Specialty materials provider Trinseo reported a challenging third quarter, with net sales falling 14% year-over-year to $743 million and a net loss of $110 million.

The decline was driven by lower sales volumes across all business segments and margin compression in Polymer Solutions and Latex Binders, particularly in Europe, amid competitive pricing pressures.

Adjusted EBITDA of $30 million was $36 million below prior year, the company said in a release.

Despite the setbacks, the company noted that cost-reduction efforts and restructuring initiatives partially offset the impact, while demand for higher-value formulated products showed early signs of improvement heading into the fourth quarter.

Commenting on the company’s third quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “Third quarter volumes were reflective of the demand environment we have seen over the last three years."

"This environment has gotten incrementally worse in 2025 as tariff uncertainty has disrupted trade flows and negatively affected consumer and customer sentiment. However, we saw demand for our more formulated products increase late in the third quarter and into the fourth quarter. While it may indicate that European and US customers may be beginning to reshore some of their demand it is too soon to say this is a longer term trend.”

On the full year outlook, Bozich said, “We anticipate adjusted EBITDA of approximately $30 million to $40 million and sequentially better free cash flow for the fourth quarter. This forecast assumes a continuation of the higher level in demand in our formulated products through November, but an exaggerated seasonal effect in December."