Stepan Company's stock plummeted 5.03% during intraday trading on Tuesday, following the release of its first-quarter 2026 financial results which revealed a significant swing to a net loss and sales that fell short of analyst expectations.

The specialty chemicals maker reported a net loss of $41.41 million for the quarter, a sharp reversal from profitability, driven primarily by a previously announced $65.4 million pre-tax restructuring charge. This charge also pushed EBITDA into negative territory, resulting in a loss of $16.5 million. While the company's adjusted earnings per share of $0.45 slightly exceeded the consensus estimate of $0.44, it represented a 46% decline compared to the $0.84 per share earned in the same period last year.

Furthermore, quarterly sales of $604.51 million missed the analyst consensus estimate of $612.95 million. The company cited several operational challenges, including pressure in its Surfactants segment from higher oleochemical costs, adverse U.S. weather impacts, and competitive pressures in Mexico. Performance in its Polymers segment was mixed, with gains in North America offset by continued weakness in Europe.