Shares of Celanese (CE) plummeted 5% in Wednesday's trading session, as investors focused on the company's ongoing leverage concerns despite a strong Q3 performance and raised estimates. The chemical and specialty materials company's stock decline comes in the wake of a comprehensive report from RBC Capital Markets, which highlighted both positive developments and lingering worries about the firm's financial position.

According to the RBC report, Celanese posted a Q3 beat similar to its peers, prompting the brokerage to raise its Q4 and fiscal 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) estimates to $459 million and $1.92 billion, respectively. However, RBC emphasized that earnings remain under pressure and the company's leverage continues to be a key concern for investors. The brokerage maintained its sector perform rating and $43 price target on Celanese stock, stating it wants to see "more sustainable free-cash-flow generation and deleveraging" before becoming more positive on the company's outlook.

While Celanese is taking steps to improve its financial position, including the pending sale of Micromax expected to generate about $500 million in pre-tax proceeds and potential additional divestitures, these moves have not been enough to allay investor concerns. The company is also targeting $30 million to $50 million of additional net savings in 2026, with the closure of its Lanaken tow facility presenting a $20 million to $30 million savings opportunity by 2027. Despite these efforts, the market's reaction suggests that investors remain cautious about Celanese's ability to manage its debt load and generate sustainable cash flow in the current economic environment.