Monitor the confirmation hearing set for mid-August; successful emergence from Chapter 11 with a deleveraged balance sheet could trigger a recovery, but failure or delays would increase risk of equity wipeout. The negative cash burn and working capital drain suggest ongoing liquidity pressure despite DIP financing.
Price Chart
Executive Summary
Trinseo reports Q2 2026 net loss of $120M (-$3.27 EPS) on $845M revenue (+8% YoY), with adjusted EBITDA improving to $81M from $42M a year ago. The company continues to operate under Chapter 11 with DIP financing, negative free cash flow of -$125M, and a debt restructuring confirmation hearing scheduled for mid-August. The revenue growth and margin improvement are positive operational signals, but the ongoing bankruptcy process, increasing net loss, and negative operating cash flow dominate the outlook.
Key Financial Metrics
Key Facts
- Net loss of $120M in Q2 2026 vs $105.5M in Q2 2025
- Diluted EPS of $(3.27) vs $(2.95) a year ago
- Net sales of $845M, up 8% YoY from $784M
- Adjusted EBITDA of $81M, up from $42M YoY, driven by margin improvements in Polymer Solutions and Engineered Materials
- Cash used in operating activities of $115M vs cash provided of $6.8M in Q2 2025
- Free cash flow of negative $125M vs negative $3M a year ago
- Ending cash of $198M (incl. $17M restricted); total liquidity $187M
- Debt restructuring progressing with confirmation hearing scheduled in mid-August
- Liabilities subject to compromise of $2.56B as of June 30, 2026
- Sale process of Americas Styrenics restarted with joint venture partner
Financial Impact
Negative cash flow and bankruptcy restructuring costs are material; net loss of $120M on $845M revenue; $85M in restructuring fees impacted free cash flow
Risk Factors
- Chapter 11 plan may not be confirmed or could be delayed beyond year-end
- Negative operating cash flow and working capital increases could require additional DIP or debtor-in-possession financing
- Equity likely to be restructured or canceled upon emergence, per typical Chapter 11 outcomes
- Americas Styrenics sale may not close or could realize lower than anticipated proceeds
- Geopolitical uncertainty, tariffs, and raw material cost volatility could pressure margins further
Market Snapshot
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-091904 |
| Document: tse-20260806x8k.htm | 0001104659-26-091904 |
| Document: tse-20260806xex99d2.htm | 0001104659-26-091904 |
| Document: 0001104659-26-091904-index-headers.html | 0001104659-26-091904 |
| Document: 0001104659-26-091904-index.html | 0001104659-26-091904 |
| Document: 0001104659-26-091904.txt | 0001104659-26-091904 |
| 8-K Data (Synthetic) | 0001104659-26-091904 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 30, 2026 26d ago | 8-K | $0.0130 $0.0100 | ▲ +23.08% | ▲ +24.99% | $0.004000 (+69.23%) |
Sep 23, 2026 4w ago | 8-K | $0.0130 $0.0130 | · 0.00% | ▲ +0.67% | $0.004000 (−69.23%) |
Aug 7, 2026 11w ago | DEFA14A | $0.002000 $0.002000 | · 0.00% | ▼ −0.40% | $0.004000 (+100.00%) |
Aug 6, 2026 11w ago | 8-K | $0.002000 $0.002000 | · 0.00% | ▲ +1.21% | $0.004000 (−100.00%) |
US Market Status
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