Trinseo(TSE) - 2025 Q4 - Annual Results

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].