Celanese Q2 Earnings & Sales Beat Estimates Amid Low Prices

Core Insights - Celanese Corporation reported second-quarter 2025 earnings from continuing operations of $1.90 per share, an increase from $1.42 in the prior-year quarter, while adjusted earnings were $1.44 per share, down 39.5% from $2.38 a year ago, beating the Zacks Consensus Estimate of $1.38 [1][8] - Revenues for the quarter were $2,532 million, a decrease of approximately 4.5% year over year, but exceeded the Zacks Consensus Estimate of $2,496.5 million, attributed to lower pricing and volumes, with prices falling 4% year over year [2][8] Segment Highlights - The Engineered Materials unit reported net sales of $1,442 million, down around 1.7% year over year, surpassing the estimate of $1,368.7 million, with an operating profit of $165 million and adjusted EBIT of $214 million [3] - The Acetyl Chain segment posted net sales of $1,115 million, down roughly 7.2% year over year, beating the estimate of $1,102.2 million, generating an operating profit of $154 million and adjusted EBIT of $196 million [4] Financials - Celanese ended the quarter with cash and cash equivalents of $1,173 million, up approximately 23.3% sequentially, while long-term debt increased by 2.5% sequentially to $12,689 million [5] - Cash provided by operating activities was $410 million, and free cash flow was $311 million in the reported quarter [5] Outlook - The company anticipates a softer demand environment across most key end-markets for the second half of the year, expecting that slowing demand will partly offset the benefits of cost reduction initiatives, with adjusted earnings per share forecasted in the range of $1.10 to $1.40 for the third quarter [6] - Celanese reaffirms its expectation to generate $700 million to $800 million in free cash flow for 2025 [6] Price Performance - Celanese's shares have declined by 27.4% over the past six months, compared to a 2.3% decline in the industry [7]