Stepan Co (SCL) 2025 Q3 法說會逐字稿

Good morning and welcome to the Stepan Company Third quarter 2025 earnings conference call.

早安，歡迎參加 Stepan 公司 2025 年第三季財報電話會議。

(Operator Instructions)

（操作說明）

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

現在我很高興將電話轉交給史蒂潘公司副總裁兼財務長魯本·貝拉斯克斯先生。貝拉斯克斯先生，請開始吧。

That's Jacinda. Good morning and thank you for joining Stepan's Company third quarter 2025 Financial Review. Before we begin, please note that information in this conference call contains forward-looking statements which are not historical facts.

我是傑辛達。早安，感謝各位參加史蒂芬公司2025年第三季財務回顧電話會議。在會議開始之前，請注意，本次電話會議包含前瞻性陳述，這些陳述並非歷史事實。

These statements involve risks and uncertainties that could cause actual results to differ material, including but not limited to prospects for our foreign operations, global and regional economic conditions, and factors detailed in our Securities and Exchange Commission filings.

這些聲明涉及風險和不確定性，可能導致實際結果與預期結果有重大差異，包括但不限於我們海外業務的前景、全球和區域經濟狀況，以及我們在提交給美國證券交易委員會的文件中詳細列出的因素。

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 reconciliations to the comparable GAAP measures in the earnings presentation and press release, which we have made available at www.stepan.com under the investor section of our website.

此外，本次電話會議還將討論調整後淨利潤、調整後 EBITDA 和自由現金流，這些都是非公認會計準則 (非 GAAP) 指標。我們在獲利報告和新聞稿中提供了與相應 GAAP 指標的調整表，這些文件已發佈在我們網站 www.stepan.com 的投資者關係欄位中。

Whether you are joining us online or over the phone, we encourage you to review the investors' slide presentation. We made this slides available at approximately the same time as when we as when the earnings release is issued, and we hope that you find the information and perspectives helpful.

無論您是線上參與還是透過電話參與，我們都建議您查看投資者簡報。這些簡報與獲利報告的發佈時間大致相同，我們希望您能從中獲得有用的信息和見解。

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

接下來，我將把電話交給我們的總裁兼執行長路易斯·E·羅霍先生。

Thank you, Ruben. Good morning and thank you all for joining us today to discuss our third quarter 2025 results.

謝謝你，魯本。早安，感謝各位今天蒞臨現場，與我們共同探討2025年第三季業績。

I plan to share highlights of the quarterly performance, and we'll also share updates on our key strategic priorities. Well Ruben will provide additional details on our financial results. We delivered 9% adjusted EBITDA growth through the first nine months of 2025, bringing year-to-date adjusted EBITDA to $165 million.

我計劃分享季度業績亮點，我們也將介紹關鍵策略重點的最新進展。魯本將提供更多關於我們財務表現的細節。 2025年前九個月，我們實現了9%的調整後EBITDA成長，使年初至今的調整後EBITDA達到1.65億美元。

These results were restrained by the significant increase in oleochemicals raw material prices, which continued to impact the fact the margins and by higher startup costs related to our new Pasadena, Texas facility. We remain focused on gradually recovering our margins and keeping a healthy balance between volumes and margins.

這些業績受到油脂化學品原料價格大幅上漲的限制，這持續影響利潤率，同時，位於德州帕薩迪納的新工廠啟動成本也較高。我們將繼續致力於逐步恢復利潤率，並在產量和利潤率之間保持健康的平衡。

Third quarter adjusted EBITDA was $56 million up 6% year on year. Specialty product has adjusted EBITDA increased significantly, driven by favorable old timing within the pharmaceutical business. Polymers deliver volume growth across reading polios and commodity PA while EBITDA was slightly lower due to unfavorable means and margin pressures.

第三季調整後 EBITDA 為 5,600 萬美元，年增 6%。受製藥業務有利時機推動，特種產品調整後 EBITDA 顯著成長。聚合物產品在脊髓灰質炎疫苗和商品 PA 的銷售方面均實現增長，但由於不利的因素和利潤率壓力，EBITDA 略有下降。

So, the fact that adjusted EBITDA decline versus the prior year, driven by higher Pasadena startup costs, or your chemical raw material cost inflation, and lower demand within our global commodity consumer products and markets.

因此，由於帕薩迪納工廠啟動成本較高，或化學原料成本上漲，以及全球大宗商品消費品市場需求下降，導致調整後 EBITDA 較前一年下降。

Total company sales volumes grew 1% with polymers of 8% and our NCT product line of 26%. While facts volume declined 2%. Insure factors, we continue to experience double-digit volume growth within the crop productivity business and meet single-digit growth in the oil field and market.

公司總銷量成長1%，其中聚合物銷量成長8%，NCT產品線銷量成長26%。而保理因子銷量下降2%。儘管如此，我們在作物增效業務領域仍保持兩位數的銷售成長，並在油田和市場領域實現個位數成長。

This growth was offset by lower demand within the global commodity consumer products and markets. North America's really polio and commodity pa volumes were both of double-digits. What European rigid polio volumes continues to be impacted by microeconomic uncertainties and low construction activity.

這一增長被全球大宗消費品市場需求的下降所抵消。北美地區的小兒麻痺疫苗和商品疫苗的銷售量均實現了兩位數的成長。歐洲的脊髓灰質炎疫苗銷售量則持續受到微觀經濟不確定性和建築活動低迷的影響。

Despite a very challenging environment for the chemical sector, we remain encouraged by the volume growth across several of our key strategic markets. We finished the third quarter of 2025 with $10.9 million of adjust net income, down 54% versus the prior year.

儘管化學產業面臨嚴峻挑戰，但我們幾個關鍵策略市場的銷售成長依然令人鼓舞。 2025年第三季末，我們調整後的淨利為1,090萬美元，年減54%。

Largely reflecting a higher effective tax rate, higher interest net, and higher depreciation, none of which had cash impact. Free cash flow was positive at $40 million during the quarter, driven by reduced working capital and discipline capital spending.

這主要反映了較高的實際稅率、較高的淨利息支出和較高的折舊，但這些因素均未對現金流產生影響。本季自由現金流為正值，達到 4,000 萬美元，主要得益於營運資本的減少和資本支出的嚴格控制。

During the third quarter of 2025, the company paid $8.7 million in dividends to shareholders. Our board of directors declared a quarterly cash dividend on Stepan common stock of $39.05 per share, payable on December 15, 2025. This represents a 2.6% increase in our dividend.

2025年第三季度，公司向股東派發了870萬美元的股利。董事會宣布，Stepan普通股每股發放39.05美元的季度現金股息，將於2025年12月15日支付。此次股息較上年同期成長2.6%。

Stepan has paid and increases dividends for 58 consecutive years. Ruben will now share some details about our third quarter results.

Stepan已連續58年發放並提高股利。接下來，Ruben將分享我們第三季業績的一些細節。

Thank you, Luis. My comments will generally follow the slide presentation. Let's just start with this like 4 to recount the quarter.

謝謝你，路易斯。我的發言通常會圍繞著幻燈片。我們就從第四點開始，回顧一下本季的情況吧。

Third quarter 2025, adjusted net income was $10.9 million or $0.48 per diluted chair versus $23.7 million or $1.03 per diluted chair for the third quarter of last year, a 54% decrease. The decrease was primarily driven by a higher effective tax rate resulting from the recently enacted US tax law. Lower capitalized interest income and higher depreciation due to Pasadena plan startup.

2025年第三季調整後淨利為1,090萬美元，即每股攤薄收益0.48美元，去年同期為2,370萬美元，即每股攤薄收益1.03美元，年減54%。下降的主要原因是近期生效的美國稅法導致實際稅率上升，以及資本化利息收入減少和帕薩迪納項目啟動導致的折舊增加。

These 3 net income and favorable drivers had no cash impact. Consolidated adjusted EBITDA increased by $3.1 million or 6% compared to prior year. This growth is attributable to stronger specialty product results and the non-recurrence of expenses associated with the external Criminal Social Engineering front event in 2024.

這三項淨收入和有利因素對現金流沒有影響。經調整後的合併 EBITDA 較上年增長 310 萬美元，增幅為 6%。這一成長主要歸功於特色產品業績的強勁表現，以及與 2024 年外部犯罪社交工程攻擊事件相關的非經常性支出。

Significantly higher chemical raw material costs continue to impact of patent margins, coupled with software demand in global commodity, consumer products and markets. Earnings growth was also impacted by higher startup expenses at our renewal consultation facility in Pasadena, Texas. Cash flow operations was $69.8 million for the quarter, and free cash flow was positive at $40.2 million driven by reductions in working capital. We will continue prioritizing pre-cash flow generation going forward.

化學原料成本大幅上漲持續影響專利利潤率，加上全球大宗商品、消費品和市場對軟體的需求增加，也對獲利成長造成了一定影響。此外，位於德州帕薩迪納的續展諮詢機構啟動費用增加也影響了獲利成長。本季營運現金流為6,980萬美元，自由現金流為4,020萬美元，主要得益於營運資本的減少。未來，我們將繼續優先考慮現金流的產生。

Slide number 5 shows the total company net income bridge for the 3rd quarter of 2025 compared to last year's third quarter and breaks down the decrease in adjusted net income. Because this is net income, the figures noted are on an after-tax basis. We will cover each segment in more detail, but to summarize, we deliver operating income growth in the specialty products, we have said by lower operating results in Surfactants and polymers.

第5張投影片展示了2025年第三季公司淨利總額與去年同期相比的比較情況，並詳細分析了調整後淨利的下降情況。由於這是淨利潤，因此所列數字均為稅後淨利。我們將更詳細地介紹各個業務板塊，但總而言之，我們透過特種產品實現了營業利潤成長，而表面活性劑和聚合物業務的營業利潤則有所下降。

The third quarter results were impacted by a higher effective tax rate. The company's effective tax rate was 23.8% in the first nine months of 2025, versus 18.9% in the first nine months of 2024. This increase was primarily associated with the recently enacted US tax law. We are forecasting That our returning to, we are forecasting returning to our normal effective tax rate range of 24% to 26%.

第三季業績受到實際稅率上升的影響。該公司2025年前九個月的實際稅率為23.8%，而2024年前九個月為18.9%。這一增長主要與近期生效的美國稅法有關。我們預計實際稅率將恢復到24%至26%的正常水準。

The slide 6 shows the total company adjusted EBITDA reached for the third quarter compared to last year's third quarter. I just said EBITDA was $56.2 million versus $53.1 million in the prior year, a 6% increase. We delivered adjusted the growth in specialty products, partial upset by lower earnings in Surfactants and polymers. Adjusted EBITDA results also benefited from lower corporate expenses compared to previous year.

投影片6顯示了公司第三季調整後EBITDA總額與去年同期的比較情況。正如我剛才提到的，EBITDA為5,620萬美元，而去年同期為5,310萬美元，較去年同期成長6%。我們實現了特種產品調整後的成長，但表面活性劑和聚合物業務的獲利下降部分抵消了這一成長。此外，與去年同期相比，公司費用的降低也對調整後EBITDA績效有所貢獻。

The slide 7 focuses on the sofa and segment results. So, Surfactants net sales were $422.4 million for the quarter, a 10% increase versus the prior year. Improved product and customer mixing and the pass through of higher raw material costs contributed an 11% to sales growth.

第7張投影片重點介紹了沙發和細分市場的業績。界面活性劑業務本季淨銷售額為4.224億美元，較上年同期成長10%。產品和客戶組合的最佳化以及原物料成本上漲帶來的轉嫁，共同促成了11%的銷售成長。

Sales volume declined 2% year over year due to lower demand within the global commodity consumer product and markets, mainly upset by double-digit growth within the agricultural segment and a strong growth in oil field.

由於全球大宗商品消費品市場需求下降，銷售量較去年同期下降 2%，這主要是由於農業領域兩位數的成長和油田的強勁成長所致。

Net sales benefited 1% from foreign currency translation. So, Surfactants Adjusted EBITDA decreases $6.2 million or 14% versus the prior year. This decrease was driven by the 2% contraction in volume, higher Pasadena site startup expenses, and the significant rise in oil of chemical raw material prices. This was partially offset by improved product and customer needs.

淨銷售額因外幣折算而成長1%。因此，界面活性劑業務調整後EBITDA較上年減少620萬美元，降幅達14%。這一降幅主要受銷售量下降2%、帕薩迪納工廠啟動成本增加以及石油化工原料價格大幅上漲的影響。產品和客戶需求的改善部分抵消了上述不利影響。

Moving to slide A. Polymer net sales were $143.9 million for the quarter, a 4% decrease versus the prior year. Selling prices decreases 14%, primarily due to the pass through of lower raw material costs and competitive pressures. Sales volume increased 8% in the quarter.

切換到幻燈片A。本季聚合物淨銷售額為1.439億美元，年減4%。售價下降14%，主要原因是原物料成本下降和競爭壓力帶來的成本轉嫁。本季銷量成長8%。

North America polio volume grew double-digits, and our commodities, political and hybrid business continued to deliver a strong growth. Global specialty polio's volume grouping single digits, despite the continued challenging overall environment.

北美小兒麻痺疫苗銷售量實現了兩位數成長，我們的商品、政治和混合業務也持續保持強勁成長。儘管整體環境依然充滿挑戰，但全球專業小兒麻痺疫苗銷售仍維持個位數成長。

European and China polio's volume was impacted by softer demand across their respective regional and markets. Foreign currency translation had a positive impact of 2% on net sales during the quarter. Polymer adjusted EBITDA increased $1 million or 4% versus the prior year, primarily due to lower unit margins and unfavorable mix, which was partially offset by the 8% volume growth.

歐洲和中國脊髓灰質炎疫苗的銷售量受到各自區域和市場需求疲軟的影響。外幣折算對本季淨銷售額產生了2%的正面影響。聚合物調整後EBITDA較上年同期成長100萬美元，增幅4%，主因是單位利潤率下降和產品組合不利，但部分被8%的銷售成長所抵銷。

Finally, specialty products and sales were $24 million for the quarter, a 68% increase versus the prior year, primarily due to higher sales volume. Specialty product adjusted EBITDA increased $5.9 million or 113%. The increasing adjusted EBITDA was primarily due to order timing fluctuations within the pharmaceutical business as orders were moved from the second to the third quarter of the year.

最後，本季特種產品銷售額為2,400萬美元，較上年同期成長68%，主要得益於銷售成長。特種產品調整後EBITDA成長590萬美元，增幅達113%。調整後EBITDA的成長主要歸因於醫藥業務訂單交付時間的波動，部分訂單從第二季推遲至第三季。

Next on a slide 9. The cash flow was positive at $40.2 million for the third quarter, at $44.2 million year over year, driven by working capital reductions and disciplined capital spending. We remain optimistic about our ability to deliver positive free cash flow for the full year 2025.

接下來是第9張投影片。第三季現金流為正值，達到4020萬美元，年增4420萬美元，主要得益於營運資本的減少和審慎的資本支出。我們對2025年全年實現正自由現金流的能力仍然保持樂觀。

During the third quarter, we deployed $29.6 million against capital investments and $8.7 million for dividends.

第三季度，我們投入了 2,960 萬美元用於資本投資，870 萬美元用於分紅。

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

現在，在第 10 和 11 張投影片中，路易斯將向您介紹我們的策略重點和資本投資。

Thank you, Ruben. I will focus my comments on our strategic priorities. Our customers will always remain at the center of our strategy and innovation efforts. Our tier 1 customer base remains a solid foundation of our business. Continue our new customer acquisition within tier 2 and tier 3 customers remains a key priority. This is an important and profitable growth channel within our fact and business.

謝謝魯本。我將重點談談我們的戰略重點。客戶始終是我們策略和創新工作的核心。我們的一級客戶群仍然是我們業務的堅實基礎。繼續拓展二級和三級客戶仍然是我們的首要任務。這是我們業務中一個重要且有利可圖的成長管道。

For the third quarter of 2025, our volume grew low single-digits year over year, and we added over 350 new customers. Our end market diversification strategy remains a key focus area. For the third quarter, we continue to see a strong growth in our crop productivity and oil field businesses.

2025年第三季度，我們的銷售量年增個位數，新增客戶超過350家。終端市場多元化策略仍然是我們的重點領域。第三季度，我們的農作物生產力和油田業務持續保持強勁成長。

We are pleased to see our North America really polio business continues to deliver year over year growth. This growth was enhanced by our new product introduction in the growing spray fund and market. Our supply chain operation and resiliency continue to improve, and we deliver another solid quarter in all our key operational metrics. Thanks, Rob. We continue making investments in our mal site to improve operational reliability.

我們很高興看到北美地區的小兒麻痺防治業務持續實現年成長。這一增長得益於我們在不斷成長的噴灑基金和市場中推出的新產品。我們的供應鏈營運和韌性持續提升，所有關鍵營運指標均取得了另一個穩健的季度成績。謝謝，羅布。我們將繼續加大對工廠的投資，以提高營運可靠性。

Moving to slide 11, we're proud our new Pasadena site is fully operational and is currently ramping up production. We have made 41 different products today. We expect that the full contribution rate of the plant will be achieved in 2026. Our commercial team continues to develop and deliver new business opportunities and especially consultation volumes continue to grow doubled in the third quarter.

翻到第11頁，我們很自豪地宣布，位於帕薩迪納的新工廠已全面投入運營，目前正在逐步提高產量。今天我們生產了41種不同的產品。我們預計該工廠將於2026年實現全部產能貢獻。我們的商務團隊持續開發並拓展新的業務機會，尤其值得一提的是，諮詢量在第三季翻了一番，持續成長。

Looking forward, we remain focused on accelerating our business strategies through enhanced operational excellence, improved product and customer mix, and accelerated free cash flow generation. We believe our fact and business will experience continued growth in our key strategic and markets, and that polymer demand will continue improving as we get more market certainty and we execute our innovation and growth plans.

展望未來，我們將繼續專注於透過提升營運效率、優化產品和客戶組合以及加快自由現金流產生來加速業務策略的實施。我們相信，在關鍵策略市場和領域，我們的財務狀況和業務將持續成長，隨著市場確定性的增強以及創新和成長計畫的順利實施，聚合物需求也將持續改善。

Our Pasadena facility is operational, and this should enable us to deliver volume growth in our consolation product line and supply chain savings going forward. We remain on track to close the sale of our site in the Philippines in the fourth quarter of 2025, and we are analyzing opportunities to optimize our global drooping and asset base.

我們在帕薩迪納的工廠已投入運營，這將有助於我們提升零售產品線的銷售，並在未來實現供應鏈成本節約。我們仍按計劃於2025年第四季完成菲律賓工廠的出售，並且正在分析優化全球業務下滑和資產基礎的機會。

Despite the ongoing current market and tariff uncertainties which change every day, we remain optimistic that we will deliver full year adjusted EBITDA growth and positive free cash flow in 2025. This concludes our prepared remarks. At this point, we would like to turn the call over for questions.

儘管當前市場和關稅情勢充滿不確定性，且瞬息萬變，但我們仍然樂觀地認為，2025年全年調整後EBITDA將實現成長，並產生正的自由現金流。以上是我們的發言稿。現在，我們想把電話會議交給各位提問。

Jacinda, please review the instructions for the questions portions of today's call.

傑辛達，請查閱今天電話會議問答環節的說明。

(Operator Instructions)

（操作說明）

Mike Harrison, Seaport Research Partners.

麥克·哈里森，海港研究夥伴公司。

Hi, good morning.

您好，早安。

Good morning, Mike.

早上好，麥克。

I was hoping we could start out with a couple of questions on Surfactants. First of all, where are we right now in the process of recovering the oleochemicals cost run up in Surfactants? Do you expect that that input impact could be fully offset by Q4 or could it take a little bit longer to recover?

我希望我們能先問幾個關於界面活性劑的問題。首先，目前我們在彌補界面活性劑成本上漲方面進展如何？您預計到第四季能夠完全抵銷成本上漲的影響，還是需要更長時間才能恢復？

A good question, Mike. So, let me start with some background information here. So, as you all know, you can track this public information, coconut oil prices. If you think about the first 9 months of 2025, the average is $2500 per metric ton. That's a 70% increase versus 2024. So, 2024 average was $1,500. We are at $2,500. The peak was $3000 as we talked last quarter. The prices are coming down. That's the good news. Prices are coming down from the peak of $3000 per metric ton.

問得好，麥克。那麼，我先介紹一些背景資訊。大家都知道，椰子油價格是公開訊息，可以參考一下。如果看看2025年前9個月的情況，平均價格是每噸2500美元。這比2024年上漲了70%。 2024年的平均價格是每噸1500美元，現在是每噸2500美元。正如我們上個季度提到的，價格高峰曾達到每噸3,000美元。現在價格正在回落，這是個好消息。價格正在從每噸3000美元的峰值回落。

So, we have recovered a lot of the 70% increase. But we are still catching up. We had another price increase in North America in October 1. And that's the objective. The objective is 2026, we have, we recover the margins that we saw on coconut oil prices which again were significant and the prices are still are now coming down, which is the good news.

所以，我們已經收回了70%漲幅的大部分，但仍在追趕。 10月1日，我們在北美再次漲價。這就是我們的目標。我們的目標是到2026年，收回椰子油價格上漲帶來的利潤空間（當時利潤空間非常可觀），而且椰子油價格目前仍在下降，這是個好消息。

Just to follow-up on that, if we are seeing some of that raw material cost come lower, I guess does that make it more challenging for you to get the pricing you need and does that mean that at some point we could see you give some pricing back if that trend continues.

我再補充一下，如果我們看到一些原料成本下降，這是否會讓您更難獲得所需的價格？如果這種趨勢繼續下去，這是否意味著在某個時候我們可能會看到您降低一些價格？

No, look, I, one thing that I was very clear on my, prepared remarks was that we will continue driving the right balance between volume and margin. This is an asset intensive business. We need volume through our reactors. We will not lose share. We will be competitive in the market.

不，聽著，我在事先準備好的發言稿中已經明確表示，我們將繼續在產量和利潤率之間保持適當的平衡。這是一個資產密集型行業。我們需要透過反應爐來提高產量。我們不會失去市場佔有率。我們會在市場上保持競爭力。

We will be competitive in the market and balance volumes and margins to maximize. Net income to maximize return for the company. And again, that's the balance that the team is delivering. I'm pleased with what they have done in the last few months, and we need to continue that effort in the future months, continue managing that balance between volumes and margins.

我們將保持市場競爭力，平衡銷售和利潤率，以實現淨利潤最大化，從而為公司帶來最大回報。而這正是團隊目前所取得的成果。我對他們過去幾個月的工作感到滿意，我們需要在未來幾個月繼續努力，繼續保持銷售和利潤率之間的平衡。

All right, so that kind of leads into my next question, which is just about the overall margin performance of the surfactant business. Obviously still a lot of moving pieces with the Pasadena facility starting up and we're probably not yet seeing the full benefits of bringing some of that a oxalates production in the house.

好的，這就引出了我的下一個問題，那就是表面活性劑業務的整體利潤率表現。顯然，帕薩迪納工廠的投產還有很多變數，我們可能還沒有完全看到將部分草酸鹽生產轉移到公司內部所帶來的全部效益。

But do you have longer-term goals for where the surfactant segment margin, could reach over time? Historically operating margin in that segment got into the double-digits and it was pretty consistently there for a few years and I'm just wondering if that type of double-digit operating margin could be achievable as we look out 2 or 3 years.

但您對錶面活性劑業務的利潤率未來可能達到的水平有更長遠的目標嗎？歷史上，該業務的營業利潤率一直保持在兩位數，並且連續幾年都保持在這個水平。我想知道，展望未來兩三年，我們是否還能達到兩位數的營業利益率。

A great question, Mike, and that's of course I believe as well. Look, EBITDA margins are restrained, I mean, call it, close to 10% now because all the investments in Pasadena and still, the impact on all your chemicals, but we believe this business as we continue growing.

麥克，你問得好，當然我也這麼認為。你看，EBITDA利潤率確實受到限制，我估計現在接近10%，因為在帕薩迪納的所有投資，以及對你們所有化學產品的影響，都讓利潤率受到抑制。但我們相信，隨著業務的持續成長，情況會好轉。

In our functional markets, agrochemical, oil field, construction, and industrial solutions, as we continue growing in tier 2, tier 3, we believe this is a healthy double-digit EBITDA margin business going forward and of course we have made investments. We have made investments, and everybody knows that.

在我們專注於農業化學品、油田、建築和工業解決方案等功能性市場領域，隨著我們在二、三線市場持續成長，我們相信未來這些業務將保持兩位數的EBITDA利潤率，當然，我們也進行了投資。我們進行了投資，這是眾所周知的事實。

So, on an operating income with all the depreciation of Pasadena of low 14, people can see that in the numbers, but on an EBITDA basis this business will continue performing at a decent, margins level, and that's what we are focusing on growing our high EBITDA margin businesses and we continue growing those.

因此，考慮到帕薩迪納工廠的折舊，其營業收入僅為 14% 左右，這一點大家可以從數字中看出。但從 EBITDA 的角度來看，這項業務將繼續保持良好的利潤率水平，而這正是我們專注於發展高 EBITDA 利潤率業務的原因，我們將繼續發展這些業務。

All right. And then over on the polymer business, just a couple of questions here. First of all, do you believe that there is pent up demand in the commercial roofing and commercial insulation space, and I'm curious, do you think that lower interest rates could help to stimulate some additional activity there?

好的。關於聚合物業務，我這裡有幾個問題。首先，您認為商業屋頂和商業保溫材料領域是否有被壓抑的需求？我很好奇，您認為較低的利率是否能夠刺激該領域的進一步發展？

For the line, there is, we believe there is a lot of pent up demand from all the construction that happened in the early 2000s. I mean, if you look at all the construction that happens in industrial construction warehousing, plants, flat roofs in early 2000, which was a huge peak. A lot of those buildings need renovation in the next 5 years.

就這條生產線而言，我們認為，2000年代初期的大規模建設釋放了大量潛在需求。我的意思是，如果你看看2000年代初期工業建築、倉庫、廠房、平屋頂等建築的數量，那是一個高峰期。未來五年內，其中許多建築都需要翻新。

We are, we're aligned 100% with the belief from some of our customers that all that re-roofing needs to happen. It's not going to happen overnight, but it needs to happen, and it needs and PIR insulation is the preferred choice for all those flat roof projects coming up.

我們完全同意部分客戶的觀點，即所有屋頂翻新工程都必須進行。這不會一蹴而就，但勢在必行，而且對於所有即將進行的平屋頂工程而言，PIR保溫材料是首選。

And you are 100% right that I mean we should see another interest rate reduction today 98% probabilities now of an interest rate reduction in December Fed meeting, so we believe 2026. Will give us some upside on the on the construction activity if the interest rate continues the way they are and inflation rates continues the way they are, right? I mean, we need shelter and rental inflation to keep coming down so we can achieve, so the Fed can achieve their 2% inflation target.

您說的完全正確，我的意思是，我們今天應該會看到另一次降息，目前有98%的機率在12月的聯準會會議上降息，所以我們認為，如果利率和通膨率繼續保持目前的水平，那麼2026年將會為建築活動帶來一些利好，對吧？我的意思是，我們需要房屋和租金通膨持續下降，這樣我們才能實現聯準會2%的通膨目標。

All right, just to follow-up on polymers from the margin side, I believe you mentioned that the unit margins are down, the pricing was down quite a bit. You referred to some competitive dynamics that are challenging. Is your expectation that if we started to see some recovery in demand that we would also see some recovery in unit margins as well?

好的，關於聚合物的利潤率方面，我想跟進一下。您提到單位利潤率下降了，價格也跌了不少。您也提到了一些具有挑戰性的競爭格局。您是否預期，如果需求開始復甦，單位利潤率也會隨之回升？

Look, I mean, we're happy. Look, we always can improve our margins, right? But if you look at the first 9 months of the polymer business, we were able to grow, EBITDA modestly, very little, but modestly we were able to grow despite sales down.

你看，我的意思是，我們很高興。你看，我們總是能提高利潤率，對吧？但如果你看看聚合物業務的前9個月，我們實現了成長，雖然EBITDA成長幅度不大，但即便銷售額下降，我們還是實現了小幅成長。

So, EBITDA margins are improving slightly in the in the polymers business despite everything that is going on in Europe and especially in Europe, which is a very tough situation. So, we believe we want to grow the top-line, we want to grow the volumes.

因此，儘管歐洲，尤其是歐洲，情況非常嚴峻，但聚合物業務的 EBITDA 利潤率略有改善。所以，我們希望實現營收成長，銷售成長。

And we and we need to keep inching up the margins as we drive a scale. I mean the benefit of higher volumes and scale should improve our margins, but we are not planning a significant increase, but we're happy with the margins that we have.

我們需要在擴大規模的同時，逐步提高利潤率。我的意思是，銷售和規模的擴大應該會提升我們的利潤率，但我們並不打算大幅提高，我們對目前的利潤率感到滿意。

And we need to continue inching those up as we grow our business. And we had a negative impact on margin as we grow and as we grow in in some of the other markets because those are typically a mix, a mixed impact to the overall polymer business.

隨著業務成長，我們需要繼續逐步提高這些指標。但隨著我們在其他一些市場的成長，利潤率受到了負面影響，因為這些市場通常會對整個聚合物業務產生混合影響。

All right, and then my last question is you mentioned the Philippines asset sale, and it sounds like maybe you're contemplating some other actions to help optimize your footprint. Can you give us any sense of what those actions might involve? Are they, other, just one-off smaller facilities, or could there be some larger pieces of business that you might be targeting for divestment over time?

好的，我的最後一個問題是，您提到了菲律賓的資產出售，聽起來您可能正在考慮採取一些其他措施來優化您的業務佈局。您能否簡要說明這些措施可能包括哪些方面？是其他一些零散的小型設施，還是您計劃逐步剝離一些規模較大的業務？

A great question, Mike, and look. We are committed to deliver a balanced EBITDA and net income growth going forward between productivity and asset rationalization and top-line growth, right? The industry needs both. You have seen a lot of announcements from other companies in the past 6 months to 12 months.

問得好，麥克。我們致力於在未來實現EBITDA和淨利潤的平衡成長，兼顧生產力提升、資產優化和營收成長，對吧？行業需要兩者兼顧。過去6到12個月裡，你也看到了許多其他公司發布的公告。

We have made the announcement on the Philippines. We will make more announcements in the future. We need a balanced approach between top-line growth, productivity, and asset rationalization. We all know the chemical industry is over capacity and we need to and we all need to make decisions on that overcapacity, and we will make those announcements whenever we are ready to make those.

我們已經發布了關於菲律賓的公告。未來我們還會發布更多公告。我們需要在營收成長、生產力提升和資產合理化之間取得平衡。我們都知道化學工業產能過剩，我們需要就此做出決策，我們也需要在準備好時發布相關公告。

Very helpful, thanks very much.

非常有用，非常感謝。

Dave Storms, Stonegate.

戴夫·斯托姆斯，斯通蓋特。

Morning and. Thank you for taking my questions. I wanted to start you mentioned on the call, spray foam is really been a nice driver for you, in the poly section. Could we I guess my question is how much more room for growth do you think there is there, and could we maybe see a second wave of growth if the European environment improves.

早安.感謝您回答我的問題。我想先說說您在電話會議中提到的噴塗泡沫在聚乙烯領域的重要成長點。我想問的是，您認為這個領域還有多少成長空間？如果歐洲市場環境改善，我們是否會看到第二波成長？

A great question, Dave. Look. We have talked about a spray farm in the past few quarters. We're serious about this and market. We have developed great technologies and products to serve these high growth margin, and we started this year.

戴夫，問得好。聽著，過去幾季我們一直在討論噴灑農場。我們對這個市場非常重視。我們已經開發出優秀的技術和產品來滿足這個高成長利潤的需求，並且今年已經開始實施了。

So, I'm pleased with what the team has delivered and with the benefits that we're starting to get. This is very early. And it's a and it's a good market. It's a good market that has a lot of potential to grow, not only in the US, eventually in Europe in the future.

所以，我對團隊的成果以及我們開始獲得的收益感到滿意。現在還處於非常早期的階段。這是一個很有發展潛力的市場，不只在美國，未來最終也會在歐洲發展。

But we're happy with our participation and we need to grow more share. We are starting. We are starting from almost zero share, and we are committed to continue investing and developing. This business and when you think about Europe, of course we had higher expectations of our European region to start growing more on the construction activity and when you think about the world.

但我們對目前的市佔率感到滿意，我們需要擴大市場佔有率。我們正在起步，市場份額幾乎為零，但我們致力於持續投資和發展。這項業務，尤其是考慮到歐洲市場，我們當然對歐洲地區的建築業成長抱有更高的期望，而放眼全球市場也是如此。

In Ukraine and all of those things, the reality is that construction activities are very muted still in the European region. Now, as interest rates come down as, they keep focusing on energy conservation, which is a huge issue in Europe, and the biggest opportunity is to consume, is to reduce the consumption of energies in the buildings,

在烏克蘭等地，現實情況是，歐洲地區的建築活動仍然非常低迷。如今，隨著利率下降，人們越來越關注節能，這在歐洲是一個非常重要的問題，而最大的機會在於降低建築物的能源消耗。

So, we believe the market trends are there for the future. It's not going to happen in the short-term for sure, but we believe this is a good industry for the next 3 and 5 years, and we are committed to continue to continue investing and to continue growing our European polymers.

因此，我們相信未來的市場趨勢是存在的。當然，短期內肯定不會發生，但我們相信未來3到5年這將是一個前景良好的行業，我們將繼續投資並發展我們在歐洲的聚合物業務。

That's great commentary. Thank you.

精彩的評論，謝謝。

Switching to the Surfactants segment. I just would love to ask about maybe the end user there and what you're seeing from a demand perspective. It was noted that you're seeing lower demand in the laundry and cleaning and markets. Is this maybe early indications of a substitution effect, or maybe is this more one time in nature? Any commentary there would be great.

接下來我們來聊聊表面活性劑領域。我想了解終端使用者的狀況，以及你們從需求角度觀察到的情況。有人提到，洗衣和清潔市場的需求下降。這是否預示著替代效應的出現，還是只是暫時的現象？歡迎分享您的看法。

No, a great point, and of course we continue seeing a lot of changes in the consumer piece in terms of, active levels, switching down to lower active products. So, this continues to be an evolving. Situation, but at the end, we believe going forward and, again, I mean you need certain levels for the products to work, right?

沒錯，你說得很有道理。當然，我們也持續看到消費者方面發生許多變化，例如活躍度下降，轉向使用低活躍度產品。所以，情況仍在不斷變化。但最終，我們相信，展望未來，我的意思是，產品需要達到一定的活躍度才能發揮作用，對吧？

And at the end, those active levels are getting, I mean, up to the point where they you cannot go significantly lower, so we feel good about the cleaning and the laundry business going forward, but it's going to be always mixed between, high active, low active products, consumer brands versus private level brands, but we believe we are in a decent spot now thinking about 2026 and 2027.

最後，這些活性成分的含量已經降到了不能再大幅降低的程度，所以我們對未來的清潔和洗衣業務感到樂觀，但活性成分含量高的產品和活性成分含量低的產品，以及消費者品牌和自有品牌之間總是會存在混合的情況，但我們相信，展望 2026 年和 2027 年，我們現在處於一個相當不錯的位置。

Understood. And then one more if I could, specialty has shown two quarters of strong year over year improvements. It seems like a lot of this is predicated on volume growth. We just love to hear your comments about how sustainable you think these potentially new volume levels are.

明白了。如果可以的話，我再補充一點，特產業務已經連續兩個季度實現了強勁的同比增長。這似乎很大程度上得益於銷量的成長。我們很想聽聽您對這些潛在的新銷售水準的可持續性有何看法。

Look, we are extremely pleased with the performance of our specialty product business.

你看，我們對特種產品業務的業績非常滿意。

Kudos to Jamil and the Maywood team for everything that they have done over the last few quarters. Excellent performance. We still have opportunities to grow. We love our MCT product line, as we said in the in the remarks 2016. Percent volume growth and we're extremely happy with this business and with the performance and you know it's a high margin business so we will continue investing.

感謝Jamil和Maywood團隊在過去幾個季度所做的一切。業績非常出色。我們仍然有成長空間。正如我們在2016年的總結中所說，我們非常喜歡我們的MCT產品線。銷售成長百分比很高，我們對這項業務和業績非常滿意，而且您也知道這是一個高利潤業務，所以我們將繼續投資。

We will continue investing to make sure that we maximize the return that we can get. It's a small part of the business of the company in terms of revenue, but it's a huge part of the company in terms of operating income and EBITDA, and we're extremely happy with what the team has done, and we keep working on ideas for the next for the next 3 years.

我們將繼續投資，以確保獲得最大回報。雖然就公司收入而言，這部分業務佔比很小，但就營業收入和 EBITDA 而言，它卻佔據了公司業務的很大一部分。我們對團隊的工作成果非常滿意，並將繼續為未來三年的發展構思新的方案。

That's fantastic. Thank you and good luck in Q4.

太棒了！謝謝，祝你第四季一切順利！

This concludes the question-and-answer session. I would now like to turn it back to Mr. Rojo for closing remarks.

問答環節到此結束。現在我請羅霍先生作總結發言。

Thank you very much for joining us on 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。我們感謝您對斯捷潘公司的關注與投資。祝您今天愉快。

Thank you very much for joining us on today's call. We appreciate your interest in ownership and 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公司及其所有權的關注。祝您今天愉快。