CONTACT: Danielle Peyton Pomerantz LLP [email protected] 646-581-9980 ext. 7980 SOURCE Pomerantz LLP WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? , /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Trinseo PLC ("Trinseo" or the "Company") (NYSE: TSE). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980. The investigation concerns whether Trinseo and certain of its officers and/or directors have engaged in securities ...

Trinseo PLC (NYSE:TSE) announced new restructuring actions on Monday aimed at improving profitability and cash flow as the specialty materials company faces prolonged challenges in Europe’s chemical sector. The company will permanently shut down its methyl methacrylate (MMA) operations in Rho, Italy, and its acetone cyanohydrin (ACH) production in Porto Marghera, Italy. The move will allow Trinseo to source MMA feedstock from third parties, ensuring supply continuity while cutting costs. The closures ar ...

WAYNE, Pa.--(BUSINESS WIRE)--Trinseo PLC (NYSE: TSE), a specialty material solutions provider ("Trinseo†or the "Company†), today announced a series of strategic plans aimed at further optimizing its operations, enhancing cash flow generation and strengthening long-term profitability. These measures reflect the Company's commitment to focused capital allocation and value creation in a dynamic global environment. Closure of MMA Production Facilities in Italy The Company will permanently close it. ...

Core Viewpoint - The company, 盛禧奥集团, will indefinitely suspend production at its MMA plant in Rho, Italy, due to ongoing low profitability, with the shutdown starting on September 29 [1] Group 1: Production Suspension - The MMA plant has an annual capacity of 100,000 tons and will cease operations due to persistent low profitability [1] - High energy and raw material costs are significant challenges faced by European producers, with methanol contract prices remaining high in the first two quarters of this year [1] - The acetone contract prices are approximately €200 per ton higher than spot market prices [1] Group 2: Future Production Outlook - The company hopes to resume production in the future but requires clearer forecasts [1] - The Rho plant will continue to produce PMMA, a major derivative of MMA, using existing MMA inventory as raw material, although the duration of this inventory's availability is uncertain [1] Group 3: Recycling Initiatives - In June 2024, the company launched an advanced PMMA recycling pilot facility at the Rho plant, based on depolymerization technology [1] - This recycling project was initially announced in December 2023 and aims to extract high-purity MMA monomer from pre-consumer and post-consumer PMMA waste through a continuous process [1]

[PART I — FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section presents Trinseo PLC's unaudited condensed consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025 and 2024 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements of Trinseo PLC, including balance sheets, statements of operations, comprehensive income (loss), shareholders' equity (deficit), and cash flows, along with detailed notes explaining the basis of presentation, accounting policies, and specific financial items for the periods ended June 30, 2025 and 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight decrease in total assets from $2,644.1 million at December 31, 2024, to $2,631.9 million at June 30, 2025, while total liabilities increased and shareholders' equity (deficit) worsened | Metric | Dec 31, 2024 (Millions $) | Jun 30, 2025 (Millions $) | Change (Millions $) | | :-------------------------------- | :------------------------ | :------------------------ | :------------------ | | Total Assets | 2,644.1 | 2,631.9 | (12.2) | | Total Liabilities | 3,264.0 | 3,382.2 | 118.2 | | Total Shareholders' Equity (Deficit) | (619.9) | (750.3) | (130.4) | | Cash and cash equivalents | 209.8 | 137.0 | (72.8) | | Accounts receivable, net | 379.9 | 433.9 | 54.0 | | Inventories | 347.2 | 378.0 | 30.8 | | Short-term borrowings and current portion of long-term debt | 210.9 | 170.0 | (40.9) | | Long-term debt, net | 2,200.7 | 2,321.2 | 120.5 | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported increased net losses for both the three and six months ended June 30, 2025, compared to the prior year, driven by lower net sales, reduced gross profit, and higher selling, general, and administrative expenses | Metric | 3 Months Ended Jun 30, 2025 (Millions $) | 3 Months Ended Jun 30, 2024 (Millions $) | Change (Millions $) | 6 Months Ended Jun 30, 2025 (Millions $) | 6 Months Ended Jun 30, 2024 (Millions $) | Change (Millions $) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------ | :-------------------------------- | :-------------------------------- | :------------------ | | Net sales | 784.3 | 920.0 | (135.7) | 1,569.1 | 1,824.0 | (254.9) | | Gross profit | 36.6 | 68.4 | (31.8) | 100.4 | 129.0 | (28.6) | | Operating income (loss) | (33.3) | 13.9 | (47.2) | (62.3) | 10.6 | (72.9) | | Net loss | (105.5) | (67.8) | (37.7) | (184.5) | (143.3) | (41.2) | | Net loss per share—basic | (2.95) | (1.92) | (1.03) | (5.18) | (4.06) | (1.12) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) The company reported a comprehensive loss of $73.5 million for the three months ended June 30, 2025, and $133.6 million for the six months, an improvement from the prior year's six-month loss, primarily due to positive cumulative translation adjustments and pension gains, partially offsetting the net loss | Metric | 3 Months Ended Jun 30, 2025 (Millions $) | 3 Months Ended Jun 30, 2024 (Millions $) | 6 Months Ended Jun 30, 2025 (Millions $) | 6 Months Ended Jun 30, 2024 (Millions $) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Net loss | (105.5) | (67.8) | (184.5) | (143.3) | | Cumulative translation adjustments | 32.3 | (4.4) | 51.8 | (16.2) | | Total other comprehensive income (loss), net of tax | 32.0 | — | 50.9 | (7.8) | | Comprehensive loss | (73.5) | (67.8) | (133.6) | (151.1) | [Condensed Consolidated Statements of Shareholders' Equity (Deficit)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Deficit)) The company's total shareholders' equity (deficit) decreased significantly from $(619.9) million at December 31, 2024, to $(750.3) million at June 30, 2025, primarily due to net losses and dividend payments, partially offset by other comprehensive income and share-based compensation activity | Metric | Dec 31, 2024 (Millions $) | Jun 30, 2025 (Millions $) | Change (Millions $) | | :-------------------------------- | :------------------------ | :------------------------ | :------------------ | | Total Shareholders' Equity (Deficit) | (619.9) | (750.3) | (130.4) | | Accumulated Deficit | (792.8) | (978.1) | (185.3) | | Accumulated Other Comprehensive Loss | (142.1) | (91.2) | 50.9 | | Net loss (6 months) | N/A | (184.5) | N/A | | Dividends on ordinary shares (6 months) | N/A | (0.8) | N/A | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, the company experienced a net decrease in cash, cash equivalents, and restricted cash of $72.7 million, an improvement from the $153.2 million decrease in the prior year, driven by reduced cash used in operating and investing activities, and a shift to cash provided by financing activities | Metric | 6 Months Ended Jun 30, 2025 (Millions $) | 6 Months Ended Jun 30, 2024 (Millions $) | Change (Millions $) | | :-------------------------------- | :-------------------------------- | :-------------------------------- | :------------------ | | Cash used in operating activities | (103.4) | (108.1) | 4.7 | | Cash used in investing activities | (18.5) | (21.7) | 3.2 | | Cash provided by (used in) financing activities | 42.2 | (19.8) | 62.0 | | Net change in cash, cash equivalents, and restricted cash | (72.7) | (153.2) | 80.5 | | Cash and cash equivalents—end of period | 137.0 | 105.6 | 31.4 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering accounting policies, segment realignment, restructuring activities, debt structure, derivative instruments, fair value measurements, commitments, contingencies, pension plans, share-based compensation, and accumulated other comprehensive income (loss) [NOTE 1—BASIS OF PRESENTATION](index=10&type=section&id=NOTE%201%E2%80%94BASIS%20OF%20PRESENTATION) The interim financial statements are unaudited and prepared under GAAP, reflecting management's estimates, with a segment realignment effective October 1, 2024, to focus on sustainability and material substitution, resulting in four segments with prior year information recast - Segment realignment effective October 1, 2024, combining Compounding with Engineered Materials and remaining Plastics Solutions with Polystyrene (renamed Polymer Solutions)[34](index=34&type=chunk) - Four reporting segments: Engineered Materials, Latex Binders, Polymer Solutions, and Americas Styrenics[34](index=34&type=chunk) - Prior year information recast to reflect current segment structure[34](index=34&type=chunk) [NOTE 2—RECENT ACCOUNTING GUIDANCE](index=10&type=section&id=NOTE%202%E2%80%94RECENT%20ACCOUNTING%20GUIDANCE) As of June 30, 2025, there were no recently issued accounting standards identified that would have a material effect on the company's condensed consolidated financial statements - No material impact from recently issued accounting standards as of June 30, 2025[36](index=36&type=chunk) [NOTE 3—NET SALES](index=10&type=section&id=NOTE%203%E2%80%94NET%20SALES) Net sales to external customers decreased across all segments for both the three and six months ended June 30, 2025, compared to 2024, with Europe being the largest market, followed by the United States | Segment | 3 Months Ended Jun 30, 2025 (Millions $) | 3 Months Ended

Financial Data and Key Metrics Changes - The company reported adjusted EBITDA of $42 million for Q2 2025, which was below guidance due to unfavorable raw material timing and lower seasonal demand [12][15] - First half 2025 volumes were 13% below the prior year, with significant declines in latex binders, paper and board applications, and automotive applications in North America and Europe [12][13] - The company expects full year 2025 adjusted EBITDA of roughly $200 million, indicating a challenging demand environment [15] Business Line Data and Key Metrics Changes - Engineered Materials adjusted EBITDA was $1 million below the prior year, despite lower volumes being offset by fixed cost reductions and mix improvements [13] - Latex Binders adjusted EBITDA decreased by $9 million year-over-year, primarily due to lower volumes in Europe and Asia and significant pricing pressure [13] - Polymer Solutions adjusted EBITDA was $11 million below the prior year, driven by lower volumes in building and construction and automotive applications [13] Market Data and Key Metrics Changes - The company experienced high order cancellations early in Q2, linked to geopolitical and trade uncertainties, but noted a significant drop in cancellations as the quarter progressed [6][12] - The demand for recycled plastic products grew by 7% in the first half of 2025, indicating a positive trend in higher value applications [8] Company Strategy and Development Direction - The company is focused on controlling fixed costs and working capital while cultivating growth and sustainability platforms, expecting to realize $105 million in EBITDA benefits from self-help actions in 2025 [7][8] - The launch of the fourth generation Voltabond Anode Binder is a key strategic growth platform, with expectations of double-digit growth over the next five years [11] Management's Comments on Operating Environment and Future Outlook - Management highlighted five potential triggers for demand improvement, including trade certainty, interest rate cuts, resolution of military conflicts, regulatory reforms in China, and support for the EU chemical industry [15] - The company remains optimistic about the potential for recovery in demand, particularly in the building and construction and automotive sectors, which have significant pent-up demand [22][24] Other Important Information - The company has made significant progress in reducing working capital by $560 million over the past three years, with a 17-day reduction in the cash conversion cycle [7] - The company released its fifteenth annual sustainability and corporate social responsibility report, reaffirming its commitment to sustainability goals [9] Q&A Session Summary Question: Discussion on MMA production in Europe - Management stated they continually evaluate assets and prioritize actions based on execution speed, magnitude of benefit, and cost [18][20] Question: Guidance for 2026 EBITDA - Management indicated that resolution of trade uncertainty and lower interest rates could unlock demand, potentially leading to a significant EBITDA improvement [21][24] Question: Impact of polystyrene outages on Amsty business - A mechanical outage in one of the styrene assets had a $5 million impact in Q2, with similar impacts expected in Q3 [26][28] Question: Pricing pressure in latex binders - Management explained that significant pricing pressure in latex was driven by reduced demand in paper and board applications, particularly in China [40][41] Question: Anti-dumping measures in the EU - Management expressed optimism regarding the EU's chemical industry action plan and potential impacts on competition and pricing [49][50]

Financial Performance - Q2 2025 - The company reported a net loss of $106 million and a diluted EPS of negative $2.95[7] - Adjusted EBITDA was $42 million, which included a $10 million unfavorable net timing impact, and was $25 million lower than the previous year due to lower volumes and reduced equity income from Americas Styrenics[8] - Cash provided by operations was $7 million, and capital expenditures were $10 million, resulting in a negative Free Cash Flow of $3 million[10] Sales and Volume Analysis - Q2 2025 - Net sales were $784 million[15, 20] - Sales volume decreased year-over-year by 11% in Europe, 9% in the U S, 17% in Asia-Pacific, and 9% in the Rest of World[15] - Engineered Materials net sales were $293 million, down from $324 million in Q2 2024[23] - Latex Binders net sales were $204 million, a decrease from $252 million in Q2 2024[26] - Polymer Solutions net sales were $287 million, compared to $344 million in Q2 2024[29] Full Year 2025 Outlook - The company anticipates a net loss of approximately $320 million and an Adjusted EBITDA of approximately $200 million[11, 44] - Free Cash Flow is projected to be approximately negative $165 million[11, 44] Sustainability Initiatives - The company achieved five key sustainability goals, including increasing the share of electricity from non-fossil sources from 5% to 30% and reducing Scope 1 & 2 GHG Emissions intensity by 35%[11, 13] - The share of electricity coming from renewable sources increased to 22%, a 4% increase compared to 2023[13] Debt and Liquidity - The company had $139 million in cash at the end of the second quarter, with $2 million restricted, and total liquidity of $399 million[10]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Trinseo's Q2 2025 financial performance declined significantly, with net sales down 15% and a $106 million net loss, while Adjusted EBITDA reduced, Free Cash Flow improved Second Quarter 2025 Key Financial Highlights (vs. Q2 2024) | Metric | Q2 2025 ($ millions) | Q2 2024 ($ millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | 784 | 920 | -15% | | Net Loss | (106) | (68) | +$38M | | Diluted EPS ($) | (2.95) | (1.92) | -$1.03 | | Adjusted Net Loss* | (76) | (52) | +$24M | | Adjusted EPS ($)* | (2.12) | (1.46) | -$0.66 | | EBITDA* | 26 | 64 | -$38M | | Adjusted EBITDA* | 42 | 67 | -$25M | - Adjusted EBITDA of **$42 million** was **$25 million below prior year**, primarily due to lower volumes and equity income, partially offset by cost savings, including **$10 million** unfavorable net timing[4](index=4&type=chunk)[6](index=6&type=chunk) - Free Cash Flow was **negative $3 million**, a **$53 million improvement** year-over-year despite lower earnings, driven by **$7 million** cash from operations and **$10 million** capital expenditures[4](index=4&type=chunk) - Second quarter ending cash stood at **$139 million** (including **$2 million** restricted), with total liquidity at **$399 million**[4](index=4&type=chunk) [CEO Commentary & Business Environment](index=2&type=section&id=CEO%20Commentary%20%26%20Business%20Environment) CEO Frank Bozich highlighted a challenging Q2 2025 business environment due to geopolitical and trade uncertainty, leading to customer hesitancy; the company focused on restructuring savings and cash conversion cycle improvements - The Q2 business environment faced pressure across all segments due to increased geopolitical and trade uncertainty, resulting in customer hesitancy and order cancellations[7](index=7&type=chunk) - The company achieved restructuring savings and a double-digit day reduction in the cash conversion cycle to mitigate market headwinds[7](index=7&type=chunk) [2025 Full-Year Outlook](index=2&type=section&id=2025%20Outlook) Trinseo forecasts full-year 2025 Adjusted EBITDA of approximately **$200 million**, assuming no second-half recovery due to trade uncertainty, while focusing on working capital optimization and liquidity preservation Full-Year 2025 Financial Outlook | Metric | Forecast ($ millions) | | :--- | :--- | | Net Loss | ~$320 | | Adjusted EBITDA | ~$200 | | Free Cash Flow | ~$165 (negative) | - The forecast assumes no recovery in the second half of the year, with seasonally higher volumes dampened by trade uncertainty, though this depressed demand is not considered structural[9](index=9&type=chunk) - The company is intensely focused on optimizing working capital, reducing discretionary spend, and executing targeted actions to preserve liquidity and maintain financial flexibility[9](index=9&type=chunk) [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 net sales decreased to **$784.3 million** from **$920.0 million** in Q2 2024, leading to a **$105.5 million** net loss, significantly higher than the prior year, with increased net losses for the six-month period Condensed Consolidated Statements of Operations (Selected Data) | Metric ($ millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net sales | 784.3 | 920.0 | 1,569.1 | 1,824.0 | | Gross profit | 36.6 | 68.4 | 100.4 | 129.0 | | Operating income (loss) | (33.3) | 13.9 | (62.3) | 10.6 | | Net loss | (105.5) | (67.8) | (184.5) | (143.3) | | Net loss per share- diluted ($) | (2.95) | (1.92) | (5.18) | (4.06) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets slightly decreased to **$2,631.9 million**, cash declined, while accounts receivable and inventories rose; long-term debt increased, and shareholders' equity remained in deficit Condensed Consolidated Balance Sheets (Selected Data) | Metric ($ millions) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | 137.0 | 209.8 | | Accounts receivable, net | 433.9 | 379.9 | | Inventories | 378.0 | 347.2 | | Total assets | 2,631.9 | 2,644.1 | | Current liabilities | 707.7 | 720.9 | | Long-term debt, net | 2,321.2 | 2,200.7 | | Shareholders' equity (deficit) | (750.3) | (619.9) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, cash used in operating activities was **$103.4 million**, a slight improvement year-over-year, with financing activities providing **$42.2 million** from refinancing term loans and revolving facilities Condensed Consolidated Statements of Cash Flows (Selected Data) | Metric ($ millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash used in operating activities | (103.4) | (108.1) | | Capital expenditures | (18.5) | (29.9) | | Cash used in investing activities | (18.5) | (21.7) | | Cash provided by (used in) financing activities | 42.2 | (19.8) | | Net change in cash, cash equivalents, and restricted cash | (72.7) | (153.2) | | Cash, cash equivalents, and restricted cash—end of period | 139.2 | 107.9 | [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) [Net Sales by Segment](index=7&type=section&id=Net%20Sales%20by%20Segment) All segments experienced Q2 2025 net sales declines year-over-year, with Engineered Materials down **9%**, Latex Binders **19%**, and Polymer Solutions **17%**, primarily due to lower volumes and pricing pressure Net Sales by Segment ($ millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Engineered Materials | 293.2 | 323.8 | 570.5 | 606.3 | | Latex Binders | 204.2 | 252.4 | 413.5 | 493.9 | | Polymer Solutions | 286.9 | 343.8 | 585.1 | 723.8 | | Total Net Sales | 784.3 | 920.0 | 1,569.1 | 1,824.0 | - Engineered Materials net sales decreased **9%** primarily due to lower sales volume[12](index=12&type=chunk) - Latex Binders net sales decreased **19%** due to lower volumes in paper, board, and textile in Asia/Europe, and significant pricing pressure; CASE applications comprised **16%** of segment sales with a **3%** volume increase[12](index=12&type=chunk) - Polymer Solutions net sales decreased **17%** due to lower margins and sales volumes, particularly in Europe, driven by significant pricing pressure from Asian imports[12](index=12&type=chunk) [Adjusted EBITDA by Segment](index=8&type=section&id=Adjusted%20EBITDA%20by%20Segment) Q2 2025 Adjusted EBITDA declined across all segments, with Engineered Materials seeing a slight decrease, while Latex Binders, Polymer Solutions, and Americas Styrenics experienced more significant drops due to lower volumes, margins, and an unplanned outage Adjusted EBITDA by Segment ($ millions) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Engineered Materials | 31.1 | 32.0 | | Latex Binders | 16.8 | 25.6 | | Polymer Solutions | 5.2 | 16.0 | | Americas Styrenics | 8.2 | 15.7 | | Corporate Unallocated | (19.7) | (22.5) | | Total Adjusted EBITDA | 41.6 | 66.8 | - Engineered Materials Adjusted EBITDA was **$31 million**, **$1 million below prior year**, as lower volumes were largely offset by mix improvement and restructuring savings[12](index=12&type=chunk) - Latex Binders Adjusted EBITDA was **$17 million**, **$9 million below prior year** due to lower volume[12](index=12&type=chunk) - Polymer Solutions Adjusted EBITDA was **$5 million**, **$11 million below prior year**, due to lower margins and volumes, partially offset by restructuring savings; Americas Styrenics Adjusted EBITDA was **$8 million**, **$8 million below prior year**, mainly due to lower polystyrene volume and an unplanned outage[12](index=12&type=chunk) [Non-GAAP Measures and Reconciliations](index=3&type=section&id=Non-GAAP%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=3&type=section&id=Use%20of%20non-GAAP%20measures) Trinseo uses non-GAAP measures like Adjusted Net Income (Loss), EBITDA, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow to provide additional insights into business trends and performance, excluding certain non-core GAAP items, but these are not GAAP substitutes - Non-GAAP measures such as Adjusted Net Income (Loss), EBITDA, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow are utilized to evaluate business trends, performance, management, and profitability[18](index=18&type=chunk) - EBITDA is defined as income from continuing operations before net interest expense, income tax provision, and depreciation and amortization expense[28](index=28&type=chunk) - Adjusted EBITDA further adjusts EBITDA for items like loss on extinguishment of long-term debt, asset impairment charges, and restructuring charges to indicate ongoing performance and business trends[29](index=29&type=chunk) - These non-GAAP measures are not recognized under GAAP and should not be considered alternatives to GAAP performance or liquidity measures[18](index=18&type=chunk)[31](index=31&type=chunk)[37](index=37&type=chunk) [Reconciliation of Non-GAAP Performance Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Performance%20Measures%20to%20Net%20Income) Q2 2025 EBITDA was **$26.3 million** (down from **$63.8 million** in Q2 2024), Adjusted EBITDA was **$41.6 million** (down from **$66.8 million**), and Adjusted Net Loss was **$75.6 million** (vs. **$51.7 million** in Q2 2024); full-year 2025 forecasts are **$200 million** Adjusted EBITDA and **$320 million** Adjusted Net Loss Reconciliation of Non-GAAP Performance Measures ($ millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | (105.5) | (67.8) | | EBITDA | 26.3 | 63.8 | | Adjusted EBITDA | 41.6 | 66.8 | | Adjusted Net Loss | (75.6) | (51.7) | | Adjusted EPS ($) | (2.12) | (1.46) | Forecasted Non-GAAP Performance Measures (Full Year 2025) | Metric ($ millions, except per share data) | Year Ended December 31, 2025 | | :--- | :--- | | Adjusted EBITDA | 200 | | Net Loss | (320) | | Adjusted Net Loss | (320) | | Adjusted EPS ($) | (8.96) | [Reconciliation of Non-GAAP Liquidity Measures (Free Cash Flow)](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Liquidity%20Measures%20to%20Cash%20from%20Operations) Q2 2025 Free Cash Flow was **negative $3.0 million**, a significant improvement from **negative $56.1 million** in Q2 2024, driven by improved cash from operations and reduced capital expenditures, with a full-year forecast of **negative $165 million** Free Cash Flow Reconciliation ($ millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Cash provided by (used in) operating activities | 6.8 | (41.9) | (103.4) | (108.1) | | Capital expenditures | (9.8) | (14.2) | (18.5) | (29.9) | | Free Cash Flow | (3.0) | (56.1) | (121.9) | (138.0) | Forecasted Free Cash Flow (Full Year 2025) | Metric ($ millions) | Year Ended December 31, 2025 | | :--- | :--- | | Cash used in operating activities | (100) | | Capital expenditures | (65) | | Free Cash Flow | (165) | [Additional Company Information](index=2&type=section&id=Additional%20Company%20Information) [About Trinseo](index=3&type=section&id=About%20Trinseo) Trinseo (NYSE: TSE) is a specialty material solutions provider, partnering across industries to deliver innovative and sustainable solutions, reporting approximately **$3.5 billion** in net sales in 2024 - Trinseo (NYSE: TSE) is a specialty material solutions provider partnering with companies to deliver imaginative, smart, and sustainably focused solutions[15](index=15&type=chunk) - Trinseo addresses customer challenges across industries including building and construction, consumer goods, medical, and mobility[16](index=16&type=chunk) - Trinseo reported net sales of approximately **$3.5 billion** in 2024[17](index=17&type=chunk) [Conference Call and Webcast Details](index=2&type=section&id=Conference%20Call%20and%20Webcast%20Information) Trinseo will host a conference call on August 7, 2025, at 10 a.m. ET to discuss Q2 2025 financial results, with registration links available for Q&A participants and listen-only webcast attendees - Trinseo will host a conference call to discuss its second quarter 2025 financial results on Thursday, August 7, 2025, at 10 a.m. Eastern Time[10](index=10&type=chunk) - Frank Bozich (President and CEO), David Stasse (EVP and CFO), and Bee van Kessel (SVP, Corporate Finance and Investor Relations) will provide commentary on the results[10](index=10&type=chunk) - Registration links are provided for Q&A participants and listen-only webcast attendees[11](index=11&type=chunk) [Cautionary Note on Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20on%20Forward-Looking%20Statements) The press release contains forward-looking statements subject to inherent uncertainties and risks, including global economic conditions, cost savings, raw material costs, and debt servicing; actual results may differ materially, and the company undertakes no obligation to update them - The press release may contain forward-looking statements regarding plans, objectives, goals, projections, forecasts, strategies, future events, or performance, identifiable by terms such as 'expect,' 'anticipate,' 'believe,' 'intend,' and 'outlook'[19](index=19&type=chunk) - Forward-looking statements are subject to inherent uncertainties, risks, and unpredictable changes in circumstances, including global economic conditions, ability to generate cost savings, increased raw material and energy costs, and ability to service indebtedness[19](index=19&type=chunk) - The company undertakes no obligation to publicly update or revise any forward-looking statement due to new information, future events, or otherwise, except as legally required[19](index=19&type=chunk)

PART I — FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial information for the reporting period [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Trinseo PLC's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, along with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Presents the company's financial position, including assets, liabilities, and equity, at specific reporting dates Condensed Consolidated Balance Sheets Summary | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :-------------------------- | :--------------------------- | | Cash and cash equivalents | $126.1 | $209.8 | | Total assets | $2,655.0 | $2,644.1 | | Total current liabilities | $689.3 | $720.9 | | Long-term debt, net | $2,305.1 | $2,200.7 | | Total shareholders' equity (deficit) | $(679.2) | $(619.9) | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Details the company's financial performance over a period, including net sales, gross profit, and net loss Condensed Consolidated Statements of Operations Summary | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :------------------------ | :----------------------------------------- | :----------------------------------------- | | Net sales | $784.8 | $904.0 | | Gross profit | $63.8 | $60.6 | | Operating loss | $(29.0) | $(3.3) | | Net loss | $(79.0) | $(75.5) | | Net loss per share—basic | $(2.22) | $(2.14) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Reports the company's comprehensive income or loss, encompassing net loss and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Loss) Summary | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :------------------------------ | :----------------------------------------- | :----------------------------------------- | | Net loss | $(79.0) | $(75.5) | | Cumulative translation adjustments | $19.5 | $(11.8) | | Comprehensive loss | $(60.1) | $(83.3) | [Condensed Consolidated Statements of Shareholders' Equity (Deficit)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20(Deficit)) Outlines changes in shareholders' equity or deficit, reflecting net loss and other equity adjustments Condensed Consolidated Statements of Shareholders' Equity (Deficit) Summary | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :--------------------------- | | Total shareholders' equity (deficit) | $(679.2) | $(619.9) | | Accumulated deficit | $(872.2) | $(792.8) | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the company's cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows Summary | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :------------------------------------------ | :----------------------------------------- | :----------------------------------------- | | Cash used in operating activities | $(110.2) | $(66.2) | | Cash used in investing activities | $(8.7) | $(11.0) | | Cash provided by (used in) financing activities | $32.8 | $(9.2) | | Net change in cash, cash equivalents, and restricted cash | $(83.6) | $(89.6) | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1—BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201%E2%80%94BASIS%20OF%20PRESENTATION) Details the basis of financial statement preparation and significant accounting policies, including segment realignment - Effective October 1, 2024, the Company realigned its reporting segments to Engineered Materials, Latex Binders, Polymer Solutions, and Americas Styrenics to reflect a new strategic focus[35](index=35&type=chunk) [NOTE 2—RECENT ACCOUNTING GUIDANCE](index=9&type=section&id=NOTE%202%E2%80%94RECENT%20ACCOUNTING%20GUIDANCE) Discusses the impact of recently issued accounting standards on the company's financial statements - As of March 31, 2025, no recently issued accounting standards had a material effect on the Company's condensed consolidated financial statements[37](index=37&type=chunk) [NOTE 3—NET SALES](index=9&type=section&id=NOTE%203%E2%80%94NET%20SALES) Provides a breakdown of net sales by segment and geographical region for the reporting periods Net Sales by Segment and Geography | Segment / Geography | Q1 2025 Net Sales (Millions) | Q1 2024 Net Sales (Millions) | | :------------------ | :--------------------------- | :--------------------------- | | **Total Net Sales** | **$784.8** | **$904.0** | | United States | $235.6 | $226.4 | | Europe | $371.7 | $462.5 | | Asia-Pacific | $149.2 | $184.1 | | Rest of World | $28.3 | $31.0 | | Engineered Materials | $277.3 | $282.5 | | Latex Binders | $209.3 | $241.5 | | Polymer Solutions | $298.2 | $380.0 | [NOTE 4—RESTRUCTURING ACTIVITIES](index=10&type=section&id=NOTE%204%E2%80%94RESTRUCTURING%20ACTIVITIES) Details the financial impact and reserve balances of the company's various restructuring plans - The 2024 Restructuring Plan and Stade Shutdown incurred **$54.4 million** in pre-tax charges inception-to-date, with **$2.4 million** in Q1 2025, and a reserve balance of **$18.8 million** as of March 31, 2025[42](index=42&type=chunk)[43](index=43&type=chunk)[44](index=44&type=chunk) - The Asset Optimization and Corporate Restructuring plan incurred **$76.4 million** in pre-tax charges inception-to-date, with **$2.4 million** in Q1 2025, and a reserve balance of **$4.0 million** as of March 31, 2025[47](index=47&type=chunk)[48](index=48&type=chunk)[50](index=50&type=chunk) - The Asset Restructuring Plan incurred **$54.9 million** in pre-tax charges inception-to-date, but recorded a **$(7.8) million credit** in Q1 2025 due to an **$8.1 million** change in cost estimate for the Boehlen, Germany asset retirement obligation, with a reserve balance of **$0.8 million** as of March 31, 2025[52](index=52&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) [NOTE 5—INCOME TAXES](index=13&type=section&id=NOTE%205%E2%80%94INCOME%20TAXES) Presents the provision for income taxes and the effective income tax rate, explaining key drivers Income Taxes Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Provision for income taxes | $6.6 million | $5.4 million | | Effective income tax rate | (9.1)% | (7.7)% | - The decrease in the effective income tax rate for Q1 2025 compared to the prior year was primarily due to the geographical mix of earnings[56](index=56&type=chunk) [NOTE 6—EARNINGS PER SHARE](index=14&type=section&id=NOTE%206%E2%80%94EARNINGS%20PER%20SHARE) Calculates basic and diluted earnings per share, explaining factors affecting the calculation Earnings Per Share Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :---------------------- | :-------------------------------- | :-------------------------------- | | Net loss per share—basic | $(2.22) | $(2.14) | | Net loss per share—diluted | $(2.22) | $(2.14) | - Potential shares related to equity-based awards were excluded from diluted EPS calculation due to the net loss, which would have an anti-dilutive effect[61](index=61&type=chunk) [NOTE 7—INVENTORIES](index=14&type=section&id=NOTE%207%E2%80%94INVENTORIES) Provides a breakdown of inventory types and their respective values at period end Inventories Summary | Inventory Type | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------- | :------------------------ | :--------------------------- | | Finished goods | $167.7 | $144.9 | | Raw materials and semi-finished goods | $180.1 | $167.3 | | Supplies | $35.9 | $35.0 | | **Total** | **$383.7** | **$347.2** | [NOTE 8—INVESTMENTS IN UNCONSOLIDATED AFFILIATES](index=14&type=section&id=NOTE%208%E2%80%94INVESTMENTS%20IN%20UNCONSOLIDATED%20AFFILIATES) Details the company's investments in unconsolidated affiliates and their financial performance Investments in Unconsolidated Affiliates Summary | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :----------------------------------- | :----------------------------------------- | :----------------------------------------- | | Americas Styrenics Net income (loss) | $(2.0) | $(3.7) | | Investment in Americas Styrenics (period end) | $220.8 | $222.6 | - The Company did not receive dividends from Americas Styrenics during the three months ended March 31, 2025 and 2024[65](index=65&type=chunk) [NOTE 9—GOODWILL](index=15&type=section&id=NOTE%209%E2%80%94GOODWILL) Reports the goodwill balances by segment and explains changes, including foreign currency impacts Goodwill by Segment | Segment | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :------------------ | :------------------------ | :--------------------------- | | Engineered Materials | $14.5 | $13.9 | | Latex Binders | $15.0 | $14.5 | | Polymer Solutions | $32.9 | $31.5 | | **Total Goodwill** | **$62.4** | **$59.9** | - The increase in goodwill was primarily due to foreign currency impact of **$2.5 million**[66](index=66&type=chunk) - The Engineered Materials segment included accumulated impairment losses of **$646.1 million** as of March 31, 2025 and December 31, 2024[66](index=66&type=chunk) [NOTE 10—LONG TERM DEBT & AVAILABLE FACILITIES](index=16&type=section&id=NOTE%2010%E2%80%94LONG%20TERM%20DEBT%20%26%20AVAILABLE%20FACILITIES) Details the company's long-term debt instruments, refinancing activities, and available liquidity Long-Term Debt & Available Facilities Summary | Debt Instrument | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :---------------------------------- | :------------------------ | :--------------------------- | | 2029 Refinance Senior Notes | $445.4 | — | | 2028 Term Loan B | $720.2 | $721.9 | | 2028 Refinance Term Loans | $1,212.8 | $1,083.2 | | Accounts Receivable Securitization Facility | $135.0 | $75.0 | | **Total debt** | **$2,518.1** | **$2,448.4** | | Total long-term debt, net of unamortized deferred financing fees | $2,305.1 | $2,200.7 | - In January 2025, the Company completed a series of refinancing transactions, including issuing **$115.0 million** in Second Tranche Refinance Term Loans to redeem 2025 Senior Notes, exchanging **$446.5 million** of 2029 Senior Notes for **$379.5 million** of 2029 Refinance Senior Notes, and establishing a new **$300.0 million** OpCo Super-Priority Revolver[70](index=70&type=chunk)[71](index=71&type=chunk)[76](index=76&type=chunk)[79](index=79&type=chunk) - As of March 31, 2025, the Company was in compliance with all debt covenant requirements and had **$416.8 million** in liquidity, comprising **$121.5 million** cash and **$295.3 million** available for borrowing[86](index=86&type=chunk) [NOTE 11—FINANCIAL INSTRUMENTS AND DERIVATIVES](index=21&type=section&id=NOTE%2011%E2%80%94FINANCIAL%20INSTRUMENTS%20AND%20DERIVATIVES) Explains the company's use of derivative instruments to manage market risks and their financial positions - The Company uses foreign exchange forward contracts, interest rate swap agreements, and commodity swap agreements to manage exposure to fluctuating foreign exchange rates, interest rate risk, and commodity price risk[87](index=87&type=chunk) Net Derivative Position | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :------------------------ | :--------------------------- | | Net derivative asset position | $0.0 | $4.6 | | Net derivative liability position | $(10.1) | $(1.5) | | **Total net derivative position** | **$(10.1)** | **$3.1** | - As of March 31, 2025, the Company had open foreign exchange forward contracts with a notional U.S. dollar equivalent absolute value of **$320.1 million** and commodity cash flow hedges with a notional value of approximately **73 thousand megawatt hours** of natural gas purchases[89](index=89&type=chunk)[91](index=91&type=chunk) [NOTE 12—FAIR VALUE MEASUREMENTS](index=24&type=section&id=NOTE%2012%E2%80%94FAIR%20VALUE%20MEASUREMENTS) Describes the fair value measurement techniques and classifications for financial instruments Fair Value Measurements Summary | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :--------------------------- | | Total fair value of liabilities at fair value | $(10.1) | — | | Total fair value of assets (liabilities) at fair value | — | $3.1 | | Fair value of debt instruments | $1,904.1 | $1,970.8 | - The Company uses an income approach, utilizing discounted cash flow techniques and observable market information, to value its derivative instruments, which are classified as Level 2 in the fair value hierarchy[101](index=101&type=chunk) [NOTE 13—COMMITMENTS AND CONTINGENCIES](index=26&type=section&id=NOTE%2013%E2%80%94COMMITMENTS%20AND%20CONTINGENCIES) Details the company's environmental obligations, asset retirement obligations, and ongoing litigation matters Commitments and Contingencies Summary | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :--------------------------- | | Accrued environmental obligations | $1.7 | $1.3 | | Asset retirement obligation balance | $22.5 | $33.6 | - The asset retirement obligation decreased by **$8.1 million** in Q1 2025 due to realized efficiencies during the decommissioning of the Boehlen, Germany site[112](index=112&type=chunk) - The Company is involved in ongoing litigation related to the Bristol Spill (as a 'potentially responsible party') and an arbitration dispute with Synthos regarding the sale of its Rubber Business, which the Company intends to vigorously defend[115](index=115&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [NOTE 14—PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS](index=29&type=section&id=NOTE%2014%E2%80%94PENSION%20PLANS%20AND%20OTHER%20POSTRETIREMENT%20BENEFITS) Presents the net periodic benefit costs and obligations for the company's pension and postretirement plans Pension Plans and Other Postretirement Benefits Summary | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :----------------------------------- | :----------------------------------------- | :----------------------------------------- | | Non-U.S. Defined Benefit Pension Plans Net periodic benefit cost | $2.5 | $3.1 | | U.S. Defined Benefit Pension Plans Net periodic benefit cost | $0.1 | $0.1 | | Total benefit obligations (period end) | $191.2 | $183.3 | - The Company expects to make additional cash contributions of approximately **$7.4 million** to its defined benefit plans for the remainder of 2025[123](index=123&type=chunk) [NOTE 15—SHARE-BASED COMPENSATION](index=30&type=section&id=NOTE%2015%E2%80%94SHARE-BASED%20COMPENSATION) Details the share-based compensation expense and unrecognized costs for various equity awards Share-Based Compensation Expense | Metric | Three Months Ended March 31, 2025 (Millions) | Three Months Ended March 31, 2024 (Millions) | | :----------------------------------- | :----------------------------------------- | :----------------------------------------- | | Total share-based compensation expense | $5.7 | $5.9 | - As of March 31, 2025, unrecognized compensation costs included **$3.1 million** for RSUs, **$0.1 million** for Options, **$3.9 million** for PSUs, and **$4.5 million** for RCUs[124](index=124&type=chunk) - Awards granted in Q1 2025 included **842,847 RSUs**, **600,986 PSUs**, and **1,518,653 RCUs**, with varying grant date fair values[124](index=124&type=chunk) [NOTE 16—SEGMENTS AND GEOGRAPHIC INFORMATION](index=31&type=section&id=NOTE%2016%E2%80%94SEGMENTS%20AND%20GEOGRAPHIC%20INFORMATION) Provides financial performance data, including Adjusted EBITDA, for the company's operating segments Adjusted EBITDA by Segment | Segment | Q1 2025 Adjusted EBITDA (Millions) | Q1 2024 Adjusted EBITDA (Millions) | | :------------------ | :--------------------------------- | :--------------------------------- | | Engineered Materials | $25.7 | $10.4 | | Latex Binders | $24.5 | $25.7 | | Polymer Solutions | $44.5 | $29.1 | | Americas Styrenics | $(1.8) | $6.2 | | **Total Segments** | **$92.9** | **$71.4** | - The Polymer Solutions segment recognized **$26.0 million** in licensing income for polycarbonate technology during Q1 2025[130](index=130&type=chunk) [NOTE 17—ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)](index=34&type=section&id=NOTE%2017%E2%80%94ACCUMULATED%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Reports the balance and changes in accumulated other comprehensive income or loss, including translation adjustments Accumulated Other Comprehensive Income (Loss) Summary | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :--------------------------- | | Balance at period end | $(123.2) | $(142.1) | | Other comprehensive income (loss) for the period | $19.2 | $(11.7) | - The improvement in AOCI was primarily driven by positive cumulative translation adjustments of **$19.5 million** in Q1 2025[135](index=135&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results for the three months ended March 31, 2025, highlighting a net loss of $79.0 million, Adjusted EBITDA of $64.8 million, recent debt refinancing, and strategic initiatives [2025 Year-to-Date Highlights](index=35&type=section&id=2025%20Year-to-Date%20Highlights) Summarizes key financial results and strategic developments for the first quarter of 2025, including net loss and debt refinancing - Trinseo recognized a net loss of **$79.0 million** and Adjusted EBITDA of **$64.8 million** for the three months ended March 31, 2025[139](index=139&type=chunk) - The Company completed a series of debt refinancing transactions on January 17, 2025, including new term loans, an exchange of 2029 Senior Notes, and a new **$300.0 million** OpCo Super-Priority Revolver[142](index=142&type=chunk)[143](index=143&type=chunk)[144](index=144&type=chunk) - The Polymer Solutions segment recognized **$26.0 million** in licensing income for polycarbonate technology during Q1 2025[145](index=145&type=chunk) - The Company commenced a sale process for its interest in Americas Styrenics in March 2024[146](index=146&type=chunk) [Recent Developments](index=37&type=section&id=Recent%20Developments) Outlines recent events and their potential impact on the company's business, including global trade conflicts - The business is subject to risks from global trade conflicts and tariffs, which may negatively impact demand and increase product costs, leading to uncertainty and volatility[147](index=147&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance, detailing changes in net sales, gross profit, and operating expenses - Net sales decreased **13%** year-over-year, primarily due to lower sales volumes across all business segments[151](index=151&type=chunk) - Gross profit increased by **$3.2 million**, primarily due to higher margins reflecting the absence of unfavorable natural gas hedge losses from the prior year and higher plant utilization[153](index=153&type=chunk) - Selling, general and administrative expenses increased by **$20.9 million (30%)** due to a **$23.9 million** increase in costs associated with the debt refinancing transaction[154](index=154&type=chunk) - Other income, net, for Q1 2025 was **$23.2 million**, primarily driven by **$26.0 million** of license income for polycarbonate technology[157](index=157&type=chunk) [Outlook](index=38&type=section&id=Outlook) Provides management's expectations for future financial performance, including anticipated seasonal improvements and liquidity management - The Company expects seasonally stronger volumes in building and construction applications, lower costs in Engineered Materials, and higher Americas Styrenics earnings in Q2 2025[160](index=160&type=chunk) - Second quarter free cash flow is expected to breakeven due to typical seasonal working capital improvements[160](index=160&type=chunk) - The Company maintains adequate liquidity through recent concerted liquidity improvement actions and cash preservation initiatives to manage the challenging macroeconomic environment[161](index=161&type=chunk) [Selected Segment Information](index=39&type=section&id=Selected%20Segment%20Information) Presents detailed financial performance and key metrics for each of the company's operating segments [Engineered Materials Segment](index=39&type=section&id=Engineered%20Materials%20Segment) Details the financial performance of the Engineered Materials segment, including net sales and Adjusted EBITDA Engineered Materials Segment Performance | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :------------------ | :----------------- | :----------------- | :------- | | Net sales | $277.3 | $282.5 | (2)% | | Adjusted EBITDA | $25.7 | $10.4 | 147% | | Adjusted EBITDA margin | 9% | 4% | | - Adjusted EBITDA increased by **$15.3 million**, primarily due to **$17.7 million** from higher margins resulting from lower natural gas hedge losses and more normalized MMA market dynamics[167](index=167&type=chunk) [Latex Binders Segment](index=39&type=section&id=Latex%20Binders%20Segment) Details the financial performance of the Latex Binders segment, including net sales and Adjusted EBITDA Latex Binders Segment Performance | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :------------------ | :----------------- | :----------------- | :------- | | Net sales | $209.3 | $241.5 | (13)% | | Adjusted EBITDA | $24.5 | $25.7 | (5)% | | Adjusted EBITDA margin | 12% | 11% | | - Net sales decreased **13%** primarily due to a **15%** decrease in sales volumes in paper and board in Asia and Europe[170](index=170&type=chunk) - Adjusted EBITDA decreased by **$1.2 million**, mainly due to a **$6.8 million** impact from lower sales volumes, partially offset by lower fixed costs and higher margins from the exit of styrene production in Terneuzen[171](index=171&type=chunk) [Polymer Solutions Segment](index=40&type=section&id=Polymer%20Solutions%20Segment) Details the financial performance of the Polymer Solutions segment, including net sales and Adjusted EBITDA Polymer Solutions Segment Performance | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :------------------ | :----------------- | :----------------- | :------- | | Net sales | $298.2 | $380.0 | (22)% | | Adjusted EBITDA | $44.5 | $29.1 | 53% | | Adjusted EBITDA margin | 15% | 8% | | - Net sales decreased **22%** due to lower sales volumes from portfolio optimization actions and exiting polycarbonate production at Stade, Germany[174](index=174&type=chunk) - Adjusted EBITDA increased by **$15.4 million**, driven by **$26.0 million** in polycarbonate technology licensing income and **$14.8 million** from lower fixed costs due to the Stade exit[175](index=175&type=chunk) [Americas Styrenics Segment](index=40&type=section&id=Americas%20Styrenics%20Segment) Details the financial performance of the Americas Styrenics segment, including Adjusted EBITDA Americas Styrenics Segment Performance | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | % Change | | :-------------- | :----------------- | :----------------- | :------- | | Adjusted EBITDA | $(1.8) | $6.2 | (129)% | - The decrease in Adjusted EBITDA was mainly due to lower polystyrene volumes and higher raw material input costs[178](index=178&type=chunk) [Non-GAAP Performance Measures](index=41&type=section&id=Non-GAAP%20Performance%20Measures) Explains the company's use of non-GAAP financial measures, such as Adjusted EBITDA, and provides a reconciliation - Adjusted EBITDA is presented as a non-GAAP financial performance measure to indicate ongoing performance and business trends, excluding non-core operations[180](index=180&type=chunk) Adjusted EBITDA Reconciliation | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | | :------------------ | :----------------- | :----------------- | | Net loss | $(79.0) | $(75.5) | | Interest expense, net | $66.6 | $63.0 | | Provision for income taxes | $6.6 | $5.4 | | Depreciation and amortization | $36.0 | $45.0 | | EBITDA | $30.2 | $37.9 | | Loss on financing transactions | $24.9 | — | | Restructuring and other charges | $7.4 | $9.4 | | Other items | $2.3 | $1.3 | | **Adjusted EBITDA** | **$64.8** | **$45.0** | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) Assesses the company's ability to generate and manage cash, including cash flows, free cash flow, and available capital [Cash Flows](index=42&type=section&id=Cash%20Flows) Analyzes the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Activities Summary | Cash Flow Activity | Q1 2025 (Millions) | Q1 2024 (Millions) | | :---------------------------------- | :----------------- | :----------------- | | Net cash used in operating activities | $(110.2) | $(66.2) | | Net cash used in investing activities | $(8.7) | $(11.0) | | Net cash provided by (used in) financing activities | $32.8 | $(9.2) | | Net change in cash, cash equivalents, and restricted cash | $(83.6) | $(89.6) | - Net cash used in operating activities in Q1 2025 included a **$102.6 million** increase in working capital and **$18.0 million** in refinancing expenses[187](index=187&type=chunk) - Net cash provided by financing activities in Q1 2025 was driven by **$70.0 million** from the Accounts Receivable Securitization Facility and **$115.0 million** from the issuance of 2028 Refinance Term Loans[190](index=190&type=chunk) [Free Cash Flow](index=43&type=section&id=Free%20Cash%20Flow) Presents the company's free cash flow, indicating cash available after capital expenditures Free Cash Flow Summary | Metric | Q1 2025 (Millions) | Q1 2024 (Millions) | | :-------------- | :----------------- | :----------------- | | Free Cash Flow | $(118.9) | $(81.9) | [Capital Resources and Liquidity](index=43&type=section&id=Capital%20Resources%20and%20Liquidity) Details the company's available liquidity, outstanding indebtedness, and compliance with debt covenants - As of March 31, 2025, the Company had **$416.8 million** in liquidity, consisting of **$121.5 million** in cash and cash equivalents and **$295.3 million** available for borrowing under the OpCo Super-Priority Revolver and Accounts Receivable Securitization Facility[198](index=198&type=chunk) Capital Resources and Liquidity Metrics | Metric | March 31, 2025 (Millions) | December 31, 2024 (Millions) | | :-------------------------- | :------------------------ | :--------------------------- | | Total outstanding indebtedness | $2,518.1 | $2,448.4 | | Working capital | $346.7 | $267.3 | | Foreign cash and cash equivalents | $75.3 | $107.7 | - The Company was in compliance with all debt covenant requirements as of March 31, 2025, and believes its financial resources are adequate to meet operating and capital expenditures for at least the next twelve months[197](index=197&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk) [Contractual Obligations and Commercial Commitments](index=49&type=section&id=Contractual%20Obligations%20and%20Commercial%20Commitments) Confirms no material revisions to contractual obligations since the last annual report - There have been no material revisions outside the ordinary course of business to contractual obligations as described in the Annual Report[218](index=218&type=chunk) [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Confirms no material revisions to critical accounting policies and estimates since the last annual report - There have been no material revisions to the significant accounting policies or critical accounting policies and estimates as filed in the Annual Report[221](index=221&type=chunk) [Off-Balance Sheet Arrangements](index=49&type=section&id=Off-Balance%20Sheet%20Arrangements) States that the company does not have any off-balance sheet arrangements - The Company does not have any off-balance sheet arrangements[223](index=223&type=chunk) [Recent Accounting Pronouncements](index=49&type=section&id=Recent%20Accounting%20Pronouncements) Refers to Note 2 for the impact of recent accounting pronouncements on financial statements - The impact of recent accounting pronouncements is described in Note 2 of the condensed consolidated financial statements, indicating no material effect[225](index=225&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section states that there have been no material changes in the Company's exposure to market risks, including interest rates, foreign currency exchange rates, and commodity prices, since the information provided in its Annual Report - No material changes in exposure to market risks (interest rates, foreign currency exchange rates, commodity prices) from the information provided in the Annual Report[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures as of March 31, 2025, and reports no material changes in internal control over financial reporting during the quarter [Evaluation of Disclosure Controls and Procedures](index=50&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Confirms the effectiveness of the company's disclosure controls and procedures as of the reporting date - Management, including the CEO and CFO, concluded that the Company's disclosure controls and procedures were effective as of March 31, 2025[227](index=227&type=chunk) [Changes in Internal Control over Financial Reporting](index=50&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) Reports on any material changes in the company's internal control over financial reporting during the quarter - There were no material changes in the Company's internal control over financial reporting during the quarter ended March 31, 2025[228](index=228&type=chunk) PART II — OTHER INFORMATION This section provides additional disclosures and information not included in the financial statements [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 13 for details on new and material legal proceedings, which include ongoing matters related to the Bristol Spill and an arbitration dispute with Synthos - For information regarding new matters and material developments in legal proceedings during the quarter, refer to 'Litigation Matters' in Note 13[230](index=230&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to consider risk factors from the Annual Report, with an emphasis on material updates, particularly those concerning global trade conflicts and tariffs - Readers should consider risk factors related to the Company's ordinary shares, business, and industry as previously disclosed in the Annual Report, with certain material updates included herein[231](index=231&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no unregistered sales of equity securities, no use of proceeds from registered securities, and no purchases of equity securities by the issuer during the reporting period - There were no recent sales of unregistered securities, use of proceeds from registered securities, or purchases of equity securities by the issuer and affiliated purchasers[233](index=233&type=chunk) [Item 3. Defaults Upon Senior Securities](index=51&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there were no defaults upon senior securities during the reporting period - There were no defaults upon senior securities[234](index=234&type=chunk) [Item 4. Mine Safety Disclosures](index=51&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the Company - Mine Safety Disclosures are not applicable[235](index=235&type=chunk) [Item 5. Other Information](index=51&type=section&id=Item%205.%20Other%20Information) This section reports that one director and one executive officer adopted Rule 10b5-1(c) trading arrangements during the three months ended March 31, 2025 - Jeffrey Cote, a Director, adopted a trading arrangement on March 4, 2025, to sell up to **100,000 shares**[237](index=237&type=chunk) - Angelo Chaclas, SVP, Chief Legal Officer, adopted a trading arrangement on March 5, 2025, to sell up to **95,000 shares**[237](index=237&type=chunk) [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) This section provides an index of all exhibits filed with the Form 10-Q, including organizational documents, debt agreements, share-based compensation forms, and certifications - The exhibit index includes the Company's Memorandum and Articles of Association, various indentures and credit agreements related to debt, forms of share-based compensation award agreements, and certifications by the CEO and CFO[242](index=242&type=chunk)

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 improved to $65 million, up $20 million year-over-year, driven by restructuring actions, improved business mix, and a polycarbonate licensing agreement [6][12][18] - Free cash flow was negative $119 million in Q1, with expectations for breakeven in Q2 and positive cash flow in the second half of 2025 [12][13][18] Business Line Data and Key Metrics Changes - Volume in recycled content products grew by 33% year-over-year, and consumer electronics applications saw a 43% increase [8][9] - PMMA resin volumes in Asia more than doubled, while case volumes grew by 3% in a flat demand environment [8] - Latex Binders adjusted EBITDA remained similar to the prior year despite lower volumes, primarily due to improved sales mix and cost savings initiatives [11] - Polymer Solutions adjusted EBITDA was above the prior year, aided by $26 million in polycarbonate licensing income, despite a 15% decline in segment volumes [12] Market Data and Key Metrics Changes - In China, specialized products delivered 50% volume growth year-over-year, driven by sustainable solutions for consumer electronics [9] - The North American benzene price drop impacted Amsty's performance, leading to a $10 million negative impact in Q1 due to timing issues and low volumes [29][30] Company Strategy and Development Direction - The company is focused on geographic expansion, material replacement, process change, and sustainability to drive growth in specialized technologies [7][18] - The strategic partnership with Deepak Chemtech is viewed as mutually beneficial, with projects on track to deliver expected results [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertain business conditions and highlighted the positive impact of restructuring actions [18][19] - The company withdrew its full-year guidance due to increased economic and geopolitical uncertainty, providing only Q2 adjusted EBITDA guidance of $55 million to $70 million [17][18] Other Important Information - Over 95% of product sales are produced within the region they are sold, minimizing direct tariff impacts [14] - The company is exploring additional licensing deals related to recycling technologies, indicating potential future growth avenues [40] Q&A Session Summary Question: Volume patterns and sustainability - Management noted no pre-buying ahead of tariffs and indicated that Q1 demand has continued into Q2 [22] Question: Free cash flow guidance for Q2 - Management expressed confidence in achieving breakeven free cash flow, citing working capital management and collected licensing income [23][24] Question: Impact of styrene closures - Management stated no significant negative impact on business due to styrene closures, as they are no longer a styrene producer in Europe [25] Question: Amsty performance and sale process - Management confirmed ongoing commitment to market Amsty and maximize asset value, with expectations for improved performance in Q2 [28][31] Question: Battery binders opportunity - Management highlighted investments in anode binders for lithium-ion batteries, indicating growth potential in both grid storage and automotive applications [32][35] Question: Full-year cash flow outlook - Management provided insights on cash outflows and the need for $370 million EBITDA to achieve breakeven cash flow for the year [38] Question: Future licensing opportunities - Management acknowledged interest in recycling technologies and potential for future licensing deals [40]