Stepan (SCL) risk factors, FY2025 10-K

Business and Operations Risks

1. 01The volatility of raw material, natural gas and electricity costs, as well as any disruption in their supply, may result in increased costs and materially and adversely affect the Company’s business, financial position, results of operations and cash flows
2. 02Conflicts, military actions, terrorist attacks and general instability, particularly in certain energy-producing nations, along with increased security regulations related to our industry, could adversely affect the Company’s business
3. 03Cost overruns, delays and miscalculations in capacity needs with respect to the Company’s expansion or other capital projects could adversely affect the Company’s business, financial position, results of operations and cash flows22% rewritten
4. 04We may not realize the anticipated cost savings and/or operating efficiencies associated with strategic initiativesNew

Market, Competition and Strategic Risks

1. 05Customer product reformulations or new technologies can reduce the demand for the Company’s existing products, and the Company may not be successful in developing or introducing new products
2. 06To the extent the Company seeks acquisition opportunities, it may not be able to make acquisitions of suitable candidates or integrate acquisitions successfully
3. 07The Company faces significant global competition in each of its operating segments. If the Company cannot successfully compete in the marketplace, its business, financial position, results of operations and cash flows may be materially and adversely affected
4. 08We are affected by general economic conditions and downturns in certain industries, in some cases driven by consumer preferences, and general economic downturns may have an adverse effect on the Company’s business, financial position, results of operations and cash flows
5. 09If the Company is unable to protect its intellectual property rights, the Company’s ability to compete may be negatively impacted

Regulatory and Legal Risks

1. 10The Company is subject to a variety of environmental, health and safety and product registration laws dealing with the production and sale of chemicals that could require us to incur additional costs or to reformulate or discontinue certain of our products, or expose us to liability or enforcement actions
2. 11Various liability claims could materially and adversely affect the Company’s business, financial position, results of operations and cash flows
3. 12The Company’s failure to comply with the anti-corruption laws of the United States and various international jurisdictions could negatively impact its reputation and results of operations

International Operations Risks

1. 13The Company’s results of operations may be adversely affected by international business risks, including changes in global trade policy, fluctuations in currency exchange rates, legal restrictions and taxes
2. 14The international scope of the Company’s operations and corporate structure may expose the Company to potentially adverse tax consequences
3. 15Fluctuations in foreign currency exchange rates could affect Company financial results

Financial Risks

1. 16The Company could be adversely affected by downgrades to its credit ratings or disruptions in its ability to access well-functioning credit markets55% rewritten
2. 17The Company has a significant amount of indebtedness and may incur additional indebtedness, or need to refinance existing indebtedness, in the future, which may adversely affect the Company’s business, financial position, results of operations and cash flows22% rewritten
3. 18place the Company at a competitive disadvantage compared to its competitors that have less debt72% rewritten
4. 19repayment of outstanding debt or lead to a debt restructuring that could materially and adversely affect the Company’s business, financial position, results of operations and cash flowsNew

General Risks

1. 20The Company’s success depends on its executive management and other key personnel