Trinseo opened 2026 under pressure, posting weaker sales and a deep quarterly loss as pricing declines and soft demand weighed across its business.
The specialty materials company reported first-quarter net sales of $725 million, down 8% from a year earlier. The drop was driven by a 9% fall in prices across all segments amid competitive pressures and lower raw material costs, along with a 4% decline in volumes.
Currency movements offered a partial lift, contributing a 5% favorable impact.
The company posted a net loss of $116 million for the quarter, an improvement of $37 million from the prior year. Results were hit by $31 million in pre-tax charges tied largely to ongoing lender negotiations and asset restructuring efforts.
Adjusted EBITDA came in at $53 million, down $12 million year over year, reflecting the absence of $26 million in polycarbonate technology licensing income recorded last year, despite cost savings from restructuring.
Cash flow remained under strain. Trinseo reported $233 million in cash used in operating activities and $11 million in capital expenditures, resulting in negative free cash flow of $244 million.
The company cited seasonal factors, tightening supplier credit, and higher raw material costs as key drivers.
Performance varied across business segments.
Engineered Materials generated $263 million in sales, down 5%, as lower pricing and reduced MMA volumes followed the shutdown of virgin MMA facilities in Italy. However, adjusted EBITDA rose by $8 million to $34 million, supported by cost savings, market share gains in PMMA products in Europe, and margin expansion efforts in North America.
Latex Binders revenue fell 6% to $197 million, pressured by lower pricing in paper, board, and textile markets worldwide. Adjusted EBITDA dropped $8 million to $16 million amid weak demand and compressed margins, particularly in Europe.
Still, sales to CASE and battery binder applications showed resilience, making up 19% of segment revenue, with volumes rising 14% year over year.
Polymer Solutions saw the sharpest decline, with sales down 11% to $265 million due to lower prices and reduced polystyrene volumes.
Adjusted EBITDA plunged $20 million to $24 million, largely because of the prior year’s licensing income. Gains in higher-margin ABS volumes in North America partially offset weaker European performance.
Americas Styrenics provided a modest bright spot, with adjusted EBITDA of $2 million—up $4 million from a year earlier—on stronger styrene and polystyrene results.
Commenting on the Company’s first quarter performance, Frank Bozich, President and Chief Executive Officer of Trinseo, said, “Amidst dynamic market and macroeconomic conditions during the first quarter, our team demonstrated remarkable resilience.
"We continued to build for the future across our priority areas like battery binders, CASE, PMMA, Asia, and recycled content containing platforms to drive profitable, sustainable growth. Our mission remains clear: deliver unmatched materials and service excellence for our customers, while navigating significant geopolitical uncertainty.”
