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Jun 30, 2024
Trinseo Q2 2024 Earnings Report
Trinseo's financial performance declined with a net loss, but adjusted EBITDA improved due to restructuring initiatives and positive momentum in Engineered Materials.
Key Takeaways
Trinseo reported a net loss of $68 million for Q2 2024, with an EPS of negative $1.92. However, the company's adjusted EBITDA improved to $67 million, driven by positive momentum in Engineered Materials and the impact of restructuring initiatives. The company is also pursuing a joint sale process for AmSty.
Net loss of $68 million and EPS of negative $1.92.
Adjusted EBITDA of $67 million, including a $10 million unfavorable impact from net timing.
Free Cash Flow was negative $56 million, including a $12 million increase in working capital.
Entered into a new Accounts Receivable Securitization Facility that extends the maturity date to January 2028.
Revenue by Segment
Forward Guidance
Trinseo expects market conditions and Adjusted EBITDA in the third quarter to be similar to the second quarter.
Positive Outlook
- Normalized MMA market dynamics continue to support healthy margins in Engineered Materials.
- Seasonal improvements in building and construction applications are expected to continue through the third quarter.
- Seasonal improvements in consumer electronics applications are expected to continue through the third quarter.
- Free cash flow is expected to turn positive in the second half of the year.
- Continuing higher profitability and typical seasonal working capital improvements.
Challenges Ahead
- Third quarter 2024 net loss of $42 million to $52 million
- Third quarter 2024 Adjusted EBITDA of $65 million to $75 million
- Market conditions are expected to be similar to the second quarter.
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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