Celanese 2025 Q1 Earnings Misses Targets as Net Income Falls 113.7%

Celanese (CE) reported its fiscal 2025 Q1 earnings on May 05th, 2025. The company fell short of expectations, reporting a net loss of $17 million and a diluted loss per share of $0.15, contrasting sharply with the adjusted earnings per share of $0.57, which exceeded analyst predictions of $0.24. Celanese anticipates sustained pressure from raw material costs but retains an optimistic outlook for revenue growth, particularly through strategic investments and improvements in cost management.

Revenue
Celanese's total revenue in Q1 2025 declined by 8.5% to $2.39 billion, compared to $2.61 billion in Q1 2024. The Engineered Materials segment generated $1.29 billion, while the Acetyl Chain contributed $1.12 billion. Intersegment Eliminations accounted for a $14 million reduction, resulting in a cumulative total revenue of $2.39 billion.

Earnings/Net Income
Celanese experienced a significant downturn, shifting to a loss of $0.19 per share from a profit of $1.11 per share in Q1 2024, representing a 117.1% negative change. The net loss of $17 million marked a 113.7% decline from the $124 million net income in the previous year. The EPS performance indicates a challenging quarter for Celanese, highlighting the need for strategic financial maneuvers.

Post-Earnings Price Action Review
Following the earnings announcement, Celanese's stock demonstrated modest movement, with a 3-day win rate of 52.63% and a 10-day win rate of the same percentage, suggesting a tendency for short-term positive performance. Despite a slight 3-day return decline of 0.19%, the stock showed resilience, achieving a 10-day return of 0.20% and a 30-day return of 0.32%, indicating potential for recovery beyond pre-earnings levels. The maximum observed return post-earnings was 2.32% on day 22, illustrating limited upside potential. While revenue, net income, and EPS specifics were not isolated in the backtest, typical trends suggest positive surprises in these areas could boost stock prices, whereas negative surprises might lead to declines. Overall, Celanese's stock responds with short-term fluctuations post-earnings, offering opportunities for investors amidst moderate impact from earnings disclosures.

CEO Commentary
Larry P. W. Culp, Jr., CEO of Celanese Corporation, emphasized the company's dedication to cost reductions and operational efficiencies amid market challenges. He acknowledged complexities in the Mobility & Materials sector post-acquisition from DuPont, underscoring the importance of achieving synergies and growth. Despite external uncertainties like raw material price volatility and geopolitical tensions, Culp expressed cautious optimism regarding maintaining competitive margins and enhancing productivity through technological advancements.

Guidance
Celanese Corporation aims to navigate the current economic landscape with a focus on strategic investments and cost management. Despite anticipated pressures from raw material prices and logistics costs, the company remains optimistic about transferring some of these increases to customers. Management is hopeful for a recovery in demand across key sectors, targeting revenue growth while maintaining strict oversight on production costs. The outlook reflects a commitment to deleveraging efforts and optimizing financial performance amidst market uncertainties.

Additional News
Celanese recently announced a price increase for its Engineered Materials products, effective June 1, 2025, or as contracts permit. This move is driven by increased costs related to product movement, inventory repositioning, plant operations, and raw material fluctuations. The company is leveraging its global and regional operations to ensure enhanced supply continuity for its customers worldwide. Additionally, Celanese has been actively managing trade regulations to maintain market competitiveness. The price adjustments vary across regions, with notable increases in materials such as LCP/PCT, PPS, and TPV products. Celanese continues to focus on maintaining strong customer relations and operational efficiency despite dynamic global trade conditions.