Celanese (CE) investor relations material

Executive summary

• Q2 2026 delivered strong results with $140 million free cash flow, $2.45 adjusted EPS, and 9% net sales growth to $2.75 billion, driven by record variable margin in Engineered Materials, robust Acetyl Chain performance, and strategic focus on high-margin sub-segments like medical and electronics.

• Operational resilience was demonstrated through supply chain navigation, accelerated plant closures, and execution of cost-saving initiatives, including the Ulsan and Lanaken facility closures.

• Portfolio optimization advanced with divestitures, notably the $493 million Micromax® sale, supporting deleveraging and future growth.

• Focused on growth platforms in medical, electronics, and AI infrastructure, with significant YoY and sequential sales increases in these segments.

• Net earnings attributable to the company were $125 million for the quarter, with diluted EPS at $1.13.

Financial highlights

• Q2 2026 adjusted EBIT: $234 million for Engineered Materials, $321 million for Acetyl Chain; operating profit: $276 million; adjusted EBIT margin: 17%; operating EBITDA: $649 million (24% margin).

• Free cash flow for Q2 was $140 million; full-year 2026 target is $700–$800 million.

• Net sales rose to $2.75 billion, with gross profit at $618 million and operating margin at 10%.

• Net debt at quarter-end was $10.6 billion, with a target below $9 billion by end of 2027.

• Adjusted EPS guidance for Q3 2026 is $1.35–$1.75; full-year 2026 target is ~$6.00/share.

Outlook and guidance

• Q3 guidance reflects lower expectations due to accelerated plant closures, inventory absorption, and normalization of supply-related opportunities.

• Full-year 2026 guidance reaffirmed: $700–$800 million free cash flow and ~$6.00 adjusted EPS.

• Capital expenditures for 2026 projected at $300–$350 million, prioritizing maintenance and productivity.

• $80–$100 million of cost reductions targeted for 2027, with additional exit and shutdown costs of $60 million expected through 2027 for Lanaken closure.

• Management expects continued muted demand in key end markets, with ongoing focus on cost reductions, deleveraging, and capital discipline.