The company recorded a 2025 net sales decline of 7% and a substantial GAAP loss following a $1.1 billion non-cash impairment charge. Management is prioritizing debt reduction through $773 million in annual free cash flow and the finalized $492 million divestiture of its Micromax business.
Celanese Corporation (NYSE: CE) reported a full-year 2025 U.S. GAAP diluted loss per share of $10.44, primarily driven by a $1.1 billion non-cash goodwill impairment charge in its Engineered Materials segment. Despite the reported loss, the company generated $773 million in free cash flow for the year, representing a 55% increase over 2024 levels and exceeding its initial targets. Adjusted earnings per share for 2025 were $3.98, while the company issued a first-quarter 2026 adjusted earnings outlook of $0.70 to $0.85 per share.
Progress in Cost-Reduction and Debt Maturity Management
The fiscal year was characterized by an intensive deleveraging and cost-reduction program aimed at stabilizing the balance sheet. Celanese realized over $120 million in cost savings through productivity initiatives and refinanced approximately $4 billion of debt, which lowered its combined 2026 and 2027 maturities from $4.8 billion to $2.1 billion. In February 2026, the company successfully completed the divestiture of its Micromax business for $492 million in cash, with the proceeds designated for further debt repayment. Additionally, the company advanced its manufacturing footprint optimization, which included site closures in Switzerland and Canada.
Full-Year 2025 Financial Performance and Segment Analysis
Full-year 2025 net sales reached $9.5 billion, a 7% decrease from the $10.3 billion reported in 2024. This decline resulted from a 4% drop in pricing and a 4% decline in volumes, partially offset by minor currency benefits. The company reported a consolidated operating loss of $786 million, though operating EBITDA stood at $1.9 billion with a 20% margin. The Engineered Materials (EM) segment recorded a full-year operating loss of $958 million, while the Acetyl Chain (AC) segment maintained an operating profit of $539 million. For the fourth quarter specifically, net sales were $2.2 billion, reflecting a 9% sequential decline due to year-end destocking and competitive pressures in the acetate tow market.
2026 Financial Targets and Operational Strategies
Management has set a 2026 free cash flow target of $650 million to $750 million. The company plans to realize an additional $50 million to $70 million in cost savings during 2026 through continued complexity reduction and the intended closure of its Lanaken, Belgium facility. Operational priorities include a targeted working capital reduction of $80 million to $100 million in the Engineered Materials segment to further unlock cash. Capital expenditures for 2026 are expected to remain consistent with 2025 levels, projected between $300 million and $350 million. The company also intends to accelerate the adoption of artificial intelligence tools in manufacturing and customer-facing platforms to drive long-term productivity.
Navigating Soft Demand and Global Oversupply in Key Industrial Sectors
Celanese’s performance reflects a broader industry-wide downcycle, with soft demand persisting in the automotive, paints, coatings, and construction sectors. The Acetyl Chain segment faced specific headwinds in 2025 from regional oversupply in the Eastern Hemisphere and new industry capacity in China, which compressed variable margins in acetate tow. Management noted that visibility into 2026 demand remains limited, with the macroeconomic backdrop continuing to be influenced by geopolitical uncertainties and inventory right-sizing by global customers.