Core Viewpoint - Trinseo is facing significant challenges in the global resin market, with a reported loss of $2.41 per share and negative free cash flow of $38 million in Q3. However, the company's recycled plastics and high-value specialty resins business is showing strong growth, driven by increasing demand and strategic adjustments to focus on higher-margin products [2][3][5]. Group 1: Financial Performance - In Q3, Trinseo reported a loss of $2.41 per share and a negative free cash flow of $38 million, reflecting pressure from a weak global resin market and increased trade tensions [2]. - The sales in the engineered materials segment remained flat year-over-year, with growth in acrylic resins for automotive and construction being offset by a decline in the medical sector [2]. Group 2: Growth Drivers - The company's recycled plastics and high-value specialty resins have emerged as bright spots, with sales of high-formula PMMA products increasing by over 10% year-over-year since the end of Q3 [3]. - The recycled content pilot projects for ABS, acrylics, and polycarbonate have sold out, indicating strong market demand, with sales of recycled content products up 12% year-over-year [3]. Group 3: Regulatory Impact - The new EU directive on end-of-life vehicles mandates that by 2031, new cars must contain 20% recycled plastics, with 15% sourced from end-of-life vehicles, creating new opportunities for the recycled plastics industry [4]. - This regulation is expected to drive automotive manufacturers to increase the use of recycled ABS and PMMA, opening new growth avenues for Trinseo in the European market [4]. Group 4: Strategic Adjustments - To address industry volatility, Trinseo is restructuring by exiting high-cost production, including shutting down a native MMA production facility in Italy and a polystyrene plant in Germany, aiming for $30 million in EBITDA savings by 2026 [5]. - The company is focusing resources on high-margin specialty resins and circular recycled materials to achieve sustainable long-term growth [5]. Group 5: Competitive Landscape - Trinseo faces significant competitive pressure from increased imports of acrylic and ABS resins from Asia, which have risen by 20%-25% in Europe and the U.S., further squeezing profit margins [6]. - The company anticipates adjusted EBITDA for Q4 to be between $30 million and $40 million, reflecting ongoing market challenges [6]. Group 6: Industry Trends - Trinseo's strategic shift towards recycled plastics and specialty resins reflects broader trends in the plastic industry moving towards a circular economy and high-performance materials [7]. - The company's actions demonstrate that recycled plastics are becoming a new growth engine rather than just an environmental symbol [7].

Financial Performance - Trinseo reported a net loss of $109.7 million for Q3 2025, compared to a net loss of $87.3 million in Q3 2024, reflecting a 15% year-over-year decline [149][161]. - Adjusted EBITDA for Q3 2025 was $30.4 million, down from $80.6 million in Q3 2024, impacted by low demand and pricing pressures [149][161]. - Net sales decreased by 14% year-over-year to $743.2 million in Q3 2025, driven by a 7% decline in sales volumes and a 9% decrease in pricing [161][163]. - The gross profit for Q3 2025 was $37.4 million, down from $80.6 million in Q3 2024, indicating a significant margin compression [161][165]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $136.8 million, a decrease from $177.9 million in the same period of 2024 [211]. - Free Cash Flow for the nine months ended September 30, 2025 was $(160.0) million, compared to $(141.4) million in 2024 [225]. Cost Management - The cost of sales decreased by 10% to $705.8 million in Q3 2025, primarily due to lower pricing and volumes [161][164]. - Selling, general and administrative expenses (SG&A) decreased by 35% to $63.2 million in Q3 2025, largely due to restructuring cost reductions [161][166]. - The company recognized $13.8 million for accelerated amortization of capitalized software assets related to its ERP system transition during the three months ended September 30, 2025 [212]. Restructuring and Strategic Initiatives - The company approved a restructuring plan to close MMA production operations in Italy, expecting pre-tax charges of $80.0 million to $100.0 million [151]. - Trinseo suspended its quarterly dividend of $0.01 per share, aiming to save approximately $1.5 million annually [152]. - The company aims to enhance free cash flow through disciplined working capital management and restructuring initiatives [182]. Debt and Liquidity - The company executed a Transaction Support Agreement to refinance near-term maturities and extend debt maturity to 2028 [152][153]. - As of September 30, 2025, the company had liquidity of $346.4 million, consisting of $102.2 million in cash and cash equivalents and $244.2 million available for borrowing [229]. - The Company redeemed $446.5 million of its 2029 Senior Notes and issued $379.5 million of 7.625% 2029 Refinance Senior Notes maturing on May 3, 2029 [234]. - The Company deferred $46.3 million of interest payable during the nine months ended September 30, 2025, capitalizing it as long-term debt [239]. - The Company has near-term access to sufficient liquidity to manage through ongoing macroeconomic challenges for at least the next twelve months [249]. Segment Performance - Engineered Materials segment net sales decreased by 7% to $273.5 million for the three months ended September 30, 2025, with Adjusted EBITDA increasing by 1% to $33.8 million [187]. - Latex Binders segment net sales decreased by 18% to $198.3 million for the three months ended September 30, 2025, with Adjusted EBITDA declining by 34% to $16.9 million [193]. - Polymer Solutions segment net sales decreased by 18% to $271.4 million for the three months ended September 30, 2025, with Adjusted EBITDA down by 82% to $4.1 million [199]. - Americas Styrenics segment reported Adjusted EBITDA of $(2.4) million for the three months ended September 30, 2025, a decrease of 160% due to costs from an unplanned outage [205]. Future Outlook - Fourth quarter Adjusted EBITDA is expected to be comparable to the third quarter of 2025, with free cash flow anticipated to improve due to working capital release [182]. - The Company expects to continue operating at a net loss for the near future despite strategic initiatives aimed at achieving sustainable profitability [248]. - The ability to meet liquidity requirements longer term depends on recovery in the Company's end markets and achieving planned Adjusted EBITDA [250].

Financial Data and Key Metrics Changes - The company ended Q3 2025 with $30 million of adjusted EBITDA, impacted by $9 million of unfavorable raw material timing and negative equity-affiliated earnings from Americas Styrenics due to an $8 million headwind from repair and other costs related to an unplanned outage in June [9][10] - Third quarter free cash flow was negative $38 million, with available liquidity at $346 million [10][11] - The fourth quarter is expected to be seasonally strong for free cash flow, with a forecast of positive $20 million and year-end liquidity over $350 million [11] Business Line Data and Key Metrics Changes - Engineered materials adjusted EBITDA was flat year-over-year, with fixed cost improvements offset by lower volumes in medical [9] - Latex binders adjusted EBITDA was $9 million below the prior year, driven by lower volume in Europe and significant pricing pressure [10] - Polymer solutions adjusted EBITDA was $19 million below the prior year, affected by unfavorable timing and lower ABS volumes [10] Market Data and Key Metrics Changes - There was a significant increase in imports of ABS from Asian producers to the U.S. and Europe, with imports to Europe from South Korea up 18% in the first half of 2025 [4][20] - The company observed a year-over-year increase of over 10% in volumes of formulated PMMA resins beginning in late Q3, continuing into Q4 [6] - Recycled content-containing plastic sales grew 2% year-to-date, with recycled solutions and engineered materials growing at 12% [7] Company Strategy and Development Direction - The company announced the discontinuation of virgin MMA production in Italy and plans to close a polystyrene production facility in Germany, expecting $30 million of EBITDA improvement next year [8] - The company is focused on sustainability, with investments in technology for circular recycled content platforms, anticipating increased demand due to new EU regulations [7] - The management highlighted five potential triggers for improved demand, including trade certainty, Federal Reserve interest rate cuts, resolution of the Ukraine conflict, rationalization of higher-cost chemical assets in Asia, and stronger support for the EU chemical industry [12] Management Comments on Operating Environment and Future Outlook - Management noted that the dynamics of trade flows are uncertain, with a mix of transitory and structural changes in demand [4][16] - The company expects Q4 2025 adjusted EBITDA of roughly $30-$40 million, assuming continued market dynamics and seasonal effects [12] - Management emphasized the importance of inventory management and restructuring activities to improve free cash flow in the short and long term [12] Other Important Information - The European Parliament finalized a directive mandating that new vehicles must contain 20% recycled plastic within six years, which is expected to drive demand for recycled materials [7] - The company’s pilot plants for recycled polycarbonate, ABS, and MMA are sold out, indicating strong interest in recycled products [7] Q&A Session Summary Question: Dynamics of trade flows and structural changes in imports - Management indicated uncertainty about whether the increase in imports is structural or transitory, noting significant inflows from Taiwan and Korea [16][17] Question: Market share of Taiwan/Korea/China in PMMA and ABS - Management noted a significant increase in imports from South Korea and Taiwan, with ABS imports to Europe up 26% in Q2 [19][20] Question: Changes in PMMA market dynamics - Management stated it is too early to determine if market dynamics are changing, but noted an increase in demand as customers seek to de-risk their supply chains [21][22] Question: Impact of unplanned maintenance on Q3 EBITDA - Management explained that the unplanned outage in June affected Q3 due to increased costs of goods sold and repair costs [24][25] Question: Future EBITDA expectations for 2026 - Management refrained from providing specific guidance for 2026 but reiterated that a 10% volume increase could result in about $100 million of EBITDA [28][30]

This presentation may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts or guarantees or assurances of future performance. Forward-looking statements may be identified by the use of words like "expect," "anticipate," "believe," "intend," "forecast," "estimate," "see," "outlook," "will," ...

Core Insights - Trinseo reported a quarterly loss of $2.41 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.96, and compared to a loss of $1.62 per share a year ago, indicating a significant decline in performance [1] - The company's revenues for the quarter ended September 2025 were $743.2 million, missing the Zacks Consensus Estimate by 6.16% and down from $867.7 million year-over-year [2] - Trinseo's stock has underperformed significantly, losing about 72.8% since the beginning of the year, while the S&P 500 has gained 15.6% [3] Financial Performance - The earnings surprise for the recent quarter was -22.96%, and the company has only surpassed consensus EPS estimates once in the last four quarters [2][3] - The current consensus EPS estimate for the upcoming quarter is -$2.08, with expected revenues of $785.65 million, and for the current fiscal year, the estimate is -$7.53 on $3.15 billion in revenues [7] Market Outlook - The sustainability of Trinseo's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The estimate revisions trend for Trinseo was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Net sales for Q3 2025 were $743 million, a decrease of 14% compared to $868 million in Q3 2024[5]. - The net loss for Q3 2025 was $110 million, with a diluted EPS of negative $3.05, compared to a net loss of $87 million and EPS of negative $2.47 in Q3 2024[4][22]. - Adjusted EBITDA for Q3 2025 was $30 million, down $36 million from $66 million in Q3 2024, primarily due to lower volumes and margins[6][9]. - Total net sales for the three months ended September 30, 2025, were $743.2 million, a decrease of 14.3% from $867.7 million in the same period of 2024[28]. - Adjusted EBITDA for the three months ended September 30, 2025, was $30.4 million, down 54% from $66.1 million in the same period of 2024[33]. - The company reported a net loss of $(109.7) million for the three months ended September 30, 2025, compared to a net loss of $(87.3) million in the same period of 2024[33]. - Adjusted EPS for the three months ended September 30, 2025, was $(2.41), compared to $(1.62) for the same period in 2024, reflecting a decline in earnings per share[33]. Cash Flow and Liquidity - Free Cash Flow for Q3 2025 was negative $38 million, a decrease of $35 million compared to the prior year[4]. - For the nine months ended September 30, 2025, cash used in operating activities was $(125.0) million, compared to $(99.3) million for the same period in 2024, representing a 26% increase in cash outflow[26]. - Free Cash Flow for the nine months ended September 30, 2025, was $(160.0) million, compared to $(141.4) million for the same period in 2024, indicating a worsening cash generation capability[39]. - Cash and cash equivalents at the end of the period were $112.1 million, down from $165.3 million at the end of the same period in 2024[26]. - Total liquidity at the end of Q3 2025 was $346 million, with cash of $114 million[4]. - The company expects to generate Free Cash Flow of $20 million for the three months ending December 31, 2025[41]. Segment Performance - Engineered Materials net sales were $273 million, down 7% year-over-year, while Adjusted EBITDA remained flat at $34 million[12]. - Latex Binders net sales decreased 18% to $198 million, with Adjusted EBITDA dropping $9 million to $17 million[12]. - Polymer Solutions net sales fell 18% to $271 million, with Adjusted EBITDA of $4 million, down $19 million from the previous year[12]. Future Outlook - The company anticipates Adjusted EBITDA for Q4 2025 to be between $30 million and $40 million, with a projected net loss of $170 million to $180 million for the quarter[12][9]. - The company forecasts an Adjusted Net Loss of $(170) to $(180) million for the three months ending December 31, 2025[35]. - The company plans to cease virgin MMA production in Italy and repurpose the Rho asset for recycled PMMA, expecting an annual profitability improvement of $30 million[4]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $(35.0) million, a decrease from $(42.1) million in the same period of 2024[26].

Core Points - Trinseo will host a conference call on November 7, 2025, at 10:30 a.m. Eastern Time to discuss its third quarter 2025 financial results [1][2] - The financial results will be released via press release on November 6, 2025, after market close, and will be available on the Company's Investor Relations website [3] - A replay of the conference call will be archived on the Company's Investor Relations website and will be available until November 7, 2026 [4] Company Overview - Trinseo is a specialty material solutions provider that focuses on innovative and sustainable material solutions across various industries, including building and construction, consumer goods, medical, and mobility [5][6] - The Company reported net sales of approximately $3.5 billion in 2024, showcasing its significant market presence [7]

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Trinseo PLC due to allegations of materially misleading business information issued by the company [1] Group 1 - The investigation is focused on Trinseo PLC (NYSE: TSE) and its potential misrepresentation of business information to investors [1] - Shareholders who purchased Trinseo securities may be entitled to compensation without any out-of-pocket fees or costs through a contingency fee arrangement [1]

Core Viewpoint - Trinseo PLC is under investigation for potential violations of securities laws following significant corporate announcements that negatively impacted its stock price [2]. Group 1: Company Announcements - Trinseo announced on October 6, 2025, the indefinite suspension of its quarterly dividend [2]. - The company also revealed the permanent closure of multiple production facilities in Italy [2]. Group 2: Market Reaction - Following the announcements, Trinseo's shares experienced a decline of over 12.2% the next day [2]. Group 3: Legal Investigation - The Schall Law Firm is investigating claims on behalf of investors regarding false or misleading statements made by Trinseo [1][2].

Core Viewpoint - Trinseo PLC is under investigation for potential securities fraud violations, which may impact its financial standing and investor confidence [1] Company Summary - The investigation is being conducted by the DJS Law Group, indicating serious legal scrutiny that could lead to significant consequences for Trinseo PLC [1] Industry Summary - The situation highlights ongoing concerns regarding corporate governance and compliance within the chemical industry, which may affect investor sentiment and regulatory scrutiny across similar companies [1]