Stepan Company's stock plummeted 9.58% during intraday trading on Monday, following the release of disappointing fourth-quarter financial results and the announcement of a significant operational restructuring plan.

The specialty chemicals maker reported an adjusted loss of $0.02 per share for the quarter ended December 31, 2025, dramatically missing the analyst consensus estimate for a profit of $0.40 per share. This represents a swing from earnings of $0.12 per share in the same period last year. Quarterly sales of $553.89 million also fell short of the $570.60 million consensus estimate.

Concurrently, the company unveiled "Project Catalyst," an efficiency initiative targeting approximately $100 million in pre-tax savings over two years. The plan includes closing its Fieldsboro, New Jersey site in response to continued lower demand for commodity surfactants used in laundry detergents, and decommissioning select assets at facilities in Illinois and the UK. Stepan anticipates $70 to $80 million in restructuring charges in 2026 related to these actions, with site closures and asset decommissioning expected to be completed by mid-2026.