NYSE$TSEOF

Trinseo Plc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Trinseo reported first quarter 2024 financial results.

Trinseo's first quarter 2024 net sales decreased by 9% year-over-year, while sales volumes excluding styrene-related sales were the highest since Q3 2022. The company reported a net loss of $76 million, but adjusted EBITDA increased to $45 million, including a $13 million favorable impact from net timing.

  • Net loss of $76 million and EPS of negative $2.14.
  • Adjusted EBITDA of $45 million, including a $13 million favorable impact from net timing; Adjusted Net Loss of $69 million.
  • Cash used in operations of $66 million and capital expenditures of $16 million resulted in Free Cash Flow of negative $82 million.
  • First quarter ending cash of $171 million, of which $5 million was restricted, with approximately $252 million of additional available liquidity.

Headline financials

Total Revenue

$904M

Previous: $996M-9.3%
EPS (adj)

-$1.94

Previous: -$1.01-92.1%
Capital Expenditures

-$15.7M

No prior period
Free Cash Flow

-$75.5M

Previous: -$48.9M-54.4%
Net Income

-$75.5M

Previous: -$48.9M-54.4%
Operating Income

-$3.3M

Previous: -$30.2M+89.1%
Gross Profit

$60.6M

Previous: $37.2M+62.9%
Cash & Equivalents

$166M

Previous: $217M-23.4%
Total Assets

$2.99B

Previous: $3.74B-20.1%
Stock-Based Comp

$5.9M

Previous: $8.2M-28.0%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$904M

Q1 2024-9.3%vs Q1 2023
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Trinseo · $408M total across 2 segments · Q3 2023

  • Latex Binders
    $222M-34.9%
  • Engineered Materials
    $186M-23.4%

Forward guidance

Trinseo anticipates a sequential improvement in profitability, driven by the completion of a turnaround at Americas Styrenics and seasonally stronger demand in building and construction applications. Continued tightness in styrene and MMA markets is expected to support higher margins, with an anticipated improvement in free cash flow.

Tailwinds

  • Positive earnings momentum from the end of the first quarter continuing into the second quarter, including similar sales and margin levels to start the quarter.
  • Significant sequential profitability improvement as the turnaround at Americas Styrenics is behind us.
  • Entering the seasonally stronger period for many of our building and construction applications.
  • Continued tightness in the styrene and MMA markets that is supportive of continued higher margins.
  • Expect a sequential free cash flow improvement from higher profitability and moderating styrene prices.

Headwinds

  • Second quarter 2024 net loss of $53 million to $38 million
  • Continued evaluation of additional actions including the potential closure of the Stade, Germany virgin polycarbonate plant.
  • Liquidity preservation remains top priority.
  • Reconciling items to Adjusted EBITDA and Adjusted Net Income (Loss) are not typically forecasted by the Company based on their nature as being primarily driven by transactions that are not part of the core operations of the business
  • Weighted average shares presented for the purpose of forecasting EPS and Adjusted EPS assume that the Company will be in a net loss position for second quarter 2024

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 2024

Historical avgQ1 2024

-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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