Trinseo Reports Third Quarter 2026 Financial Results

Trinseo (Pink Limited:TSEOF):

Trinseo, a specialty material solutions provider, today reported its third quarter 2026 financial results. Net sales of $779 million increased 5% compared with the prior year, driven by higher prices across all business segments due to pass-through of higher raw material costs and commercial initiatives. These increases were partially offset by lower volumes in Polymer Solutions and Engineered Materials related to weak end market demand and customer purchasing that was pulled forward into the second quarter in anticipation of potential supply disruptions and market volatility. Third quarter net loss of $49 million improved by $61 million compared to the prior year. The current year quarter included $43 million of pre-tax charges related to reorganization items, net, and $56 million of lower interest expense resulting from the automatic stay associated with the debt restructuring proceedings. Adjusted EBITDA of $51 million was $21 million above prior year, primarily from margin improvements in Polymer Solutions, higher equity income from Americas Styrenics, and savings from previously announced asset restructuring actions.

Third quarter cash provided by operating activities of $26 million and capital expenditures of $11 million led to Free Cash Flow* of $15 million. Free cash flow was impacted by professional fees related to the debt restructuring process of approximately $50 million.

During the quarter, the Company maintained ordinary-course operations supported by court-approved all-trade motions. Trinseo remained focused on serving customers, supporting suppliers and employees, and executing its financial restructuring to strengthen its balance sheet and enhance long-term financial flexibility. The Company maintained liquidity levels consistent with the second quarter of 2026, reflecting continued discipline in cash generation and working capital management.

Third Quarter Results and Commentary by Business Segment

• Engineered Materials net sales of $259 million for the quarter decreased 5% versus prior year primarily due to lower volumes related to weak end market demand and customer purchasing that was pulled forward into the second quarter. Adjusted EBITDA of $24 million decreased $10 million versus prior year in the absence of prior year’s last-time buy medical sales related to the closure of our polycarbonate plant in Germany and lower demand in mobility, partially offset by lower fixed costs driven by savings from the closure of our virgin MMA production facilities in Italy.

• Latex Binders net sales of $236 million for the quarter increased 19% versus prior year, with 16% of the increase due to higher prices and 3% of the increase due to higher volumes. Adjusted EBITDA of $22 million was $5 million above prior year due to favorable net timing and higher volumes in battery binders, textiles, and CASE applications. Net sales to CASE and battery binders applications grew 16% versus prior year in a muted market environment.

• Polymer Solutions net sales of $283 million for the quarter increased 4% versus prior year from higher prices, partially offset by lower volumes primarily in polystyrene in Europe due to low demand. Adjusted EBITDA of $12 million was $8 million above prior year primarily due to margin improvement from favorable formulaic pricing, favorable net timing, and lower fixed costs.

• Americas Styrenics Adjusted EBITDA of $9 million for the quarter was $11 million above prior year due to non-recurring adverse impacts from the unplanned outage in the prior year and increased styrene sales.

Commenting on the Company’s third quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “During the third quarter, we saw a continuation of volatile market conditions and consumer uncertainty. Despite the challenging environment, we achieved positive free cash flow during the period and maintained a stable liquidity position. We continue to focus on maintaining robust customer and supplier relationships while pursuing innovation and growth in our strategic products and markets. As our balance sheet restructuring process continues to progress and we get closer to a resolution, we are keen for Trinseo to emerge with an improved balance sheet and financial flexibility. This stronger foundation and our resilient team will provide us with positive momentum for growth in the future.”

About Trinseo

Trinseo, a specialty material solutions provider, partners with companies to bring ideas to life in an imaginative, smart and sustainably focused manner by combining its premier expertise, forward-looking innovations and best-in-class materials to unlock value for companies and consumers.

From design to manufacturing, Trinseo taps into decades of experience in diverse material solutions to address customers’ unique challenges in a wide range of industries, including building and construction, consumer goods, medical and mobility.

Trinseo’s employees bring endless creativity to reimagining the possibilities with clients all over the world from the company’s locations in North America, Europe and Asia Pacific. Trinseo reported net sales of approximately $3.0 billion in 2025. Discover more by visiting www.trinseo.com and connecting with Trinseo on LinkedIn, Twitter, Facebook and WeChat.

Use of non-GAAP measures

In addition to using standard measures of performance and liquidity that are recognized in accordance with accounting principles generally accepted in the United States of America (“GAAP”), we use additional measures of income excluding certain GAAP items (“non-GAAP measures”), such as Adjusted Net Income (Loss), EBITDA, Adjusted EBITDA and Adjusted EPS and measures of liquidity excluding certain GAAP items, such as Free Cash Flow. We believe these measures are useful for investors and management in evaluating business trends and performance each period. These measures are also used to manage our business and assess current period profitability, as well as to provide an appropriate basis to evaluate the effectiveness of our pricing strategies. Such measures are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance or liquidity, as applicable. The definitions of each of these measures, further discussion of usefulness, and reconciliations of non-GAAP measures to GAAP measures are provided in the Notes to Condensed Consolidated Financial Information presented herein.

Cautionary Note on Forward-Looking Statements

This press release may contain forward-looking statements including, without limitation, statements concerning plans, objectives, goals, projections, forecasts, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. Forward-looking statements may be identified by the use of words like “expect,” “anticipate,” “believe,” “intend,” “forecast,” ”estimate,” “see,” “outlook,” “will,” “may,” “might,” “potential,” “likely,” “target,” “plan,” “contemplate,” “seek,” “attempt,” “should,” “could,” “would,” or expressions of similar meaning. Forward-looking statements reflect management’s evaluation of information currently available and are based on our current expectations and assumptions regarding our business, the economy, our current indebtedness, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Factors that might cause future results to differ from those expressed by the forward-looking statements include, but are not limited to, our ability to obtain approval of the joint prepackaged plan of reorganization or other motions or requests made with respect to the voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Texas (the “Chapter 11 Cases”); our ability to consummate the plan of reorganization and emerge from Chapter 11 within our currently expected timeline or at all; the effects of the Chapter 11 Cases, including increased professional costs on our liquidity, results of operations and business; the outcome of litigation related to the Chapter 11 Cases; the consummation of the transactions contemplated by the plan of reorganization, including the ability of the parties to negotiate definitive agreements and satisfy the other conditions of the plan of reorganization, including completion of the Irish examinership proceedings and other regulatory filings; our ability to continue as a going concern; our ongoing discussions with our financial stakeholders; our significant levels of indebtedness and our ability to service, repay or refinance our indebtedness; our ability to meet the covenants under our existing indebtedness; deterioration of our credit profile limiting our access to commercial credit; unexpected payment obligations or liabilities which could create liquidity challenges; conditions in the global economy and capital markets, including persistent decreased customer demand and the impact of tariffs on global trade relations; ongoing geopolitical tensions or conflicts, such as the Russia-Ukraine war and military conflict in Iran; our ability to successfully generate cost savings through restructuring and cost reduction initiatives; our ability to successfully execute our business and transformation strategy; increased costs or disruption in the supply of raw materials; deterioration of our credit profile limiting our access to commercial credit; increased energy costs; the timing of, and our ability to complete, a sale of our interest in Americas Styrenics; compliance with laws and regulations impacting our business; any disruptions in production at our chemical manufacturing facilities, including those resulting from accidental spills or discharges; our ability to generate cash flows from operations and achieve our forecasted cash flows; and those discussed in our Annual Report on Form 10-K, under Part I, Item 1A —”Risk Factors” and elsewhere in our other reports, filings and furnishings made with the U.S. Securities and Exchange Commission from time to time. As a result of these or other factors, our actual results, performance or achievements may differ materially from those contemplated by the forward-looking statements. Therefore, we caution you against relying on any of these forward-looking statements. The forward-looking statements included in this press release are made only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Note 2: Reconciliation of Non-GAAP Performance Measures to Net Income

EBITDA is a non-GAAP financial performance measure, which is defined as income from continuing operations before interest expense, net; income tax provision; depreciation and amortization expense. We refer to EBITDA in making operating decisions because we believe it provides our management as well as our investors with meaningful information regarding the Company’s operational performance. We believe the use of EBITDA as a metric assists our board of directors, management and investors in comparing our operating performance on a consistent basis.

We also present Adjusted EBITDA as a non-GAAP financial performance measure, which we define as income from continuing operations before interest expense, net; income tax provision; depreciation and amortization expense; reorganization items, net and other costs associated with the Company’s Chapter 11 proceedings; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits, and other items. In doing so, we are providing management, investors, and credit rating agencies with an indicator of our ongoing performance and business trends, removing the impact of transactions and events that we would not consider a part of our core operations.

Lastly, we present Adjusted Net Income (Loss) and Adjusted EPS as additional performance measures. Adjusted Net Income (Loss) is calculated as Adjusted EBITDA (defined beginning with net income from continuing operations, above), less interest expense, less the provision for income taxes and depreciation and amortization, tax affected for various discrete items, as appropriate. Adjusted EPS is calculated as Adjusted Net Income (Loss) per weighted average diluted shares outstanding for a given period. We believe that Adjusted Net Income (Loss) and Adjusted EPS provide transparent and useful information to management, investors, analysts and other stakeholders in evaluating and assessing our operating results from period-to-period after removing the impact of certain transactions and activities that affect comparability and that are not considered part of our core operations.

There are limitations to using the financial performance measures noted above. These performance measures are not intended to represent net income or other measures of financial performance. As such, they should not be used as alternatives to net income as indicators of operating performance. Other companies in our industry may define these performance measures differently than we do. As a result, it may be difficult to use these or similarly named financial measures that other companies may use, to compare the performance of those companies to our performance. We compensate for these limitations by providing reconciliations of these performance measures to our net income, which is determined in accordance with GAAP.

(a) During the nine months ended September 30, 2025, the Company entered into an agreement to move our current enterprise resource planning (“ERP”) system to a cloud-based system, triggering an acceleration of the amortization of the capitalized software assets totaling $13.8 million for the three months ended September 30, 2025.

(b) Amounts for the three months ended September 30, 2026 primarily relate to gain on sale of assets after certain of the Company’s restructuring plans.

(c) Restructuring and other charges for the 2026 and 2025 periods primarily relate to employee termination benefits, contract termination costs as well as decommissioning and other charges incurred in connection with the Company’s restructuring plans.

(d) Other items for the three months ended September 30, 2026 primarily relate to recovery of certain legal costs and fees incurred in connection with the Company’s ongoing lender negotiations which were incurred before the Company filed for bankruptcy or were incurred by non-Debtor entities. Any fees incurred in connection with the Company’s ongoing lender negotiations by the Debtors during the pendency of the bankruptcy are included in Reorganization items, net.

Other items for the 2025 period primarily relate to fees incurred in conjunction with the Company’s legal defense costs associated with Synthos litigation and certain of the Company’s strategic initiatives, including the potential divestiture of our styrenics business.

(e) Adjusted to remove the tax impact of the items noted within the table above. The income tax expense (benefit) related to these items was determined utilizing either (1) the estimated annual effective tax rate on our ordinary income based upon our forecasted ordinary income for the full year or, (2) for items treated discretely for tax purposes we utilized the applicable rates in the taxing jurisdictions in which these adjustments occurred.

(f) Amounts for the three months ended September 30, 2026 and 2025 exclude accelerated depreciation of $1.2 million and $13.8 million, respectively. The 2026 period charges are primarily related to the depreciation impacts related to restructuring programs. The 2025 period charges are primarily related to the shortening of the useful life of certain IT assets in preparation to move to a cloud hosted platform.

Note 3: Reconciliation of Non-GAAP Liquidity Measures to Cash from Operations

The Company uses certain measures, such as Free Cash Flow as non-GAAP measures, to evaluate and discuss its liquidity position and results. Free Cash Flow is defined as cash from operating activities, less capital expenditures. We believe that Free Cash Flow provides an indicator of the Company’s ongoing ability to generate cash through core operations, as it excludes the cash impacts of various financing transactions as well as cash flows from business combinations that are not considered organic in nature. We also believe that Free Cash Flow provides management and investors with useful analytical indicators of our ability to service our indebtedness, pay dividends (when declared), and meet our ongoing cash obligations.

Free Cash Flow is not intended to represent cash flows from operations as defined by GAAP, and therefore, should not be used as alternatives for that measure. Other companies in our industry may define Free Cash Flow differently than we do. As a result, it may be difficult to use this or similarly named financial measures that other companies may use, to compare the liquidity and cash generation of those companies to our own. The Company compensates for these limitations by providing the following detail, which is determined in accordance with GAAP.

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