Trinseo (TSE) investor relations material

Executive summary

• Reported a net loss of $116 million and negative EPS of $3.20 for Q1 2026, including $31 million in pre-tax charges from lender negotiations and asset restructuring.

• Adjusted EBITDA was $53 million, $12 million below prior year, mainly due to absence of $26 million polycarbonate licensing income.

• Free cash flow was negative $244 million, impacted by seasonality, trade credit contraction, and higher raw material costs.

• Liquidity at quarter-end was $114 million, with all debt classified as current due to defaults and substantial doubt about ability to continue as a going concern.

• Received NYSE delisting notice; shares now trade over the counter.

Financial highlights

• Net sales for Q1 2026 were $725 million, down 8% year-over-year, primarily due to 9% lower prices and 4% lower volumes, partially offset by favorable FX.

• Adjusted EBITDA of $53 million included $6 million in currency losses.

• Gross profit declined to $61.7 million from $63.8 million year-over-year.

• Operating loss was $23.6 million, with net loss per share at $(3.20) compared to $(2.22) in Q1 2025.

• Interest expense increased 18% year-over-year to $78.7 million.

Outlook and guidance

• Demand recovery is expected to be delayed, with 2026 demand levels anticipated to be consistent with 2025.

• Management is focused on liquidity preservation, cost controls, and evaluating strategic alternatives for its capital structure.

• Continued focus on expanding strategic businesses, with higher volumes in growth platforms and recycled content sales.

• The company is navigating significant geopolitical uncertainty and remains committed to delivering materials and service excellence.