NYSE$TSEOF

Trinseo Plc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported a net loss from continuing operations and a decrease in net sales compared to the previous year.

Trinseo reported a challenging third quarter with a net loss from continuing operations of $118 million and adjusted EBITDA of negative $37 million, impacted by weak demand and high energy costs in Europe.

  • Net loss from continuing operations was $118 million, with diluted EPS of negative $3.35.
  • Adjusted EBITDA was negative $37 million, including a $24 million unfavorable impact from net timing.
  • Free cash flow was $59 million, benefiting from a $166 million working capital release.
  • Ended the quarter with $243 million in cash and over $500 million of additional available liquidity.

Headline financials

Total Revenue

$1.18B

Previous: $1.27B-7.2%
EPS (adj)

-$2.91

Previous: $2.01-244.8%
Free Cash Flow

-$120M

Previous: $93.1M-228.7%
Net Income

-$120M

Previous: $93.1M-228.7%
Operating Income

-$99.1M

Previous: $108M-191.9%
Gross Profit

-$39.5M

Previous: $168M-123.5%
Cash & Equivalents

$243M

Previous: $208M+17.0%
Total Assets

$4.13B

Previous: $4.76B-13.3%
Stock-Based Comp

$3.4M

Previous: $4M-15.0%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$1.18B

Q3 2022-7.2%vs Q3 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Trinseo · $584M total across 2 segments · Q3 2022

  • Latex Binders
    $341M+8.0%
  • Engineered Materials
    $243M+5.2%

Forward guidance

The company anticipates similar market conditions in the fourth quarter with some level of continued customer destocking, but anticipates significant sequential earnings improvement as a result of idling styrene production in Europe.

Tailwinds

  • Significant sequential earnings improvement as a result of idling styrene production in Europe.
  • Combined $47 million of impacts from raw material obligations, inventory writedowns and unfavorable net timing from the third quarter are not expected to reoccur.
  • Evaluating asset optimization initiatives, such as the potential closures of the Boehlen, Germany styrene plant and one production line at the Stade, Germany polycarbonate plant, which would be expected to have a positive financial impact in 2023.
  • Making headway on our transformation as evidenced by the growth of our sustainable and material substitution products
  • Ample liquidity and we anticipate cash generation to fund the transformation while providing solid shareholder returns.

Headwinds

  • Similar market conditions in the fourth quarter with some level of continued customer destocking
  • Uncertain economic conditions
  • Global supply chain volatility
  • Increased energy costs
  • Increased costs for transportation of our products

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 Q3 2022

Historical avgQ3 2022

-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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