Turner Hendricks

Turner Hendricks, representing Morgan Stanley, asked for more details on Celanese's expectations for higher second-half earnings and whether the company still anticipates a $1-$2 EPS uplift compared to 2025. He also inquired about specific factors impacting the Q1 to Q2 earnings difference, including a $30 million inventory tailwind reversal and the Polyacetal turnaround.

Answer

Scott Richardson, President and CEO of Celanese, affirmed the $1-$2 EPS uplift target, driven by growth in Engineered Materials and strategic actions in the Acetyl Chain, despite potential headwinds like flat interest expense and inventory draw impact. For Q2, Mr. Richardson confirmed the $30 million Q1 inventory benefit would likely reverse, and higher turnaround expenses would make Q2 earnings "flattish to Q1," with the year being second-half weighted.

Turner Hendricks inquired about Celanese's expectations for higher second-half earnings and the projected $1-$2 EPS uplift versus 2025, and asked for details on the Q1 to Q2 earnings bridge, including the reversal of an inventory tailwind and the impact of a Polyacetal turnaround.

Answer

President and CEO Scott Richardson affirmed the $1-$2 EPS uplift target, driven by growth in Engineered Materials and opportunistic moves in Acetyl Chain, noting that small volume changes significantly impact EPS. He confirmed the $30 million Q1 inventory benefit would likely reverse in Q2, with higher turnaround expenses making Q2 earnings potentially flat to Q1, and the year more second-half weighted.

Turner Hendricks requested more regional color on Avient's 2026 growth guidance, particularly for Europe and Asia, in comparison to the U.S. economy.

Answer

Jamie Beggs, Senior VP and CFO, stated that specific regional guidance was not provided. She noted that Europe is expected to perform at similar levels to 2025 (-1%) until a recovery is seen. For Asia, she anticipates continued growth driven by tailwinds in packaging and telecommunications, supported by underlying GDP growth, despite potential geopolitical uncertainties.

Turner Hendricks asked for more regional color on the 2026 growth guidance, specifically for Europe and Asia, given the detailed discussion on U.S. growth drivers.

Answer

Jamie Beggs, Senior VP and CFO, stated that no specific regional guidance was provided, but the focus is on end markets. For Europe, similar organic sales levels to 2025 (-1%) are expected until a potential recovery. For Asia, continued growth is anticipated due to tailwinds in packaging and telecommunications, supported by underlying GDP growth, even if slightly lower than previous periods.