Trinseo Reports Strong Fourth Quarter and Full-Year 2024 Financial Results, Outlines Optimistic 2025 Outlook
Trinseo, a leading specialty materials solutions provider, today announced its fourth-quarter and full-year 2024 financial results, highlighting significant improvements in operational performance and financial health. The company also provided a positive outlook for the first quarter of 2025, underscoring its strategic focus on sustainability, material substitution, and long-term growth.
Fourth Quarter Performance
Trinseo reported a net loss of $118 million for the fourth quarter of 2024, down from a loss of $265 million in the same period of 2023. The improved financial performance reflects a $147 million reduction in the provision for income taxes and $10 million higher restructuring and other charges in the prior year. Adjusted EBITDA for the quarter stood at $26 million, a $6 million increase compared to the previous year, despite a $10 million unfavorable net timing variance. Notably, Trinseo generated Free Cash Flow of $64 million, marking a $67 million sequential and year-over-year improvement.
Frank Bozich, President and CEO of Trinseo, commented on the company’s performance: “Core business results in the fourth quarter were in line with expectations, reflecting seasonally lower volumes and extended year-end shutdowns. However, falling raw material prices resulted in negative timing impacts in Polymer Solutions and Americas Styrenics. These lower raw material prices contributed to higher free cash flow generation, which reached its highest level in over two years.”
Full-Year 2024 Summary
For the full year 2024, Trinseo reported a net loss of $349 million, a significant improvement from the $701 million loss in 2023. This improvement was largely attributed to a $350 million goodwill impairment charge recorded in 2023. Adjusted EBITDA for the year came in at $204 million, up $50 million from the previous year. Despite lower sales volumes, higher prices—driven by the pass-through of higher raw material costs and improved product mix—helped mitigate the impact of reduced demand.
Trinseo’s cash used in operations amounted to $14 million, while capital expenditures reached $63 million, resulting in Free Cash Flow of negative $78 million for the year. The company executed on several initiatives aimed at exiting loss-generating businesses, optimizing business management and support functions, and enhancing liquidity and debt maturity profiles. These efforts have significantly improved Trinseo’s financial flexibility and positioning for future growth.
Business Segment Performance
Trinseo has restructured its business segments to better align with its strategic focus on sustainability and material substitution. The Compounding business within the Plastics Solutions segment was integrated into the Engineered Materials segment, while the remaining Plastics Solutions businesses were combined with the Polystyrene segment and renamed Polymer Solutions.
- Engineered Materials: Net sales of $276 million for the quarter remained flat compared to the previous year, with a 4% decline in sales volume offset by a 4% increase in prices. Adjusted EBITDA of $27 million was $20 million higher than the prior year, driven by higher margins from moderating input costs, increased volumes into consumer electronics applications, and improved PMMA pricing.
- Latex Binders: Net sales of $218 million increased by 1% for the quarter, with a 5% drop in volumes in Asia’s paper applications more than offset by a 6% rise in prices due to improved product mix and higher raw material costs. Adjusted EBITDA of $19 million was $1 million higher than the prior year, thanks to higher margins and improved regional and product mix. Sales volumes for CASE applications accounted for 12% of total segment volumes and 16% of total segment variable margin, with a 10% increase in volumes over the prior year.
- Polymer Solutions: Net sales of $327 million decreased by 6%, primarily due to an 8% decline in sales volume, particularly in low-margin polystyrene sales. Adjusted EBITDA of $17 million was $8 million higher than the prior year, reflecting better product mix and lower fixed costs from the exit of styrene production in Terneuzen.
- Americas Styrenics: Adjusted EBITDA of negative $10 million for the quarter was $23 million lower than the prior year, driven by a $15 million unfavorable timing impact due to falling raw material prices and lower styrene margins.
First Quarter 2025 Outlook
Trinseo provided a cautiously optimistic outlook for the first quarter of 2025, expecting a net loss of $40 million to $60 million and Adjusted EBITDA of $60 million to $80 million. This forecast includes approximately $26 million attributable to the polycarbonate technology license agreement with Deepak Chem Tech Limited, which also marked the sale of the Stade, Germany polycarbonate manufacturing assets for $52 million.
Bozich added, “We are seeing seasonally higher volumes to begin the first quarter, but still expect Q1 volumes to be lower year-over-year due to continued weakness in automotive and building and construction end markets, and in paper applications in Asia. Despite these lower volumes, we expect Adjusted EBITDA to be consistent with the prior year, excluding the contribution from the polycarbonate technology license agreement.”
Strategic Initiatives and Future Prospects
Trinseo’s recent refinancing transaction in January 2025 greatly enhanced its liquidity position, boosting total liquidity to $492 million pro forma. This improved financial health provides Trinseo with ample runway to continue investing in its growth businesses and leading circular technologies. The company remains committed to driving sustainable innovation and improving operational efficiencies across its segments.
Bozich concluded, “While we continue to face several macroeconomic challenges entering 2025, I am encouraged by Trinseo’s outlook as we begin the new year. The actions we have taken over the past two years have positioned us well for an eventual end market recovery, and our recent refinancing transaction strengthens our liquidity and strategic capabilities.”
Upcoming Conference Call
Trinseo will host a conference call to discuss its fourth-quarter 2024 financial results on Thursday, February 13, 2025, at 10 a.m. Eastern Time. Frank Bozich, President and CEO, David Stasse, Executive Vice President and CFO, and Bee van Kessel, Senior Vice President of Corporate Finance and Investor Relations, will provide detailed commentary on the results and answer questions from analysts and investors. To participate in the Q&A session, registration is required through the provided link. A webcast option is also available for those interested in listening only.
Trinseo’s fourth-quarter 2024 financial results, along with presentation slides, will be available on the company’s Investor Relations website. The company will also file copies of the financial results press release and presentation slides with the U.S. Securities and Exchange Commission via a Form 8-K. A replay of the conference call and transcript will be archived on the Investor Relations website shortly after the call, accessible until February 13, 2026.
By focusing on strategic initiatives and maintaining financial discipline, Trinseo is well-positioned to navigate the current economic environment and capitalize on future growth opportunities. Stay tuned for more updates as the company continues to innovate and deliver value to its stakeholders.
