Celanese reported a second quarter 2025 EPS run rate target of $2 per share, with Q3 guidance midpoint at $1.25.
Free cash flow guidance remains strong at $700 million to $800 million for 2025, driven primarily by operations despite $650 million to $700 million in interest expense.
Inventory reduction efforts in Engineered Materials caused a sequential $25 million negative earnings impact in Q3, offset by a prior Q2 benefit.
The company experienced volume weakness in China automotive orders, European demand in Engineered Materials, and the Western Hemisphere Acetyl Chain.
Volumes in the Western Hemisphere acetyl demand are at the lowest levels in 20 years, with Engineered Materials volumes down 5-6% year-over-year.
Capital expenditures were $4 million in the first half of 2025; dividends paid totaled $97 million and share repurchases approximately $102 million.
Cash and short-term investments ended at $426 million; cash flow from operations was $63 million for the first half of 2025.
Depreciation and amortization decreased to $12.1 million from $14.5 million, primarily due to lower software application depreciation.
Gross profit was $109.3 million in Q2 2025 compared to $120 million in Q2 2024, with gross profit margin at 9% versus 9.8% prior year.
Heavy haul revenue grew 9% year-over-year to approximately $138 million, driven by a 5% increase in revenue per load and 4% increase in volume.
Insurance and claims costs increased to $30.4 million from $27.2 million, representing 6.6% of BCO revenue versus 5.8% prior year, driven by increased severity of accidents and cargo claims.
Non-truck transportation service revenue declined 22% or $21 million year-over-year, mainly due to decreases in ocean and intermodal revenue and volume.
Operating income declined as a percentage of gross profit and variable contribution due to fixed cost infrastructure and increased selling, general and administrative costs.
Overall revenue was down 1% year-over-year in Q2 2025, but truck revenue was up year-over-year for the first time since Q3 2022.
Selling, general and administrative costs were $55.7 million in Q2 2025, up from $54.9 million in Q2 2024, excluding a $4.8 million reclassification impact.
Truck revenue per load increased 2.6% in Q2 2025 compared to Q2 2024, with a 3.2% increase on unsided platform equipment and 1.2% on van equipment.
Variable contribution margin was 14.1% of revenue in Q2 2025, slightly down from 14.3% in Q2 2024, mainly due to higher rates paid to truck brokerage carriers.
Dafinchi