Celanese (CE) Q1 2025 earnings summary

Executive summary

• Management is focused on cash generation, cost reduction, deleveraging, and portfolio optimization, including the announced divestiture of Micromax® and other potential asset sales.

• Q1 2025 net sales were $2.39B, down 9% year-over-year but up 1% sequentially, with a net loss of $21M and adjusted EPS of $0.57, exceeding guidance.

• Operating profit was $168M, with operating EBITDA of $414M and margins of 7% and 17%, respectively.

• Strategic priorities include aggressive self-help actions, operational flexibility, and ongoing deleveraging through refinancing and reduced dividends.

• Demand uncertainty and macroeconomic weakness remain key risks, especially in automotive, paints, coatings, and construction end-markets.

Financial highlights

• Q1 2025 adjusted EPS was $0.57, above guidance of $0.25–$0.50; free cash flow was ($73M), outperforming the guided ($300M) outflow.

• FY 2025 free cash flow is targeted at $700M–$800M, up from $498M in 2024, supported by inventory reduction, lower CapEx, and reduced cash taxes.

• Operating EBITDA for 2024 was $2.4B, with a 7% CAGR since 2012.

• Net cash provided by operating activities was $37M in Q1 2025; cash and cash equivalents stood at $951M as of March 31, 2025.

• Total debt increased to $12.78B from $12.58B at year-end 2024.

Outlook and guidance

• Q2 2025 adjusted EPS guidance is $1.30–$1.50, with tailwinds from cost savings, operational improvements, and JV dividend timing.

• FY 2025 free cash flow expected to rise 40–60% year-over-year, assuming no major demand downturn.

• Management expects demand conditions to remain sluggish in Q2 2025, especially in key end-markets.

• Long-term earnings power is seen as strong, with $2 per quarter EPS as an initial target.

• Full-year earnings visibility remains limited due to tariff and global trade uncertainties.