WAYNE, PA — Trinseo (NYSE: TSE) reported a fourth-quarter 2025 net loss of $251 million and a full-year net loss of $546 million, driven by lower sales volumes, pricing pressure, and restructuring charges, the company announced.
Fourth-quarter net sales totaled $663 million, down 19% from a year earlier due to reduced volumes across all business segments and competitive pricing, particularly in Polymer Solutions and Latex Binders in Europe and Asia.
The quarterly net loss included $127 million in pre-tax restructuring and other charges tied primarily to the closure of virgin MMA production and ACH operations in Italy and polystyrene assets in Germany.
Adjusted EBITDA for the quarter was $26 million, in line with the prior year, as lower volumes and margins were offset by restructuring savings.
Trinseo generated $23 million in operating cash flow in the quarter and spent $16 million on capital expenditures, resulting in free cash flow of $7 million.
The company ended the quarter with $149 million in cash, including $2 million restricted, and total liquidity of $334 million.
For the full year, net sales declined 15%, reflecting a 10% drop in volumes and a 6% decline in pricing, partially offset by favorable foreign exchange.
Full-year adjusted EBITDA was $163 million, down $41 million from the prior year, reflecting lower volumes, reduced margins in Polymer Solutions and Latex Binders, and lower equity income from Americas Styrenics, partially offset by $27 million in polycarbonate licensing income and restructuring savings.
Operating cash flow for the year was negative $102 million, with $51 million in capital expenditures, resulting in negative free cash flow of $153 million.
The full-year net loss included $140 million in restructuring charges and $26 million in costs related to debt refinancing completed in January 2025.
By segment, Engineered Materials reported fourth-quarter net sales of $240 million, down 13% due to lower MMA volumes following production closures in Italy, with adjusted EBITDA of $27 million.
Latex Binders reported net sales of $176 million, down 19%, with adjusted EBITDA of $9 million, reflecting lower demand in textile, paper, and board markets, particularly in Europe.
Polymer Solutions reported net sales of $246 million, down 25%, with adjusted EBITDA of $15 million, driven by lower volumes and unfavorable product mix.
Americas Styrenics recorded adjusted EBITDA of negative $7 million, an improvement of $3 million from the prior year, supported by higher polystyrene volumes.
Chief Executive Officer Frank Bozich said the company faced ongoing market and macroeconomic challenges during the year.
“While we continued to face numerous market and macroeconomic headwinds throughout 2025, our team remained resilient and delivered exceptional safety performance,” Bozich said, adding that the company continues to invest in technology and innovation in areas such as battery binders and recycled materials.
Trinseo said it is pursuing initiatives to improve profitability and cash flow, including restructuring its asset footprint, managing working capital, and expanding licensing activities.
The company also said it continues discussions with financial stakeholders regarding its capital structure.
Trinseo, headquartered in Wayne, Pennsylvania, produces specialty material solutions used in industries including construction, consumer goods, medical, and mobility, and reported approximately $3.0 billion in net sales for 2025.
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