Specialty chemicals firm Trinseo's Q3 net sales miss estimates

Overview

• Trinseo Q3 net sales fall 14% yr/yr, missing analyst expectations

• Adjusted EBITDA for Q3 misses analyst estimates, impacted by lower volumes and margins

• Company to cease virgin MMA production in Italy, close polystyrene asset in Germany

Outlook

• Trinseo expects Q4 net loss of $170 mln to $180 mln

• Company forecasts Q4 Adjusted EBITDA of $30 mln to $40 mln

• Trinseo anticipates Q4 Free Cash Flow of approximately $20 mln

Result Drivers

• COMPETITIVE PRESSURE - Margin compression in Polymer Solutions and Latex Binders due to competitive price pressure in Europe

• RESTRUCTURING SAVINGS - Savings from restructuring initiatives partially offset lower equity income from Americas Styrenics

• TARIFF UNCERTAINTY - Tariff uncertainty disrupted trade flows and negatively affected consumer sentiment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commodity chemicals peer group is "buy."

• Wall Street's median 12-month price target for Trinseo PLC is $2.50, about 44.4% above its November 5 closing price of $1.39

Press Release: ID:nBw2zCPTna

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