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Mar 31
Celanese Q1 2025 Earnings Report
Celanese reported a modest improvement in Q1 results despite weak demand in key markets.
Key Takeaways
Celanese posted $2.4 billion in revenue and a net loss of $17 million for Q1 2025, driven by productivity gains in Engineered Materials and offset by softness in Acetyl Chain order timing and costs. Adjusted EPS was $0.57.
Engineered Materials benefited from favorable mix and productivity, delivering $1.29 billion in revenue.
Acetyl Chain performance was impacted by delayed acetate tow orders and slightly higher energy costs.
Net loss was $17 million, driven by $43 million in Certain Items and $32 million in refinancing costs.
Free cash flow was negative $73 million due to capital expenditures and working capital timing.
Celanese
Celanese
Celanese Revenue by Segment
Revenue by Segment
Engineered Materials Revenue
CapyFin.comAcetyl Chain Revenue
CapyFin.com Forward Guidance
Celanese anticipates stronger Q2 driven by normalization in acetate tow, partial volume recovery, and reduced non-recurring impacts, but global trade tensions remain a risk.
Positive Outlook
- Dividend from Chinese JV expected to resume in Q2.
- Slight recovery anticipated in automotive demand in U.S. and China.
- Normalization of acetate tow orders expected.
- Improved cost profile from new self-help initiatives.
- Cash generation remains a top priority with $700M–$800M free cash flow targeted for FY25.
Challenges Ahead
- Demand uncertainty heightened by global tariff developments.
- Persistent weakness in Western Hemisphere demand for Acetyl Chain.
- High refinancing expense incurred in Q1.
- Sluggish demand in key markets like construction and coatings.
- Earnings remain difficult to predict for full year due to macro uncertainty.
Revenue & Expenses
Visualization of income flow from segment revenue to net income