Stepan Company's stock experienced a significant pre-market plunge of 6.28% following the release of its fourth-quarter financial results and announcement of a major operational restructuring plan.

The specialty chemicals maker reported an adjusted loss of $0.02 per share for the quarter ended December 31, 2025, sharply missing analyst expectations 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. Revenue of $553.89 million also fell short of the $570.60 million consensus estimate, despite showing a 5.4% year-over-year increase.

Concurrently, the company announced "Project Catalyst," an efficiency initiative targeting $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-$80 million in restructuring charges in 2026 related to these actions.