Strong EBITDA growth in the middle of economic uncertainty

Appearance date: May 08, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Trinseo PLC (NYSE: TSE) reached its 7th quarter as a result of the improved previous year-adjusted EBITDA and reached $ 65 million, which achieved an increase of $ 20 million compared to the same year.

• The company recorded a volume growth of 33% for recycled content products and an increase in electronic applications of maintenance applications by 43%.

• The PMMA -Harzvolumina in Asia doubled more than doubled, and the fall volumes grew by 3%in a flat demand environment.

• Trinseo PLC (NYSE: TSE) recognized the license income of 26 million US dollars from the polycarbonate license agreement, whereby the projects are worth $ 52 million.

• The company focuses on the geographical expansion, the replacement for the material, the process change and sustainability in order to promote the growth of the specialized technologies.

• The free cash flow in the first quarter was negative of 119 million US dollars, including 25 million US dollars of drains in connection with refinancing.

• The segment volumes decreased by 15%, which was due to lower automotive sales and uneconomical volume of polystyrene.

• The company withdrew its total annual lines due to uncertain economic and geopolitical conditions.

• Tariff uncertainty has significantly influenced the demand in China, especially in industrial applications.

• Devices as well as paper and board applications recorded in the Asia -Pacific region, considerable negative volume developments that were driven by tariffs.

Q: Did you see uneven volume patterns in front of the implemented tariffs, and how sustainable are the current volumes? A: Frank Bozic, President and CEO: We have not observed any preparations before buying to hit the tariffs or the popular lumps. The demand for Q1 continued in the second quarter, and our efforts to win new applications and customers with recycled material were successful. We see no indication that the demand was distorted by pre -purchase in order to avoid tariffs.

Q: How confident are you to reach a free cash flow in the second quarter, and what do you see in relation to the industry stands, especially in styrene and polystyrene? A: David Stacey, Executive Vice President and CFO: We are confident that we will achieve a free cash flow with break-even-cash flow in the second quarter. A month in the books and visibility until May. We have operating capital levers to manage closely, especially in the inventory. With regard to the shutdowns in the industry, we see no negative influence on our business because we are no longer a styrene producer in Europe and Amsty is still competitive.

Q: Can you specify further details about the AMSA performance in Q1 and in the updates of the AMSI sales process? A: Frank Bozic, President and CEO: We endeavor to monetize the Amsty assets and will wait for the best evaluation environment to market it. David Stacey, Executive Vice President and CFO: The performance of the Q1 was influenced by times in connection with North American benzene prices and a minor gymnastics. We expect significantly better results for Amsty in Q2.