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Financial Performance - Q2 2025 - The company reported a net loss of $106 million and a diluted EPS of negative $2.95[7] - Adjusted EBITDA was $42 million, which included a $10 million unfavorable net timing impact, and was $25 million lower than the previous year due to lower volumes and reduced equity income from Americas Styrenics[8] - Cash provided by operations was $7 million, and capital expenditures were $10 million, resulting in a negative Free Cash Flow of $3 million[10] Sales and Volume Analysis - Q2 2025 - Net sales were $784 million[15, 20] - Sales volume decreased year-over-year by 11% in Europe, 9% in the U S, 17% in Asia-Pacific, and 9% in the Rest of World[15] - Engineered Materials net sales were $293 million, down from $324 million in Q2 2024[23] - Latex Binders net sales were $204 million, a decrease from $252 million in Q2 2024[26] - Polymer Solutions net sales were $287 million, compared to $344 million in Q2 2024[29] Full Year 2025 Outlook - The company anticipates a net loss of approximately $320 million and an Adjusted EBITDA of approximately $200 million[11, 44] - Free Cash Flow is projected to be approximately negative $165 million[11, 44] Sustainability Initiatives - The company achieved five key sustainability goals, including increasing the share of electricity from non-fossil sources from 5% to 30% and reducing Scope 1 & 2 GHG Emissions intensity by 35%[11, 13] - The share of electricity coming from renewable sources increased to 22%, a 4% increase compared to 2023[13] Debt and Liquidity - The company had $139 million in cash at the end of the second quarter, with $2 million restricted, and total liquidity of $399 million[10]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 improved to $65 million, up $20 million year-over-year, driven by restructuring actions, improved business mix, and a polycarbonate licensing agreement [6][12][18] - Free cash flow was negative $119 million in Q1, with expectations for breakeven in Q2 and positive cash flow in the second half of 2025 [12][13][18] Business Line Data and Key Metrics Changes - Volume in recycled content products grew by 33% year-over-year, and consumer electronics applications saw a 43% increase [8][9] - PMMA resin volumes in Asia more than doubled, while case volumes grew by 3% in a flat demand environment [8] - Latex Binders adjusted EBITDA remained similar to the prior year despite lower volumes, primarily due to improved sales mix and cost savings initiatives [11] - Polymer Solutions adjusted EBITDA was above the prior year, aided by $26 million in polycarbonate licensing income, despite a 15% decline in segment volumes [12] Market Data and Key Metrics Changes - In China, specialized products delivered 50% volume growth year-over-year, driven by sustainable solutions for consumer electronics [9] - The North American benzene price drop impacted Amsty's performance, leading to a $10 million negative impact in Q1 due to timing issues and low volumes [29][30] Company Strategy and Development Direction - The company is focused on geographic expansion, material replacement, process change, and sustainability to drive growth in specialized technologies [7][18] - The strategic partnership with Deepak Chemtech is viewed as mutually beneficial, with projects on track to deliver expected results [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertain business conditions and highlighted the positive impact of restructuring actions [18][19] - The company withdrew its full-year guidance due to increased economic and geopolitical uncertainty, providing only Q2 adjusted EBITDA guidance of $55 million to $70 million [17][18] Other Important Information - Over 95% of product sales are produced within the region they are sold, minimizing direct tariff impacts [14] - The company is exploring additional licensing deals related to recycling technologies, indicating potential future growth avenues [40] Q&A Session Summary Question: Volume patterns and sustainability - Management noted no pre-buying ahead of tariffs and indicated that Q1 demand has continued into Q2 [22] Question: Free cash flow guidance for Q2 - Management expressed confidence in achieving breakeven free cash flow, citing working capital management and collected licensing income [23][24] Question: Impact of styrene closures - Management stated no significant negative impact on business due to styrene closures, as they are no longer a styrene producer in Europe [25] Question: Amsty performance and sale process - Management confirmed ongoing commitment to market Amsty and maximize asset value, with expectations for improved performance in Q2 [28][31] Question: Battery binders opportunity - Management highlighted investments in anode binders for lithium-ion batteries, indicating growth potential in both grid storage and automotive applications [32][35] Question: Full-year cash flow outlook - Management provided insights on cash outflows and the need for $370 million EBITDA to achieve breakeven cash flow for the year [38] Question: Future licensing opportunities - Management acknowledged interest in recycling technologies and potential for future licensing deals [40]

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q1 2025 improved to $65 million, up $20 million year-over-year, driven by restructuring actions, improved business mix, and a polycarbonate licensing agreement [6][10][12] - Free cash flow was negative $119 million in Q1, influenced by $25 million related to refinancing and a typical seasonal working capital outflow of $84 million [11][12] Business Line Data and Key Metrics Changes - Volume in recycled content products grew by 33% year-over-year, and consumer electronics applications saw a 43% increase [7] - PMMA resin volumes in Asia more than doubled, while case volumes grew by 3% despite flat demand [7] - Latex Binders adjusted EBITDA remained similar to the prior year despite lower volumes, primarily due to improved sales mix and cost savings initiatives [10] - Polymer Solutions adjusted EBITDA was above the prior year, supported by $26 million in polycarbonate licensing income [10] Market Data and Key Metrics Changes - In China, specialized PMMA products contributed to a 50% volume growth year-over-year [9] - Demand for paper and board applications in China weakened significantly due to tariff announcements, impacting overall performance [10][54] Company Strategy and Development Direction - The company is focused on geographic expansion, material replacement, process change, and sustainability to drive growth in specialized technologies [7] - The strategic partnership with Deepak Chemtech is viewed as a significant opportunity for growth in India [7] - The company is committed to higher growth and higher margin business segments, particularly in specialty and sustainable offerings [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertain business conditions and highlighted the impact of restructuring actions on performance [16] - The company withdrew its full-year guidance due to increased economic and geopolitical uncertainty, providing only a Q2 adjusted EBITDA outlook of $55 million to $70 million [16] Other Important Information - The company anticipates little direct impact from proposed tariffs, as over 95% of product sales are produced within the region where they are sold [13] - The company is exploring additional licensing opportunities related to recycling technologies [41] Q&A Session Summary Question: Volume patterns ahead of tariffs - Management noted no evidence of pre-buying to beat tariffs, with Q1 demand continuing into Q2 [21] Question: Free cash flow guidance for Q2 - Management expressed confidence in achieving breakeven free cash flow in Q2, supported by working capital management [22] Question: Impact of styrene closures - Management indicated no significant negative impact from styrene closures, as the company is no longer a styrene producer in Europe [24] Question: Amsty performance and sale process - Management confirmed ongoing commitment to market Amsty and maximize asset value, with expectations for improved performance in Q2 [28][31] Question: Battery binders opportunity - Management highlighted investments in anode binders for lithium-ion batteries, indicating a growing business with a unique global footprint [34] Question: Full-year cash flow outlook - Management provided insights on cash outflows and indicated that working capital actions could offset any EBITDA deterioration [39] Question: Additional licensing deals - Management confirmed interest in recycling technologies and potential future licensing opportunities [41]