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Celanese Q1 Earnings Miss Estimates, Revenues Decline Y/Y
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Key Takeaways
CE reported Q1 EPS of 85 cents, up 57%, but missed estimates while revenue declined 2.2% year over year.
CE saw sales pressure from weak China auto demand and acetate tow softness.
CE expects stronger Q2 with pricing gains, higher volumes; it raised full-year FCF outlook.
Celanese Corporation (CE - Free Report) reported a first-quarter 2026 earnings from continuing operations of 41 cents per share. This compares favorably with a loss of 17 cents in the prior-year quarter.
Adjusted earnings were 85 cents per share, up 57.4% from 54 cents reported a year ago. The bottom line missed the Zacks Consensus Estimate of 88 cents.
Revenues of $2,337 million decreased roughly 2.2% year over year from $2,389 million. It beat the Zacks Consensus Estimate of $2,264.7 million. The decline in net sales was due to continued softness in certain end markets, particularly automotive in China, and continued weakness in acetate tow. Higher feedstock and energy costs across both businesses also partly offset the benefits from the favorable mix and cost productivity measures.
Celanese Corporation Price, Consensus and EPS Surprise
Net sales in the Engineered Materials unit were $1,325 million in the reported quarter, up around 2.9% year over year from $1,287 million. It beat our estimate of $1,239 million. The segment earned an operating profit of $221 million, up roughly 135.1% year over year, and an adjusted EBIT of $220 million, up about 77.4%.
The Acetyl Chain segment posted net sales of $1,036 million, down roughly 7.2% year over year from $1,116 million. It topped our estimate of $993 million. The segment generated an operating profit of $95 million, down roughly 41% year over year, and an adjusted EBIT of $131 million, down around 21.6%.
CE’s Financials
Celanese ended the quarter with cash and cash equivalents of $1,758 million, up roughly 39.2% sequentially. Long-term debt declined 5.1% sequentially to $10,813 million.
Cash provided by operating activities was $76 million, and free cash flow was $3 million in the reported quarter.
CE’s Outlook
Celanese expects a meaningful sequential improvement in the second quarter, supported by stronger volumes and realization of price increases in the Acetyl Chain, along with pricing gains in Engineered Materials and seasonal demand across both segments. Adjusted earnings per share for the second quarter are projected in the range of $2.00 to $2.40, with the second half of 2026 expected to deliver around $3.00 per share.
These actions are anticipated to strengthen earnings through 2026, accelerate deleveraging and bring the net debt-to-operating EBITDA ratio to approximately 4.8x, supporting improved resilience and long-term performance. Celanese also raised its full-year free cash flow outlook to $700-$800 million.
CE’s Price Performance
CE shares have surged 42.4% in the past year compared with an 4.7% rise in the industry.
Image Source: Zacks Investment Research
CE’s Zacks Rank & Key Picks
CE currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Mercer International Inc. (MERC - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Mercer is slated to report first-quarter 2026 results on May 7. The Zacks Consensus Estimate for loss is pegged at 74 cents per share, indicating 124.2% year-over-year decline. MERC sports a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently sports a Zacks Rank #2.
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Celanese Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Key Takeaways
Celanese Corporation (CE - Free Report) reported a first-quarter 2026 earnings from continuing operations of 41 cents per share. This compares favorably with a loss of 17 cents in the prior-year quarter.
Adjusted earnings were 85 cents per share, up 57.4% from 54 cents reported a year ago. The bottom line missed the Zacks Consensus Estimate of 88 cents.
Revenues of $2,337 million decreased roughly 2.2% year over year from $2,389 million. It beat the Zacks Consensus Estimate of $2,264.7 million. The decline in net sales was due to continued softness in certain end markets, particularly automotive in China, and continued weakness in acetate tow. Higher feedstock and energy costs across both businesses also partly offset the benefits from the favorable mix and cost productivity measures.
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 $1,325 million in the reported quarter, up around 2.9% year over year from $1,287 million. It beat our estimate of $1,239 million. The segment earned an operating profit of $221 million, up roughly 135.1% year over year, and an adjusted EBIT of $220 million, up about 77.4%.
The Acetyl Chain segment posted net sales of $1,036 million, down roughly 7.2% year over year from $1,116 million. It topped our estimate of $993 million. The segment generated an operating profit of $95 million, down roughly 41% year over year, and an adjusted EBIT of $131 million, down around 21.6%.
CE’s Financials
Celanese ended the quarter with cash and cash equivalents of $1,758 million, up roughly 39.2% sequentially. Long-term debt declined 5.1% sequentially to $10,813 million.
Cash provided by operating activities was $76 million, and free cash flow was $3 million in the reported quarter.
CE’s Outlook
Celanese expects a meaningful sequential improvement in the second quarter, supported by stronger volumes and realization of price increases in the Acetyl Chain, along with pricing gains in Engineered Materials and seasonal demand across both segments. Adjusted earnings per share for the second quarter are projected in the range of $2.00 to $2.40, with the second half of 2026 expected to deliver around $3.00 per share.
These actions are anticipated to strengthen earnings through 2026, accelerate deleveraging and bring the net debt-to-operating EBITDA ratio to approximately 4.8x, supporting improved resilience and long-term performance. Celanese also raised its full-year free cash flow outlook to $700-$800 million.
CE’s Price Performance
CE shares have surged 42.4% in the past year compared with an 4.7% rise in the industry.
CE’s Zacks Rank & Key Picks
CE currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth a look in the basic materials space are Mercer International Inc. (MERC - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report) and Hawkins, Inc. (HWKN - Free Report) .
Mercer is slated to report first-quarter 2026 results on May 7. The Zacks Consensus Estimate for loss is pegged at 74 cents per share, indicating 124.2% year-over-year decline. MERC sports a Zacks Rank #2 (Buy) at present.
Idaho is expected to report first-quarter 2026 results on May 14. The Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating 258.3% year-over-year growth. IDR sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins is scheduled to report fiscal fourth-quarter results on May 13. The Zacks Consensus Estimate for HWKN’s fourth-quarter earnings is pegged at 77 cents per share. HWKN currently sports a Zacks Rank #2.