Celanese (DG3) AI Stock Analysis

Company Guidance

Management reiterated the prior ~$6 full‑year EPS framework (citing Q2 at about $2.45) and guided Q3 EPS of $1.35–$1.75, while reiterating free cash flow of $700–$800 million as a baseline sustainable level; working capital used roughly $200 million in Q2 and nearly $300 million YTD but is expected to normalize to about neutral (0 to slightly positive) for the full year. They expect to finish 2026 with net debt around $10 billion (targeting ~$9 billion next year), with leverage crossing ~5x this year, aiming for ~4x next and ~3x long‑term. Key P&L puts and takes include Engineered Materials adjusted EBIT growth in the mid‑to‑high teens (management said “closer to 15%”), a $15 million EM turnaround charge in Q2 (non‑recurring), a ~$35 million adjusted EBIT headwind from the Micromax divestiture, roughly $10 million lower equity earnings (Ibn Sina) hitting Q3, an incremental ~$20 million of AC absorption in H2 related to Lanaken acceleration, and expected annualized cost savings of ~$20–25 million from Lanaken plus ~$30–35 million from nylon/EM footprint actions (with roughly one‑third to one‑half of those savings realized in 2026). Finally, they remain committed to $1 billion of divestitures by end‑2027 (about half completed) and have targeted $80–100 million of incremental cost reductions for 2027; corporate “other activities” ran higher in 1H and were described at roughly a $75 million per‑quarter run‑rate after 2026.