NYSE$TSEOF

Trinseo Plc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported strong first quarter results driven by higher margins and sales volume.

Trinseo reported strong Q1 2021 financial results, with net income of $72 million and Adjusted EBITDA of $201 million, the highest in the company's history. The company benefited from higher margins, particularly in Base Plastics, Polystyrene, and Feedstocks, as well as increased sales volume in Engineered Materials and Synthetic Rubber.

  • Net income was $72 million and diluted EPS was $1.81.
  • Adjusted EBITDA reached a record quarterly high of $201 million, including a $7 million favorable impact from net timing, with Adjusted EPS at $3.27.
  • Cash from operations in the first quarter was $51 million, with Free Cash Flow at $38 million, and quarter-ending cash and cash equivalents at $618 million.
  • The acquisition of Arkema’s PMMA business was completed on May 3, marking a significant step in Trinseo’s transformation towards becoming an advanced specialty and sustainable solutions provider.

Headline financials

Total Revenue

$1.09B

Previous: $854M+28.0%
EPS (adj)

$3.27

Previous: $0.26+1157.7%
Adjusted EBITDA

$201M

Previous: $57M+252.6%
Free Cash Flow

$71.5M

Previous: -$36.3M+297.0%
Net Income

$71.5M

Previous: -$36.3M+297.0%
Operating Income

$162M

Previous: -$36.3M+547.1%
Gross Profit

$202M

Previous: $69.7M+189.8%
Cash & Equivalents

$618M

Previous: $440M+40.5%
Total Assets

$3.48B

Previous: $2.66B+31.0%
Stock-Based Comp

$3.4M

Previous: $3.2M+6.3%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$1.09B

Q1 2021+28%vs Q1 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Trinseo · $317M total across 2 segments · Q1 2021

  • Latex Binders
    $251M+14.5%
  • Engineered Materials
    $65.8M

Forward guidance

The company expects second quarter performance to be similar to the first quarter, with full-year 2021 net income projected to be between $303 million and $343 million, and Adjusted EBITDA between $625 million and $675 million.

Tailwinds

  • Second quarter performance is expected to be similar to the first quarter.
  • High styrene margins are expected to continue into the second quarter.
  • Continued momentum is expected in the remainder of the business.
  • Full-year guidance has been increased.
  • The company anticipates a strong second half of the year, albeit with more normalized supply conditions.

Headwinds

  • Full-year guidance excludes any impact from the acquisition of Arkema’s PMMA business.
  • Full-year guidance excludes any impact from the potential divestiture of the Synthetic Rubber segment.
  • A lower, but still very strong, second half of the year is expected.
  • More normalized supply conditions are anticipated in the second half of the year.
  • The company's strategic initiatives may incur fees.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-1.4%

Avg return

Earnings day

-3.4%

Avg return

5 days after

-5.3%

Avg return

30 days after

51%

25 / 49 earnings

Positive

+16.0%

Q1 2024

Best reaction

-34.9%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-16.7%-16.7%-91.7%
Q4 2025+0.0%+0.0%-3.6%
Q3 2025-2.4%-9.5%-47.1%
Q1 2025-34.9%-42.0%-27.7%
Q4 2024+6.9%+18.5%-11.2%
Q3 2024-8.9%-13.4%+5.9%
Q2 2024-3.2%-3.6%+44.2%
Q1 2024+16.0%-7.2%-3.4%
Q4 2023-16.8%-18.0%-10.8%
Q3 2023+2.9%-6.2%+1.0%
Q2 2023-8.4%-18.0%-35.7%
Q1 2023+2.4%-13.9%-17.0%
Q4 2022-12.7%+7.8%-5.6%
Q3 2022+8.5%+20.6%+20.0%
Q2 2022-12.9%-7.5%-26.0%
Q1 2022-5.8%-12.1%-4.4%
Q4 2021+9.0%+9.0%-9.3%
Q3 2021-4.2%-5.2%-11.5%
Q2 2021-7.1%-3.3%-4.1%
Q1 2021+0.3%+0.0%-1.3%
Q4 2020-1.0%+6.2%+25.1%
Q3 2020+15.5%+23.0%+35.4%
Q2 2020-11.6%-12.8%+3.2%
Q1 2020+3.8%+6.9%+38.4%
Q4 2019-3.5%-2.7%-34.2%
Q3 2019+2.8%+4.0%-19.0%
Q2 2019-7.3%-9.1%+10.1%
Q1 2019+7.3%+2.8%-14.9%
Q4 2018+0.6%+4.4%-5.1%
Q3 2018-6.6%-24.7%-22.3%
Q2 2018+2.1%+7.7%+5.7%
Q1 2018+0.7%+1.4%+2.8%
Q4 2017-2.7%+1.0%-6.8%
Q3 2017+1.5%-0.1%-0.2%
Q2 2017-7.7%-9.9%-3.5%
Q1 2017-8.2%-6.7%-2.1%
Q4 2016-0.5%-0.8%-7.8%
Q3 2016-4.3%-5.1%+12.4%
Q2 2016-0.7%+2.1%+16.2%
Q1 2016+3.4%
Q4 2015+6.3%
Q3 2015+3.1%
Q2 2015+7.6%
Q1 2014+2.5%
Q1 2015+7.7%
Q4 2014+1.5%
Q3 2014+1.0%
Q4 2013+2.1%
Q2 2014+2.4%
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q1 2011
Q2 2010
Q1 2010

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