The following is a summary of the Trinseo PLC (TSE) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Q2 adjusted EBITDA reached $67 million, aligned with previous guidance despite $10 million of unfavorable net timing from falling styrene prices.

• Engineered materials achieved its highest sales volumes and adjusted EBITDA since Q2 2022, driven by moderating input costs and steady demand.

• Despite a 5% decline in volumes, mix improvement contributed to higher year-over-year adjusted EBITDA.

• Reported a free cash flow of negative $56 million for the quarter, with an expectation for positive free cash flow in the second half of the year.

Business Progress:

• Announced the opening of a PMMA depolymerization facility in Rho, Italy, utilizing a novel chemical recycling process.

• Achieved breakthroughs in polycarbonate dissolution technology at the pilot plant level, setting the stage for future innovations.

• Launched major ongoing recycling projects in line with sustainability goals, including advancement in decarbonization strategy and recycling technologies.

• Undergoing a joint sales process with Chevron Phillips Chemical for the sale of the Americas Styrenics joint venture.

Opportunities:

• Ongoing investments in sustainable product offerings are expected to drive future growth, as evidenced by record quarterly sales of products containing recycled material.

• Advancements in technology provide competitive advantages in the automotive and building construction sectors through unique product offerings like high-energy density battery binders and specialized polymers.

Risks:

• Facing challenges from persistently weak end-market demand and the impact of global economic conditions.

• Dependency on the successful sale of the Americas Styrenics joint venture to optimize financial strategies.

More details: Trinseo IR

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