- Q1 net sales $725M (-8%), net loss $116M (includes $31M pre-tax charges), Adjusted EBITDA $53M, Free Cash Flow -$244M, ending cash/liquidity $114M; revolver increased by $50M in April.
- Engineered Materials: net sales $263M (-5%), Adjusted EBITDA $34M (+$8M) driven by closure of virgin MMA in Italy, PMMA share gains in Europe and margin actions in North American surfaces.
- Latex Binders: net sales $197M (-6%), Adjusted EBITDA $16M (-$8%); CASE and battery binders = 19% of segment sales with volumes +14%; Polymer Solutions: net sales $265M (-11%), Adjusted EBITDA $24M (-$20M) after prior-year $26M polycarbonate licensing income, with higher ABS in North America and lower polystyrene in Europe.
Q1 2026 highlights
Net sales $725M (-8%); net loss $116M (includes $31M pre-tax charges related to lender negotiations and asset restructuring); Adjusted EBITDA $53M, down $12M YoY largely due to absence of $26M polycarbonate licensing income in prior year; Free Cash Flow -$244M; ending cash/liquidity $114M (includes $4M restricted); amended revolving credit facility in April added $50M of commitments.
Revenue drivers and cash impact
Sales declined from 9% lower prices across segments (competitive pressure and lower raw material costs) and 4% lower volumes, partly offset by a 5% favorable currency effect; Q1 free cash flow was pressured by typical seasonality, contraction in trade credit from suppliers and counterparties, and higher raw material costs.
Segment performance
Engineered Materials: net sales $263M (-5%), Adjusted EBITDA $34M (+$8M) driven by closure of virgin MMA production in Italy, PMMA share gains in Europe and margin actions in North American surfaces. Latex Binders: net sales $197M (-6%), Adjusted EBITDA $16M (-$8M) from weak demand and low margins in paper/board and textiles in Europe; CASE and battery binders comprised 19% of segment sales with volumes +14%. Polymer Solutions: net sales $265M (-11%), Adjusted EBITDA $24M (-$20M) primarily due to the prior-year $26M polycarbonate licensing income, partially offset by mix improvement (higher ABS volumes in North America; lower polystyrene volumes in Europe). Americas Styrenics: Adjusted EBITDA $2M, up $4M on stronger styrene and polystyrene performance.
Disclosure
Reconciliations of non-GAAP measures (EBITDA, Adjusted EBITDA, Adjusted Net Loss, Free Cash Flow, Adjusted EPS) to GAAP are provided in the financial statement notes.
