Celanese Q3 Earnings Surpass Estimates Amid Lower Sales Volumes

Celanese Corporation CE reported a third-quarter 2025 loss from continuing operations of $12.39 per share. This compares unfavorably to earnings of $1.05 in the prior-year quarter. 

Adjusted earnings were $1.34 per share, down 44.4% from $2.41 reported a year ago. The bottom line beat the Zacks Consensus Estimate of $1.27. 

Revenues of $2,419 million decreased roughly 8.6% year over year. It missed the Zacks Consensus Estimate of $2,460.5 million. The decline in net sales was a result of a decrease in volumes. Volumes fell 8% and 4% year over year in the Engineered Material and Acetyl Chain segments, respectively. 

Celanese Corporation Price, Consensus and EPS Surprise

CE’s Segment Highlights

Net sales in the Engineered Materials unit were $1,384 million in the reported quarter, down around 6.5% year over year. It beat our estimate of $1,348.2 million. The segment incurred an operating loss of $1,327 million and an adjusted EBIT of $200 million for the third quarter. 

The Acetyl Chain segment posted net sales of $1,061 million, down roughly 10.8% year over year. It missed our estimate of $1,111.5 million. The segment generated an operating profit of $135 million and an adjusted EBIT of $187 million in the reported quarter. 

CE’s Financials

Celanese ended the quarter with cash and cash equivalents of $1,440 million, up roughly 22.8% sequentially. Long-term debt was down 8.1% sequentially to $11,655 million. 

Cash provided by operating activities was $447 million, and free cash flow was $375 million in the reported quarter. 

CE’s Outlook

The company expects volume declines in the fourth quarter due to seasonality in the Western Hemisphere, though these will be partially offset by ongoing cost reduction initiatives. The company continues to identify new productivity levers. Based on these factors, the company anticipates fourth-quarter adjusted earnings per share to be between 85 cents and $1.00. 

Management remains focused on its core priorities, generating cash flow to accelerate deleveraging, intensifying cost improvements and driving top-line growth. The company reaffirmed that third-quarter cash performance demonstrated strong progress toward the company’s 2025 free cash flow target of $700 to $800 million. 

CE’s Price Performance

Celanese’s shares have lost 57.4% in the past year compared with a 12.3% decline of the industry. 

CE’s Zacks Rank & Key Picks

CE currently carries a Zacks Rank #4 (Sell). 

Some better-ranked stocks worth a look in the basic materials space are AngloGold Ashanti Plc. AU, U.S. Gold Corp. USAU and Integra Resources Corp. ITRG. 

AngloGold is slated to report third-quarter results on Nov. 11. The Zacks Consensus Estimate for AU’s third-quarter earnings is pegged at $1.34 per share. Gold Fields currently sports a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

U.S. Gold is expected to report fiscal second-quarter results on Dec. 15. USAU carries a Zacks Rank #2 (Buy) at present. The Zacks Consensus Estimate for USAU’s second-quarter earnings is pegged at a loss of 13 cents, indicating a 35% year-over-year growth. 

Integra Resources is scheduled to report third-quarter results on Nov. 12. ITRG’s earnings estimate for the third quarter is pegged at 13 cents per share. Integra Resources carries a Zacks Rank #2 at present.  

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research