Growth Catalysts

• Late Q3 into Q4 increased run-rate of sales of more formulated, higher-margin products
• More formulated PMMA resins: Y/Y volume increase over 10% beginning in late Q3 and continuing into Q4
• Battery binders: volume up 27% Y/Y for the quarter; ongoing portfolio enhancements and new customer wins in anode binder applications
• Circular recycled content ramp: pilot plants for recycled polycarbonate, ABS and MMA are sold out (small volumes now, ramp expected to grow)

Business Development

• Battery binders: working with 5 of the 15 largest lithium-ion battery producers globally
• Recycled content: pilot plants for recycled polycarbonate, ABS and MMA are sold out (sales pipeline/commitments implied)

Financial Highlights

• Q3 2025 adjusted EBITDA: $30 million
• Q3 adjusted EBITDA headwinds: $9 million unfavorable raw material timing; negative equity affiliate earnings from Americas Styrenics included an $8 million headwind tied to repair/other costs from an unplanned June outage
• Engineered Materials adjusted EBITDA: flat vs prior year (fixed cost improvements + slightly higher volumes in PMMA offset lower medical volumes)
• Late-Q3/early-Q4 benefit: PMMA volumes +10% Y/Y (formulated PMMA higher margin run-rate)
• Late-year cash flow: Q4 expected free cash flow +$20 million (working capital release); year-end liquidity >$350 million
• Full-quarter guidance for adjusted EBITDA (Q4): ~$30 million to $40 million
• Q3 free cash flow: negative $38 million
• Liquidity at Q3 end: $346 million of available liquidity
• AmSty equity income impact (clarified accounting timing): total impact $10 million (repair + higher styrene raw material costs); $2 million in June and $8 million in Q3
• Late-Q3 operational narrative ties to trade-flow dynamics: Q3 volumes lower vs prior year but similar quarter-over-quarter

Capital Funding

Strategy & Ops

• Asset actions announced prior to call: discontinuation of Virgin MMA production in Italy; intention to close polystyrene production facility in Germany (pending works council negotiations)
• Restructuring/cost action impact: expected $30 million of EBITDA improvement next year; cash savings exceed restructuring costs beginning in 2026
• Inventory/working capital focus to improve free cash flow short- and long-term (management emphasis)
• Trade-flow response: seeing demand shift toward more formulated higher-margin products; ramping recycled content platforms

Market Outlook

• Q4 2025 adjusted EBITDA guidance: roughly $30 million to $40 million
• Q4 2025 free cash flow: positive $20 million
• Year-end 2025 liquidity: over $350 million
• Guidance assumptions include $5 million to $10 million of negative raw material timing in Q4 and continuation of year-to-date market dynamics plus an exaggerated seasonal year-end effect

Risks & Headwinds

• Trade/tariff uncertainty driving inflow spikes and margin pressure: sharp increase in imports of Asian polymers to U.S. and Europe beginning Q1 (preparing ahead of early-April announced threatened tariff levels)
• Redirected flows to Europe from Asia due to slowing demand in China; margin pressure on more standard grades of ABS and PMMA
• Potentially structural/chronic pressure not yet proven: management says too early to determine if dynamics are transitory vs structural
• More problematic trade sources identified: inflow increases most from Taiwan and Korea (capacity built that domestic markets cannot absorb, surplus redirected to Europe/North America)
• USMCA loophole risk: Chinese-produced resin compounded lightly in Mexico then imported into U.S. tariff-free; management notes goal to be closed by the administration (would reduce this pathway benefit)
• Americas Styrenics affiliate outage impact: unplanned June outage resulted in $8 million headwind to Q3 adjusted EBITDA and $10 million total equity income impact for the period (due to repair costs + higher styrene purchase costs)
• Late-Q3 improvement may not mean trough ended: management said it is too early to conclude market has changed; monitoring whether PMMA run-rate is sustainable
• AmSty outlook constraint: management cited globally “long” styrene and lower margins historically (also noted they exited European plants due to styrene margins)