Celanese (CE) investor relations material

Executive summary

• First quarter 2026 net sales reached $2.3 billion, up 6% sequentially, with a 5% volume increase and stable pricing, while net sales were $2,337 million, down 2% year-over-year due to lower volumes and pricing in Acetyl Chain, partially offset by currency impacts.

• Achieved positive free cash flow in Q1 2026 for the first time since 2022, signaling a solid start to the year.

• Operating profit increased 30% to $214 million, driven by a $50 million gain from the Micromax® business sale and cost savings in Engineered Materials.

• Strategic actions included the restart of the Frankfurt VAM unit and the planned closure of the nylon 6,6 polymerization unit in Singapore.

• Continued execution of cost reduction, deleveraging, and portfolio optimization initiatives, including significant divestitures and refinancing.

Financial highlights

• Q1 2026 free cash flow was $3 million; adjusted EPS was $0.85.

• Engineered Materials delivered $220 million in adjusted EBIT and $221 million in operating profit; Acetyl Chain delivered $131 million in adjusted EBIT and $95 million in operating profit.

• Gross profit was $468 million, slightly down from $474 million year-over-year; operating margin improved to 9.2% from 6.9% year-over-year.

• Cash and cash equivalents increased to $1.8 billion as of March 31, 2026.

• Net cash provided by operating activities was $76 million, up from $37 million in Q1 2025.

Outlook and guidance

• Q2 2026 adjusted EPS guidance is $2.00–$2.40, with Q2 expected to be the highest earnings quarter of the year.

• Full-year free cash flow outlook raised to $700–$800 million.

• Net debt to operating EBITDA ratio targeted to reach approximately 4.8x by year-end.

• Management expects continued muted demand in key end markets, with ongoing focus on cost reductions and deleveraging.

• Capital expenditures for 2026 are projected at $300–$350 million, prioritizing maintenance and productivity improvements.