Financial Data and Key Metrics Changes - The company converted 45% of its EBITDA to free cash flow, which is a higher percentage than many in the industry [8] - The company targeted $100 million in cost savings, achieved through headcount reductions and facility closures, with an expected $45 million in in-year savings for 2026 [21][22] Business Line Data and Key Metrics Changes - The aerospace business is expected to grow slightly better than the build rate, with a focus on wide-body aircraft [17][19] - The company anticipates growth in advanced materials, particularly in the Americas, driven by reindustrialization and recovery in construction [50] Market Data and Key Metrics Changes - Early signs of improved volumes and pricing in Europe were noted, although it is too early to confirm sustainability [9][14] - The company is seeing low inventory levels across the supply chain, which may lead to shortages if demand increases [68] Company Strategy and Development Direction - The company plans to focus on structural changes in operations to generate enough cash to cover dividends and pursue growth through new product development and innovation [10] - There is an expectation of further opportunities for mergers, joint ventures, and industry consolidation in 2026 [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a gradual recovery in North American home building and durable goods, as well as improvements in the Chinese domestic market [8][11] - The company remains focused on controlling costs and adapting to market dynamics, with a strategic emphasis on innovation and efficiency [10][11] Other Important Information - The company is selectively using AI tools to reduce costs and enhance R&D capabilities [10] - Management highlighted the need for European policymakers to take action to improve competitiveness in the chemical industry [44][56] Q&A Session Summary Question: What is driving the improvement in Europe? - Management noted price increases across the board and a slight pickup in construction and automotive demand [14] Question: What are the expected cost savings for 2026? - The company targeted $100 million in cost savings, with $45 million expected in 2026 [21] Question: What is the outlook for MDI margins? - Management indicated that margins depend on industry volumes and pricing initiatives to offset rising costs [36] Question: How is the company addressing potential industry consolidation? - Management sees opportunities for mergers and joint ventures, particularly in chaotic market conditions [26] Question: What is the status of inventory levels in the industry? - Management reported low inventory levels across the supply chain, which could lead to shortages if demand increases [68] Question: What is the outlook for polyurethanes EBITDA in Q1 2026? - Management indicated a need for price increases to offset rising natural gas costs, with a range of $25 million to $40 million expected [93][94]