Overview
Trinseo Q3 net sales fall 14% yr/yr, missing analyst expectations
Adjusted EBITDA for Q3 misses analyst estimates, impacted by lower volumes and margins
Company to cease virgin MMA production in Italy, close polystyrene asset in Germany
Outlook
Trinseo expects Q4 net loss of $170 mln to $180 mln
Company forecasts Q4 Adjusted EBITDA of $30 mln to $40 mln
Trinseo anticipates Q4 Free Cash Flow of approximately $20 mln
Result Drivers
COMPETITIVE PRESSURE - Margin compression in Polymer Solutions and Latex Binders due to competitive price pressure in Europe
RESTRUCTURING SAVINGS - Savings from restructuring initiatives partially offset lower equity income from Americas Styrenics
TARIFF UNCERTAINTY - Tariff uncertainty disrupted trade flows and negatively affected consumer sentiment
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $743 mln | $791 mln (2 Analysts) |
Q3 Adjusted EPS | Miss | -$2.41 | -$1.93 (4 Analysts) |
Q3 Adjusted Net Income | Miss | -$87 mln | -$67.50 mln (2 Analysts) |
Q3 Adjusted EBITDA | Miss | $30 mln | $49.70 mln (3 Analysts) |
Q3 EBITDA | $26 mln | ||
Q3 Operating income | -$28.20 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commodity chemicals peer group is "buy."
Wall Street's median 12-month price target for Trinseo PLC is $2.50, about 44.4% above its November 5 closing price of $1.39
Press Release: ID:nBw2zCPTna
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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.)