Street View: Limited earnings upside for Celanese amid persistent headwinds

Chemicals maker Celanese CE.N forecast third-quarter profit below estimates on Monday, anticipating waning demand across most of its key markets in the second half of 2025

Shares down 11.2% at $42.07

EXTENDED HEADWINDS TO IMPACT FUTURE EARNINGS

RBC Capital Markets ("sector perform", PT: $63) says it does not expect material earnings upside for CE in the next year on persistent headwinds in construction, industrial and auto sectors

Baird Equity Research ("outperform", PT: $67) says Q3 forecast is likely to weigh on investor sentiment despite significant year-to-date underperformance

"In our opinion, while the management team of Celanese is pulling on the right self-improvement levers (cost-outs/asset sales/maximizing cash flow) ... end-market volumes remain at a low point - with 3Q earnings partly impacted by inventory reduction initiatives" - Baird Equity Research

*UBS ("neutral"), cuts PT to $49 from $66, says it is also harder to see demand strengthen into Q4, which means this lower earnings level will remain a debate until early 2026