Celanese Q3 Earnings Surpass Estimates Amid Lower Sales Volumes

Core Insights - Celanese Corporation reported a significant loss from continuing operations of $12.39 per share for Q3 2025, a stark contrast to earnings of $1.05 in the same quarter last year [1] - Adjusted earnings were $1.34 per share, reflecting a 44.4% decline from $2.41 a year ago, but exceeded the Zacks Consensus Estimate of $1.27 [1][9] Revenue Performance - Revenues for the quarter totaled $2,419 million, down approximately 8.6% year over year, missing the Zacks Consensus Estimate of $2,460.5 million [2] - The decline in net sales was attributed to an 8% decrease in volumes in the Engineered Material segment and a 4% decrease in the Acetyl Chain segment [2] Segment Analysis - The Engineered Materials unit reported net sales of $1,384 million, a decrease of around 6.5% year over year, but surpassed the estimate of $1,348.2 million [3] - This segment incurred an operating loss of $1,327 million, with an adjusted EBIT of $200 million for the quarter [3] - The Acetyl Chain segment had net sales of $1,061 million, down roughly 10.8% year over year, missing the estimate of $1,111.5 million [4] - The Acetyl Chain segment generated an operating profit of $135 million and an adjusted EBIT of $187 million [4] Financial Position - Celanese ended the quarter with cash and cash equivalents of $1,440 million, reflecting a sequential increase of approximately 22.8% [5] - Long-term debt decreased by 8.1% sequentially to $11,655 million [5] - Cash provided by operating activities was $447 million, with free cash flow amounting to $375 million for the quarter [5] Future Outlook - The company anticipates volume declines in Q4 due to seasonality in the Western Hemisphere, although these will be partially offset by ongoing cost reduction initiatives [6] - Adjusted earnings per share for Q4 are expected to be between $0.85 and $1.00 [6] - Management is focused on generating cash flow to accelerate deleveraging, improving costs, and driving top-line growth, reaffirming progress towards a 2025 free cash flow target of $700 to $800 million [7] Stock Performance - Celanese's shares have experienced a 57.4% decline over the past year, compared to a 12.3% decline in the industry [8]