Celanese Corp (BSP:C1NS34)

Q2 2026 Celanese Corp Earnings Call Transcript

Aug 5, 2026 / 02:00 PM GMT

Transcript 8-K

Key Points

Positve

Celanese Corp (CE) demonstrated strong operational agility by restarting the Frankfurt plant in about 5 weeks, showcasing its ability to respond quickly to supply disruptions.
The company successfully offset raw material cost inflation in engineered materials through aggressive pricing actions, exiting Q2 with strong price levels.
Celanese Corp (CE) is making progress on its $1 billion divestiture target, having completed the Micromax transaction and expecting to announce at least one more deal by year-end.
The company is confident in its free cash flow guidance of $700-800 million for 2026, with a sustainable baseline level expected over the next few years.
Celanese Corp (CE) is driving growth in high-value segments like data centers, medical, and drug delivery, with these areas contributing disproportionately to margins and offering long-term growth potential.
The company is executing cost reduction actions, including footprint rationalization and restructuring, expected to deliver $80-100 million in savings for 2027.
Celanese Corp (CE) is deleveraging aggressively, with net debt expected to finish 2026 around $10-11 billion and a target of $9 billion next year, moving toward a long-term leverage goal of 3x.
The company's Western Hemisphere profitability remains strong, with margins still above pre-war levels despite supply chain normalization.
Celanese Corp (CE) is seeing positive momentum in acetate tow, with destocking moderating and order patterns normalizing ahead of the Lanaken closure.
The company is leveraging its global footprint to capture market share from competitors' outages, converting reliability into contracted business for next year.

Negative

Celanese Corp (CE) expects a moderation in the second half of 2026, with Q3 guidance of $135-175 million reflecting lower earnings due to inventory absorption and raw material cost headwinds.
The company faces a $10 million reduction in equity earnings from the Jazan joint venture in Q3, as the plant was down for much of Q2.
Raw material costs in engineered materials are expected to compress margins in Q3, with the full impact of price increases already achieved in Q2.
Acetate tow volumes declined year-over-year due to ongoing destocking, which is expected to continue into the back half of the year.
The accelerated closure of the Lanaken plant will result in a higher inventory absorption hit in H2 2026, though it positions for a cleaner 2027.
Working capital use was significant in Q2, with nearly $200 million consumed, and year-to-date use of cash is almost $300 million, though expected to normalize.
The company's other activities line is running higher in 2026 due to compensation expense adjustments, which may not be sustainable at current levels.
Auto volumes declined year-over-year, tracking builds, and the company is less focused on outgrowing the market, which could limit volume growth in that segment.
The company faces ongoing challenges from supply chain normalization, which is compressing margins in the acetyl chain despite Western Hemisphere strength.
Celanese Corp (CE) expects some level of destocking in acetate tow to continue, and the pace of change in that business has slowed but not fully resolved.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CE.N - Celanese Corp
Q2 2026 Celanese Corp Earnings Call
Aug 05, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings and welcome to the Seleni Q2 2026 earnings call in webcast at this time, all participants are in a listen-only mode.

The question-and-answer session will follow brief remarks if anyone should require operator assistance during the conference, please press 0 on your telephone keypad.

Please note that this conference is being recorded.

I will now turn the conference over to Bill Cunningham.

Thank you, Bill.

You may begin.

Thanks, Darryl.

Welcome to the 70s Corporation second quarter, 2026 earnings conference call.

My name is Bill Cunningham, Vice President of Investor Relations.

With me on the call today are Scott Richardson, President and Chief Executive

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