Overview

• Celanese Q3 net sales declined 4% sequentially, missing analyst expectations

• Adjusted EPS for Q3 beats analyst estimates, despite challenging end-markets

• Company announces divestiture of Micromax business for $500 mln

Outlook

• Celanese expects Q4 adjusted EPS between $0.85 and $1.00

• Company anticipates FY 2025 free cash flow of $700 to $800 mln

• Celanese sees Q4 volume declines due to western hemisphere seasonality

Result Drivers

• VOLUME DECLINE - Engineered Materials segment saw a 6% volume decline due to cautious customer behavior and lower auto builds

• DEMAND CHALLENGES - Acetyl Chain faced demand challenges in building and construction markets and an unplanned outage at Clear Lake

• COST REDUCTIONS - Focus on cost reductions and strategic divestitures supported cash flow and deleveraging efforts

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy."

• Wall Street's median 12-month price target for Celanese Corp is $51.00, about 27.6% above its November 5 closing price of $36.94

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw7vwvg8a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)