NYSE$TSEOF

Trinseo Plc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Trinseo's fourth quarter results were impacted by lower sales volume and a non-cash impairment charge.

Trinseo reported a net sales decrease of 25% compared to the prior year, primarily due to lower sales volume across all segments. The company experienced a net loss from continuing operations of $364 million, which included a $297 million non-cash impairment charge. Adjusted EBITDA was $6 million, significantly lower than the prior year, influenced by weak demand, customer destocking, and increased imports from Asia.

  • Net sales decreased 25% year-over-year due to lower sales volume.
  • Net loss from continuing operations was $364 million, including a $297 million non-cash impairment charge.
  • Adjusted EBITDA was $6 million, impacted by unfavorable net timing and natural gas hedging.
  • Company began implementing asset restructuring initiatives, expecting a $60 million profitability improvement.

Headline financials

Total Revenue

$975M

Previous: $1.3B-24.9%
EPS (adj)

-$1.72

Previous: $0.83-307.2%
Adjusted EBITDA

$6.3M

No prior period
Free Cash Flow

-$20.2M

Previous: $159M-112.7%
Net Income

-$364M

Previous: $1M-36530.0%
Operating Income

-$421M

Previous: $47.2M-991.9%
Gross Profit

-$3.2M

Previous: $122M-102.6%
Cash & Equivalents

$212M

Previous: $573M-63.1%
Total Assets

$3.76B

Previous: $4.71B-20.2%
Stock-Based Comp

$3M

Previous: $4.2M-28.6%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$975M

Q4 2022-24.9%vs Q4 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

Trinseo · $460M total across 2 segments · Q4 2022

  • Latex Binders
    $255M-16.5%
  • Engineered Materials
    $205M-26.0%

Forward guidance

Trinseo anticipates continued challenging demand conditions in early 2023, but expects destocking to end soon. They expect first quarter sales volumes to be seasonally stronger than fourth quarter with continued improvement through the year as demand in China recovers and energy prices in Europe moderate.

Tailwinds

  • Expectation of destocking ending early in the year
  • Anticipation of stronger sales volumes in Q1 compared to Q4
  • Continued sales volume improvement through the year
  • Recovery of demand in China
  • Moderation of energy prices in Europe

Headwinds

  • Underlying demand expected to remain challenged
  • Completion of asset restructuring initiatives
  • Focus on growth platforms including material substitution applications
  • Focus on products containing recycled or bio-based materials
  • Ability to generate cash and strong liquidity position

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 Q4 2022

Historical avgQ4 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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