WAYNE, PA — Trinseo (NYSE: TSE) has announced its financial results for the first quarter of 2025, reflecting both challenges and strategic gains. The quarter ended with net sales of $785 million, a 13% year-over-year decline, attributed to weaker end-market demand and intentional reductions in low-margin sales.
The company reported a net loss of $79 million, slightly higher than last year’s loss by $3 million, primarily impacted by higher interest expenses. Adjusted EBITDA rose to $65 million, a $20 million increase from the previous year, driven by $26 million in polycarbonate technology licensing income and benefits from restructuring initiatives.
“Core business results in the first quarter were in line with expectations, and sequentially higher due to prior quarter customer destocking and seasonality,” said Frank Bozich, Trinseo’s President and CEO. “Despite persistent market weakness, the first quarter was Trinseo’s 7th consecutive quarter of year-over-year Adjusted EBITDA improvement.”
Segment Highlights
- Engineered Materials recorded net sales of $278 million, down 2% from the prior year due to lower volumes, partially offset by higher pricing. Adjusted EBITDA surged to $26 million, $16 million above the previous year, driven by improved margins from moderating input costs.
- Latex Binders experienced a 13% drop in net sales to $209 million, primarily due to reduced paper application demand in Asia and Europe. Adjusted EBITDA decreased slightly by $2 million to $24 million.
- Polymer Solutions saw net sales fall by 22% to $298 million, reflecting lower volumes from a strategic exit of low-margin polystyrene sales. Nevertheless, Adjusted EBITDA climbed to $44 million, up $15 million, bolstered by fixed cost reductions and licensing income.
- Americas Styrenics reported an Adjusted EBITDA loss of $2 million, $8 million below last year, impacted by unfavorable timing.
Cash Flow and Liquidity
Trinseo recorded negative free cash flow of $119 million, reflecting a seasonal working capital build and $25 million in refinancing-related costs. The company ended the quarter with $128 million in cash and total liquidity of $421 million.
Outlook for Q2 2025
Trinseo provided guidance for the second quarter, forecasting a net loss of $61 million to $46 million. Adjusted EBITDA is expected to range from $55 million to $70 million, with free cash flow projected to break even, supported by $21 million from polycarbonate technology license income.
“We anticipate Adjusted EBITDA of $55 million to $70 million in Q2 with seasonally higher volumes, lower costs in Engineered Materials, and improved AmSty performance offsetting the first quarter polycarbonate technology license income,” said Bozich.
While the company is cautiously optimistic about the coming quarter, it emphasizes the challenges posed by ongoing macroeconomic uncertainties and has withdrawn full-year guidance to focus on short-term targets. Bozich praised Trinseo’s workforce, saying, “I am extremely proud of the agility and resourcefulness demonstrated by all of our employees as we navigate this challenging market environment.”
Trinseo continues to adapt its operations and pursue strategic opportunities within a complex global market.
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