WAYNE, PA — Trinseo (NYSE: TSE) has reported its financial results for both the fourth quarter and full year of 2024, offering insights into the global materials company’s performance amid challenging market conditions. The results reflect continued efforts to streamline operations and position the company for future growth.
Fourth Quarter Highlights
Trinseo posted net sales of $821 million for the fourth quarter of 2024, a 2% decline compared to the previous year. This decrease was primarily driven by weaker end-market demand and intentional reductions in low-margin sales, which led to a 6% drop in volumes. However, higher raw material costs and an improved product mix contributed to a 4% increase in net pricing.
The company reported a net loss of $118 million for the quarter, which included $28 million in restructuring charges related to the decommissioning of its polycarbonate plant in Stade, Germany. Adjusted EBITDA totaled $26 million, a slight improvement from the prior year.
Commenting on the results, Frank Bozich, Trinseo’s CEO, stated, “Core business results in the fourth quarter were in line with expectations, reflecting seasonally lower volumes and extended year-end shutdowns. However, falling raw material prices resulted in negative timing impacts, which were offset by strong free cash flow generation.” The quarter closed with $212 million in cash and $492 million in pro-forma liquidity following a January refinancing transaction.
Full-Year 2024 Performance
For the full year, Trinseo reported net sales of $3.3 billion, down 4% from the prior year, driven by lower volumes. Net loss for 2024 was $349 million, an improvement of $352 million compared to 2023, largely due to the absence of a $350 million goodwill impairment charge reported in the previous year.
The company achieved $204 million in Adjusted EBITDA, marking a $50 million improvement year-over-year, supported by restructuring initiatives and moderating input costs. Despite these improvements, free cash flow for 2024 remained negative at $78 million, largely impacted by cash used in operations.
Significant developments included the sale of the Stade polycarbonate manufacturing assets and a polycarbonate technology license to Deepak Chem Tech Limited for $52 million.
Business Segment Performance
Key segments reported mixed results in the fourth quarter:
- Engineered Materials posted net sales of $276 million, flat year-over-year, with Adjusted EBITDA of $27 million, bolstered by higher consumer electronics sales and improved pricing.
- Latex Binders achieved $218 million in net sales, reflecting a 1% increase despite lower Asia paper volumes.
- Polymer Solutions reported $327 million in net sales, a 6% decline attributed to reduced polystyrene volumes, although Adjusted EBITDA improved to $17 million.
- Americas Styrenics faced challenges, reporting a negative Adjusted EBITDA of $10 million due to unfavorable raw material timing impacts and lower styrene margins.
First Quarter 2025 Outlook
Trinseo forecasts first quarter 2025 Adjusted EBITDA to range between $60 million and $80 million, supported by contributions from its polycarbonate technology license agreement. However, net loss is expected to range between $40 million and $60 million due to ongoing demand challenges in automotive, construction, and Asian paper markets.
Bozich expressed cautious optimism for the year ahead, stating, “While we continue to face several macroeconomic challenges entering 2025, I am encouraged by Trinseo’s outlook. The actions we have taken over the past two years have positioned us well for an eventual end-market recovery.”
Looking Ahead
Trinseo remains focused on profitability through restructuring, improving liquidity, and investing in sustainable technologies. As market conditions stabilize, the company expects to capitalize on opportunities for growth in high-value materials and advanced recycling innovations, positioning itself for long-term success.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.