Celanese Corporation (NYSE: CE) saw its stock price surge 7.98% on Friday, following the release of its third-quarter earnings report that exceeded analyst expectations. The chemical and specialty materials company demonstrated resilience in a challenging economic environment, with its cost-cutting measures and focus on cash generation paying off.

Celanese reported adjusted earnings per share of $1.34 for the third quarter, significantly beating the analyst consensus estimate of $1.22. This outperformance comes despite a 8.65% year-over-year decrease in sales to $2.419 billion. The company's ability to surpass earnings projections in the face of declining revenues highlights the effectiveness of its ongoing cost reduction initiatives and operational improvements.

While Celanese faced headwinds, including a 4.0% sequential decline in net sales due to decreased volume and pricing pressures, the company's focus on cash generation yielded positive results. Free cash flow for the quarter reached $375 million, with operating cash flow at $447 million, driven by cost reductions, inventory management in the Engineered Materials segment, and working capital optimization. The company remains on track to generate $700 million to $800 million in free cash flow in 2025, which has resonated well with investors. Celanese's emphasis on deleveraging its balance sheet, intensifying cost improvements, and driving top-line growth appears to be the key factors behind the stock's strong performance.