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Mar 31, 2021
Trinseo Q1 2021 Earnings Report
Reported strong first quarter results driven by higher margins and sales volume.
Key Takeaways
Trinseo reported strong Q1 2021 financial results, with net income of $72 million and Adjusted EBITDA of $201 million, the highest in the company's history. The company benefited from higher margins, particularly in Base Plastics, Polystyrene, and Feedstocks, as well as increased sales volume in Engineered Materials and Synthetic Rubber.
Net income was $72 million and diluted EPS was $1.81.
Adjusted EBITDA reached a record quarterly high of $201 million, including a $7 million favorable impact from net timing, with Adjusted EPS at $3.27.
Cash from operations in the first quarter was $51 million, with Free Cash Flow at $38 million, and quarter-ending cash and cash equivalents at $618 million.
The acquisition of Arkema’s PMMA business was completed on May 3, marking a significant step in Trinseo’s transformation towards becoming an advanced specialty and sustainable solutions provider.
Revenue by Segment
Forward Guidance
The company expects second quarter performance to be similar to the first quarter, with full-year 2021 net income projected to be between $303 million and $343 million, and Adjusted EBITDA between $625 million and $675 million.
Positive Outlook
- Second quarter performance is expected to be similar to the first quarter.
- High styrene margins are expected to continue into the second quarter.
- Continued momentum is expected in the remainder of the business.
- Full-year guidance has been increased.
- The company anticipates a strong second half of the year, albeit with more normalized supply conditions.
Challenges Ahead
- Full-year guidance excludes any impact from the acquisition of Arkema’s PMMA business.
- Full-year guidance excludes any impact from the potential divestiture of the Synthetic Rubber segment.
- A lower, but still very strong, second half of the year is expected.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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