Financial Performance - Fourth quarter 2025 net sales were $663 million, a decrease of 19% compared to the prior year, driven by lower sales volume and competitive pricing pressure [5]. - Full-year 2025 net sales totaled approximately $3.0 billion, reflecting a 15% decrease from the previous year due to lower sales volumes and margins across all segments [12]. - The company reported a net loss of $546 million for the full year 2025, which was $197 million worse than the prior year, including $140 million in pre-tax restructuring charges [7]. - Adjusted EBITDA for the full year 2025 was $163 million, down $41 million from the previous year, impacted by lower sales volumes and margins [7]. - Total net sales for the year ended December 31, 2025, were $2,974.9 million, a decrease of 15.3% from $3,513.2 million in 2024 [23]. - The net loss for the year ended December 31, 2025, was $545.6 million, compared to a net loss of $348.5 million in 2024 [28]. - Adjusted EBITDA for the year ended December 31, 2025, was $162.5 million, down from $203.7 million in 2024, representing a decline of 20.2% [28]. - Adjusted EPS for the year ended December 31, 2025, was $(8.46), compared to $(7.71) in 2024, reflecting a decline in per-share performance [28]. Cash Flow and Expenditures - Free Cash Flow for the fourth quarter was $7 million, while full-year Free Cash Flow was negative $153 million due to cash used in operations of $102 million and capital expenditures of $51 million [3]. - Free Cash Flow for the year ended December 31, 2025, was $(153.4) million, compared to $(77.5) million in 2024, indicating a worsening cash generation situation [33]. - Cash used in operating activities for the year ended December 31, 2025, was $(102.4) million, significantly higher than $(14.2) million in 2024 [33]. - Capital expenditures for the year ended December 31, 2025, were $51.0 million, a decrease from $63.3 million in 2024 [33]. - Cash and cash equivalents at the end of the period were $146.7 million, down from $209.8 million at the end of 2024 [33]. Segment Performance - Engineered Materials segment reported net sales of $240 million for the quarter, a 13% decrease year-over-year, primarily due to lower sales volumes from the closure of production facilities in Italy [13]. - Latex Binders segment net sales were $176 million for the quarter, down 19% year-over-year, with adjusted EBITDA of $9 million, reflecting lower volumes and margins [13]. - Polymer Solutions segment net sales decreased by 25% to $246 million for the quarter, with adjusted EBITDA of $15 million, impacted by unfavorable mix and lower volumes [13]. Strategic Initiatives - The company executed various asset footprint and licensing initiatives to enhance profitability and cash flow, while continuing to negotiate with financial stakeholders to improve capital structure [3]. - The company remains focused on investing in new technology and innovation in strategic areas such as battery binders and recycled content platforms to drive future growth [9]. Interest and Exchange Rates - The company reported an increase in interest expense, net, to $273.8 million for the year ended December 31, 2025, compared to $267.5 million in 2024 [28]. - The effect of exchange rates on cash for the year ended December 31, 2025, was a positive $7.0 million, contrasting with a negative impact of $(6.3) million in 2024 [33].

Sales and Market Segments - Trinseo PLC's Engineered Materials segment generated approximately 34% of total net sales in Europe, 45% in the United States, and 14% in Asia in 2025[37]. - In 2025, net sales to CASE applications made up approximately 17% of total Latex Binders net sales, highlighting the segment's focus on higher growth and margin potential[52]. - In 2025, compounding products represented approximately 29% of total Engineered Materials segment net sales, showcasing the segment's significance[40]. - In 2025, approximately 62% of net sales from the Polymer Solutions segment were generated in Europe, 15% in North America, and the majority in Asia[58]. - Copolymers, including ABS and SAN, represented approximately 44% of total segment net sales in 2025[59]. - The Americas Styrenics segment supplied 18% of the styrene monomer capacity in North America and generated $12.5 million in cash dividends in 2025[74]. - In 2025, 59% of the styrene monomer produced by Americas Styrenics was consumed in its own production of polystyrene[75]. Strategic Initiatives and Restructuring - The company has implemented multiple restructuring initiatives, including the closure of underperforming plants and product lines, to improve profitability and cash flow generation[27]. - Trinseo PLC continues to evaluate strategic alternatives to divest all or a portion of its styrenics businesses, which is integral to its long-term strategy[29]. - The company has announced restructuring programs aimed at reducing costs and improving profitability, which may incur higher than expected costs[164]. - The company has initiated a sale process for its interest in Americas Styrenics, but uncertainties regarding timing, valuation, and market conditions may impact the success of this divestiture[184]. Research and Development - The company operates 11 research and development facilities globally, which are critical to its innovation capabilities and global presence[22]. - The company focuses on customer-centric R&D, with three R&D Centers of Excellence located in Germany, the Netherlands, and Pennsylvania[93]. - R&D and TS&D costs for the company were $63.6 million, $63.5 million, and $57.6 million for the years ended December 31, 2025, 2024, and 2023, respectively[94]. - The company has invested in differentiated and sustainable product offerings, focusing on applications within its compounding business segments and CASE applications[25]. Sustainability and Environmental Initiatives - Sustainable products represented 5% of the Engineered Materials segment volume in 2025, indicating a core growth area for the company[39]. - The company views recycled polystyrene products as important for sustainability and customer needs[67]. - The company monitors its greenhouse gas emissions, water usage, waste, and energy consumption, targeting reductions in these areas[110]. - Compliance with evolving environmental, health, and safety laws may require substantial expenditures, including capital investments for pollution control facilities[205]. - New environmental regulations related to climate change may increase costs associated with transportation, storage, and waste disposal, adversely affecting operations and financial condition[206]. Financial Condition and Risks - Trinseo has identified substantial doubt regarding its ability to continue as a going concern due to significant debt and compliance with financial covenants[138]. - The company is engaged in discussions with financial stakeholders to explore restructuring options for its substantial indebtedness, including potential amendments to existing debt agreements[145]. - Trinseo's credit ratings are near the lower end of the scale, which limits financial flexibility and increases borrowing costs[151]. - The company's current level of indebtedness could adversely affect its financial condition, with significant restrictions on incurring additional debt[155]. - The company faces risks related to unexpected payment obligations and liabilities that could create liquidity challenges[144]. Employee Engagement and Corporate Culture - The company emphasizes a People Strategy that includes Organizational Development, Talent Management, and Equity & Inclusion to support employee engagement and retention[125]. - Trinseo's Board comprises 55% women and 33% of the executive leadership team are women, reflecting a commitment to equity and inclusion[127]. - The company conducts internal reviews to ensure equitable compensation practices across all jurisdictions, including assessments of pay equity based on ethnicity in the U.S.[131]. - The company is implementing a goal-setting scorecard for employee performance evaluation aligned with corporate goals, including financial metrics[130]. Legal and Regulatory Challenges - Legal claims and regulatory actions related to hazardous substances could materially affect the company's product sales and profitability[176]. - The company is subject to risks associated with the operation of its production facilities, which may lead to production delays and liabilities due to incidents involving hazardous materials[177]. - The heightened scrutiny of certain materials used in products may lead to regulatory actions or declining sales, impacting financial performance[201]. - Regulatory actions to reduce plastic waste may decrease demand for certain products over time, impacting sales and necessitating the development of recycled product technologies[202]. Intellectual Property and Competitive Position - Intellectual property rights are crucial for competitive advantage; failure to protect these rights could harm business and financial condition[214]. - The company has licensed certain intellectual property to third parties, and inability to enforce these rights could adversely affect financial condition[217]. Operational Challenges - Disruptions at key manufacturing facilities could significantly reduce sales and impact the ability to meet customer needs, especially if production is at or near full capacity[178]. - Capital projects are essential for maintaining operational reliability, and any failure to execute these projects within budget and timelines could adversely affect financial performance[180]. - Joint ventures may face operational challenges if partners do not fulfill obligations, which could negatively affect the company's financial results[186].

Core Insights - Trinseo reported a net loss of $251 million in Q4 2025, significantly impacted by restructuring charges and lower sales volumes across all business segments [1][2][3] - Full-year net sales decreased by 15% to approximately $3.0 billion, with a net loss of $546 million, reflecting ongoing market challenges and restructuring costs [1][2][3] Fourth Quarter 2025 Highlights - Adjusted EBITDA was $26 million, which included $6 million of unfavorable net timing and negative equity income from Americas Styrenics [1][2] - Net sales for Q4 were $663 million, down 19% year-over-year due to lower sales volume and competitive pricing pressure [1][3] - Cash provided by operations was $23 million, leading to a Free Cash Flow of $7 million [1][2] Full-Year 2025 Summary - Adjusted EBITDA for the year was $163 million, $41 million lower than the previous year, influenced by lower sales volumes and margins [1][2] - The company incurred pre-tax restructuring charges of $140 million and $26 million in debt refinancing costs [1][3] - Cash used in operations totaled $102 million, resulting in a Free Cash Flow of negative $153 million [1][2] Business Segment Performance - Americas Styrenics reported an Adjusted EBITDA of negative $7 million, an improvement from the previous year due to higher polystyrene volumes [1][3] - Polymer Solutions net sales decreased by 25% to $246 million, with Adjusted EBITDA of $15 million, reflecting unfavorable mix and lower volumes [1][2] - Latex Binders saw a 19% decline in net sales to $176 million, with Adjusted EBITDA dropping to $9 million due to lower volumes and margins [1][3] - Engineered Materials net sales were $240 million, down 13% year-over-year, while Adjusted EBITDA remained flat at $27 million [1][2] Strategic Focus and Outlook - The company is focused on improving its capital structure and has engaged with financial stakeholders to enhance profitability and cash flow [1][2] - Trinseo continues to invest in technology and innovation in strategic areas such as battery binders and recycled content platforms [1][2]

Fourth Quarter 2025 Financial Results March 13, 2026 1 Trademark of Trinseo PLC or its affiliates Disclosure Rules Disclosure Rules 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. Forward-looking statements may be identified by the use of words like "expect," "an ...

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]