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Celanese (CE) Up 9.2% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Celanese (CE - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Celanese Corporation before we dive into how investors and analysts have reacted as of late.
Celanese’ Q4 Earnings Miss Estimates, Revenues Decline Y/Y
Celanese 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.25% due to these changes.
VGM Scores
Currently, Celanese has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Celanese has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Celanese belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Linde (LIN - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Linde reported revenues of $8.76 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $4.20 for the same period compares with $3.97 a year ago.
Linde is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Linde. Also, the stock has a VGM Score of F.
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Celanese (CE) Up 9.2% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Celanese (CE - Free Report) . Shares have added about 9.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Celanese due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Celanese Corporation before we dive into how investors and analysts have reacted as of late.
Celanese’ Q4 Earnings Miss Estimates, Revenues Decline Y/Y
Celanese 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.
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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -9.25% due to these changes.
VGM Scores
Currently, Celanese has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Celanese has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Celanese belongs to the Zacks Chemical - Specialty industry. Another stock from the same industry, Linde (LIN - Free Report) , has gained 0.7% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Linde reported revenues of $8.76 billion in the last reported quarter, representing a year-over-year change of +5.8%. EPS of $4.20 for the same period compares with $3.97 a year ago.
Linde is expected to post earnings of $4.26 per share for the current quarter, representing a year-over-year change of +7.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Linde. Also, the stock has a VGM Score of F.