Celanese delivered a solid QQ2 2025 performance, marked by revenue of $2.532 billion, gross profit of $535 million (gross margin of 21.1%), and operating income of $233 million (operating margin of 9.2%). Net income reached $199 million with EPS of $1.82, supported by an EBITDA of $505 million. Despite a modest YoY revenue decline of about 4.5%, the company posted meaningful net income growth and a robust free cash flow profile, underscoring the quality of earnings and operating efficiency.
Cash generation remains a strength: cash from operations was $410 million, capital expenditures were modest at $93 million, yielding free cash flow of $317 million. Celanese ends the period with a strong balance sheet: cash and equivalents of $1.173 billion, total debt of $547 million, and net debt of approximately -$626 million, reflecting substantial liquidity and optionality for deleveraging, shareholder returns, or strategic investments. The working capital dynamic shows a balanced profile with a current ratio of 2.05 and a cash conversion cycle of roughly 113.5 days. Valuation sits at a reasonable multiple versus peers, with P/E around 7.6x and P/B near 1.15x, supported by a solid free cash flow profile and secular demand for engineered materials and acetyl chain products.
Looking ahead, the absence of formal numeric guidance in the QQ2 release necessitates an assessment based on cash flow durability, end-market demand (automotive, consumer electronics, coatings, packaging), and commodity/energy inputs. Management commentary (where available) will be critical to calibrate expectations for 2H 2025 and beyond, particularly around price realization, product mix, and capacity utilization. Overall, Celanese presents a low-to-mid cycle earnings trajectory with meaningful FCF upside potential and ample liquidity to navigate a variable macro environment.