Core Viewpoint - The materials sector has several oversold stocks that present potential buying opportunities for undervalued companies [1] Group 1: Oversold Stocks - Eightco Holdings Inc (NASDAQ:ORBS) has an RSI of 27.6, with a stock price decline of approximately 14% over the past five days, closing at $2.15 [3][6] - Origin Materials Inc (NASDAQ:ORGN) has an RSI of 17.3, reporting quarterly losses of 11 cents per share compared to 26 cents per share a year ago, with a stock price drop of around 35% over the past five days, closing at $0.25 [4][6] - Trinseo PLC (NYSE:TSE) has an RSI of 26.4, facing a 44% stock price decline over the past month, closing at $0.48 [5][6]

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]

Q3 2025 Financial Performance - The company reported a net loss of $110 million and a negative EPS of $305[8] - Adjusted EBITDA was $30 million, including a $9 million unfavorable net timing impact and negative equity income from Americas Styrenics[8] - Free Cash Flow was negative $38 million due to $22 million cash used in operations and $16 million in capital expenditures[8] - Q3 net sales were $743 million, a decrease of 14% year-over-year, driven by a 7% volume decrease, a 9% price decrease, and a 2% positive impact from foreign exchange[14, 19] Segment Performance - Engineered Materials net sales were $273 million with an Adjusted EBITDA of $34 million[22] - Latex Binders net sales were $198 million with an Adjusted EBITDA of $17 million[25] - Polymer Solutions net sales were $271 million with an Adjusted EBITDA of $4 million[28] Q4 2025 Outlook - The company anticipates a net loss of $170 million to $180 million and an Adjusted EBITDA of $30 million to $40 million[7] - Free Cash Flow is projected to be approximately $20 million, with an expected available liquidity of approximately $365 million at the end of the year[7] Strategic Initiatives - The company announced the cessation of virgin MMA production operations at the Rho and Porto Marghera, Italy facilities and repurposing Rho assets for PMMA recycling activities[7] - The company announced the intention to close the polystyrene production facility in Schkopau, Germany[7] - The company saw 5% growth in strategic growth platforms and 2% volume growth in recycled content containing sales year-to-date[7] Trade Flow Changes - US PMMA imports decreased by 17% year-over-year in Q2, while exports decreased by 20%[10] - US ABS imports increased by 20% year-over-year in Q2, while exports decreased by 22%[10] - European PMMA imports increased by 3% year-over-year in Q2, while exports increased by 7%[10] - European ABS imports increased by 9% year-over-year in Q2, while exports increased by 3%[10]

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].