Celanese Announces Engineered Materials Price IncreaseMar 13, 2026 5:00 PM Eastern Daylight Time# Celanese Announces Engineered Materials Price IncreaseShare---DALLAS--(BUSINESS WIRE)--Celanese Corporation (NYSE: CE), a global specialty materials and chemical company, today announced a price increase for a range of engineered materials products in response to various factors, including recent market developments and global supply chain disruptions.Despite these dynamic conditions, Celanese remains well posi ...

Core Insights - Trinseo reported a net loss of $251 million in Q4 2025, significantly impacted by restructuring charges and lower sales volumes across all business segments [1][2][3] - Full-year net sales decreased by 15% to approximately $3.0 billion, with a net loss of $546 million, reflecting ongoing market challenges and restructuring costs [1][2][3] Fourth Quarter 2025 Highlights - Adjusted EBITDA was $26 million, which included $6 million of unfavorable net timing and negative equity income from Americas Styrenics [1][2] - Net sales for Q4 were $663 million, down 19% year-over-year due to lower sales volume and competitive pricing pressure [1][3] - Cash provided by operations was $23 million, leading to a Free Cash Flow of $7 million [1][2] Full-Year 2025 Summary - Adjusted EBITDA for the year was $163 million, $41 million lower than the previous year, influenced by lower sales volumes and margins [1][2] - The company incurred pre-tax restructuring charges of $140 million and $26 million in debt refinancing costs [1][3] - Cash used in operations totaled $102 million, resulting in a Free Cash Flow of negative $153 million [1][2] Business Segment Performance - Americas Styrenics reported an Adjusted EBITDA of negative $7 million, an improvement from the previous year due to higher polystyrene volumes [1][3] - Polymer Solutions net sales decreased by 25% to $246 million, with Adjusted EBITDA of $15 million, reflecting unfavorable mix and lower volumes [1][2] - Latex Binders saw a 19% decline in net sales to $176 million, with Adjusted EBITDA dropping to $9 million due to lower volumes and margins [1][3] - Engineered Materials net sales were $240 million, down 13% year-over-year, while Adjusted EBITDA remained flat at $27 million [1][2] Strategic Focus and Outlook - The company is focused on improving its capital structure and has engaged with financial stakeholders to enhance profitability and cash flow [1][2] - Trinseo continues to invest in technology and innovation in strategic areas such as battery binders and recycled content platforms [1][2]

Fourth Quarter 2025 Financial Results March 13, 2026 1 Trademark of Trinseo PLC or its affiliates Disclosure Rules Disclosure Rules This presentation may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. Forward-looking statements may be identified by the use of words like "expect," "an ...

Core Insights - Celanese Corporation (CE) reported a fourth-quarter 2025 earnings from continuing operations of 23 cents per share, a significant improvement from a loss of $17.55 in the prior-year quarter. Adjusted earnings were 67 cents per share, down 49.6% from $1.33 a year ago, and missed the Zacks Consensus Estimate of 89 cents [1][9]. Financial Performance - Revenues for the quarter were $2,204 million, a decrease of approximately 7% year over year, missing the Zacks Consensus Estimate of $2,229.9 million. The decline was attributed to reduced volumes and prices, driven by year-end destocking and a competitive environment [2]. - The Engineered Materials unit reported net sales of $1,277 million, up about 0.6% year over year, exceeding the estimate of $1,196.7 million. This segment generated an operating profit of $111 million and an adjusted EBIT of $183 million [3]. - The Acetyl Chain segment saw net sales of $940 million, down roughly 15.3% year over year, missing the estimate of $1,035.1 million. It generated an operating profit of $90 million and an adjusted EBIT of $146 million [4]. - Celanese ended the quarter with cash and cash equivalents of $1,263 million, down approximately 12.3% sequentially. Long-term debt decreased by 2.2% sequentially to $11,394 million. Cash provided by operating activities was $252 million, with free cash flow at $160 million [5]. Future Outlook - The company anticipates volume improvements in the first quarter due to seasonality and ongoing cost reduction initiatives, projecting first-quarter adjusted earnings per share to be between 70 cents and 85 cents [6]. - Management is focused on generating cash flow to accelerate deleveraging, intensifying cost improvements, and driving top-line growth, with a target for 2026 free cash flow set at $650 to $750 million [7]. Market Performance - Celanese's shares have increased by 6.5% over the past year, compared to a 4.4% rise in the industry [8].

Financial Data and Key Metrics Changes - The company reported a decline in earnings year-over-year, with Adjusted EBIT for the Acetyl Chain down approximately $400 million and Engineered Materials down about $120 million [19][20] - The focus remains on cash generation, with a strong cash generation performance in 2025 despite the earnings decline [8][9] - The company is targeting free cash flow between $650 million and $750 million for 2026, with confidence in achieving this range through various levers [44][73] Business Line Data and Key Metrics Changes - In the Acetyl Chain, the decline in Adjusted EBIT was primarily driven by volume and price changes, particularly in the acetate tow business [19][20] - Engineered Materials showed a mixed performance, with both volume and price declines impacting EBIT, but cost benefits were also noted [20] - The company is seeing stabilization in the electronics market, driven by AI and data center build-outs, while the automotive sector remains mixed due to uncertainties in China [13][14] Market Data and Key Metrics Changes - The company noted that contract pricing for 2026 is expected to remain stable, with more competition in the spot market due to increased capacity [10] - The acetyl margins in the Western Hemisphere are performing better than in the Eastern Hemisphere, where overcapacity remains a challenge [78] - Demand in China is currently low due to the Lunar New Year, but pricing has remained stable leading into the holiday [65][66] Company Strategy and Development Direction - The company is focused on divesting non-core assets, with a target of $1 billion in divestitures by the end of 2027, and is currently about halfway to that goal [16][75] - The strategy emphasizes cash generation and cost reduction, with a focus on driving growth in Engineered Materials through innovation and customer partnerships [22][81] - The company is adapting to structural changes in the market, particularly the shift from internal combustion engines to electric vehicles in China [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, emphasizing the importance of cash flow and cost management [40][82] - The outlook for 2026 includes expectations for growth in Engineered Materials, while the Acetyl Chain may face challenges [21][22] - Management acknowledged the potential for macroeconomic factors to impact performance but remains focused on executing their strategic plan [72][82] Other Important Information - The company is experiencing a moderate seasonal improvement in demand, particularly in the coatings space, but has not seen substantial changes in the acetate tow market [86] - The company is actively pursuing divestitures and has a robust pipeline of potential deals, with a focus on joint ventures [89] - Management is committed to maintaining service levels while reducing working capital, targeting an additional $100 million in inventory reductions [38][52] Q&A Session Summary Question: Thoughts on selling equity to address balance sheet issues - Management emphasized a focus on cash generation and debt management rather than selling equity, indicating confidence in their current strategy [8][9] Question: Pricing expectations for contracts in 2026 - Management noted little change in contract pricing but highlighted increased competition in the spot market [10] Question: Stability in engineering materials and macro assumptions for 2026 - Electronics is a bright spot, while the automotive sector shows mixed signals, particularly in China [13][14] Question: Timing and potential assets for divestiture - Management is optimistic about completing additional deals this year and is focusing on non-core business areas [16] Question: Analysis of EBIT changes in Acetyl Chain and Engineered Materials - The decline was driven by volume and price changes, with specific challenges noted in the acetate tow business [19][20] Question: Expectations for earnings uplift in 2026 - Management is targeting a $1-$2 uplift in EPS, contingent on demand recovery and cost management efforts [26][27] Question: Free cash flow guidance and working capital management - Management remains confident in achieving free cash flow targets despite potential headwinds from working capital changes [40][73] Question: Capacity additions in nylon and POM chains - The company is focused on flexibility in operations and is taking advantage of overcapacity in certain markets [47] Question: Future of acetyl margins in China - Management does not anticipate significant uplifts in acetyl pricing in China, given current overcapacity [66] Question: Consolidation opportunities in acetate tow industry - Management remains open to exploring consolidation opportunities but sees no significant changes in industry fundamentals [99]

Financial Data and Key Metrics Changes - The company reported a decline in earnings year-over-year, with a focus on cash generation despite the earnings drop [7][8] - Adjusted EBIT for the Acetyl Chain was down approximately $400 million, while Engineered Materials saw a decrease of about $120 million, primarily driven by volume and price changes [18][19] Business Line Data and Key Metrics Changes - In the Acetyl Chain, the decline was largely attributed to volume and price pressures, particularly in the acetate tow business [18][19] - Engineered Materials experienced a mixed performance, with volume and price declines offset by cost benefits [19] Market Data and Key Metrics Changes - The electronics market is showing positive signs due to global demand from AI and data centers, while the automotive sector remains mixed, particularly in China [12][13] - The company noted that contract pricing for 2026 is expected to remain stable, with more competition in the spot market due to increased capacity [9] Company Strategy and Development Direction - The company is focused on cash generation and has plans for divestitures totaling $1 billion by the end of 2027, with a current target of achieving half that amount this year [15][16] - The strategy includes prioritizing parts of the business that align with core operating models and enhancing operational efficiency [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate free cash flow between $650 million and $750 million, despite a challenging operating environment [43][74] - The company is prepared for various demand scenarios and is focused on cost reduction and operational efficiency to drive growth [27][73] Other Important Information - The company is experiencing a significant reduction in debt maturities over the next couple of years, which positions it well for recovery [8] - Management indicated that the first half of 2026 is expected to be more challenging, with a focus on the second half for potential growth [29] Q&A Session Summary Question: Thoughts on selling equity to address balance sheet issues - Management emphasized a focus on cash generation and debt management rather than equity sales [7] Question: Pricing expectations for contracts in 2026 - Management indicated little change in contract pricing, with more competition in the spot market [9] Question: Stabilization in engineering materials and macro assumptions for 2026 - Electronics are a bright spot, while automotive remains mixed, particularly in China [12][13] Question: Timing and potential assets for divestiture - Management is optimistic about completing additional deals this year to meet divestiture targets [15][16] Question: Analysis of EBIT changes in Acetyl Chain and Engineered Materials - The decline was primarily driven by volume and price changes, with some margin compression noted [18][19] Question: Expectations for earnings growth in 2026 - Management believes Engineered Materials has more controllable growth opportunities compared to the Acetyl Chain [20][21] Question: Free cash flow guidance and working capital management - Management is confident in achieving free cash flow targets through various levers, including working capital reductions [37][43] Question: Impact of capacity additions in Nylon and POM chains - The company is focused on flexibility in operations and is taking advantage of overcapacity in certain regions [46] Question: Expectations for acetyl pricing in China - Management does not anticipate significant uplifts in pricing, with demand currently low due to the Lunar New Year [65][67]

Financial Data and Key Metrics Changes - The company reported a decline in earnings year-over-year, with Adjusted EBIT in the Acetyl Chain down approximately $400 million and Engineered Materials down about $120 million [17][19] - The focus remains on cash generation, with a strong cash generation performance in 2025 despite the earnings decline [6][7] - The company is targeting free cash flow between $650 million and $750 million for 2026, with various scenarios considered for demand [44][72] Business Line Data and Key Metrics Changes - In the Acetyl Chain, the decline was primarily driven by volume and price, with significant impacts from the acetate tow business and margin compression in China [18][19] - Engineered Materials showed a mixed performance, with both volume and price declines, but cost benefits were noted [19] - The company anticipates growth in Engineered Materials, particularly in electronics and automotive sectors, while the Acetyl Chain may face challenges [21][22] Market Data and Key Metrics Changes - The electronics market is currently a bright spot, driven by AI and data center build-outs, while the automotive sector shows mixed signals, particularly in China [12][13] - The company noted some softness in the automotive market in China due to changes in EV credits and stimulus [12] - The demand environment is expected to improve in the second half of 2026, with seasonal improvements noted in early 2026 [86] Company Strategy and Development Direction - The company is focused on cash generation and reducing debt, with plans to achieve $1 billion in divestitures by the end of 2027 [14][75] - There is a strategic emphasis on divesting non-core business segments, particularly joint ventures [14][15] - The company aims to adapt to structural changes in the market, such as the shift from ICE to EV in China, and is working on enhancing operational efficiency [36][81] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current operating environment, emphasizing the importance of cost reduction and cash flow generation [6][40] - The outlook for 2026 includes expectations for improved EBIT growth in Engineered Materials, while the Acetyl Chain may face challenges [20][21] - Management highlighted the need for continued evaluation of market conditions and operational adjustments to maintain profitability [80][81] Other Important Information - The company expects a cost benefit of $20 million to $25 million from the closure of the Lanaken plant, with some benefits expected to materialize in 2026 [9][106] - The company is actively managing working capital and inventory levels to avoid service issues while targeting further reductions [51][52] Q&A Session Summary Question: Thoughts on selling equity to address balance sheet issues - Management emphasized a focus on cash generation and debt management rather than equity sales, indicating confidence in the current strategy [6] Question: Expectations for pricing in contracts for 2026 - Management noted little change in contract pricing, with more competition observed in the spot market [8] Question: Sequential improvement in engineering materials - Management identified electronics as a bright spot, while the automotive sector remains mixed, particularly in China [12][13] Question: Timing and potential assets for divestiture - Management is confident in achieving the $1 billion divestiture target by 2027, with a focus on non-core business segments [14][15] Question: Analysis of EBIT changes in Acetyl Chain and Engineered Materials - Management attributed declines to volume and price changes, with specific challenges noted in the acetate tow business [18][19] Question: Free cash flow guidance and working capital management - Management expressed confidence in achieving free cash flow targets through various levers, despite potential demand challenges [40][72] Question: Expectations for acetyl pricing in China - Management does not anticipate significant uplifts in acetyl pricing, citing overcapacity as a concern [66][67] Question: Impact of turnaround on second quarter earnings - Management indicated that turnaround expenses would be a factor in Q2 earnings, with expectations for a similar lift as previously noted [68]

Core Viewpoint - The company anticipates a decline in earnings for 2025 primarily due to volume and price challenges in the Acetyl Chain, especially in the acetate tow business, along with margin compression in China [1] Acetyl Chain - The Acetyl Chain is experiencing structural overcapacity in China, prompting management to focus on operations in the Western Hemisphere where margins are more resilient [1] - The company is enhancing operational flexibility by adopting 'buy versus make' strategies in polymers like nylon to leverage low-cost Asian markets [1] Engineered Materials - Performance in Engineered Materials is influenced by a combination of volume and price declines, which are partially mitigated by cost reduction initiatives and favorable NAFTA deals [1] - The company is emphasizing a 'quality over quantity' approach in Engineered Materials, concentrating on high-value projects to achieve future operating leverage [1] Strategic Focus - The company is shifting its internal focus towards growth, specifically targeting high-growth sectors such as AI-driven electronics and data centers to counteract broader volatility in the automotive sector [1]

Q3 2025 Financial Performance - The company reported a net loss of $110 million and a negative EPS of $305[8] - Adjusted EBITDA was $30 million, including a $9 million unfavorable net timing impact and negative equity income from Americas Styrenics[8] - Free Cash Flow was negative $38 million due to $22 million cash used in operations and $16 million in capital expenditures[8] - Q3 net sales were $743 million, a decrease of 14% year-over-year, driven by a 7% volume decrease, a 9% price decrease, and a 2% positive impact from foreign exchange[14, 19] Segment Performance - Engineered Materials net sales were $273 million with an Adjusted EBITDA of $34 million[22] - Latex Binders net sales were $198 million with an Adjusted EBITDA of $17 million[25] - Polymer Solutions net sales were $271 million with an Adjusted EBITDA of $4 million[28] Q4 2025 Outlook - The company anticipates a net loss of $170 million to $180 million and an Adjusted EBITDA of $30 million to $40 million[7] - Free Cash Flow is projected to be approximately $20 million, with an expected available liquidity of approximately $365 million at the end of the year[7] Strategic Initiatives - The company announced the cessation of virgin MMA production operations at the Rho and Porto Marghera, Italy facilities and repurposing Rho assets for PMMA recycling activities[7] - The company announced the intention to close the polystyrene production facility in Schkopau, Germany[7] - The company saw 5% growth in strategic growth platforms and 2% volume growth in recycled content containing sales year-to-date[7] Trade Flow Changes - US PMMA imports decreased by 17% year-over-year in Q2, while exports decreased by 20%[10] - US ABS imports increased by 20% year-over-year in Q2, while exports decreased by 22%[10] - European PMMA imports increased by 3% year-over-year in Q2, while exports increased by 7%[10] - European ABS imports increased by 9% year-over-year in Q2, while exports increased by 3%[10]

Financial Data and Key Metrics Changes - The company reported a solid performance in Q3 2025, with expectations to grow EPS by $1 to $2 in 2026, even in a flat demand environment [6][7]. - Working capital has been a source of cash amounting to $250 million this year, with expectations for free cash flow in 2026 to be at least $700-$800 million [35][37]. Business Line Data and Key Metrics Changes - In the engineered materials segment, consolidated volumes were down 8% year-over-year, primarily affecting engineered thermoplastics like POM and nylon, while thermoplastic elastomers showed resilience [17][28]. - Pricing pressures were noted in the acetyl chain, particularly in Europe, while stabilization was observed in China [15][16]. Market Data and Key Metrics Changes - The company is experiencing a lower demand base compared to historical levels, with no significant accelerated destocking observed across the board, although some pockets exist [31][33]. - The U.S. assets are running at high rates, with the potential for increased utilization if demand improves [85]. Company Strategy and Development Direction - The company is focused on increasing cash flow, improving cost efficiencies, and driving top-line growth, particularly through its EM pipeline [6][7]. - A divestiture target of $1 billion by the end of 2027 has been set, with the recent Micromax transaction contributing significantly towards this goal [51][52]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving EPS growth despite a challenging demand environment, emphasizing the importance of cost actions and pipeline success [6][7]. - The company is actively evaluating its portfolio for potential divestitures, particularly in areas that do not align with its core business strategies [50][51]. Other Important Information - The company announced a closure of the Narco facility, expected to yield $20 million-$30 million in productivity savings by 2027 [40]. - An impairment related to Zytel and nylon was recorded due to a reduction in market cap, not cash flow projections [69][70]. Q&A Session Summary Question: Early look at 2026 earnings control - Management highlighted priorities for 2026, focusing on cash flow, cost improvements, and top-line growth, with an EPS growth expectation of $1 to $2 [6][7]. Question: Operating rates in the acetyl chain - The lowest-cost assets are running at full capacity, while other assets are flexibly operated based on demand [11][12]. Question: Sequential pricing pressure in the acetyl chain - Pricing pressure has been noted in Europe, with stabilization in China and relative stability in the U.S. [15][16]. Question: Volume decline in engineered materials - The decline is mainly in engineered thermoplastics, while thermoplastic elastomers have shown growth [17][28]. Question: Free cash flow expectations for 2026 - Free cash flow is expected to be at least $700-$800 million, with working capital actions contributing to this [35][37]. Question: Divestiture strategy and portfolio actions - The company is committed to divesting non-core assets, with a target of $1 billion by 2027, and is actively pursuing additional divestitures [50][51]. Question: Impact of European acetate tow closure - Management indicated that the closure would not have ripple effects across the acetates network [98].