NYSE$TSEOF

Trinseo Plc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Trinseo's financial performance declined with a net loss, but adjusted EBITDA improved due to restructuring initiatives and positive momentum in Engineered Materials.

Trinseo reported a net loss of $68 million for Q2 2024, with an EPS of negative $1.92. However, the company's adjusted EBITDA improved to $67 million, driven by positive momentum in Engineered Materials and the impact of restructuring initiatives. The company is also pursuing a joint sale process for AmSty.

  • Net loss of $68 million and EPS of negative $1.92.
  • Adjusted EBITDA of $67 million, including a $10 million unfavorable impact from net timing.
  • Free Cash Flow was negative $56 million, including a $12 million increase in working capital.
  • Entered into a new Accounts Receivable Securitization Facility that extends the maturity date to January 2028.

Headline financials

Total Revenue

$920M

Previous: $963M-4.4%
EPS

-$1.92

Previous: -$1.92+0.0%
Adjusted EBITDA

$67M

Previous: $57M+17.5%
EBITDA

$64M

No prior period
Adjusted Net Loss

-$52M

No prior period
Capital Expenditures

-$14.1M

No prior period
Free Cash Flow

-$67.8M

Previous: -$349M+80.6%
Net Income

-$67.8M

Previous: -$349M+80.6%
Operating Income

$13.9M

Previous: -$337M+104.1%
Gross Profit

$68.4M

Previous: $53.6M+27.6%
Cash & Equivalents

$106M

Previous: $270M-60.8%
Total Assets

$2.85B

Previous: $3.36B-15.1%
Stock-Based Comp

$2.5M

Previous: $3.8M-34.2%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$920M

Q2 2024-4.4%vs Q2 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 expects market conditions and Adjusted EBITDA in the third quarter to be similar to the second quarter.

Tailwinds

  • Normalized MMA market dynamics continue to support healthy margins in Engineered Materials.
  • Seasonal improvements in building and construction applications are expected to continue through the third quarter.
  • Seasonal improvements in consumer electronics applications are expected to continue through the third quarter.
  • Free cash flow is expected to turn positive in the second half of the year.
  • Continuing higher profitability and typical seasonal working capital improvements.

Headwinds

  • Third quarter 2024 net loss of $42 million to $52 million
  • Third quarter 2024 Adjusted EBITDA of $65 million to $75 million
  • Market conditions are expected to be similar to the second quarter.
  • 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
  • Cannot be estimated without unreasonable cost or uncertainty.

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 2024

Historical avgQ2 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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