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Celanese (CE) Down 10.7% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Celanese (CE - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Celanese due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Celanese Corporation before we dive into how investors and analysts have reacted as of late.
Celanese’s Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Celanese 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 roughly $2.34 billion decreased roughly 2.2% year over year from $2.39 billion. It beat the Zacks Consensus Estimate of $2.26 billion. 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.
Segment Highlights
Net sales in the Engineered Materials unit were $1.33 billion in the reported quarter, up around 2.9% year over year from $1.29 billion. It beat our estimate of $1.24 billion. 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 $1.04 billion, down roughly 7.2% year over year from $1.12 billion. 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%.
Financials
Celanese ended the quarter with cash and cash equivalents of $1.76 billion, up roughly 39.2% sequentially. Long-term debt declined 5.1% sequentially to $10.8 billion.
Cash provided by operating activities was $76 million, and free cash flow was $3 million in the reported quarter.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 43.27% due to these changes.
VGM Scores
At this time, 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 A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Celanese has a Zacks Rank #3 (Hold). We expect an in-line 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, Ashland (ASH - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Ashland reported revenues of $482 million in the last reported quarter, representing a year-over-year change of +0.6%. EPS of $0.91 for the same period compares with $0.99 a year ago.
Ashland is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Ashland. Also, the stock has a VGM Score of B.
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Celanese (CE) Down 10.7% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Celanese (CE - Free Report) . Shares have lost about 10.7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Celanese due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Celanese Corporation before we dive into how investors and analysts have reacted as of late.
Celanese’s Q1 Earnings Miss Estimates, Revenues Decline Y/Y
Celanese 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 roughly $2.34 billion decreased roughly 2.2% year over year from $2.39 billion. It beat the Zacks Consensus Estimate of $2.26 billion. 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.
Segment Highlights
Net sales in the Engineered Materials unit were $1.33 billion in the reported quarter, up around 2.9% year over year from $1.29 billion. It beat our estimate of $1.24 billion. 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 $1.04 billion, down roughly 7.2% year over year from $1.12 billion. 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%.
Financials
Celanese ended the quarter with cash and cash equivalents of $1.76 billion, up roughly 39.2% sequentially. Long-term debt declined 5.1% sequentially to $10.8 billion.
Cash provided by operating activities was $76 million, and free cash flow was $3 million in the reported quarter.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 43.27% due to these changes.
VGM Scores
At this time, 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 A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Celanese has a Zacks Rank #3 (Hold). We expect an in-line 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, Ashland (ASH - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Ashland reported revenues of $482 million in the last reported quarter, representing a year-over-year change of +0.6%. EPS of $0.91 for the same period compares with $0.99 a year ago.
Ashland is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Ashland. Also, the stock has a VGM Score of B.