Celanese Shares Tumble 13.07% on $520M Volume Spike as Earnings Beat Estimates Despite Weak Sales

Celanese’s shares fell 13.07% on August 12, 2025, with a trading volume of $0.52 billion, a 189.21% increase from the previous day. Despite a 39.5% decline in adjusted earnings per share to $1.44 and a 4.5% drop in revenue to $2.53 billion, the company exceeded estimates in both metrics. Weak pricing and volume declines, particularly in the Acetyl Chain (-7.2% YoY) and Engineered Materials (-1.7% YoY) segments, pressured sales. However, cost reductions and operational efficiency boosted free cash flow to $311 million in Q2.

CEO Scott Richardson highlighted “20-year lows” in Western Hemisphere acetyl demand and emphasized strategic cost cuts and innovation in electric vehicles. The company reaffirmed its 2025 free cash flow guidance of $700–$800 million and projected Q3 adjusted EPS of $1.10–$1.40. A $25 million sequential earnings hit from inventory reductions in the Engineered Materials segment was noted, though management remains focused on cash flow prioritization and operational agility.

Financially, Celanese ended Q2 with $1.17 billion in cash and a current ratio of 1.94. While debt rose 2.5% sequentially to $12.69 billion, the company’s low beta and disciplined capital structure underscore its resilience amid macroeconomic headwinds. Analysts caution that prolonged weak demand in automotive and construction could challenge near-term margins, though long-term opportunities in EV-related materials and cost optimization are seen as catalysts.

The backtested strategy of buying the top 500 stocks by daily volume and holding for one day yielded a $2,340 profit from 2022 to the present, with a maximum drawdown of -15.3% recorded on October 27, 2022.