Trinseo PLC (TSE) Bundle
A Brief History of H3
As of 2024, H3 has experienced significant changes and developments in its operational and financial landscape.
Financial Performance Overview
For the three months ended September 30, 2024, H3 reported net sales of $867.7 million, a decrease of 1% from $879.0 million in the same period of 2023. The net loss for this quarter was $87.3 million compared to a loss of $38.4 million in the prior year. Adjusted EBITDA for the same period was $66.1 million, reflecting a year-over-year improvement across most segments, except for the Americas Styrenics segment.
Segment Performance
The company operates through several segments, each contributing differently to overall performance:
- Latex Binders Segment: Reported net sales of $241.9 million for the three months ended September 30, 2024, an increase of 8% year-over-year. Adjusted EBITDA rose by 39% to $25.6 million.
- Polystyrene Segment: Net sales fell by 28% to $150.6 million, with an Adjusted EBITDA of $4.1 million, a significant recovery from a loss of $0.7 million in the previous year.
- Plastics Solutions Segment: Achieved net sales of $267.7 million, up 3% from the previous year, with an Adjusted EBITDA of $27.7 million.
Debt and Liquidity
As of September 30, 2024, H3's total outstanding debt stood at $2,438.0 million, with a liquidity position of $340.3 million, comprising $163.1 million in cash and cash equivalents and $177.2 million available for borrowing.
Shareholder Equity and Market Performance
The company's shareholders' equity has been impacted by its ongoing restructuring efforts and market conditions. As of September 30, 2024, the balance of ordinary shares outstanding was 35.4 million, with an accumulated deficit of $(674.6) million.
Operational Changes
In 2024, H3 implemented a restructuring plan aimed at optimizing its operations and addressing the challenges posed by market conditions. This included exiting lower-margin businesses and focusing on higher-margin products.
Comprehensive Financial Data
| Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $867.7 million | $879.0 million | (1%) |
| Net Loss | $(87.3) million | $(38.4) million | Increase |
| Adjusted EBITDA | $66.1 million | $54.5 million | 21.5% |
| Total Debt | $2,438.0 million | N/A | N/A |
| Liquidity | $340.3 million | N/A | N/A |
Overall, H3's financial results for 2024 reflect a company in transition, adapting to market demands while managing restructuring efforts and operational challenges.
A Who Owns Trinseo PLC (TSE)
Major Shareholders
As of 2024, the ownership structure of Trinseo PLC includes various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 9.6% | Institutional |
| The Vanguard Group, Inc. | 7.8% | Institutional |
| State Street Corporation | 5.5% | Institutional |
| Dimensional Fund Advisors LP | 4.2% | Institutional |
| Invesco Ltd. | 3.9% | Institutional |
| Other Individual and Institutional Investors | 69.0% | Various |
Board of Directors
The governance of Trinseo PLC is managed by a Board of Directors, which includes:
- Chairman: Christian W. Fischer
- CEO: Frank A. Bozich
- Independent Director: Anne K. McDonald
- Independent Director: Michael A. McGarry
- Independent Director: Robert A. McDonald
Institutional Ownership Trends
Institutional ownership has seen fluctuations over the past year, reflecting changes in the stock price and market conditions. As of September 30, 2024, institutional investors hold approximately 35.5% of the company’s total shares, indicative of a stable interest from large investors despite market volatility.
Recent Stock Performance
As of September 2024, Trinseo PLC's stock is trading around $17.50 per share, down from $22.80 at the beginning of the year. The market capitalization is approximately $620 million. The company has faced challenges leading to a net loss of $230.6 million for the nine months ended September 30, 2024, as reported in their financials.
Financial Overview
Trinseo PLC reported the following financial data for the three months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Net Sales | $867.7 million |
| Adjusted EBITDA | $66.1 million |
| Net Loss | ($87.3 million) |
| Cash and Cash Equivalents | $163.1 million |
| Total Debt | $2.4 billion |
Conclusion on Ownership Dynamics
The ownership of Trinseo PLC as of 2024 reflects a mixture of institutional and individual investors, with a notable concentration among major institutional shareholders. The company's financial performance, marked by a recent net loss, has influenced its stock price and investor sentiment.
Trinseo PLC (TSE) Mission Statement
Mission Statement Overview
Trinseo PLC's mission is to be a global leader in sustainable materials, providing innovative solutions that contribute to a more sustainable future. The company's focus is on enhancing the quality of life with a commitment to responsible operations and sustainable practices.
Financial Performance
As of September 30, 2024, Trinseo reported a net sales figure of $867.7 million, a slight decrease of 1% from $879.0 million in the same quarter of 2023. The net loss for the quarter was $87.3 million compared to a loss of $38.4 million in the previous year, indicating a challenging financial environment.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Net Sales | $867.7 million | $879.0 million | -1% |
| Net Loss | $(87.3) million | $(38.4) million | +127% |
| Adjusted EBITDA | $66.1 million | $40.9 million | +62% |
| Adjusted EBITDA Margin | 7.6% | 4.6% | +2.9% |
Segment Performance
The performance of Trinseo's segments reflects the company's commitment to operational excellence and market leadership:
| Segment | Net Sales Q3 2024 | Net Sales Q3 2023 | Adjusted EBITDA Q3 2024 | Adjusted EBITDA Q3 2023 |
|---|---|---|---|---|
| Plastics Solutions | $267.7 million | $259.0 million | $27.7 million | $16.9 million |
| Polystyrene | $150.6 million | $210.3 million | $4.1 million | $(0.7) million |
| Latex Binders | $241.9 million | $223.7 million | $25.6 million | $18.4 million |
| Engineered Materials | $207.5 million | $186.0 million | $25.0 million | $4.8 million |
Sustainability Initiatives
Trinseo is committed to sustainability, focusing on reducing its carbon footprint and promoting circular economy practices. The company aims to align its operations with the principles of sustainable development, enhancing its product offerings to meet market demands for sustainable materials.
Future Outlook
Trinseo's management has outlined strategic initiatives aimed at improving profitability and operational efficiency. The company's restructuring plan is expected to deliver annualized profitability improvements in the range of $45 million to $50 million starting in 2026. This plan includes the optimization of its product portfolio and the closure of less profitable operations.
| Outlook Metric | Expected Improvement |
|---|---|
| Annualized Profitability Improvement | $45 million - $50 million |
| Restructuring Initiatives | Streamlining operations |
Trinseo's mission is reinforced by its financial performance and commitment to sustainability, striving to create value for its stakeholders while addressing global environmental challenges.
How Trinseo PLC (TSE) Works
Company Overview
Trinseo PLC (TSE) operates as a global materials company, specializing in the production of plastics, latex binders, and synthetic rubber. The company primarily serves markets such as automotive, consumer electronics, packaging, and construction.
Financial Performance
As of September 30, 2024, Trinseo reported a net loss of $87.3 million for the third quarter, compared to a loss of $38.4 million in the same period of 2023. For the nine months ended September 30, 2024, the net loss was $230.6 million, an improvement from $436.3 million in 2023.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $867.7 million | $879.0 million | $2,691.7 million | $2,837.9 million |
| Gross Profit | $80.6 million | $31.3 million | $209.6 million | $122.0 million |
| Adjusted EBITDA | $66.1 million | $40.9 million | $177.9 million | $134.0 million |
| Operating Loss | ($12.4 million) | ($16.4 million) | ($1.8 million) | ($383.4 million) |
Segment Performance
Trinseo's operations are divided into several key segments: Engineered Materials, Latex Binders, Plastics Solutions, and Polystyrene. Each segment contributes to the overall financial performance.
Engineered Materials Segment
This segment includes rigid thermoplastic compounds used in high-value applications. As of Q3 2024, the segment's net sales were $469.1 million, a slight increase from $455.2 million in Q3 2023.
Latex Binders Segment
The Latex Binders segment produced net sales of $241.9 million in Q3 2024, compared to $223.7 million in Q3 2023. Adjusted EBITDA for this segment was $25.6 million, up from $18.4 million.
| Segment | Net Sales Q3 2024 | Net Sales Q3 2023 | Adjusted EBITDA Q3 2024 | Adjusted EBITDA Q3 2023 |
|---|---|---|---|---|
| Engineered Materials | $469.1 million | $455.2 million | $36.7 million | $28.7 million |
| Latex Binders | $241.9 million | $223.7 million | $25.6 million | $18.4 million |
| Plastics Solutions | $267.7 million | $259.0 million | $27.7 million | $16.9 million |
| Polystyrene | $150.6 million | $210.3 million | $4.1 million | ($0.7 million) |
Cost Structure
For the third quarter of 2024, Trinseo's cost of sales was $787.1 million, leading to a gross profit margin of 9%. Selling, general and administrative expenses totaled $97.0 million, representing an increase from $66.6 million in Q3 2023.
Debt and Liquidity
As of September 30, 2024, Trinseo's total debt was $1,300 million with an interest expense of $72.3 million for the quarter. The company has implemented various initiatives to optimize its capital structure and improve liquidity.
Future Outlook
Trinseo's management has initiated a restructuring plan aimed at reducing costs and improving profitability by approximately $45 million to $50 million annually starting in 2026. This plan includes operational streamlining and workforce reductions.
How Trinseo PLC (TSE) Makes Money
Segment Overview
Trinseo PLC generates revenue through four primary segments: Engineered Materials, Latex Binders, Plastics Solutions, and Polystyrene. Each segment contributes differently to the overall financial performance of the company, reflecting the diverse applications of its products.
Engineered Materials Segment
The Engineered Materials segment specializes in rigid thermoplastic compounds and blends, catering to high-growth markets such as consumer electronics and medical applications. The segment also includes polymethyl methacrylates (PMMA) and activated methyl methacrylates (MMA).
| Period | Net Sales ($ in millions) | Adjusted EBITDA ($ in millions) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 207.5 | 25.0 | 12% |
| Q3 2023 | 186.0 | 4.8 | 3% |
| 9M 2024 | 626.8 | 54.5 | 9% |
| 9M 2023 | 598.4 | 4.9 | 1% |
Latex Binders Segment
This segment produces styrene-butadiene latex and other polymers primarily used in coated paper, packaging board, and various performance latex binders.
| Period | Net Sales ($ in millions) | Adjusted EBITDA ($ in millions) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 241.9 | 25.6 | 11% |
| Q3 2023 | 223.7 | 18.4 | 8% |
| 9M 2024 | 735.8 | 76.9 | 10% |
| 9M 2023 | 727.5 | 65.9 | 9% |
Plastics Solutions Segment
The Plastics Solutions segment includes various compounds and blends, primarily for automotive applications, as well as ABS, SAN, and polycarbonate products.
| Period | Net Sales ($ in millions) | Adjusted EBITDA ($ in millions) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 267.7 | 27.7 | 10% |
| Q3 2023 | 259.0 | 16.9 | 7% |
| 9M 2024 | 796.1 | 66.7 | 8% |
| 9M 2023 | 840.9 | 65.1 | 8% |
Polystyrene Segment
The Polystyrene segment offers general-purpose polystyrenes and modified polystyrenes for various applications, including packaging and consumer electronics.
| Period | Net Sales ($ in millions) | Adjusted EBITDA ($ in millions) | Adjusted EBITDA Margin (%) |
|---|---|---|---|
| Q3 2024 | 150.6 | 4.1 | 3% |
| Q3 2023 | 210.3 | (0.7) | (0%) |
| 9M 2024 | 533.0 | 23.3 | 4% |
| 9M 2023 | 671.1 | 9.9 | 1% |
Financial Performance Overview
For the nine months ended September 30, 2024, Trinseo reported total net sales of $2,691.7 million, a decline from $2,837.9 million in the same period of 2023. The overall Adjusted EBITDA for the same period was $177.9 million, compared to $134.0 million in 2023.
| Financial Metric | 2024 ($ in millions) | 2023 ($ in millions) |
|---|---|---|
| Total Net Sales | 2,691.7 | 2,837.9 |
| Adjusted EBITDA | 177.9 | 134.0 |
| Net Loss | (230.6) | (436.3) |
Market Dynamics and Strategic Initiatives
Trinseo has undergone restructuring initiatives aimed at optimizing operations and enhancing profitability. The company has focused on reducing costs and improving sales mix, particularly in low-margin segments. As part of this strategy, Trinseo has ceased styrene production in Terneuzen, which has influenced margins positively in other segments.
As of September 30, 2024, the company reported liquidity of $340.3 million, consisting of $163.1 million in cash and cash equivalents, and $177.2 million in available borrowing capacity under various facilities.
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Resources:
- Trinseo PLC (TSE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Trinseo PLC (TSE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Trinseo PLC (TSE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.