Celanese 2025 Q3 Earnings Sharp Loss Amid Revenue Drop and Strategic Restructuring

Celanese (CE) reported Q3 2025 earnings marked by a significant net loss, driven by an 8.6% revenue decline and operational challenges. The company’s adjusted EPS of $1.34 beat estimates but was overshadowed by a $1.35 billion net loss, reflecting a 1256.4% deterioration year-over-year. CEO Scott Richardson outlined cost-cutting initiatives and a $1–$2 EPS growth target for 2026, signaling cautious optimism amid ongoing restructuring.

Revenue

Celanese’s total revenue fell to $2.42 billion in Q3 2025, a 8.6% decline from $2.65 billion in the prior year. Engineered Materials remained the largest contributor at $1.38 billion, though this segment also saw a 6.6% year-over-year drop. The Acetyl Chain segment reported $1.06 billion, reflecting a sharper 10.8% decline, while intersegment eliminations reduced revenue by $26 million. These results underscored sector-wide pricing pressures and soft demand, particularly in Europe’s downstream acetyl chain.

Earnings/Net Income

Celanese swung to a loss of $12.39 per share in Q3 2025, a 1302.9% deterioration from a $1.03 profit in the prior-year period. The company’s net loss of $1.35 billion marked a 1256.4% drop in profitability, driven by cost overruns and a $1.5 billion non-cash impairment charge. Despite stronger-than-expected adjusted EPS of $1.34, the headline loss highlighted structural challenges in stabilizing margins.

Post-Earnings Price Action Review

Celanese’s stock price experienced volatile post-earnings movement, reflecting mixed investor sentiment. Shares fell 2.64% on the day of the report and dropped further to -4.97% for the week, with a 15.25% month-to-date decline. The sharp drop contrasted with the CEO’s optimistic guidance, as analysts debated the sustainability of cost-cutting measures like the Lanaken facility closure and Micromax divestiture. While free cash flow guidance of $700–800 million for 2026 provided some optimism, the magnitude of the net loss and sequential pricing pressures raised concerns about short-term recovery.

CEO Commentary

Scott Richardson emphasized Celanese’s focus on cost optimization and portfolio rationalization, citing the Lanaken closure and Micromax sale as key steps to restore profitability. He highlighted progress in the Engineered Materials pipeline, particularly in high-growth areas like EVs and data centers, while cautioning about “flattish demand” in 2025. The CEO projected $1–$2 of 2026 EPS growth, driven by $0.40–0.50 from cost actions and $0.25–0.50 from EM improvements, framing the company as a “coiled spring” poised for growth if demand rebounds.

Guidance

Celanese outlined 2026 EPS growth of $1–$2, with $0.40–0.50 attributed to cost actions, $0.25–0.50 to EM portfolio improvements, and ~$0.10 from reduced interest expenses. Free cash flow guidance of $700–800 million for 2026 was supported by EBITDA improvements and lower restructuring costs. The company reiterated a $1 billion divestiture target by 2027, with Micromax proceeds halfway to that goal.

Additional News

Celanese announced the sale of its Micromax electronics materials business for $500 million, accelerating its $1 billion divestiture target. The company also confirmed the closure of its Lanaken acetate tow facility in Belgium by 2026, aiming to achieve $20–30 million in productivity savings. Analysts at UBS downgraded the stock to a $48 price target, maintaining a neutral rating amid concerns about demand volatility. These strategic moves underscore Celanese’s commitment to reducing leverage and focusing on high-margin segments like Engineered Materials.