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1. Company Snapshot

1.a. Company Description

Celanese Corporation, a technology and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally.The company operates through three segments: Engineered Materials, Acetate Tow, and Acetyl Chain.The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics.


It also offers acesulfame potassium, a sweetener for use in various beverages, confections, and dairy products; and food protection ingredients, such as potassium sorbate and sorbic acid for use in foods, beverages, and personal care products.The Acetate Tow segment provides acetate tows and flakes for use in filter products applications.The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products.


It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications.In addition, it manufactures ultra-high molecular weight polyethylene.Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.

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1.b. Last Insights on CE

Celanese Corporation faced significant challenges over the past three months, primarily due to ongoing inventory destocking issues and weak guidance for the rest of the year. The company's Acetyl Chain segment was pressured by Chinese oversupply and weak demand, while Engineered Materials faced integration pains and exposure to auto industry trends. Despite a 70% stock drop and loss of investment grade rating, CE offers a compelling 15% FCF yield. Recently, Q3 earnings surpassed estimates, with cost cuts and strong cash flow guiding its 2025 outlook.

1.c. Company Highlights

2. Celanese Corporation's Q3 2025 Earnings: A Closer Look

Celanese Corporation reported an actual EPS of $1.34, beating analyst estimates of $1.27. The company's financial performance was characterized by a stable demand environment, with revenues expected to grow by 2.2% next year, according to analyst estimates. Although the company does not disclose exact revenue figures for the quarter, the Engineered Materials (EM) segment saw consolidated volumes decline by 8% year-over-year, primarily due to product lines with higher volume and market exposure in standard-grade materials.

Publication Date: Nov -10

📋 Highlights
  • EPS Growth Target 2026:: Celanese aims for $1–$2 EPS increase driven by $30–$40 million interest expense reduction and EM pipeline success.
  • Acetyl Chain Efficiency:: Lowest-cost assets operate at 100% utilization, while other facilities flex to demand, enhancing margin stability.
  • Cost Savings from Lanaken Closure:: $20–$30 million productivity savings expected by 2027 post-plant closure.
  • EM Pipeline Savings:: $30–$50 million in savings from SG&A/R&D cuts, footprint optimization, and complexity reduction by 2026.
  • Micromax Divestiture Proceeds:: $475 million after-tax cash from the deal, contributing to $1 billion divestiture target by 2027.

Segment Performance and Pricing

The EM segment's pricing showed signs of improvement, particularly in the Western Hemisphere, with Scott Richardson, President and Chief Executive Officer, noting that there's still room for improvement. The company has seen benefits from price increases for new elements from the pipeline. In the acetyl chain, the company is operating its lowest-cost assets at 100% capacity, while flexing the rest of the network to meet demand.

Cost Actions and Future Guidance

Celanese expects to grow EPS by $1 to $2 in 2026, driven by cost actions and the success of the EM pipeline. The company is confident in its ability to grow EPS, with about half of the growth coming from cost savings and the majority of the rest from the EM pipeline. Chuck Kyrish, Chief Financial Officer, estimated a $30 to $40 million reduction in interest expense, contributing to the expected growth.

Valuation and Cash Flow

With a P/E Ratio of -1.46 and an EV/EBITDA of -2.88, the company's valuation metrics indicate a complex financial situation. However, the Free Cash Flow Yield is 24.06%, suggesting a strong ability to generate cash. The company expects to maintain similar demand levels in 2026, with some level of free cash flow sourced from inventory actions in Engineered Materials. Chuck Kyrish mentioned that working capital has been a source of cash this year, with $250 million in 2025.

Strategic Decisions and Outlook

The company's decision to close the Lanaken facility is expected to yield $20 to $30 million in productivity savings in 2027, demonstrating its focus on cost creation opportunities. The Micromax transaction is expected to contribute significantly to the company's divestiture goal of $1 billion by the end of 2027. With a commitment to divestitures and a focus on value creation, Celanese is poised to navigate the challenges in the demand environment.

3. NewsRoom

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CE Upsizes $1.4 Billion Notes Offering to Strengthen Liquidity

Dec -04

Source: zacks.com

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Celanese Corporation Upsizes and Prices $1.4 Billion Senior Unsecured Notes Offering

Dec -03

Source: businesswire.com

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Edgestream Partners L.P. Sells 24,522 Shares of Celanese Corporation $CE

Dec -03

Source: defenseworld.net

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Celanese Announces Cash Tender Offers for up to $1,000,000,000 Aggregate Principal Amount of 6.665% Senior Notes due 2027 and 6.850% Senior Notes due 2028

Dec -02

Source: globenewswire.com

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Creative Planning Trims Stock Position in Celanese Corporation $CE

Dec -02

Source: defenseworld.net

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Celanese Corporation to Participate in Fireside Chat with J.P. Morgan

Nov -14

Source: businesswire.com

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Celanese Corporation (CE) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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Celanese Q3 Earnings Surpass Estimates Amid Lower Sales Volumes

Nov -07

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.60%)

6. Segments

Engineered Materials

Expected Growth: 3.5%

Celanese Corporation's Engineered Materials segment growth of 3.5% is driven by increasing demand for lightweight and sustainable materials in the automotive and aerospace industries, as well as growth in the use of advanced composites in industrial and consumer applications.

Acetyl Chain

Expected Growth: 3.8%

The 3.8% growth of Acetyl Chain from Celanese Corporation is driven by increasing demand for paints and coatings, adhesives, and pharmaceuticals. Additionally, the growing need for sustainable and eco-friendly products, coupled with Celanese's strategic expansion into emerging markets, contributes to the segment's growth.

Eliminations

Expected Growth: 0.0%

Celanese Corporation's eliminations segment shows 0.0% growth, driven by stagnant sales and flat operating margins. This is attributed to the absence of significant acquisitions or divestitures, stable market conditions, and a lack of notable changes in the company's business operations or product offerings.

7. Detailed Products

Acetyl Intermediates

Celanese's Acetyl Intermediates are used as building blocks for the production of various chemicals, including pharmaceuticals, agrochemicals, and other specialty chemicals.

Engineered Materials

Celanese's Engineered Materials are high-performance polymers used in various applications, including automotive, industrial, and consumer goods.

Acetate Tow

Celanese's Acetate Tow is used in the production of cigarette filters, as well as in other applications such as air and oil filters.

Food Ingredients

Celanese's Food Ingredients are used as texture modifiers, stabilizers, and emulsifiers in food products, such as baked goods, beverages, and dairy products.

Aromatics

Celanese's Aromatics are used as solvents, intermediates, and fuel components in various industries, including pharmaceuticals, agrochemicals, and fuels.

Industrial Specialties

Celanese's Industrial Specialties are used in various industrial applications, including adhesives, coatings, and construction materials.

8. Celanese Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Celanese Corporation operates in the chemical industry, where substitutes are available, but they are not easily accessible to customers. The company's products are specialized, and customers may not be able to find identical substitutes.

Bargaining Power Of Customers

Celanese Corporation has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Celanese Corporation relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's size and scale of operations also give it some negotiating power.

Threat Of New Entrants

The chemical industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to enter the market and compete with established players like Celanese Corporation.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players competing for market share. Celanese Corporation faces intense competition from companies like BASF, Dow, and LyondellBasell, which can lead to pricing pressure and reduced margins.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 66.01%
Debt Cost 3.95%
Equity Weight 33.99%
Equity Cost 10.76%
WACC 6.26%
Leverage 194.23%

11. Quality Control: Celanese Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Westlake Chemical Partners

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Huntsman

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Celanese

A-Score: 3.4/10

Value: 7.9

Growth: 3.1

Quality: 3.9

Yield: 2.0

Momentum: 0.0

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.04$

Current Price

41.05$

Potential

-0.00%

Expected Cash-Flows