Celanese Eyes $1 B Divestitures by 2027, Sees Q4 Acetyl Chain Volume and Price Pressure
Celanese said Q4 Acetyl Chain earnings fell on mixed volume and price pressure, margin compression in China and lower Western Hemisphere volumes. The company reaffirmed its $1 billion divestiture goal by end-2027—half achieved—and projects $650–750 million in 2026 free cash flow driven by inventory cuts and lower taxes.
1. Q4 Segment Performance
In the fourth quarter Celanese said its Acetyl Chain segment saw earnings declines driven by mixed volume and price pressure, margin compression in China and lower volumes in the Western Hemisphere. Engineered Materials reported equally weighted volume and price decreases, partially offset by cost actions such as the Lanaken plant closure.
2. Divestiture Strategy
Management reaffirmed a target to generate $1 billion of proceeds from divestitures by end-2027 and noted that half the amount is secured, including the sale of Micromax. The company plans another asset sale in 2026, focusing on non-core businesses and joint ventures that do not align with its core operating models.
3. 2026 Cash Flow Outlook
For 2026 Celanese projects free cash flow of $650–750 million, supported by $100 million of inventory reductions, lower cash taxes of about $50 million and interest savings near $50 million. The company also highlighted continued cost actions, pricing initiatives and cash generation from core operations.