Celanese Shares Drop 13% After Weak Q3 Outlook Overshadows Earnings Beat

Celanese Corporation (NYSE:CE) shares fell more than 13% intra-day after the global chemical and specialty materials producer issued a downbeat third-quarter forecast that outweighed stronger-than-expected second-quarter results.

The company reported adjusted earnings of $1.44 per share for the second quarter, topping analyst estimates of $1.40. Revenue came in at $2.53 billion, slightly ahead of the $2.5 billion consensus. However, investors reacted to Celanese’s third-quarter guidance of $1.10 to $1.40 per share, well below analyst expectations of $1.73.

The company cited weakening demand across most major end-markets in the second half of the year, with order books building at a slower pace than in the prior quarter. It also projected a sequential earnings headwind of approximately $25 million due to continued inventory reduction efforts.

Second-quarter revenue rose 6% from the prior quarter, supported by a 4% increase in volume and a 3% currency tailwind, partially offset by lower pricing. Compared with the same quarter last year, revenue declined 4.5% from $2.65 billion.

Despite the softer outlook, Celanese reaffirmed its expectation to generate $700 million to $800 million in free cash flow in 2025, highlighting its commitment to cash generation, cost control, and balance sheet deleveraging.