, consumer products, portions of the business, and I'm just curious, how much of that decline is intentional shifting of business into higher margin. And non commodity product lines and kind of higher value applications or can you just help us understand what else is contributing to the decline in volumes in that commodity consumer piece.

完美的。那麼，回到我的另外幾個問題，其中一個是表面活性劑，你提到了商品、消費品、業務部分的弱點，我只是好奇，這種下降有多少是故意將業務轉向利潤更高的領域。還有非商品產品線和更高價值的應用，或者您能否幫助我們了解還有哪些因素導致了商品消費品銷售的下降。

No, yeah, look, I mean, we are not intentionally moving volume from consumer products to other applications, but of course, I mean, we will always, optimize our assets in the future if we have to. We have really a sluggish demand from several of our consumer product customers and if you see, if you read the reports from others, volumes are not growing. So, that's a challenging situation with inflation. With everything that the consumer is experienced, we are not seeing material volume growth in this segment as we, as we expect.

不，是的，看，我的意思是，我們並沒有故意將產量從消費產品轉移到其他應用，但當然，我的意思是，如果有必要，我們將來總是會優化我們的資產。我們的一些消費品客戶的需求確實低迷，如果你看到或讀過其他公司的報告，你會發現銷售量並沒有成長。所以，通貨膨脹是一個具有挑戰性的局面。從消費者所經歷的一切來看，我們並沒有看到這一領域的材料產量像我們預期的那樣成長。

All right, and then the last one for me is on the polymer business. You mentioned that that high cost inventory that's still flowing through the P&L with a drag on margin. Are most of those higher cost goods out of inventory, right? Now, or is there still more that needs to flow through and I guess my other question on polymers is when might we expect to see pricing stabilize? I believe it was still a negative 7% year over year in the first quarter.

好的，對我來說最後一個是關於聚合物業務。您提到高成本庫存仍在損益表中流動，並拖累利潤率。那些高成本的商品大部分都缺貨了嗎？現在，還是還有更多需要流通的，我想我關於聚合物的另一個問題是，我們什麼時候可以預期價格會穩定下來？我認為第一季的年增幅仍為-7%。

Great question, Mike, and that the main issue, in polymers in Q1 was the higher inventory cost that we were carrying on and we're getting out of that. We're getting out of that in, already in Q2.

很好的問題，麥克，第一季聚合物的主要問題是我們承擔的較高庫存成本，而我們正在擺脫這個問題。我們已經在第二季度擺脫了這一困境。

So, margin should improve.

因此，利潤率應該會提高。

And pricing stabilizing.

且價格趨於穩定。

Yeah, I think, again, when you think about pricing and raw materials, we should see improvements.

是的，我認為，當你考慮價格和原材料時，我們應該看到改善。

All right, thanks very much.

好的，非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Dave Storms of Stonegate. Your line is now open.

我們的下一個問題來自 Stonegate 的 Dave Storms。您的線路現已開通。

Morning.

早晨。

Good morning hoping we could start with maybe what you're seeing in down channel inventory levels, the volume increase that you saw this quarter. Was there any sense that this is from maybe a pull forward inventory levels as customers are trying to get ahead of some of the macro uncertainties.

早上好，希望我們可以從您所看到的下行渠道庫存水平以及本季度看到的數量增長開始。這是否意味著這可能是由於客戶試圖應對一些宏觀不確定性而提前提高庫存水準造成的？

A great question, Dave. Look, we had a good quarter in Q1 in volumes, right? I mean, when you think of 3% in sur fact and 7% in polymers, 4% in NCT, we're very pleased and we don't believe there is any overstocking in Q1 with the volumes that that we ship and. Actually, we have talked a lot about our customers, especially on the polymer side to see if there is any, potential inventory build-up and we're not getting that perspective as of now.

戴夫，這個問題問得好。你看，我們第一季的銷售表現不錯，對吧？我的意思是，當你想到表面材料佔 3%，聚合物佔 7%，NCT 佔 4% 時，我們非常高興，並且我們認為第一季我們發貨的數量不會出現庫存過剩的情況。實際上，我們已經與客戶進行了大量討論，特別是在聚合物方面，以了解是否存在潛在的庫存積累，但目前我們還沒有得到這方面的資訊。

I will compliment your question with we also are seeing the same dynamics in April, right? I mean, very, I mean, similar dynamics in the fact and business, very strong act very good oil field, good distribution. So, same dynamics in surfactants and actually we're seeing an acceleration of growth in the polymer business and we need to see how that plays out in, May, June, and Q3, and if there is any pre-building inventory because of tariffs or price increase concerns or something like that, but yeah, April is coming stronger on the polymer side, and that's the piece that we need to evaluate in the next in the next few months.

我會補充你的問題，我們在四月也看到了同樣的動態，對嗎？我的意思是，事實上和商業中的類似動態，非常強勁的表現，非常好的油田，良好的分佈。因此，表面活性劑的動態相同，實際上我們看到聚合物業務的增長正在加速，我們需要觀察這種增長在 5 月、6 月和第三季度如何發展，以及是否由於關稅或價格上漲擔憂或類似原因而預先建立庫存，但是是的，4 月份聚合物方面表現更強勁，這是我們在接下來的幾個月裡需要評估的部分。

Understood very helpful, thank you, and then you mentioned a couple times just the improved customer I'm assuming this is referring to, serving more tier 2 and 3 customers.

理解非常有幫助，謝謝，然後你幾次提到了改進的客戶，我猜這是指服務更多的二級和三級客戶。

Are you able to give us a sense of, maybe of those tier 2 and 3 customers which are, more spot buyers and which maybe are a little stickier, using some of the additional services that you know you can provide for the tier 2 and 3 customers?

您能否讓我們了解一下，也許那些二級和三級客戶，他們是更多的現貨買家，可能有點黏性，使用一些您知道可以為二級和三級客戶提供的附加服務？

Sure, the mix is coming from both. It's coming from Tier 2, Tier 3, and it's also coming from the end market diversification. So, [AC] is growing very strong. Oil field is growing very nicely. So, all of those are positive needs in our surfactants business and actually. When you think about it, is, you all can see the public data, all your chemicals went up significantly in Q1. So, actually, that was a drag in our margins in surfactants because all your chemicals went up and you always have gap between raw material, price increases, and then how much you can pass through and how fast you can pass through, some of that increases. So, there is always a lag. So, we are very pleased with the results in surfactants driven by the customer and the product needs.

當然，兩者的混合都是如此。它來自二線、三線，也來自終端市場的多樣化。因此，[AC] 發展非常強勁。油田發展得很好。因此，實際上，所有這些都是我們表面活性劑業務中的積極需求。想想看，大家都可以看到公開數據，所有化學品在第一季都大幅上漲。因此，實際上，這對我們表面活性劑的利潤率造成了拖累，因為所有化學品的價格都上漲了，而且原材料價格上漲與你能通過的數量和通過速度之間總是存在差距，其中一些會增加。因此，總是存在滯後。因此，我們對由客戶和產品需求驅動的表面活性劑的成果感到非常滿意。

Understood, thank you for taking my questions.

明白了，感謝您回答我的問題。

Thank you.

謝謝。

Our next question.

我們的下一個問題。

One moment, please.

請稍等一下。

Our next question comes from the line of David Silver CL King and Associates. The line is now open.

我們的下一個問題來自 David Silver CL King and Associates。該線路現已開通。

Yeah, hi, good morning.

是的，你好，早安。

Thank you.

謝謝。

Good morning, David.

早安，大衛。

Yeah, good morning. A couple of questions. I may be a follow up on kind of your double digit sales growth and agricultural and oil field surfactants, and this would, just go back to maybe the question about potential, I don't know, pipeline filling or overstocking, but. You did know double digit growth, and firstly I just was trying to confirm that the bulk of the demand growth was on the agricultural side as opposed to oil field. And then secondly, I guess in the past couple of years there was a big run up in volumes on the agricultural surfactants side and then and then there was a period of time to I guess for inventories to normalize. So, I'm just thinking in the current environment it is the run up to the spring planting season. There are some tariff issues. I mean, just on the agricultural side, what is your thoughts, your best thoughts about the level of any, pre-buying or pipeline filling that may not be sustainable, I guess, as the balance of the year goes on.

是的，早安。有幾個問題。我可能會跟進你們的兩位數銷售增長以及農業和油田表面活性劑的情況，這可能會回到關於潛力的問題，我不知道，管道填充或庫存過剩，但是。你確實知道兩位數的成長，首先我只是想確認大部分需求成長是在農業方面，而不是油田。其次，我想在過去幾年中，農業界面活性劑的銷量大幅增加，然後我想需要一段時間才能使庫存恢復正常。所以，我只是認為在當前環境下，這是春季播種季節的開始。存在一些關稅問題。我的意思是，僅從農業方面來說，您認為，隨著今年餘下的時間來推移，任何預購或管道填充的水平可能無法持續，對此您有何看法？

Thank you.

謝謝。

David, you are 100% right that the majority of the growth is driven by our Ag business instead of oil field. I mean, oil field is a strong growth, but Ag was significantly higher, and of course we have a bigger business in a than in oil fields.

大衛，你完全正確，大部分的成長是由我們的農業業務而不是油田推動。我的意思是，油田成長強勁，但農業成長明顯更高，當然我們在農業領域的業務比油田更大。

We keep talking with our customers and we don't believe there is plenty of act. Inventory increases. And if you think about where people are with interest rates, nobody's willing to put a lot of inventory and tie a lot of cash like what happened in 2022 where it was totally a different environment where with supply chain issues across the board, so everybody wanted to have the material and interest rates were not where they are today. So, and all the data that we have from our customers is there is no, there is no significant inventory built up anywhere that we know and we continue seeing good orders for April and actually already a good book order for May.

我們一直在與客戶溝通，但我們認為並沒有太多行動。庫存增加。如果你考慮一下人們所處的利率水平，你會發現沒有人願意投入大量庫存並投入大量現金，就像 2022 年發生的情況一樣，當時的環境完全不同，供應鏈全面出現問題，所以每個人都想獲得材料，而且利率也不像今天這樣。因此，我們從客戶那裡獲得的所有數據表明，沒有任何地方累積大量庫存，我們繼續看到 4 月的訂單良好，實際上 5 月的訂單也很好。

On the act.

就行動而言。

Okay, very good, thank you for that. I did have a question, follow up maybe on your comments on the polymer side this quarter. So, I think you did speak to some of the inventory issues that may have impacted your margins, but I was hoping, not sure if you commented on this, but in the slide deck you did a less favourable product mix.

好的，非常好，謝謝你。我確實有一個問題，也許可以跟進您本季度對聚合物的評論。所以，我認為您確實談到了一些可能影響利潤率的庫存問題，但我希望，不確定您是否對此發表了評論，但在幻燈片中您做了一個不太有利的產品組合。

And I'm just wondering if you could comment on that. Is that particular end markets, is that a particular region, just, the less favourable product mix that may be impacted your margin performance this quarter and what is the outlook, for that, for the balance of the year.

我只是想知道您是否可以對此發表評論。是特定的終端市場，是特定的地區，只是不太有利的產品組合可能會影響本季的利潤表現，對於今年的剩餘時間，前景如何？

Thank you.

謝謝。

Yeah, good point, David. The issue is the following. We were very clear. We grew, single digits. Our Rigid Polyol business like North America and Europe combined low single digits. We grew very strong double digits in our Phthalic Anhydride, our PA business. And of course, Phthalic Anhydride is a commodity. It has lower margins, and we are capturing a lot of new business and new shares in that in that end market because other competitive dynamics. So, that is what is driving the meats impact in the in the polymer business. That will continue because we continue growing in our PA business. But of course, I mean, we need, the issue in Q1 was the high inventory cost that we had across the polymer business that really dragged the margins and that's why we had, basically flourished EBITDA data with volumes of 7%. That was the main drag.

是的，大衛，說得對。問題如下。我們非常清楚。我們成長了個位數。我們的北美和歐洲硬質多元醇業務合計成長了個位數。我們的鄰苯二甲酸酐和 PA 業務實現了強勁的兩位數成長。當然，鄰苯二甲酸酐是一種商品。它的利潤率較低，由於其他競爭動態，我們在終端市場中獲得了大量的新業務和新份額。這就是肉類對聚合物產業產生影響的因素。這種情況將會持續下去，因為我們的 PA 業務將繼續成長。但當然，我的意思是，我們需要，第一季的問題是整個聚合物業務的高庫存成本，這確實拖累了利潤率，這就是為什麼我們的 EBITDA 數據基本上蓬勃發展，銷量達到 7%。這是主要的阻礙。

Okay, great, thanks for that.

好的，太好了，謝謝。

Next question would Probably be a two-parter, but the topic would be, tariff impacts as you see them currently. And I do think, you're largely a local for local kind of structure right now, certainly in the US and Europe maybe, but I am wondering about if you could comment on how the tariff.

下一個問題可能分為兩部分，但主題是您目前看到的關稅影響。我確實認為，你們現在基本上是一種地方性的結構，當然在美國和歐洲可能是如此，但我想知道你們是否可以評論一下關稅問題。

The situation as it currently stands, which I recognize is uncertain, but are there any kind of pressure points maybe from in your Mexican production base in particular, is any is all of that product covered by the US MCA agreement or might some of it be sold into the US and be subject to some of the tariffs that have recently been announced, but an admittedly unsettled, but where would you kind of characterize your greatest sensitivity, direct impact from potential tariff policies?

我知道目前的情況尚不確定，但是否存在某種壓力點，特別是來自您的墨西哥生產基地的壓力點，所有產品是否都受美國 MCA 協議的約束，或者其中一些產品是否會出售到美國並受到最近宣布的一些關稅的影響，但不可否認的是，這是一個尚未解決的問題，但您認為您最敏感的問題是什麼，即什麼關稅政策的直接影響是什麼？

Sure, of course, the question of the week and the month, right? And look, as you said, David, things are changing every day. This is a very volatile and uncertain. Dynamic that we all have to navigate through right now. As you clearly said, the majority of our business is sourced, produced, and sold within the regions, right? So the majority of our volumes are in each of the regions that we compete.

當然，這是本周和本月的問題，對嗎？正如你所說，大衛，事情每天都在改變。這是一個非常不穩定和不確定的。我們現在都必須經歷這樣的動態。正如您所說，我們的大部分業務都是在區域內採購、生產和銷售的，對嗎？因此，我們的大部分銷售都集中在我們競爭的各個地區。

And so, but of course there are still impacts on the tariffs because we import raw materials and there's going to be always some impact that we are working right now to mitigate through changes on our sourcing strategy where possible and were less sense and also pricing. We all know tariffs are inflationary, many.

但當然，關稅仍然會受到影響，因為我們進口原材料，而且總是會受到一些影響，我們現在正在努力透過盡可能改變採購策略來減輕這些影響，而且這些影響也不太合理，還有定價。我們都知道關稅會導致通貨膨脹。

I believe many customers and many competitors will price for tariffs, and we're working on that right now because our objective will be to recover any impact. When you think about Mexico and Canada, our products are. Are included in the USMCA. So, we're good with Mexico and Canada, but we still have other things that we need to recover via pricing and the supply chain, changes.

我相信許多客戶和競爭對手都會根據關稅定價，我們現在正在努力做到這一點，因為我們的目標是恢復任何影響。當您想到墨西哥和加拿大時，您就會想到我們的產品。均包含在 USMCA 中。因此，我們與墨西哥和加拿大的合作很順利，但我們仍然需要透過定價和供應鏈的變化來恢復其他業務。

Okay, and then last one from me maybe a question about the indirect effects that you've seen thus far from the tariff announcements or potential import tariff.

好的，我的最後一個問題可能是關於您迄今為止從關稅公告或潛在進口關稅中看到的間接影響。

Implementation, but this would have to do maybe with your R&D or your product development efforts where you're collaborating, with customers and their tariff exposures may be a little bit different than Stephens's than your company's but have you noted or can you speak to any pausing or any. Changes in the collaborative relationships, let's say on, new product developments that might be commercialized over the next year or two, as a result of the tariffs. In other words, has anything changed with your R&D or technical collaborations with customers, let's say since the beginning of the year or since. April 2nd with the tariff announcement, so kind of indirect effects on your customers from tariff issues that might be impacting, your collaborative work with them. That would be my question.

實施，但這可能與您的研發或產品開發工作有關，您與客戶合作，他們的關稅風險可能與斯蒂芬斯和貴公司的略有不同，但您是否注意到或您可以談論任何暫停或任何。由於關稅的影響，合作關係會發生變化，比如說，未來一兩年內可能實現商業化的新產品開發。換句話說，自今年年初或之後，您的研發或與客戶的技術合作有什麼改變嗎？4 月 2 日發布了關稅公告，因此關稅問題可能會對您的客戶產生間接影響，從而影響您與他們的合作。這就是我的問題。

Thank you.

謝謝。

So look, we will continue our collaboratively work with our customer.

所以，我們將繼續與我們的客戶合作。

We have a customer intimacy strategy. And our innovation, I call it, customer centric innovation because again, we are co-developing things with them. We want to make sure that we're working on projects that they need, they want, and they aspire to launch. It's not a, it's working with their. With their objectives and their plans, so I wouldn't say we have seen a significant change in the last in the last few days with the tariff announcement, but we will stay diligent and we will stay and we will continue working with our customers to make sure that we are providing the service and we're helping them in all their formulation challenges and where things need to be changed based on the on the tariff situation.

我們有一個客戶親密度策略。我把我們的創新稱為以客戶為中心的創新，因為我們與他們共同開發產品。我們希望確保我們正在進行他們需要、他們想要並且他們渴望啟動的專案。這不是，這是與他們合作。由於他們的目標和計劃，所以我不會說我們在過去幾天的關稅公告中看到了重大變化，但我們會保持勤勉，並將繼續與我們的客戶合作，以確保我們提供服務，並幫助他們解決所有配方挑戰以及根據關稅情況需要進行更改的地方。

Okay, so no reduction in their willingness to work with Stepan, I guess is what you're saying.

好的，我想您說的是，他們與史蒂芬合作的意願並沒有減少。

I'm saying we will continue working with our customers in all the innovation challenges and changes that they need to execute, and I'm sure more requests are going to come in the future when this tariff situation also settle. I think people are also hesitant to make a lot of changes when the news are changing every day.

我的意思是，我們將繼續與客戶合作，應對他們需要執行的所有創新挑戰和變革，我相信，當關稅情況穩定下來後，未來將有更多的請求。我認為當新聞每天都在變化時，人們也會猶豫是否要做出很多改變。

Right.

正確的。

Okay, great. Thanks very much. I appreciate all the color.

好的，太好了。非常感謝。我欣賞所有的色彩。

And our next question comes from the line of Dmitry Silverstein of Water Tower Research. Your line is now open.

我們的下一個問題來自水塔研究公司的 Dmitry Silverstein。您的線路現已開通。

Thank you very much.

非常感謝。

Thank you, gentlemen, for taking my call and congratulations on a strong start to the year.

謝謝各位接聽我的電話，並祝賀您今年取得了良好的開端。

A couple of questions that are related, I think.

我認為有幾個問題是相關的。

So, let's start with your raw material situation here. You've seen an increase in pricing on raw material pass through, in your surfactant business and a declining pricing on raw material pass through in the polymer business. So, what specific or at least families of raw materials that are still inflating in the surfactants and are deflating in your in your polymer business and excluding the pass throughs, what does the pricing environment look like in these businesses?

那麼，讓我們從您的原料狀況開始。您已經看到界面活性劑業務中原材料轉嫁價格的上漲，而聚合物業務中原材料轉嫁價格的下降。那麼，在界面活性劑領域中哪些特定原材料或至少哪些原材料系列的價格仍在上漲，而在你們的聚合物業務中價格卻在下跌，並且不包括轉嫁環節，這些業務的定價環境是什麼樣的？

Look, as I mentioned before, in surfactants, we saw important increases on your chemicals, and that was the driver of pricing actions at the end of the quarter and actually, early into April to recover some of that. And in polymers, again, we made, we made some decisions in Q1, and we still have the raw material that we had on our inventory, so we know we have. To flow through that for a few months for a couple of months. So but I don't, I think we are in a good environment in terms of pricing and margins. I think.

正如我之前提到的，在界面活性劑方面，我們看到化學品價格顯著上漲，這是本季末乃至 4 月初採取定價行動的驅動因素，實際上，價格有所回升。在聚合物方面，我們在第一季做出了一些決定，我們仍然擁有庫存中的原材料，所以我們知道我們擁有。流經那裡幾個月，幾個月。但我不這麼認為，我認為就定價和利潤率而言，我們處於良好的環境中。我認為。

It's a healthy situation, and we will need to continue working with the, with how tariffs or any other development on the raw material piece, can impact us in the following months because again, tariffs are going to have direct and are going to have indirect impacts, right? So that, that's what we need to stay diligent and we need to monitor the situation and take pricing where it's needed.

這是一個健康的情況，我們需要繼續研究關稅或原材料方面的任何其他發展將如何在接下來的幾個月中對我們產生影響，因為關稅將產生直接和間接的影響，對嗎？所以，我們需要保持警惕，監控情況並在需要時進行定價。

Okay, I under I understand that, but I guess my question had more to do with, the raw material cycle. Where are we or where you are in the in the in the raw materials cycle. In other words, have raw materials stopped increasing, for example, in surfactants and you're just catching up with the pass throughs, have they stopped declining or continued to decline polymers, so we can expect to see some more pricing pressure there.

好的，我明白這一點，但我想我的問題與原材料循環有關。我們或您在原料循環中處於什麼位置？換句話說，原物料價格是否已經停止上漲，例如界面活性劑價格正在上漲，而通過量卻在上漲，聚合物價格是否已經停止下跌或繼續下跌，因此我們可以預期會看到更多的定價壓力。

Yeah, they have stabilized, but again, tariffs are coming, so things will keep changing in the next in the next few months. So, things have stabilized versus what we saw at the beginning of Q1, but now we will have a new development in the next few months that we need to monitor.

是的，它們已經穩定下來，但是關稅即將到來，所以未來幾個月情況還會繼續變化。因此，與第一季初相比，情況已經穩定下來，但未來幾個月我們將看到新的發展，我們需要對其進行監控。

Understood and just to come back to the tariffs really briefly.

我明白了，我們來簡單回顧一下關稅問題。

You talked about direct and indirect impact, right? So, the direct impact is would be if you have some raw material cost increases, and then indirect impact would be if your end products or your customers and products are being impacted in terms of demand. By reciprocal tariffs going back and forth. So, is there one area that you're more concerned or have a better visibility than another or are you monitoring both and you expect both of them to be somewhat impactful depending on how the situation actually. Comes out.

您談到了直接和間接影響，對嗎？因此，直接影響是原材料成本增加，而間接影響是最終產品或客戶和產品的需求受到影響。透過相互徵收關稅。那麼，是否有一個領域讓您更專注或比另一個領域更清楚，或者您是否同時監控這兩個領域，並且您預計這兩個領域都會產生一定的影響，具體取決於實際情況。出現了。

Yeah, no, look, we need to monitor the indirect piece, and we don't have enough data yet because things have not, been executed to the full extent. But yeah, I mean, if there is a huge, Wave of inflation, you could argue that could have some, a demand impact in, construction industry, the consumer, right, on the fact and so that's what we need to monitor in the next few months. We haven't seen anything and as I said before, we have, I mean, we have a strong April and, so, But this will take a few more months to go through the whole chain all the way to the consumer, all the way to the construction industry for our polymers business and we will provide more updates in July.

是的，不，看，我們需要監控間接部分，但我們還沒有獲得足夠的數據，因為事情還沒有完全執行。但是的，我的意思是，如果出現巨大的通貨膨脹浪潮，你可能會說這可能會對建築業、消費者的需求產生一定的影響，這是事實，所以這就是我們在接下來的幾個月裡需要監控的。我們還沒有看到任何東西，正如我之前所說的，我們的四月份表現強勁，但是我們的聚合物業務還需要幾個月的時間才能貫穿整個鏈條，直至消費者，直至建築行業，我們將在七月份提供更多更新信息。

Understood. And final question just on sort of base level demand, we've seen, you've seen strong demand in oil field chemicals and in consumer. You also mentioned that your insulation products are growing well in North America and Europe, and you're rolling out your spray foam products. Construction seems to be, I don't want to say starting to grow, but at least a little bit more uniform indications that the market is stabilizing. Certainly here in North America, maybe beginning to turn the corner. How do you feel about the construction side of your business, and what do you expect to see in 2025?

明白了。最後一個問題是關於基本需求，我們已經看到，油田化學品和消費品的需求強勁。您還提到，您的絕緣產品在北美和歐洲發展良好，並且正在推出噴塗泡沫產品。建築業似乎，我不想說開始成長，但至少有一點更統一的跡象表明市場正在穩定。顯然，在北美，情況可能已經開始好轉。您對於業務的建築方面有何看法？您對 2025 年有何期望？

No, the comments that we made was we had, single digit growth in our Rigid Polyol business in North America and Europe, and that we believe that is a start, there is still, constrained demand because of the uncertainties in the market because of the high-interest rate environment. So, we believe there is a lot of pent-up demand in this industry and this and market. And we haven't seen the full potential of it and hopefully with more certainty and lower interest rates in the future, that's where we will see this business growing faster like it did in the last, if you think of the last 10 to 20 years, this business grew high single digits. The markets grew high single digits, and we are not seeing the markets growing high single digits now, so. That will take some time to go back to those levels.

不，我們的評論是，我們在北美和歐洲的硬質多元醇業務實現了個位數成長，我們認為這是一個開始，但由於高利率環境導致的市場不確定性，需求仍然受到限制。因此，我們相信這個產業和市場中存在著大量被壓抑的需求。我們還沒有看到它的全部潛力，希望隨著未來更多的確定性和更低的利率，我們將看到這項業務像過去一樣更快地增長，如果你想想過去 10 到 20 年，這項業務的增長率高達個位數。市場以高個位數成長，而我們現在沒有看到市場以高個位數成長，所以。要恢復到這些水平需要一些時間。

Okay, but it is improving personal, excuse me.

好的，但是這是為了提高個人素質，抱歉。

The demand level you're seeing in the first quarter, is it better than what you saw in 2024 and 2023.

您在第一季看到的需求水準是否比 2024 年和 2023 年更好。

Yeah, we grew 7% of volumes in polymers and we grew a single these in Rigid Polyol.

是的，我們的聚合物產量增加了 7%，而硬質多元醇的產量也增加了 1%。

Okay. So, the business is growing, but there's still more growth to come, assuming the interest rate environment and the economic environment improves. Understood.

好的。因此，業務正在成長，但假設利率環境和經濟環境改善，未來還會有更多的成長。明白了。

Thank you.

謝謝。

Thank you.

謝謝。

Thank you. As a reminder to ask a question, you'll need to press 101 on your telephone and wait for your name to be announced. We will welcome back Mike Harrison for our next question from Seaport Research Partners. Your line is now open.

謝謝。提醒一下，如果您要提問，請在電話上按下 101 並等待播報您的名字。我們歡迎麥克哈里森回來回答 Seaport Research Partners 的下一個問題。您的線路現已開通。

Hi, just a couple more for me. I know you've addressed a lot of questions on tariffs. My question relates to imports of competitor products. I believe in the past, you guys, maybe particularly in the Rigid Polyol side, you've talked about some competition from imports. In the US, and I believe this has also come up in the context of the medium chain triglycerides business within your specialty business. So are you, based on what you're seeing with the tariffs right now, are you expecting that maybe some import competition could decline because of the impact of tariffs in any of your three segments?

嗨，我再說幾句。我知道你已經回答了很多有關關稅的問題。我的問題涉及競爭對手產品的進口。我相信過去，你們，特別是在硬質多元醇方面，已經談到了來自進口的一些競爭。在美國，我相信這也出現在你們專業業務中的中鏈三酸甘油酯業務中。那麼，根據您目前看到的關稅情況，您是否預計，由於關稅的影響，您的三個部門中的某個部門的進口競爭可能會下降？

Great question, Mike, and not in polymers, the polymers business is heavily, source all some competition within the region. So, but you are 100% right that our MCT business have Imported competition and we are evaluating options and to some degree the surfactant business as well. I mean we always see some levels of surfactant imports from China, especially in the west coast. These are not significant volumes, but there is always some imported products in the fact and business that for sure we will evaluate and TRY to grow our business and grow our shares.

很好的問題，麥克，而且不是在聚合物領域，聚合物業務非常激烈，源自於該地區的所有競爭。所以，但您完全正確，我們的 MCT 業務面臨進口競爭，我們正在評估各種選擇，並且在某種程度上也在評估表面活性劑業務。我的意思是，我們總是看到從中國進口一定水平的表面活性劑，尤其是在西海岸。這些數量並不大，但事實上和業務中總是有一些進口產品，我們肯定會評估並嘗試發展我們的業務並增加我們的份額。

All right, very helpful. And then, last question for me is on the distribution piece of the surfactant business and the growth that you're seeing there is that just underlying market growth? Are you seeing some, broader shifts away from a direct to customer and more volume just naturally moving? Through distributors, or is this part of a more concerted effort on your part to expand distribution relationships or partnerships and if that is the case, is that a North America thing? Is it a global thing? What color could you provide on that?

好的，非常有幫助。然後，我的最後一個問題是關於表面活性劑業務的分銷部分，您所看到的成長僅僅是潛在的市場成長嗎？您是否看到了一些更廣泛的轉變，即從直接面向客戶，到更多的交易量自然而然地轉變？透過分銷商，或者這是您為擴大分銷關係或合作夥伴關係而做出的更協調一致的努力的一部分，如果是這樣，這是北美的事情嗎？這是全球性的事嗎？您能提供什麼顏色？

Thank you.

謝謝。

Look, we are.

瞧，我們就是這樣的。

Continue working on our tier 2, tier 3 strategy globally. I wouldn't say this is a North America only focus. I mean, it, it's a focus area for all our regions in our fraction business.

繼續在全球推行我們的二級、三級策略。我不會說這只是北美的焦點。我的意思是，這是我們分部業務所有地區的重點領域。

But of course, North America continues to be the biggest region. And what I would say is that you have both, you have market growth and you have our ongoing efforts to capture share, to capture more customers. I mentioned that we acquire more than 400 new customers in this space. So, it's part of our core strategy and we continue developing this business and continues to pay out.

但當然，北美仍然是最大的地區。我想說的是，你們兩者兼具，你們擁有市場成長，我們不斷努力去佔領市場份額，吸引更多的客戶。我提到過，我們在這個領域獲得了 400 多個新客戶。因此，這是我們核心策略的一部分，我們會繼續發展這項業務並繼續付出。

All right.

好的。

Thanks very much.

非常感謝。

Thank you, Mike.

謝謝你，麥克。

Thank you.

謝謝。

I am showing no further questions at this time. I would now like to turn it back to Sam Hinrichsen for closing remarks.

我目前沒有其他問題。現在我想請 Sam Hinrichsen 作最後發言。

Thank you very much for joining us today's call. We appreciate your interest and ownership in Stepan Company. Have a great day.

非常感謝您參加今天的電話會議。我們感謝您對 Stepan Company 的關注和所有權。祝你有美好的一天。

Okay, thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

好的，謝謝大家參加今天的發表會。該計劃確實就此結束。您現在可以斷開連線。