Aleksey Yefremov • KeyBanc Capital Markets

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CEO Chuck Magro clarified that Corteva does not compete head-to-head with generics, as it serves a different customer base seeking differentiated technology. However, he and EVP Robert King noted that the stabilization of the generic price floor is a healthy indicator for the overall market, particularly in Latin America.

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EVP Timothy Glenn stated that Corteva is taking a prudent approach and is not assuming a significant rebound from the 20% decline seen in 2024. He noted it is too early to know if the leafhopper pest issue was a one-time event. For 2025 planning purposes, the company is assuming a market that is essentially flat with 2024.

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CEO Kurt Bitting explained that the RVO change should reinject momentum into the renewable fuels market, driving utilization and future growth, but cautioned against a direct year-over-year correlation to Ecovyst's business. He confirmed nylon sales will be up year-over-year despite a tepid market and highlighted the strong, positive long-term momentum in mining driven by electrification and new projects.

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CEO Kurt Bitting explained that the reliability program is a multi-year initiative that has already enabled higher year-over-year sales of virgin sulfuric acid. He stated the full benefits, in the form of incremental capacity, will materialize over time as demand grows. While not giving specific 2025 guidance, Bitting affirmed that the company's strategy for Ecoservices includes growth from both volume and pricing, supported by strong contractual mechanisms.

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EVP & CFO Steven Bender attributed the margin resilience to Westlake's broad and deep product portfolio, which addresses affordability issues, and particular strength in the infrastructure-driven pipes and fittings business. He noted that while construction activity has slowed, the current level of housing starts seen in Q2 is expected to persist through Q3.

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M. Bender, EVP and CFO, noted that larger diameter pipe and fittings offer more value and that there can be a lag in passing through PVC resin price changes, causing some temporary margin compression. He clarified that HIP pricing is significantly more stable than commodity materials, so lower input costs do not directly translate to lower selling prices.

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EVP and CFO Steve Bender expects stronger free cash flow generation in 2025, driven by continued strength in HIP and pricing actions in PEM. He clarified that the HIP business is actually an asset-light model and does not require a large percentage of working capital relative to the more capital-intensive PEM segment.

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EVP and CFO Steve Bender explained that the $120 million impact, if excluded, would have made Q3 results comparable to Q2. For HIP margins, he attributed the sequential decline primarily to an 8.5% drop in sales volume driven by weather and slower demand in the pipe business, while average sales prices remained relatively flat.

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CEO Peter Vanacker described pyrolysis margins as 'extremely high' and above the levels communicated at the 2023 Capital Markets Day. He attributed this to demand significantly outpacing supply, a situation exacerbated by delays and failures among startup producers. He expects the market to be priced on value, not supply/demand, for a long time.

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CEO Peter Vanacker stated that the acquisition adds a unique, advanced solvent-based recycling technology for laminated films. He confirmed that LyondellBasell is integrating the company with a clear plan to scale up the technology, similar to its MoReTec strategy, making it a key part of its circular solutions offering by 2030.

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EVP & CFO Phil Lister clarified that the year-over-year price decline was primarily driven by polymeric MDI in China. On trade flows, he noted that while Chinese imports to the U.S. have dropped, an increase in European imports, coupled with low demand, has kept pricing relatively stable rather than increasing.

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CEO Peter Huntsman noted that circumventing tariffs via Canada or Mexico would be difficult, as those countries have their own tariffs and finished goods brought into the U.S. would still be subject to duties on their MDI content. On the dividend, Huntsman affirmed it is considered 'very close to sacred' and that the company is confident in its cash generation, balance sheet strength, and future outlook to maintain it. CFO Phil Lister added that the company has $1.3 billion in liquidity and a favorable debt maturity profile.

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CEO Peter Huntsman specified their announced price increase was for 'at least $0.10 per pound.' He also detailed progress on their new technology, stating they have a 30-ton reactor for commercial qualification, expect sales in 2025 for applications like EV batteries, and plan a larger 5,000-ton reactor for next year.

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Chairman, CEO and President Peter Huntsman detailed the pricing mix, breaking it into spot (region-dependent), formula-based (20% globally), and variable negotiated pricing for formulated products. He explained that Huntsman's strong regional platform in Asia has become its most profitable automotive region, with deep relationships with key Asian OEMs for both traditional and EV applications, effectively navigating the market shift.

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Chairman and CEO Mark Costa explained the slower 2025 Methanolysis ramp is due to challenged end markets (durables, cosmetics), which slows customer adoption. He is more confident for 2026 because the underlying demand for plastic waste solutions remains strong, and they are seeing increased interest in rPET due to performance issues with mechanical recycling. For Fibers, he expects to stabilize earnings in 2026, as tailwinds from utilization recovery and a rebound in textiles should offset ongoing pressures in the tow business.

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Mark Costa, Board Chair and CEO, acknowledged that weaker-than-normal seasonal growth is expected in Q2 due to consumer caution related to trade tensions. Regarding the second-half tariff impact, he explained the risk varies by segment. While the impact on Fibers and AFP is expected to be steady or improve, the Advanced Materials segment could face a larger headwind as customer inventories are depleted, though this is partially offset by new plant ramp-ups and other mitigating actions.

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Board Chair and CEO Mark Costa confirmed a complex earnings cadence for Advanced Materials, with Q1 impacted by a $25 million cost reallocation and H1 facing natural gas headwinds, while benefits from circular and cost actions are more back-half loaded. He also stated that multiyear contracts provide good visibility for Fibers, with approximately 70% of 2027 volume already under contract.

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CEO Mark Costa reported that within the Advanced Materials segment, the auto interlayer business is significantly outperforming a weak auto market with high single-digit growth, driven by favorable design trends like larger sunroofs and laminated side glass. Regarding coatings, Costa expressed confidence in maintaining price-cost stability, citing the company's track record and the differentiated value of its specialty products. He acknowledged a potential minor lag in passing through higher energy costs but expects to defend margins effectively.

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Chairman and CEO Pierre Brondeau and EVP and CFO Andrew Sandifer clarified that Cyazypyr is not facing the same competitive pressure due to data protection. For branded Rynaxypyr, pricing was relatively flat in Q2. They emphasized that the primary pricing headwind for the diamide franchise currently stems from the cost-plus partner contracts, as branded Rynaxypyr remains protected by process patents in most markets for 2025.

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CEO Pierre Brondeau explained that Q1's high single-digit price decline was driven by a tough year-over-year comparison and a higher sales mix in the competitive Brazilian market. He anticipates more price stability for the rest of the year, especially in the second half, as comparisons ease significantly following the major price corrections made in H2 2024.

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Pierre Brondeau, Chairman and CEO, attributed the Q3 weakness in Latin America to a combination of delayed rains, persistent channel inventory, and challenging pricing. He added that FMC-specific issues included being slower than peers to adjust prices and the bankruptcy of a large distributor, which necessitated aggressive actions to maintain market share.

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CEO Kent Masters advised against reading too much into quarterly mix shifts, stating the overall 50/50 contract-spot mix is stable into 2026. Regarding CapEx, he noted that while the company is continuously focused on reductions, it is becoming harder to find large cuts, but the focus remains on driving it down.

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CEO Jerry Masters stated that while some new capacity will come online, he expects the overall supply/demand balance to remain relatively stable through the year. He detailed that costs at Greenbushes and La Negra are expected to improve with scale and productivity, while Wodgina is currently in a higher-cost phase that is expected to improve over time.

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CEO Jerry Masters stated that reaching maintenance capital levels is an aspiration but declined to commit to a 2026 target, noting the company will still pursue small, high-return growth and cost-saving projects. He confirmed the CGP 3 project at Greenbushes is currently on schedule and around budget.

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CEO Kent Masters and CFO Neal Sheorey declined to provide a specific 2025 outlook but offered key factors. Sheorey noted that current market pricing is a significant headwind compared to the 2024 average and pointed out a non-repeating $100 million equity income gain from Q2 2024. However, he highlighted that cost savings and continued plant ramps would be tailwinds. Masters clarified that the CapEx cuts primarily impact longer-term growth, reducing the CAGR through 2027 to about 15% from 20%, with minimal effect on 2025 volumes which are driven by already-built assets.

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CFO Linda LaGorga declined to quantify the margin impact or provide a specific timeline, emphasizing that managing inventory is a key lever for achieving their free cash flow margin goal of low-double-digits in 2025. CEO Bertrand Loy addressed the pull-forward question, stating that while it may have been a factor, he does not believe it had a material impact on Q2 results.

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CEO Bertrand Loy stated that the company did not see significant pre-buying in Q1 and that no shipments are currently occurring from the U.S. to China. Regarding advanced packaging, he described it as a small but rapidly expanding market that more than doubled in Q1 year-over-year and is expected to grow over 25% for the full year 2025, driven by dispense solutions and HBM slurries.

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CEO Bertrand Loy stated it was too early to comment on 2026 outperformance but noted the growing opportunity in moly applications is promising. He affirmed that despite headwinds, China is expected to remain a growth area, having grown from 16% to 21% of sales in 2024, as mainstream fabs there continue to ramp production.

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CEO Bertrand Loy detailed that the moly opportunity is a comprehensive solution including the material, ampule, delivery systems, and Moly Etch chemistry for NAND. A future logic application would also include a polishing slurry. He confirmed his view on 2025 node transitions is unchanged, expecting significant activity in advanced logic and 3D NAND, though he noted the timing remains fluid and customer-dependent.

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CFO Carl Anderson projected that 2026 productivity savings would be at least at the same pace as 2025's ~$20 million, and hopefully better, as the company is in the 'early innings' of its plant productivity initiatives. He confirmed that Refinish pricing remains positive (~2% for the year) and the negative segment result was due to mix. He anticipates the price/mix metric will inflect positively into next year, with a possibility of it occurring in Q4 2025.

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CEO Chrishan Anthon Villavarayan stated that while the value segment is experiencing weaker demand due to waning consumer confidence, Axalta is outperforming the market. He confirmed that this segment is growing faster than Axalta's premium business, driven by a focused strategy to increase its low market share, which is reflected in the strong Q1 body shop win ratio.

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CEO Chris Villavarayan clarified that body shop wins are focused on the premium side, while the CoverFlexx acquisition provides a strong entry into the mainstream and economy segments. He noted the business case for CoverFlexx is strong, particularly with the ability to sell adjacent products. He affirmed that there are more opportunities for M&A in adjacencies, especially in Europe and Asia, which the company will be focusing on.

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CEO Chrishan Villavarayan described body shop activity as 'stable to softening,' with softness in China and North America, stability in Europe, and strength in Latin America. On market segments, he noted the new CoverFlexx acquisition in the economy space is performing ahead of plan on margin. In the competitive premium segment, he emphasized that Axalta continues to win, securing 2,100 net new body shops year-to-date, driven by its technology and service leadership.

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President and CEO Ken Lane stated it is difficult to see the situation worsening, describing the current environment as a non-structural 'perfect storm' of destocking, high costs, and weak consumer spending. CFO Todd Slater added that higher copper costs, driven by tariff threats, will impact results in the second half, although Olin's hedging program will moderate the pace of this impact, reinforcing the need for price increases.

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President and CEO Kenneth Lane confirmed that PVC sales tolled through Kem One are indeed cash positive, which he attributed to Olin's advantageous cost structure. He stated that volumes will ramp up through the end of the year, noting a very positive market reception and expressing pride in the team's ability to quickly establish a customer portfolio, setting up a positive future for the business.

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CEO Kenneth Lane explained that Q1 volumes will be lower due to a planned turnaround, customer outages from Winter Storm Enzo, and a tough comparison to Q4's post-hurricane rebound. He emphasized that Olin will maintain disciplined operating rates, noting strong caustic demand is expected to keep the market tight and support pricing, leading to relatively flat ECU values quarter-over-quarter.

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President and CEO Kenneth Lane described the Shintech situation as too far out to predict, stating Olin will evaluate options for its Freeport vinyls position as developments unfold. Regarding the epoxy price increase announced for October 1, Lane noted they are seeing some traction and are optimistic, but it's too early to quantify the full impact for the quarter, especially with continued high import volumes from Asia.

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CEO & President Scott A. Richardson attributed the Q2/Q3 demand shift partly to order pull-ins ahead of potential tariffs but emphasized the broader driver is market uncertainty causing customers to lower inventories. Regarding Filter Tow, he stated that based on current visibility, he does not believe there has been significant share loss. Instead, he suggested that some additional market capacity has allowed customers to operate comfortably with lower inventory levels.

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CEO Scott Richardson confirmed that China is a key focus for margin-accretive growth, particularly with local auto OEMs, targeting a repeat of last year's 20% EV volume growth. Regarding EM EBITDA, he stated that a return to prior levels depends on self-help actions, incremental volume, and crucially, improving pricing from what he described as 'unsustainable margin levels' in standard grade products.

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CEO Scott Richardson clarified that the Q1 inventory reduction is not substantial or material like the one seen in Q4. On pricing, he stated that the market is seeing stabilization for the most part. While Celanese has to be competitive in certain standard-grade applications where industry margins are unsustainably low, the team is working tenaciously on offsets, primarily by improving the product mix through success in higher-margin segments.

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CEO Lori Ryerkerk explained that the headwinds are twofold: differentiated products are primarily impacted by lower volumes, while standard grade products face significant price and margin pressure. COO Scott Richardson noted that the company does not expect to draw down inventories below normalized levels by year-end.

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Chairman & CEO Frank Sullivan did not disclose a specific size but confirmed the Fibergrate business has been growing at a double-digit rate, higher than RPM's overall average. He attributed the strong performance to organic growth, past acquisitions, global expansion, and significant benefits from data center construction due to the non-conductive nature of its products.

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CEO Frank Sullivan stated the company expects to cover anticipated raw material and labor inflation with pricing actions. He confirmed the services business growth is a structural trend that positively impacts mix, and it directly drives material sales by securing projects and maintaining long-term customer relationships for future restoration work.

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Frank Sullivan, Chair and CEO, explained that the company is now using data more effectively to manage product mix prospectively. This involves incentivizing sales forces with adjusted commission or bonus structures to focus on higher-margin products where RPM has a competitive advantage. He noted this shift to data-driven sales management is a piece of the overall margin improvement, with 80% of MAP savings in the quarter coming from the gross profit line through better conversion costs and improved mix.

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SVP of Finance & CFO Al Mestyshin indicated that the new residential market has softened, which is a key factor in the forecast for a low single-digit volume decline for the Paint Stores Group in the second half. He characterized several segments as "bouncing along," suggesting a period of stabilization at lower levels rather than a sharp deterioration.

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CFO Allen Mistysyn indicated that the new residential market has softened, which is a key driver of the revised low-single-digit volume decline forecast for the Paint Stores Group in the second half. He described the environment as "bouncing along," suggesting it is not getting significantly better or worse at this time.

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Executive Heidi Petz described the underlying market as 'flat' and tied to existing home sales, but noted paint remains an affordable home improvement project. She said Sherwin-Williams is outpacing the market by leveraging its controlled distribution model and providing productivity-enhancing solutions to contractors. Executive James Jaye added that consumer caution is also visible in the auto refinish market, where some are delaying repairs.

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CEO Heidi Petz asserted that the company currently has the capacity for growth and will continue its disciplined expansion of 80-100 new stores annually. SVP & CFO Allen Mistysyn added that the sales rep force is a variable cost that can be scaled with demand, and the existing store network provides ample capacity to handle volume increases.

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Executive James Jaye described backlogs in Residential Repaint as 'fairly normalized' but choppy due to recent hurricanes. He expressed cautious optimism for New Residential. For the Commercial segment, he noted that while the business is still growing, the existing backlog is being worked through and is expected to diminish heading into next year.

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CEO Lori Koch clarified that the Q1 organic growth for Industrials was 2%, and the full-year guide of 3-4% represents a consistent trend. Jon Kemp, CEO-elect of Qnity, stated their guidance assumes China's electronics demand normalizes to be flat year-over-year, as strong local demand continues without signs of excessive customer inventory.

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CEO Lori Koch stated that the portfolio strategy for the new DuPont will involve both divestitures and M&A, with a focus on expanding the healthcare and water businesses. She projected underlying market growth (MSI) for semis at around 6% and mid-single-digit growth for the PCB and smartphone markets served by Interconnect.

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CEO Lori Koch explained that the AI-related growth is concentrated in the packaging space within the Interconnect business. She attributed share gains to securing a greater share of wallet with key customers by expanding product offerings beyond phones to other devices. She also reiterated that thermal management and packaging opportunities are key drivers.

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CEO Timothy Knavish explained that the company has increased its growth-related investments in the segment to capitalize on long-term opportunities. He cited spending to increase output in Aerospace, support growth in Protective & Marine, and develop next-generation productivity tools and allied products for the Auto Refinish business as the primary reasons for the moderated margin leverage in the quarter.

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CEO Tim Knavish pointed to strong Q4 retail auto sales in China (+19%) and ongoing government support as positive indicators. He emphasized that PPG is gaining share with domestic Chinese automakers. He also highlighted that with EVs now representing 37% of cars built in China, PPG benefits from higher content per vehicle, a trend that continues despite a cooling of the global EV narrative.

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Chairman and CEO Timothy Knavish reiterated that the Q4 outlook is not due to a slowdown in end-market demand but is a result of inventory management by channel partners and a difficult year-over-year comparison. SVP and CFO Vince Morales specified that the tough comp relates to a significant customer pre-buy in Q4 2023 ahead of a January 1, 2024 price increase.

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CEO James Fitterling gave a definitive answer, stating that the strategic review of European assets is a separate initiative and any resulting actions would be in addition to the recently announced $1 billion cost reduction program, with potentially minor overlap.

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James Fitterling, Chair and CEO, attributed the weakness to several factors: price pressure on PO Polyols, lower MDI volumes from a third-party supplier outage, and higher propylene costs due to the Texas-8 cracker outage. He identified polyurethanes in North America as the biggest drag in the quarter and noted the MDI issue was a one-time event that will correct itself.

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