NYSE$TSEOF

Trinseo Plc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Trinseo reported a decrease in net sales and a significant improvement in net loss for the fourth quarter of 2024, driven by lower income tax provisions and higher restructuring charges in the prior year.

Trinseo's fourth quarter 2024 results showed a 2% decrease in net sales compared to the prior year, primarily due to lower sales volumes across all business segments. Despite this, the company significantly improved its net loss by $147 million, largely due to a lower provision for income taxes. Adjusted EBITDA also saw an increase, although it was impacted by unfavorable net timing.

  • Cash provided by operations was $85 million and capital expenditures were $21 million, resulting in Free Cash Flow of $64 million, a $67 million improvement sequentially and year-over-year.
  • Net loss of $118 million included pre-tax restructuring and other charges of $28 million, primarily related to the decommissioning of the Stade, Germany polycarbonate plant, with an EPS of negative $3.33.
  • Adjusted EBITDA was $26 million, including a $9 million unfavorable impact from net timing and an additional $15 million unfavorable net timing impact at Americas Styrenics.
  • Fourth quarter ending cash was $212 million (of which $2 million was restricted) and total liquidity was $354 million; pro-forma for the January 2025 refinancing transaction, total liquidity was $492 million.

Headline financials

Total Revenue

$822M

Previous: $838M-1.9%
EPS (adj)

-$2.67

Previous: -$2.99+10.7%
Adjusted EBITDA

$26M

No prior period
EBITDA

$21M

No prior period
Adjusted Net Loss

-$95M

No prior period
Capital Expenditures

-$19.9M

Previous: -$19.9M+0.1%
Net Income

-$118M

Previous: -$265M+55.5%
Operating Income

-$44.2M

Previous: -$72.5M+39.0%
Gross Profit

$56M

Previous: $20.3M+175.9%

Revenue & EPS history

Trinseo · Revenue · Quarterly

$822M

Q4 2024-1.9%vs Q4 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

For the first quarter of 2025, Trinseo expects a net loss between $(55) million and $(40) million, and Adjusted EBITDA between $65 million and $80 million, including approximately $26 million from the polycarbonate technology license agreement.

Tailwinds

  • Seasonally higher volumes expected to begin the first quarter.
  • Adjusted EBITDA expected to be consistent with the prior year, excluding the contribution from the polycarbonate technology license agreement.
  • Actions taken over the past two years have positioned the company well for an eventual end market recovery.
  • Refinancing transaction closed in January greatly enhances liquidity position.
  • Ample runway to continue investing in growth businesses and leading circular technologies.

Headwinds

  • Q1 volumes expected to be lower year-over-year.
  • Continued weakness in automotive and building and construction end markets.
  • Continued weakness in paper applications in Asia.
  • Facing several macroeconomic challenges entering 2025.
  • Forecasted net loss position for Q1 2025, excluding the impact of potentially dilutive shares.

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 2024

Historical avgQ4 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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro