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Mar 31, 2024
Trinseo Q1 2024 Earnings Report
Trinseo reported first quarter 2024 financial results.
Key Takeaways
Trinseo's first quarter 2024 net sales decreased by 9% year-over-year, while sales volumes excluding styrene-related sales were the highest since Q3 2022. The company reported a net loss of $76 million, but adjusted EBITDA increased to $45 million, including a $13 million favorable impact from net timing.
Net loss of $76 million and EPS of negative $2.14.
Adjusted EBITDA of $45 million, including a $13 million favorable impact from net timing; Adjusted Net Loss of $69 million.
Cash used in operations of $66 million and capital expenditures of $16 million resulted in Free Cash Flow of negative $82 million.
First quarter ending cash of $171 million, of which $5 million was restricted, with approximately $252 million of additional available liquidity.
Revenue by Segment
Forward Guidance
Trinseo anticipates a sequential improvement in profitability, driven by the completion of a turnaround at Americas Styrenics and seasonally stronger demand in building and construction applications. Continued tightness in styrene and MMA markets is expected to support higher margins, with an anticipated improvement in free cash flow.
Positive Outlook
- Positive earnings momentum from the end of the first quarter continuing into the second quarter, including similar sales and margin levels to start the quarter.
- Significant sequential profitability improvement as the turnaround at Americas Styrenics is behind us.
- Entering the seasonally stronger period for many of our building and construction applications.
- Continued tightness in the styrene and MMA markets that is supportive of continued higher margins.
- Expect a sequential free cash flow improvement from higher profitability and moderating styrene prices.
Challenges Ahead
- Second quarter 2024 net loss of $53 million to $38 million
- Continued evaluation of additional actions including the potential closure of the Stade, Germany virgin polycarbonate plant.
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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