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Sep 30, 2024
Trinseo Q3 2024 Earnings Report
Trinseo reported a net loss of $87 million and adjusted EBITDA of $66 million for Q3 2024.
Key Takeaways
Trinseo's Q3 2024 results showed a net loss of $87 million, but an improved adjusted EBITDA of $66 million compared to the previous year. The company's net sales reached $868 million, slightly below the prior year. Restructuring initiatives and moderation of European input costs contributed to profitability improvements.
Net loss was $87 million, including $26 million in pre-tax restructuring charges, with an EPS of negative $2.47.
Adjusted EBITDA reached $66 million, $25 million higher than the previous year.
Free Cash Flow was negative $3 million, showing a sequential improvement of $53 million.
Cash at the end of Q3 was $167 million, with $177 million in additional available liquidity.
Revenue by Segment
Forward Guidance
Trinseo expects sequentially lower Adjusted EBITDA due to year-end seasonality, but still higher than the prior year, and anticipates positive free cash flow in Q4 due to seasonal working capital improvements.
Positive Outlook
- Adjusted EBITDA expected to be higher than the prior year due to restructuring benefits.
- Free cash flow expected to turn positive due to seasonal working capital improvements.
- Restructuring actions including consolidation of business management and support-function roles.
- Decision to exit virgin polycarbonate production at the Stade facility.
- Expects benefits from restructuring initiatives
Challenges Ahead
- Adjusted EBITDA expected to be sequentially lower due to year-end seasonality.
- Low demand persists in many end markets.
- Timing of a broad market improvement is uncertain.
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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