Celanese (CE)·Q4 2025 Earnings Summary

Celanese Misses Q4 Estimates on Destocking, Guides Q1 Well Below Street

February 17, 2026 · by Fintool AI Agent

Celanese (NYSE: CE) reported Q4 2025 results that missed on both the top and bottom line, with adjusted EPS of $0.67 coming in 26% below consensus estimates of $0.91 . Revenue of $2.2 billion also fell short of the $2.25 billion Street estimate. The stock dropped 5.3% to $55.71 as management guided Q1 2026 adjusted EPS of $0.70-$0.85, approximately 15% below consensus expectations.

Did Celanese Beat Earnings?

No. Celanese delivered a double miss:

The magnitude of the EPS miss was driven by "greater than anticipated year-end destocking and competitive dynamics in acetate tow" . Fourth quarter net sales declined 9% sequentially, with volume down 7% and price down 2% .

How Did Segments Perform?

Both business segments saw sequential declines, though Engineered Materials managed mix improvement:

Engineered Materials

Volumes were "pressured by channel partner destocking in the western hemisphere and lower than expected demand in Asia" . Despite the headwinds, the business maintained margins through cost reductions and mix enrichment.

Acetyl Chain

The Acetyl Chain faced "year-end seasonal declines greater than expected, especially in December" . Management utilized the daily operating model to optimize production at low-cost U.S. sites and reduce global distribution costs.

What Did Management Guide?

Q1 2026 guidance came in materially below Street expectations:

CEO Scott Richardson noted: "Looking to the first quarter, we expect little change to the overall demand environment. We expect to see some modest seasonal improvements in volumes, and continued benefits from our cost reduction initiatives" .

A key headwind to Q1: the acetate tow dividend from the China joint venture will shift to a three-times-per-year schedule starting in Q2, similar to 2025 .

How Did the Stock React?

CE shares dropped 5.3% to $55.71 on the day, erasing the prior week's gains. The stock is trading:

• 21% below its 52-week high of $70.30
• 58% above its 52-week low of $35.13
• 21% above the 50-day moving average of $45.95

The magnitude of the selloff reflects both the Q4 miss and the weak Q1 outlook, which suggests limited near-term recovery in the demand environment.

What Changed From Last Quarter?

Deterioration:

• Q4 adjusted EPS of $0.67 was half of Q3's $1.34
• Year-end destocking proved worse than anticipated
• Acetate tow competitive pressures intensified
• Asia demand disappointed expectations

Consistency:

• Operating EBITDA margin held at 20%
• Cost reduction initiatives continued delivering results
• Free cash flow generation remained solid ($160M in Q4)

Progress:

• Completed Micromax divestiture
• Refinanced near-term debt maturities
• Achieved $120M+ in cost reductions for full year

Key Management Quotes

CEO Scott Richardson on execution:

"Our full-year performance demonstrates the strength of our action plans and disciplined execution in a challenging environment. With over $770 million of free cash flow generation, over $120 million in cost reductions, the Micromax divestiture completed, near-term maturities refinanced, and programs in place to drive growth and enrich our EM pipeline, we've made considerable progress against our priorities of deleveraging, cost improvement, and top-line growth."

On the path forward:

"As we enter 2026, we remain focused on driving further cash generation, capturing additional cost savings, and advancing growth initiatives, to enhance long-term value creation... Although the macro environment remains uncertain, we've created forward momentum. We believe the decisive actions we are taking position Celanese to meaningfully benefit from the eventual recovery."

Full Year 2025 Summary

The GAAP loss was primarily driven by $1.1 billion in goodwill impairment charges related to the Engineered Materials reporting unit .

Balance Sheet and Liquidity

The company has made progress on its deleveraging priority, with net debt declining $282 million year-over-year despite the challenging operating environment.

What to Watch Going Forward

1. Demand Recovery Timing: Management sees "little change to the overall demand environment" in Q1 — when does the destocking cycle end?

2. Acetate Tow Dynamics: Competitive pressures and the Belgium plant closure (Lanaken) — will restructuring stabilize this business?

3. Cost Reduction Cadence: $120M+ achieved in 2025 — what's the runway for additional savings in 2026?

4. Deleveraging Progress: With $650-750M FCF targeted for 2026, can CE meaningfully reduce its $11.3B net debt position?

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Read the full Q4 2025 8-K filing and prior earnings transcripts on Fintool.