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Celanese Q4 Earnings Miss Estimates, Revenues Decline Y/Y
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Key Takeaways
Celanese reported Q4 adjusted EPS of 67 cents, missing estimates as revenues fell 7% year over year.
CE saw weaker volumes and pricing, with Acetyl Chain sales down 15.3% year over year.
Celanese guides Q1 EPS of 70-85 cents and targets $650-$750M in 2026 free cash flow.
Celanese Corporation (CE - Free Report) reported a fourth-quarter 2025 earnings from continuing operations of 23 cents per share. This compares favorably to a loss of $17.55 in the prior-year quarter.
Adjusted earnings were 67 cents per share, down 49.6% from $1.33 reported a year ago. The bottom line missed the Zacks Consensus Estimate of 89 cents.
Revenues of $2,204 million decreased roughly 7% year over year. It missed the Zacks Consensus Estimate of $2,229.9 million. The decline in net sales was a result of a decrease in volumes and prices. Year-end destocking and a competitive environment primarily drove the declines.
Celanese Corporation Price, Consensus and EPS Surprise
Net sales in the Engineered Materials unit were $1,277 million in the reported quarter, up about 0.6% year over year. It beat our estimate of $1,196.7 million. The segment earned an operating profit of $111 million and an adjusted EBIT of $183 million for the fourth quarter.
The Acetyl Chain segment posted net sales of $940 million, down roughly 15.3% year over year. It missed our estimate of $1,035.1 million. The segment generated an operating profit of $90 million and an adjusted EBIT of $146 million in the reported quarter.
CE’s Financials
Celanese ended the quarter with cash and cash equivalents of $1,263 million, down roughly 12.3% sequentially. Long-term debt declined 2.2% sequentially to $11,394 million.
Cash provided by operating activities was $252 million, and free cash flow was $160 million in the reported quarter.
CE’s Outlook
The company expects volume improvements in the first quarter due to seasonality and benefits from ongoing cost reduction initiatives. The company anticipates three payments a year, depending on the timing of the acetate tow dividend from its joint venture in China. Based on these factors, it anticipates first-quarter adjusted earnings per share to be between 70 cents and 85 cents.
Management remains focused on its core priorities, generating cash flow to accelerate deleveraging, intensifying cost improvements and driving top-line growth. The company expects strong cash generation and set its 2026 free cash flow target at $650 to $750 million.
CE’s Price Performance
Celanese’s shares have gained 6.5% in the past year compared with a 4.4% rise in the industry.
Image Source: Zacks Investment Research
CE’s Zacks Rank & Key Picks
CE currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are AngloGold Ashanti plc (AU - Free Report) , First Majestic Silver Corp. (AG - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
AngloGold is scheduled to report fourth-quarter results on Feb. 20. The Zacks Consensus Estimate for AU’s fourth-quarter earnings is pegged at $1.90, indicating 113.48% year over year growth. AU currently flaunts a Zacks Rank #1 (Strong Buy) at present. You can seethe complete list of today’s Zacks #1 Rank stocks here.
First Majestic Silver is slated to report fourth-quarter results on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at 27 cents per share, indicating a 800% year over year growth. AG carries a Zacks Rank #2.
Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, presently carrying a Zacks Rank #2, beat the consensus estimate in all the last four quarters, the average earnings surprise being 150%.
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Celanese Q4 Earnings Miss Estimates, Revenues Decline Y/Y
Key Takeaways
Celanese Corporation (CE - Free Report) reported a fourth-quarter 2025 earnings from continuing operations of 23 cents per share. This compares favorably to a loss of $17.55 in the prior-year quarter.
Adjusted earnings were 67 cents per share, down 49.6% from $1.33 reported a year ago. The bottom line missed the Zacks Consensus Estimate of 89 cents.
Revenues of $2,204 million decreased roughly 7% year over year. It missed the Zacks Consensus Estimate of $2,229.9 million. The decline in net sales was a result of a decrease in volumes and prices. Year-end destocking and a competitive environment primarily drove the declines.
Celanese Corporation Price, Consensus and EPS Surprise
Celanese Corporation price-consensus-eps-surprise-chart | Celanese Corporation Quote
CE’s Segment Highlights
Net sales in the Engineered Materials unit were $1,277 million in the reported quarter, up about 0.6% year over year. It beat our estimate of $1,196.7 million. The segment earned an operating profit of $111 million and an adjusted EBIT of $183 million for the fourth quarter.
The Acetyl Chain segment posted net sales of $940 million, down roughly 15.3% year over year. It missed our estimate of $1,035.1 million. The segment generated an operating profit of $90 million and an adjusted EBIT of $146 million in the reported quarter.
CE’s Financials
Celanese ended the quarter with cash and cash equivalents of $1,263 million, down roughly 12.3% sequentially. Long-term debt declined 2.2% sequentially to $11,394 million.
Cash provided by operating activities was $252 million, and free cash flow was $160 million in the reported quarter.
CE’s Outlook
The company expects volume improvements in the first quarter due to seasonality and benefits from ongoing cost reduction initiatives. The company anticipates three payments a year, depending on the timing of the acetate tow dividend from its joint venture in China. Based on these factors, it anticipates first-quarter adjusted earnings per share to be between 70 cents and 85 cents.
Management remains focused on its core priorities, generating cash flow to accelerate deleveraging, intensifying cost improvements and driving top-line growth. The company expects strong cash generation and set its 2026 free cash flow target at $650 to $750 million.
CE’s Price Performance
Celanese’s shares have gained 6.5% in the past year compared with a 4.4% rise in the industry.
Image Source: Zacks Investment Research
CE’s Zacks Rank & Key Picks
CE currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are AngloGold Ashanti plc (AU - Free Report) , First Majestic Silver Corp. (AG - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
AngloGold is scheduled to report fourth-quarter results on Feb. 20. The Zacks Consensus Estimate for AU’s fourth-quarter earnings is pegged at $1.90, indicating 113.48% year over year growth. AU currently flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Majestic Silver is slated to report fourth-quarter results on Feb. 19. The Zacks Consensus Estimate for earnings is pegged at 27 cents per share, indicating a 800% year over year growth. AG carries a Zacks Rank #2.
Avino Silver is slated to report fourth-quarter results on March 11. The consensus estimate for ASM’s earnings is pegged at 6 cents. ASM, presently carrying a Zacks Rank #2, beat the consensus estimate in all the last four quarters, the average earnings surprise being 150%.