Celanese(CE) - 2025 Q3 - Quarterly Results

Financial Performance Metrics - Adjusted EBIT is a key performance measure defined as net earnings attributable to Celanese Corporation, adjusted for certain items, with a focus on operational results [13]. - Operating EBITDA, which includes depreciation and amortization, is used to evaluate operating performance relative to peers [13]. - Free cash flow is defined as net cash provided by operations minus capital expenditures, indicating long-term cash generating ability [18]. - Net debt is calculated as total debt minus cash and cash equivalents, providing insight into the company's capital structure [18]. - Return on invested capital (adjusted) is assessed using adjusted EBIT tax-effected, divided by the average of beginning and end of year debt and equity [18]. - The company emphasizes the importance of non-GAAP measures for evaluating financial and operating results, despite their limitations [6]. - The document includes reconciliations of non-GAAP financial measures to GAAP measures, ensuring transparency for investors [7]. Quarterly Financial Results - Net earnings attributable to Celanese Corporation for Q3 '25 were $(1,357) million, a significant decline compared to $197 million in Q2 '25 [19]. - Adjusted EBIT for Q3 '25 was $326 million, down from $342 million in Q2 '25, reflecting a margin of 13.5% [21]. - Operating EBITDA for Q3 '25 was $517 million, with a margin of 21.4%, compared to $530 million in Q2 '25 [22]. - Engineered Materials segment reported an operating loss of $(1,327) million in Q3 '25, with a negative operating margin of 95.9% [21]. - Acetyl Chain segment achieved an operating profit of $135 million in Q3 '25, with a margin of 12.7% [21]. - Total depreciation and amortization expense for Q3 '25 was $194 million, up from $190 million in Q2 '25 [22]. - Certain items attributable to Celanese Corporation amounted to $1,520 million in Q3 '25, compared to $42 million in Q2 '25 [21]. - Interest expense for Q3 '25 was $177 million, consistent with Q2 '25 [19]. - The income tax provision for Q3 '25 was $(7) million, a decrease from $(77) million in Q2 '25 [19]. - Q3 '25 adjusted earnings per share from continuing operations was $(12.39), compared to $1.89 in Q2 '25 [23]. - Net sales for Q3 '25 totaled $2,419 million, a decrease of 4% from $2,532 million in Q2 '25 [27]. - Engineered Materials segment reported net sales of $1,384 million in Q3 '25, down 4% sequentially [27]. - Acetyl Chain segment net sales were $1,061 million in Q3 '25, reflecting a 5% decline from Q2 '25 [27]. - Total company volume decreased by 4% in Q3 '25 compared to Q2 '25, with a price impact of -1% [30]. - Adjusted earnings from continuing operations before tax for Q3 '25 was $156 million, compared to $172 million in Q2 '25 [23]. - The adjusted effective tax rate for 2025 is estimated at 8% [25]. - The company experienced a 1% positive currency impact on total sales in Q3 '25 [30]. - The weighted average diluted shares outstanding for Q3 '25 was 109.6 million [23]. Yearly Financial Overview - The company reported a total adjusted EBIT of $1,625 million for the year 2024, indicating a strong performance compared to previous quarters [19]. - The company plans to update the reconciliation of the GAAP effective tax rate for actual results as part of the year-end reconciliation [26]. - Engineered Materials segment net sales decreased by 7% year-over-year due to a volume decline of 8% and a price decline of 1% for the three months ended September 30, 2025 [34]. - Acetyl Chain segment net sales decreased by 11% year-over-year, driven by a volume decline of 4% and a price decline of 8% for the same period [34]. - Total company net sales decreased by 9% year-over-year, with a volume decline of 6% and a price decline of 4% for the three months ended September 30, 2025 [34]. - Free cash flow for Q3 2025 was $375 million, representing 15.5% of net sales of $2,419 million [38]. - Total debt as of Q3 2025 was $12,854 million, with net debt at $11,414 million [41]. - Cash dividends received in Q3 2025 totaled $80 million, an increase from $62 million in Q2 2025 [40]. - The adjusted return on invested capital for 2024 was 7.7%, with net earnings attributable to Celanese Corporation at $(1,542) million [45]. - The company reported a total of $288 million in cash dividends received for the year 2024 [40]. - The total company net sales for the year ended December 31, 2024, decreased by 6% compared to the previous year, with a volume decline of 1% and a price decline of 4% [37]. - The company experienced a significant asset impairment of $1,486 million in Q3 2025, impacting overall financial performance [42].