Celanese Corporation Reports Full-Year 2025 and Fourth-Quarter Results
Celanese Corporation, a global producer of chemical and specialty material solutions, announced its financial results for full-year 2025 and the fourth quarter. The company recorded a U.S. GAAP diluted loss per share of $10.44 for the year, while adjusted earnings per share reached $3.98. Net sales totaled $9.5 billion, representing a 7% decline from the prior year due to lower pricing and reduced volumes, partially offset by minor currency benefits.
Throughout 2025, demand remained below typical levels across key end-markets such as automotive, paints, coatings, and construction. In response, Celanese prioritized cash-flow generation, cost discipline, balance-sheet improvement, and renewed top-line growth initiatives. The company posted a consolidated operating loss of $786 million, alongside adjusted EBIT of $1.2 billion and operating EBITDA of $1.9 billion, corresponding to margins of (8%), 12%, and 20%, respectively. Operating cash flow reached $1.1 billion, while free cash flow totaled $773 million.
The gap between reported GAAP earnings and adjusted earnings was largely driven by Certain Items totaling approximately $1.6 billion.
Fourth-Quarter 2025 Performance
In the fourth quarter, Celanese delivered U.S. GAAP diluted earnings per share of $0.23 and adjusted earnings per share of $0.67. Quarterly net sales were $2.2 billion, down 9% sequentially, reflecting a 7% drop in volume and 2% decline in price.
The company reported operating profit of $93 million, adjusted EBIT of $251 million, and operating EBITDA of $435 million, with margins of 4%, 11%, and 20%, respectively. Results were influenced by year-end destocking trends and competitive pressure in acetate tow, partially offset by cost reductions and improved product mix within Engineered Materials. Fourth-quarter operating cash flow reached $252 million, and free cash flow totaled $160 million.
Management highlighted meaningful progress during the year, including strong free cash flow generation, cost-reduction execution exceeding $120 million, portfolio optimization actions, refinancing of near-term maturities, and advancement of growth initiatives. Despite softer seasonal demand in the fourth quarter, leadership emphasized that structural improvements position the company for continued recovery.
Engineered Materials Segment
Full-Year Results
The Engineered Materials business generated $5.4 billion in net sales, a 4% year-over-year decline driven by reduced volumes and slightly lower pricing. Early in 2025, the segment launched a complexity-reduction program aimed at lowering costs and inventory. This initiative produced approximately $70 million in savings and reduced inventories by more than $100 million.
For the full year, the segment reported an operating loss of $958 million, adjusted EBIT of $720 million, and operating EBITDA of $1.2 billion, translating to margins of (18%), 13%, and 22%. Although European automotive destocking significantly affected first-quarter performance, cost controls and operational initiatives helped stabilize results through the remainder of the year.
Strategically, the segment continued improving pipeline quality, application development, and digital capabilities, including the launch of an advanced material-selection digital assistant platform designed to enhance customer engagement and product adoption.
Fourth-Quarter Results
Fourth-quarter net sales in Engineered Materials totaled $1.3 billion, down 8% sequentially due to weaker volumes in Asia and channel destocking in the Western Hemisphere. Despite these headwinds, the business achieved operating profit of $111 million, adjusted EBIT of $183 million, and operating EBITDA of $288 million, with margins of 9%, 14%, and 23%. Performance improvements were largely attributed to cost discipline and higher-value product mix.
Acetyl Chain Segment
Full-Year Results
The Acetyl Chain segment recorded $4.2 billion in net sales, representing an 11% decline from the previous year. Lower demand in paints, coatings, construction, and acetate tow markets negatively affected both pricing and volumes. Competitive dynamics and weaker end-market conditions further pressured profitability.
Nevertheless, the segment delivered operating profit of $539 million, adjusted EBIT of $695 million, and operating EBITDA of $947 million, with margins of 13%, 16%, and 22%. During the year, the business executed several operational and strategic measures to enhance performance:
- Announced plans to close the Lanaken, Belgium acetate tow facility
- Idled the Frankfurt VAM plant for much of the second half
- Shifted production toward lower-cost U.S. Gulf Coast assets
- Expanded differentiated downstream applications to improve margins
- Accelerated commercialization of sustainable Eco-CC product solutions
- Advanced manufacturing digitization across the global network
Fourth-Quarter Results
Fourth-quarter net sales reached $940 million, down 11% sequentially, primarily due to seasonally weak demand and December softness. The segment generated operating profit of $90 million, adjusted EBIT of $146 million, and operating EBITDA of $210 million, corresponding to margins of 10%, 16%, and 22%.
Operational responses included optimizing production at low-cost facilities, reducing utilization at higher-cost sites, and lowering global distribution expenses to match market conditions.
Cash Flow, Taxes, and Financial Position
For full-year 2025, Celanese produced $1.1 billion in operating cash flow and $773 million in free cash flow, supported by cost reductions, disciplined capital spending, inventory improvements in Engineered Materials, and working-capital timing benefits.
The company’s effective GAAP tax rate was 7% on a full-year loss, largely influenced by a $1.1 billion non–deductible goodwill impairment and increased valuation allowances on foreign tax credits. These factors were partially offset by deferred tax benefits tied to integration and restructuring activities, along with tax examination resolutions. On an adjusted basis, the effective tax rate was 8%.
Outlook for 2026
Management expects minimal change in overall demand conditions entering the first quarter of 2026, with modest seasonal volume improvements and ongoing cost-reduction benefits. However, timing differences related to acetate tow joint-venture dividends in China will partially offset gains. First-quarter adjusted earnings per share are projected between $0.70 and $0.85.
Looking further ahead, Celanese anticipates another strong year of cash generation, targeting free cash flow of $650 million to $750 million. While macroeconomic uncertainty persists, leadership believes portfolio actions, operational efficiencies, and growth initiatives have created forward momentum that will allow the company to benefit from an eventual market recovery.
Company Overview
Celanese Corporation is a global leader in chemistry and specialty materials, supplying solutions used across major industries and consumer applications. Through scientific innovation, advanced manufacturing, and commercial expertise, the company aims to deliver value to customers, employees, and shareholders while expanding its sustainable product portfolio and supporting responsible material management.
As a Fortune 500 enterprise, Celanese employs more than 11,000 people worldwide and generated $9.5 billion in net sales during 2025, reinforcing its position as a significant participant in the global chemical industry.
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