Celanese Corp (CE) Q3 2025 Earnings Call Highlights: Strategic Moves and Market Challenges

This article first appeared on GuruFocus.

Release Date: November 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Celanese Corp (NYSE:CE) is focusing on increasing cash flow, intensifying cost improvements, and driving top-line growth, which are expected to contribute to EPS growth of $1 to $2 in 2026. The company has seen progress in its Engineered Materials (EM) pipeline, with pricing improvements and new product launches contributing positively. Celanese Corp (NYSE:CE) is effectively managing its asset utilization, with its lowest-cost assets running at full capacity and flexing other assets based on demand. The company is actively pursuing cost savings, with expectations of $30 million to $50 million in additional savings in Engineered Materials, net of inflation. Celanese Corp (NYSE:CE) has successfully completed the sale of its Micromax business, contributing significantly towards its $1 billion divestiture target by 2027.

Negative Points

Demand in certain markets, such as Europe, has been weaker, leading to pricing pressure in the acetyl chain, particularly in vinyls and emulsions. Engineered Materials volumes were down 8% year-over-year, with standard grade materials like POM, nylon, and polyesters experiencing more significant declines. The company is facing challenges in the acetate tow market, leading to the closure of its Lanaken facility, which is expected to yield productivity savings in 2027. Celanese Corp (NYSE:CE) recorded a sizable impairment in the third quarter, driven by a reduction in market cap and stock price, despite no decline in projected cash flows. The macroeconomic environment remains challenging, with industrial malaise globally affecting demand and utilization rates, particularly outside the US.

Q & A Highlights

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Q: Scott, looking at 2026, can you give us an early look at what you can control for 2026 and what's not in your control relative to earnings? A: Scott Richardson, President and CEO, highlighted that the focus on increasing cash flow, intensifying cost improvements, and driving top-line growth will continue into 2026. Despite a potentially flat demand environment, Celanese aims to grow EPS by $1 to $2 next year through cost actions and success in their EM pipeline.

Q: Could you speak about the operating rates and the acetyl chain, particularly in Singapore and Frankfurt? A: Scott Richardson explained that their lowest-cost assets are running at 100%, while the rest of the network, including Singapore and Frankfurt, is flexed to meet demand. The manufacturing team has been effective in maintaining high reliability and finding ways to debottleneck assets without capital expenditure.

Story Continues

Q: In the acetyl chain, where is the sequential price pressure coming from, either by product line or geography? A: Scott Richardson noted pressure in Europe, particularly in the vinyls chain, due to demand-driven factors. However, pricing in China has stabilized and even increased slightly across all product lines, while the US market remains relatively stable.

Q: For 2026, how much of the $1 to $2 EPS growth comes from cost savings, and how much from other factors like interest expense or volume growth? A: Scott Richardson stated that about half of the EPS growth is expected from cost savings, with the rest primarily from the EM pipeline. Chuck Kyrish, CFO, added that a $30 million to $40 million reduction in interest expense is anticipated.

Q: Regarding the Lanaken closure, did anything change in your forward view on demand or supply? A: Scott Richardson explained that the decision was based on declining demand and Lanaken being the highest-cost asset. The closure will yield $20 million to $30 million in productivity savings by 2027, and Celanese will continue to evaluate its footprint for similar opportunities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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