18. Earnings Per Share

Below is the computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023:

(In thousands, except per share amounts)

 

2025

 

 

2024

 

 

2023

 

Computation of Basic Earnings per Share

 

 

 

 

 

 

 

 

 

Net income attributable to Stepan Company

 

$

46,895

 

 

$

50,370

 

 

$

40,204

 

Weighted-average number of shares outstanding

 

 

22,872

 

 

 

22,832

 

 

 

22,777

 

Basic earnings per share

 

$

2.05

 

 

$

2.21

 

 

$

1.77

 

Computation of Diluted Earnings per Share

 

 

 

 

 

 

 

 

 

Net income attributable to Stepan Company

 

$

46,895

 

 

$

50,370

 

 

$

40,204

 

Weighted-average number of shares outstanding

 

 

22,872

 

 

 

22,832

 

 

 

22,777

 

Add weighted-average net shares from assumed
   exercise of options (under treasury share
    method)
(1)

 

 

7

 

 

 

32

 

 

 

66

 

Add weighted-average net shares related to
   unvested stock awards (under treasury share
    method)

 

 

5

 

 

 

6

 

 

 

3

 

Add weighted-average net shares from assumed
   exercise of SARs (under treasury share method)

 

 

5

 

 

 

37

 

 

 

67

 

Add weighted-average contingently issuable net
   shares related to performance stock awards
   (under treasury share method)

 

 

1

 

 

 

24

 

 

 

33

 

Weighted-average shares applicable to diluted
   earnings

 

 

22,890

 

 

 

22,931

 

 

 

22,946

 

Diluted earnings per share

 

$

2.05

 

 

$

2.20

 

 

$

1.75

 

(1)
Options/SARs to purchase 1,208,928, 888,726 and 672,485 shares of the Company’s common stock were excluded from the computations of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, respectively. The options’/SARs’ exercise prices were greater than the average market price for the Company’s common stock and inclusion of the instruments would have had an antidilutive effect on the computations of earnings per share.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 29, 2024
2022Feb 28, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2019Feb 27, 2020
2018Feb 27, 2019
2017Feb 27, 2018
2016Feb 24, 2017
2015Feb 24, 2016

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.