Celanese Plans to Divest Micromax Business to Deleverage

Celanese Corporation CE recently announced its plans to divest its Micromax portfolio of products to accelerate its cash generation and deleveraging strategy, its current priority.

With regular review of the assets, CE is exploring various opportunities for cash generation, including the divestiture of the Micromax portfolio. Micromax, being a leading supplier of advanced electronic inks and pastes, is expected to generate more than $300 million in revenues in 2025. Its products are known for durability, flexibility, and performance in harsh environments. It offers solutions to a diverse range of industries, including aerospace, healthcare and transportation.

Although no assurance was given regarding the form that a transaction may take or the specific terms or timing, or that a sale will in fact occur, CE expects this divestiture to sharpen its focus on high-growth assets. The closure of any such transaction will be contingent upon various conditions and approvals, including approval by the board of CE and regulatory clearances.

CE stock has lost 66.3% over the past year compared with the industry’s 1.7% decline.

CE’s Zacks Rank and Key Picks

CE currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Akzo Nobel N.V. AKZOY, Newmont Corporation NEM and Idaho Strategic Resources, Inc. IDR. While AKZOY sports a Zacks Rank #1 (Strong Buy), NEM and IDR currently carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Akzo Nobel’s current-year earnings is pegged at $1.64 per share, implying a 17.14% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing the rest.

The Zacks Consensus Estimate for NEM’s current-year earnings is pegged at $3.92 per share, indicating a 12.64% year-over-year rise.Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed it in one, with an average surprise of 32.41%. NEM’s shares have soared 16% in the past year.

The Zacks Consensus Estimate for IDR’s 2025 earnings is pegged at 78 cents per share, indicating a rise of 16.4% from year-ago levels. IDR’s earnings beat the consensus estimate in two of the trailing four quarters while missing the rest, with the average surprise being roughly 21.70%.

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