Speciality materials company Trinseo reported a third-quarter net loss of USD 87 million, driven largely by restructuring and other charges totalling USD 26 million. 

This follows recently announced restructuring efforts aimed at streamlining operations. The company posted an adjusted EBITDA of USD 66 million, marking a USD 25 million increase year-over-year.

Despite a one percent year-over-year decline in net sales to USD 868 million, the company attributed an eight percent decrease in sales to intentional reductions in low-margin areas like polystyrene and latex binders. However, a seven percent increase from higher raw material prices partially offset this decline.

Commenting on the company’s third-quarter performance, President and Chief Executive Officer of Trinseo, Frank Bozich said, “As expected, market conditions and Adjusted EBITDA were sequentially similar to the prior quarter. Despite continued weak demand in many of our end markets, particularly building and construction and appliances, we saw significant year-over-year profitability improvement largely as a result of our restructuring actions and continued moderation of European input costs.”

Third Quarter Performance by Segment

Engineered Materials: The segment posted a 12 percent rise in net sales, reaching USD 207 million, driven by increased sales volume in consumer electronics and medical applications. Adjusted EBITDA for the segment rose by USD 20 million to USD 25 million, benefiting from improved margins and a favourable product mix.

 Latex Binders: Net sales increased eight percent to USD 242 million, primarily due to higher prices that offset a drop in sales volume for paper and carpet applications. Adjusted EBITDA increased by USD 8 million to USD 26 million, reflecting improved margins and a positive regional and product mix.

Plastics Solutions: Net sales rose three percent year-over-year to USD 268 million, driven by higher raw material costs. Adjusted EBITDA climbed USD 11 million to USD 28 million, aided by higher fixed cost absorption and inventory builds in preparation for the closure of the virgin polycarbonate facility in Stade, Germany.

Polystyrene: This segment saw a 28 percent year-over-year decline in net sales to USD 151 million, impacted by a 35 percent decrease in volume after the closure of the Terneuzen, Netherlands, facility and a reduction in low-margin sales. Adjusted EBITDA rose by USD 5 million to USD 4 million due to higher margins and cost savings from the Terneuzen facility exit.

Fourth Quarter Outlook

Trinseo projects a net loss of between USD 71 million and USD 81 million in the fourth quarter, with adjusted EBITDA expected to range from USD 40 million to USD 50 million. Bozich noted that while fourth-quarter EBITDA is anticipated to dip from year-end seasonality, restructuring benefits should sustain profitability above prior-year levels. The company also expects positive free cash flow due to seasonal working capital improvements.

Commenting on the fourth quarter outlook, Bozich said, “We expect Adjusted EBITDA to be sequentially lower from year-end seasonality, but still higher than the prior year due to the benefits from our restructuring initiatives. We also expect free cash flow to turn positive in the fourth quarter due to typical seasonal working capital improvements.”

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Emerging as a direct answer to the mining industry's most persistent durability challenge, Triangle Tyre has comprehensively launched its groundbreaking giant OTR tyre bonding protection solution: EnsureX Efficient Technology. This innovation is specifically engineered for the world's most punishing environments, such as the Deo Nai coal mine in Vietnam's Quang Ninh province. There, extreme heat, prolonged humidity and rugged lignite terrain traditionally cause severe tyre ageing and delamination, leading to high failure rates and operational risk.

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Apollo Tyres is preparing to introduce the Vredestein Quatrac Pro 2, a next-generation ultra-high-performance all-season tyre slated for release in the summer of 2026. This product is engineered with a completely new architecture, innovative materials and an advanced directional tread to achieve leading performance standards. It is specifically designed for compatibility with contemporary electric and hybrid vehicles, offering low rolling resistance and minimal noise alongside a reinforced structure to accommodate their greater weight without compromising dynamic response.

This breakthrough tyre is conceived as a versatile, performance-focused option suitable for a broad range of vehicles, including sports cars, high-performance saloons and SUVs, and will be available in a wide selection of sizes. The launch continues the Vredestein brand's longstanding leadership in the all-season category, a segment it has helped define since the 1990s and where it currently offers the most comprehensive product range.

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CEAT Ltd reported strong growth in the December quarter, supported by higher volumes, improving operating margins and continued investment in capacity expansion, while flagging near-term pressure from currency movement and raw material costs.

The tyre maker posted consolidated revenue of INR 41.57 billion for the third quarter of FY26, up about 26 percent year on year. Standalone revenue rose 20.1 percent to INR 39.57 billion, driven by growth across replacement, OEM and international markets.

“This was a good Q3 for us, with more than 20 per cent year-on-year growth on a standalone basis,” said Arnab Banerjee, Managing Director and Chief Executive Officer. “Volume momentum continued across segments, supported by GST rationalisation, improving consumer sentiment and steady recovery in OEM demand.”

Demand outlook remains supportive

Management said the Indian tyre market entered calendar 2025 on a stronger footing, aided by tax reforms, rising electric vehicle adoption and premiumisation. CEAT expects the industry to deliver healthy single-digit growth over the medium term.

“Increasing disposable income in rural markets following robust rabi sowing and kharif harvest completion has been supportive,” Banerjee said, adding that replacement demand for truck and bus radials is expected to remain in the mid-to-high single digits, with seasonal upside during the summer months.

Two-wheeler tyres continued to perform strongly, while OEM demand for medium and light commercial vehicles recovered following GST rationalisation. Passenger vehicle demand is expected to grow at double-digit rates in the near term, supported by easing financing conditions.

International demand for radial commercial vehicle and passenger car tyres remained firm, with India emerging as a credible sourcing base for global OEMs and distributors.

Margins improve despite cost headwinds

Standalone EBITDA rose to INR 5.56 billion, translating into a margin of 14.1 per cent. Consolidated EBITDA stood at INR 5.68 billion, with margins improving both sequentially and year on year.

Gross margins, however, contracted sequentially by about 109 basis points, largely due to currency depreciation and inventory adjustments.

“The depreciation of the rupee and a modest rise in international natural rubber prices could result in a 1 to 1.5 per cent cost headwind over the next few quarters,” said Kumar Subbiah, Chief Financial Officer. “While crude-linked inputs remain stable, currency remains the key variable to watch.”

Standalone profit after tax came in at INR 1.92 billion, compared with INR 2.02 billion in the previous quarter. The decline reflected a one-time provision of INR 578 million linked to new labour code implementation.

“This provision largely relates to past service costs,” Subbiah said. “The ongoing quarterly impact going forward is expected to be minimal.”

Camso integration on track

CEAT said the integration of its Camso off-highway tyre business is progressing broadly as planned. Quarterly revenue stood at about USD 20 million, reflecting the ongoing transition of customer relationships from Michelin to CEAT.

“Most existing customers have approved the business transfer, ensuring continuity,” Banerjee said. “There are some one-time transition and IT costs in Q3, which will not recur from Q4 onwards.”

Management said underlying operating margins at Camso are already in double digits and are expected to improve further as utilisation rises and CEAT gains greater control over sourcing and sales.

Capex remains elevated

Capital expenditure during the quarter stood at INR 2.54 billion, taking cumulative spend for the year to INR 6.73 billion, excluding acquisition-related intangibles.

The board approved an additional INR 13.14 billion investment at the Chennai plant to add 3.5 million passenger car tyres of annual capacity, with completion targeted for the second half of FY28. The project will be funded through a mix of internal accruals and debt.

“Our capex guidance remains broadly in line with earlier estimates,” Subbiah said. “We will continue to monitor leverage closely to ensure balance sheet strength.”

Standalone gross debt stood at INR 29.54 billion, with debt-to-EBITDA improving to 1.25 times.

EV, premiumisation and sustainability

CEAT maintained a strong position in electric vehicle tyres, with more than 30 per cent share in OEM passenger EV tyres and about 20 per cent in two-wheeler EVs. The company continues to invest in premium products, including larger rim-size, run-flat and ZR-rated tyres, to improve realisations.

On sustainability, CEAT announced a partnership with CleanMax to develop 59 MW of hybrid wind-solar capacity, targeting about 60 per cent renewable energy usage by FY27.

“Q3 closed on a strong note, supported by a robust product pipeline and improving customer confidence,” Banerjee said. “We remain focused on sustaining growth while maintaining margin discipline and investing for the long term.”

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Himadri Speciality Chemical Ltd reported a sharp rise in profit for the quarter and nine months ended 31 December 2025, supported by margin expansion and accelerating investment across speciality carbon black capacity, export infrastructure and downstream materials.

The Kolkata-based speciality chemicals group said profit after tax for the nine months rose to INR 5.6 billion, exceeding the full-year profit recorded in FY25. Earnings before interest, tax, depreciation and amortisation increased to INR 7.3 billion, reflecting stronger operating leverage and a shift towards higher value-added products, despite softer revenue.

Revenue for the nine-month period stood at INR 33 billion, while total sales volumes increased by about three percent year on year to 428,572 tonnes. The company said its product mix remained focused on speciality and application-specific offerings, supporting profitability amid market volatility.

For the December quarter, consolidated EBITDA rose about 12 percent year on year to INR 2.5 billion, while profit after tax increased 36 percent to INR 1.9 billion, underlining continued margin improvement.

Investment-led expansion remains central to Himadri’s growth strategy. During the quarter, the company commenced trial production at its brownfield speciality carbon black expansion project at Mahistikry. Once fully operational, the project will increase total speciality carbon black capacity to 130,000 tonnes per annum, positioning Mahistikry as the world’s largest single-site facility for speciality carbon black. The project involves an estimated capital expenditure of INR 2.2 billion and is aimed at premium applications including plastics, inks, coatings and other niche segments.

Himadri also commissioned a high-temperature liquid coal tar pitch terminal at New Mangalore Port, creating a second export corridor alongside Haldia on India’s eastern coast. During the quarter, the company executed its first export shipment of 3,600 tonnes of liquid pitch to the Middle East. Management said the new terminal enhances logistics flexibility, reduces concentration risk and supports export-led growth in coal tar derivatives.

Beyond core expansions, the company continues to deploy capital across multiple growth platforms funded largely through internal accruals. These include forward integration into speciality chemicals such as anthraquinone and carbazole, with planned capital expenditure of INR 1.2 billion, as well as phased investments in lithium-ion battery materials, including a lithium iron phosphate cathode active material plant targeted for commissioning from FY27.

During the quarter ended 31 December 2025, upon receipt of INR 2.4 billion in balance consideration from promoters, Himadri allotted one crore equity shares to the promoters. Following the allotment, promoter shareholding increased to 52.5 per cent.

Commenting on the performance, Anurag Choudhary, Chairman and Managing Director, said the results reflected disciplined execution, operational efficiency and steady progress on strategic investments. He said the commissioning of new capacities marks the beginning of the company’s next phase of growth.

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