TRINSEO PLC | 8-K: FY2026 Q2 Revenue: USD 845.4 M

Revenue: As of FY2026 Q2, the actual value is USD 845.4 M.

EPS: As of FY2026 Q2, the actual value is USD -3.27.

EBIT: As of FY2026 Q2, the actual value is USD -46.7 M.

Overall Financial Performance

Trinseo reported net sales of $845.4 million for the second quarter of 2026, an 8% increase compared to $784.3 million in the prior year period, primarily driven by higher prices across all business segments due to increased raw material costs, commercial initiatives, and favorable currency impacts, partially offset by lower volumes. The company posted a net loss of - $119.6 million for Q2 2026, which was $14 million worse than the - $105.5 million net loss in Q2 2025. This net loss included $89 million of pre-tax charges, primarily related to ongoing lender negotiations, reorganization items, debt restructuring costs, and asset restructuring programs. Gross profit significantly improved to $99.7 million in Q2 2026 from $36.6 million in Q2 2025. Operating income was $0.1 million in Q2 2026, a substantial improvement from an operating loss of - $33.3 million in Q2 2025. Adjusted EBITDA for the quarter was $81.0 million, an increase of $39 million from $41.6 million in the prior year, mainly due to margin improvements in Polymer Solutions and Engineered Materials and savings from asset restructuring actions.

Operating Costs

Cost of sales was $745.7 million in Q2 2026, down from $747.7 million in Q2 2025. Selling, general and administrative expenses increased to $100.8 million in Q2 2026 from $78.1 million in Q2 2025.

Cash Flow and Liquidity

Cash used in operating activities for Q2 2026 was - $115.3 million, compared to cash provided by operating activities of $6.8 million in Q2 2025. This included an $80 million increase to working capital due to volatile raw material costs. For the six months ended June 30, 2026, cash used in operating activities was - $348.2 million, compared to - $103.4 million in the prior year period. Capital expenditures were - $10.0 million in Q2 2026, consistent with - $9.8 million in Q2 2025. Free Cash Flow was - $125.3 million in Q2 2026, worsening from - $3.0 million in Q2 2025, impacted by $85 million in debt and other restructuring fees and an $80 million increase in working capital. Free Cash Flow for the six months was - $369.5 million, compared to - $121.9 million in the prior year period. The company ended Q2 2026 with $198 million in cash (of which $17 million was restricted) and total liquidity of $187 million. Additionally, $145 million was drawn on the AR Securitization facility, which has a total capacity of $150 million, and liquidity is supported by an additional $158 million in financing secured during the Chapter 11 process.

Segment Performance (Q2 2026 vs. Q2 2025)

• Engineered Materials: Adjusted EBITDA increased to $43.2 million from $31.1 million, driven by global margin expansion from strategic product mix improvements and lower fixed costs due to MMA facilities closure. Net sales for the segment decreased 1% to $291.5 million. or $292 million.
• Latex Binders: Adjusted EBITDA was $15.8 million, a decrease from $16.8 million, primarily due to continued weakness in European paper & board and textile applications and negative net timing. Net sales for the segment increased 21% to $247.9 million, fueled by higher prices and volumes, especially in Asia and North America. Net sales to CASE and battery binders applications constituted 15% of total segment net sales, with volume growing 3% year-over-year.
• Polymer Solutions: Adjusted EBITDA significantly increased to $43.4 million from $5.2 million, mainly due to margin improvement from raw material volatility and commercial initiatives, partially offset by lower polystyrene volumes. Net sales for the segment increased 7% to $306.0 million, primarily from higher prices.
• Americas Styrenics: Adjusted EBITDA was $1.2 million, down from $8.2 million, due to higher raw material costs and soft end market demand.

Operational Metrics

Equity affiliate income from Americas Styrenics was $1 million in Q2 2026, down from $8 million in the prior year and $2 million in the prior quarter, mainly due to higher raw material costs and soft end market demand. Volumes in growth platforms were 8% higher, and volumes in recycled content containing sales were 27% higher. Overall sales volume decreased by 5% year-over-year, with Europe experiencing a 17% decrease, the U.S. an increase of 4%, and Asia-Pacific remaining flat. For FY2025, total greenhouse gas emissions were reduced by 73% (from 2017 base year), an 18% reduction compared to FY2024. The product portfolio that is sustainably advantaged increased to 9% from 8% in FY2024. The Total Recordable Incident Rate (TRIR) improved to 0.18, down from 0.3 in FY2024.

Outlook / Guidance

Trinseo’s debt restructuring process is progressing as planned, with a confirmation hearing for the pre-packaged Plan scheduled for mid-August. The company anticipates emerging from Chapter 11 before year-end, which is expected to result in approximately $2 billion in debt reduction and $140 million in annual cash interest reduction. This will lead to a stronger balance sheet, improved financial flexibility, and a better foundation for driving innovation and executing its long-term strategy, with no interruptions to business operations or concessions to vendors, suppliers, customers, or employees.