Celanese plunges 5% on earnings miss, demand weakness persists
Chemical manufacturer slashes profit expectations as automotive and construction markets remain soft
Celanese Corporation shares fell 5.3% in Wednesday trading after the specialty materials manufacturer reported fourth-quarter earnings that missed analyst expectations by nearly half, underscoring persistent weakness across key industrial markets.
The Irving, Texas-based company posted adjusted earnings per share of $0.67 for the fourth quarter of 2025, significantly below the $1.22 consensus estimate compiled by analysts. Revenue reached $2.2 billion, missing the projected $2.5 billion by 12%.
The results represent a sharp deterioration from the prior year, with full-year adjusted earnings falling to $3.98 in 2025 from $8.18 in 2024, according to regulatory filings. The collapse in profitability reflects challenging conditions across the company's end markets, particularly in automotive manufacturing, paints and coatings, and construction—all sectors that have struggled under higher interest rates and uncertain economic conditions.
"Weak demand in automotive, paints, coatings and construction, plus competitive pressures in acetate tow," the company stated in its earnings announcement. Acetate tow is a filtration material used primarily in cigarette production, a business facing its own secular headwinds as smoking rates decline globally.
The company's forward guidance offered little comfort to investors. Celanese projected first-quarter 2026 adjusted EPS of $0.70 to $0.85, implying only minimal sequential improvement from the December quarter's disappointing performance. The outlook suggests the demand environment may not recover significantly in the near term.
At approximately $55.74 per share, Celanese now trades with a forward price-to-earnings ratio of roughly 10.3 times, reflecting investor skepticism about near-term growth prospects. The stock is down from its 52-week high of $63.47 reached last year, though it remains well above its 2025 low of $35.13.
The earnings miss compounds challenges for Celanese, a Fortune 500 company that specializes in engineered materials, chemical intermediates, and acetate products. The company's diverse product portfolio spans industries ranging from automotive and consumer electronics to medical devices and packaging, making it a barometer for broader industrial demand.
Analysts following the company have maintained a cautious stance, with six analysts rating the stock a buy and eleven recommending hold, according to market data. The consensus target price of $54.71 is slightly below current trading levels, suggesting limited upside potential in the near term.
The sharp earnings decline—full-year profit more than halved from 2024 levels—raises questions about the company's ability to navigate what management has described as a "competitive pricing environment" across multiple business segments. Celanese has been working to reduce costs and optimize its portfolio, but the fourth-quarter results suggest these efforts have yet to offset the impact of weak market conditions.
The materials sector has faced significant pressure throughout 2025 as industrial activity softened globally. Companies exposed to automotive and construction markets have been particularly vulnerable, as rising interest rates have dampened consumer spending and reduced new housing starts.
Celanese's next quarterly report will be closely watched for signs of whether the demand decline has bottomed or whether the company faces further headwinds. Investors will be focused on management's commentary about end-market trends, pricing power, and the effectiveness of restructuring initiatives aimed at restoring profitability.
Until there are clear signs of a demand recovery, analysts expect Celanese shares to remain range-bound as investors wait for evidence that the company can return to the earnings growth levels achieved in 2024 and prior years.