Celanese Raises 2026 Free Cash Flow Outlook

The Tip Desk · November 3, 2026 · 4 min read

The chemical maker lifted its full-year free cash flow target to $750 million to $800 million after third-quarter free cash flow of $461 million.

Celanese Corporation (CE), a global chemical and specialty materials company, raised its full-year 2026 free cash flow outlook to a range of $750 million to $800 million after generating $461 million of free cash flow in the third quarter, and it now anticipates full-year adjusted earnings of approximately $6.00 to $6.25 a share.

The company said it expects to exit 2026 with net debt-to-operating EBITDA of approximately 4.7 times. It also said that by the end of 2026 it expects to have generated over $1.5 billion in free cash flow over the past two years, and that it continues to advance an objective of generating approximately $1 billion of divestiture sales proceeds by the end of 2027, with about $650 million expected by year-end.

Net sales were $2.6 billion, up 6 percent versus the same period in 2025. Sequentially, net sales decreased 7 percent, which the company described as expected moderation from the second quarter. Adjusted earnings were $1.65 a share, versus $2.45 in the second quarter and $1.34 a year earlier. U.S. GAAP diluted earnings from continuing operations were $0.68 a share, versus a $12.39 loss a year earlier.

Consolidated operating profit was $198 million at an 8 percent margin. Adjusted EBIT was $367 million at a 14 percent margin, and operating EBITDA was $548 million at a 21 percent margin. Operating cash flow was $538 million. Year-to-date operating cash flow was $823 million and free cash flow $604 million, which the company said was supported by anticipated working capital timing benefits and continued discipline in capital expenditures.

Engineered Materials reported net sales of $1.4 billion, a 1 percent decrease year over year. The company said 2025 sales included the divested Micromax business, which contributed 6 percent to the year-over-year decline. Sequential sales in the segment declined 5 percent, mainly from automotive declines partially offset by strength in medical and electronics. The business reported operating profit of $161 million, adjusted EBIT of $209 million, and operating EBITDA of $311 million at margins of 12 percent, 15 percent, and 23 percent. Results were supported by strong commercial execution, favorable product mix, and early contributions from a number of strategic growth initiatives, which the company said more than offset raw material inflation and higher logistics costs.

The business said it remains on track to commercialize planned expansions of specialty compounding operations in Europe, a liquid crystal polymer production facility in Asia, and new medical-grade compounding capabilities in Asia during the first half of 2027.

The Acetyl Chain reported net sales of $1.2 billion, a 14 percent increase compared with the same period in 2025. The company said modest demand softness was more than offset by pricing favorability and incremental spot opportunities. Sequential sales in the chain declined 9 percent, reflecting anticipated moderation from normalizing supply chains. The chain delivered operating profit of $141 million, adjusted EBIT of $236 million, and operating EBITDA of $301 million at margins of 12 percent, 20 percent, and 25 percent.

Celanese signed a definitive agreement to sell an additional 19 percent of the Nutrinova food ingredients joint venture to Mitsui & Co., Ltd. in a transaction with total cash proceeds of approximately $152 million, while retaining an 11 percent interest. The company expects the transaction to close in the fourth quarter of 2026, subject to certain regulatory approvals and other customary closing conditions. It also completed the previously announced closure of the acetate tow facility in Lanaken, Belgium.

The effective U.S. GAAP income tax rate for the third quarter was 15 percent, higher than the same period in 2025, primarily due to a non-cash goodwill impairment loss of $1.1 billion in Engineered Materials recorded during the prior year that is not deductible for tax purposes. The effective tax rate for 2026 adjusted earnings was 8 percent for the third quarter, and the company said it anticipates that rate for the full year.

Looking to the fourth quarter, the company said it expects year-end seasonal moderation across both businesses.