Trinseo Sees Q2 2024 Net Loss Of $(53M)-$(38M); Adj EBITDA Of $60M-$75M
Portfolio Pulse from Benzinga Newsdesk
Trinseo anticipates a net loss of $53M to $38M for Q2 2024, with an Adjusted EBITDA of $60M to $75M. Positive earnings momentum from Q1 is expected to continue, supported by stable sales, margin levels, and the turnaround at Americas Styrenics. The company sees a seasonally stronger period for building and construction applications and benefits from tight styrene and MMA markets. Trinseo also highlights the financial gains from its asset and cost optimization efforts over the past 18 months and considers further actions, including the potential closure of its Stade, Germany plant. Liquidity preservation remains a top priority despite adequate access to liquidity.

May 08, 2024 | 11:21 pm
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Trinseo expects a Q2 2024 net loss of $53M to $38M and an Adjusted EBITDA of $60M to $75M, indicating a positive earnings momentum and financial benefits from asset and cost optimization actions.
The forecasted net loss juxtaposed with a positive Adjusted EBITDA and the continuation of positive earnings momentum suggests a complex financial situation. The impact on the stock price is uncertain as the positive outlook on earnings momentum and benefits from optimization could balance out the negative perception of a net loss. The company's focus on liquidity preservation and the potential closure of the Stade plant indicate strategic moves to improve financial health, which could be viewed positively by investors.
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IMPORTANCE 90
RELEVANCE 100