NYSE$TSEOF

Trinseo Plc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported record earnings driven by higher prices, increased volumes, and the acquisition of Arkema's PMMA business.

Trinseo reported record second-quarter financial results, with net sales increasing by 138% compared to the prior year. The company's net income from continuing operations was $133 million, and Adjusted EBITDA reached $239 million. The strong performance was attributed to higher prices, increased volumes, and the addition of the Arkema PMMA business.

  • Net income from continuing operations was $133 million, with diluted EPS from continuing operations at $3.35.
  • Adjusted EBITDA was $239 million, including a $5 million favorable impact from net timing, and Adjusted EPS was $3.70.
  • Cash and cash equivalents at quarter-end totaled $367 million, which included the use of nearly $200 million for the Arkema PMMA acquisition.
  • Entered into an agreement to sell the Synthetic Rubber business to Synthos S.A. for $449 million, expected to close in the first half of 2022.

Headline financials

Total Revenue

$1.27B

Previous: $570M+123.6%
EPS (adj)

$3.70

Previous: -$2.95+225.4%
Adjusted EBITDA

$239M

No prior period
EBITDA

$216M

No prior period
Free Cash Flow

$152M

Previous: -$128M+218.1%
Net Income

$152M

Previous: -$128M+218.1%
Operating Income

$151M

Previous: -$51M+396.1%
Gross Profit

$220M

Previous: -$7.1M+3198.6%
Cash & Equivalents

$367M

Previous: $582M-36.9%
Total Assets

$4.5B

Previous: $2.59B+74.0%
Stock-Based Comp

$3.6M

Previous: $3.1M+16.1%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$1.27B

Q2 2021+123.6%vs Q2 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Trinseo · $492M total across 2 segments · Q2 2021

  • Latex Binders
    $311M+88.7%
  • Engineered Materials
    $181M

Forward guidance

The company provided full-year 2021 guidance, including net income from continuing operations of $344 million to $380 million and Adjusted EBITDA of $750 million to $800 million.

Tailwinds

  • Continued commercial excellence actions
  • High demand for most products
  • Integration of the newly acquired PMMA business
  • On schedule to achieve the targeted first year cost synergies
  • Identified additional opportunities from what was originally communicated.

Headwinds

  • Earnings to decline from the first half of the year
  • No expected contribution from the Feedstocks segment
  • Styrene margins in Europe to normalize as supply increases
  • Assumes no impact from net timing in the second half of the year
  • Excludes Synthetic Rubber, and does not include any impact from the recently announced Aristech Surfaces acquisition

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 Q2 2021

Historical avgQ2 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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