Celanese Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales were $2.6 billion, a 6% increase year-over-year from 2025, but decreased 7% sequentially from the second quarter.
• U.S. GAAP diluted earnings per share (EPS) from continuing operations was $0.68, compared to a loss of $12.39 in the same period in 2025.
• Adjusted diluted EPS was $1.65, up from $1.34 in the prior year period.
• Consolidated operating profit was $198 million (8% margin), compared to a loss of $1.275 billion in the prior year.
• Adjusted EBIT was $367 million (14% margin), up from $326 million in the prior year.
• Operating EBITDA was $548 million (21% margin), up from $517 million in the prior year.
• Operating cash flow was $538 million, and free cash flow was $461 million.
• Year-to-date operating cash flow was $823 million, and year-to-date free cash flow was $604 million.
• Total assets were $20.9 billion as of September 30, 2026, down from $21.7 billion as of December 31, 2025.
• Long-term debt, net of unamortized deferred financing costs, was $10.1 billion as of September 30, 2026, down from $11.4 billion as of December 31, 2025.

Guidance and Future Outlook:

• Full-year 2026 adjusted earnings per share guidance was raised to a range of $6.00 to $6.25.
• Full-year 2026 free cash flow outlook was increased to a range of $750 to $800 million.
• Management expects to exit the year with a net debt-to-operating EBITDA ratio of approximately 4.7x.
• Management anticipates generating over $1.5 billion in free cash flow over the past two years by the end of 2026.
• Management expects to reach approximately $650 million in divestiture sales proceeds by year-end 2026, with a long-term objective of $1 billion by the end of 2027.
• Fourth quarter results are expected to reflect year-end seasonal moderation across both business segments.

Business Segments and Product Lines:

• Engineered Materials: Reported net sales of $1.4 billion (down 1% year-over-year, excluding a 6% contribution from the divested Micromax® business in 2025). Operating profit was $161 million, adjusted EBIT was $209 million, and operating EBITDA was $311 million. Growth was driven by medical and electronics applications, offsetting automotive declines.
• Acetyl Chain: Reported net sales of $1.2 billion, a 14% increase year-over-year. Operating profit was $141 million, adjusted EBIT was $236 million, and operating EBITDA was $301 million. Performance was supported by pricing favorability and spot opportunities despite demand softness.
• Strategic Initiatives: Expansion of specialty compounding operations in Europe, commissioning of a liquid crystal polymer production facility in Asia, and advancement of new medical-grade compounding capabilities in Asia are on track for commercialization in the first half of 2027.
• Facility Optimization: Completed the closure of the acetate tow facility in Lanaken, Belgium to optimize the manufacturing footprint.

Market and Competitive Landscape:

• The Acetyl Chain demonstrated strength in capturing value across regions in a dynamic environment with a flexible operating network.
• Entered a strategic partnership with VIGOR Precision Ltd. to develop lightweight plastic joint solutions for humanoid robots.
• Engineered Materials benefited from favorable product mix in medical and electronics applications.

Risks and Challenges:

• Forward-looking statements note risks including volatility in raw material and energy prices (ethylene, methanol, natural gas, etc.), potential goodwill impairments, and regulatory or geopolitical uncertainties.
• Challenges include the ability to pass on cost increases, plant utilization rates, and potential supply chain disruptions.

Management Commentary and Tone:

• CEO Scott Richardson stated that third-quarter results demonstrate continued progress with strong earnings performance and net sales growth.
• Management expressed confidence in improving earnings power through productivity initiatives, strategic growth platforms, and cash generation.
• Richardson highlighted the resilience of differentiated businesses and disciplined execution across the portfolio.

Other Key Points:

• Announced an Investor Event for December 9, 2026, in Florence, Kentucky, to discuss business strategy and growth pathways.
• Added Luis Fernandez-Moreno to the Board of Directors in September 2026.
• Signed a definitive agreement to sell an additional 19% of the Nutrinova food ingredients joint venture to Mitsui & Co., Ltd. for approximately $152 million in cash proceeds, retaining an 11% interest; the transaction is expected to close in Q4 2026.
• Effective U.S. GAAP income tax rate for the quarter was 15%, higher than the prior year primarily due to a non-deductible $1.1 billion goodwill impairment loss recorded in the Engineered Materials segment in 2025.
• Adjusted effective tax rate for the quarter was 8%, with this rate anticipated for the full year 2026.