WAYNE, PA — Trinseo (NYSE: TSE) reported another challenging quarter as soft global demand, pricing pressure in Europe, and lower equity income weighed heavily on results, pushing the specialty materials provider to a wider loss and prompting further restructuring moves.
For the third quarter of 2025, Trinseo posted net sales of $743 million, down 14 percent from the prior year as sales volumes declined across all business segments. The company reported a net loss of $110 million, or $3.05 per diluted share, compared with a loss of $87 million a year earlier. Adjusted EBITDA fell to $30 million from $66 million, reflecting ongoing volume weakness, margin compression, and lower contributions from the Americas Styrenics joint venture, which faced an unplanned outage.
CEO Frank Bozich said quarterly volumes mirrored the sluggish demand environment of the past three years and noted that tariff uncertainty has further disrupted trade flows and undermined customer sentiment. While demand for more formulated products improved late in the quarter, Bozich cautioned that it is too early to determine whether reshoring trends in Europe and the U.S. will continue.
Segment results reflected broad softness. Engineered Materials revenue fell 7 percent, though adjusted EBITDA remained steady at $34 million as restructuring savings offset lower medical sales. Latex Binders declined 18 percent, pressured by weak paper, board, and textile demand in Europe and Asia. Polymer Solutions dropped 18 percent due to unfavorable mix and lower ABS volumes, while Americas Styrenics recorded a $2 million adjusted EBITDA loss.
Trinseo ended the quarter with $114 million in cash and total liquidity of $346 million. Free cash flow was negative $38 million, a $35 million deterioration from the prior year, driven by negative operating cash flow and higher capital expenditures.
In response to persistent headwinds, the company announced plans to cease virgin MMA production in Italy, repurpose its Rho facility for recycled PMMA, and close a polystyrene asset in Germany. Trinseo expects these actions—subject to worker consultations—to generate $30 million in annual profitability improvements and reduce capital expenditures by $10 million. Cash restructuring costs are projected at $60 million to $70 million over three years, with savings exceeding costs each year.
Looking ahead, Trinseo forecasts a fourth-quarter net loss between $170 million and $180 million and adjusted EBITDA of $30 million to $40 million. Full-year adjusted EBITDA is expected to fall between $167 million and $177 million, with roughly $20 million in fourth-quarter free cash flow and year-end liquidity of about $365 million. Bozich said the company will remain focused on working capital management and restructuring execution to strengthen cash flow in the near term.
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