Trinseo(US:TSE)2025-11-06 21:18Financial Performance - Net sales for Q3 2025 were $743 million, a decrease of 14% compared to $868 million in Q3 2024[5]. - The net loss for Q3 2025 was $110 million, with a diluted EPS of negative $3.05, compared to a net loss of $87 million and EPS of negative $2.47 in Q3 2024[4][22]. - Adjusted EBITDA for Q3 2025 was $30 million, down $36 million from $66 million in Q3 2024, primarily due to lower volumes and margins[6][9]. - Total net sales for the three months ended September 30, 2025, were $743.2 million, a decrease of 14.3% from $867.7 million in the same period of 2024[28]. - Adjusted EBITDA for the three months ended September 30, 2025, was $30.4 million, down 54% from $66.1 million in the same period of 2024[33]. - The company reported a net loss of $(109.7) million for the three months ended September 30, 2025, compared to a net loss of $(87.3) million in the same period of 2024[33]. - Adjusted EPS for the three months ended September 30, 2025, was $(2.41), compared to $(1.62) for the same period in 2024, reflecting a decline in earnings per share[33]. Cash Flow and Liquidity - Free Cash Flow for Q3 2025 was negative $38 million, a decrease of $35 million compared to the prior year[4]. - For the nine months ended September 30, 2025, cash used in operating activities was $(125.0) million, compared to $(99.3) million for the same period in 2024, representing a 26% increase in cash outflow[26]. - Free Cash Flow for the nine months ended September 30, 2025, was $(160.0) million, compared to $(141.4) million for the same period in 2024, indicating a worsening cash generation capability[39]. - Cash and cash equivalents at the end of the period were $112.1 million, down from $165.3 million at the end of the same period in 2024[26]. - Total liquidity at the end of Q3 2025 was $346 million, with cash of $114 million[4]. - The company expects to generate Free Cash Flow of $20 million for the three months ending December 31, 2025[41]. Segment Performance - Engineered Materials net sales were $273 million, down 7% year-over-year, while Adjusted EBITDA remained flat at $34 million[12]. - Latex Binders net sales decreased 18% to $198 million, with Adjusted EBITDA dropping $9 million to $17 million[12]. - Polymer Solutions net sales fell 18% to $271 million, with Adjusted EBITDA of $4 million, down $19 million from the previous year[12]. Future Outlook - The company anticipates Adjusted EBITDA for Q4 2025 to be between $30 million and $40 million, with a projected net loss of $170 million to $180 million for the quarter[12][9]. - The company forecasts an Adjusted Net Loss of $(170) to $(180) million for the three months ending December 31, 2025[35]. - The company plans to cease virgin MMA production in Italy and repurpose the Rho asset for recycled PMMA, expecting an annual profitability improvement of $30 million[4]. Capital Expenditures - Capital expenditures for the nine months ended September 30, 2025, were $(35.0) million, a decrease from $(42.1) million in the same period of 2024[26].