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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Goodyear has reached a significant milestone in its global sustainability strategy with the completion of a major solar installation at its Kunshan facility. The 12.3 MW on-site project, which was finished in May 2025 and became grid-connected the following month, supplied 10 percent of the plant's power needs for the remainder of the year. Looking ahead, it is projected to account for more than 12 percent of annual electricity consumption. The system is designed to generate roughly 11,500 MWh of power each year, resulting in an estimated reduction of 7,500 metric tonnes of carbon emissions annually over its 25-year lifespan.

This advancement reinforces the company’s commitment to securing 100 percent renewable electricity for its manufacturing operations by 2030 and achieving total renewable energy use by 2040. Within the Asia Pacific region, cumulative solar investments now contribute more than 40 MW of on-site renewable capacity. Beyond the numbers, the project exemplifies a broader dedication to operational excellence and environmental stewardship, showcasing how innovation can drive meaningful progress towards a cleaner energy landscape.

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NEXEN TIRE has inaugurated the Purple Snow Ivalo Center, a new facility in Ivalo, Finland, specifically designed for the development and testing of winter and all-weather tyres. The launch event brought together the company’s Chief Technology Officer, Jong Myung Kim, and members of the European automotive media, who were able to witness the centre’s advanced capabilities firsthand. This included test-driving winter tyres and touring both the indoor and outdoor testing areas managed by UTAC, Europe’s premier automotive testing organisation, within whose expansive proving ground the new centre is situated near the Arctic Circle.

The establishment of this dedicated facility marks a significant step in the tyre manufacturer’s strategy to enhance its winter tyre research and development. It complements internal efforts such as a specialised laboratory focused on winter road surface characteristics. The newly secured proving ground, under a long-term lease, features a variety of snow handling tracks, including a large flat circuit and courses with different gradients and curves. This real-world testing environment is particularly crucial as several major European countries, including Germany, Italy and Sweden, now mandate the use of winter tyres bearing the Three-Peak Mountain Snowflake symbol. With Europe representing over 40 percent of the company’s revenue, strengthening competitiveness in this market is paramount.

A key advantage of the Ivalo location is its capability to test studded tyres, which are essential for the icy conditions found in Northern Europe, allowing for a more strategic response to regional demand. Beyond immediate testing, the centre serves as a vital link between virtual simulation and physical validation. Following the introduction of a high-dynamic driving simulator, the first in the Korean automotive industry, the company can now instantly verify its performance predictions with on-snow driving tests. This integration is expected to accelerate the advancement of AI-driven virtual development technologies and create new opportunities for original equipment projects, thereby strengthening the foundation for producing high-performance tyres.

This new testing infrastructure is one component of a broader market approach. Complementing the facility’s opening, NEXEN TIRE has been actively expanding its product portfolio. Recent additions include the WINGUARD Sport 3, launched in Europe last year, and the ongoing expansion of the N’BLUE 4Season 2 lineup, an all-weather tyre engineered to satisfy winter tyre requirements.

John Bosco (Hyeon Suk) Kim, CEO, NEXEN TIRE said, “This testing centre brings together a uniquely favourable northern European location with a long winter season and the operational expertise of a leading testing specialist. It will serve as a key hub for advancing our research and development capabilities for winter and all-weather tyres. Based on this foundation, we will continue to enhance our testing and research capabilities in line with the requirements of the European and global markets and further strengthen our competitive position.”

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Apollo Tyres will invest INR 58 billion over three years to expand passenger car and truck tyre capacity at its Andhra Pradesh plant, as utilisation in India moves into the high 80s and truck and bus radial lines approach full capacity.

The board has approved the capital expenditure for financial years 2027 to 2029, with about INR 20 billion scheduled for FY2027. Total consolidated capex in FY2027 is expected to be about INR 30 billion, including roughly INR 7 billion of maintenance and operational spending and ongoing expansion in Hungary.

Neeraj Kanwar, Managing Director And Vice-Chairman, said the company was “running at close to 100 percent utilisation” in truck and bus radial tyres and was seeing shortages in truck, passenger car and farm segments.

For the quarter ended December 2025, consolidated revenue rose nearly 12 percent year on year to INR 77.4 billion, the highest quarterly revenue on both a standalone and consolidated basis, the company said. EBITDA stood at INR 11.9 billion, with a margin of 15.3 percent, compared with 14.9 percent in the previous quarter and 13.7 percent a year earlier.

In India, revenue was INR 51.4 billion, up more than 13 percent, with mid-teens volume growth in OEM and replacement channels and exports growth just short of 20 percent. The company said utilisation across India operations was in the high 80s for both passenger car radial and truck and bus radial tyres.

In Europe, revenue was €180 million, broadly flat year on year, reflecting a subdued market. The European passenger car replacement market declined 4 percent in the quarter. EBITDA in Europe was €32 million, with a margin of 17.9 percent, compared with 17.7 percent a year earlier and 12.7 percent in the preceding quarter.

In Europe, the group will close its Enschede plant in the Netherlands by the end of June 2026. Production is being transitioned to Hungary and India. Management expects the benefits of the restructuring to begin flowing through from the second half of FY2027, although it declined to provide margin guidance.

The India expansion will lift passenger car tyre capacity by 10,500 tyres per day from an existing base of about 58,000 tyres per day, an increase of 17–18 percent. Truck and bus radial capacity of more than 15,000 tyres per day will rise by 3,600 tyres per day, or more than 20 percent. Some capacity will come on stream in FY2028, with the full benefit expected by FY2030.

Gaurav Kumar, Chief Financial Officer, said the expansion equates to roughly INR 170 million per metric tonne of added capacity, compared with INR 115-120 million per tonne in the previous Andhra investment in FY2021. The increase reflects “inflationary pressures” and the adoption of “state-of-the-art” technology to cater to global OEMs in India, Europe and the US.

He added that the decision marked a shift from incremental debottlenecking to larger civil construction. “We reached a stage where we could not further increase the capacity by line balancing and hence, any further increase in capacity needed civil,” Kumar said.

The company expects to take on some additional debt during the capex cycle. Consolidated net debt fell to INR 13 billion at the end of December 2025, from INR 26 billion at the end of September, driven by lower short-term borrowings and stronger operational cash flow. Net debt to EBITDA declined to 0.4 times from 0.8 times.

Kumar said net debt to EBITDA would remain below the long-term ceiling of 2.0 times “even at the peak levels” of capex.

Return on capital employed is running at 13.5 percent, below the 15 percent target previously outlined by the group. Management said it would revisit capital allocation and return metrics as it formulates a new five-year plan to March 2031.

On raw materials, the company expects costs to remain steady in the fourth quarter. In the December quarter, natural rubber was about INR 195 per kg, synthetic rubber INR 170 per kg, carbon black INR 115 per kg and steel cord about INR 155 per kg.

Apollo does not hedge rubber or crude oil. “We came to the conclusion to stay away from rubber or crude oil hedging,” Kumar said. Foreign currency borrowings are fully hedged, while operational exposure in India is hedged between 75 percent and 100 per cent.

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Kuraray Co., Ltd. reported a sharp fall in net profit for 2025 after recording impairment losses in its isoprene and elastomer businesses, even as operating cash flow remained positive and the group outlined a recovery in 2026.

The Japanese chemicals group posted net sales of USD 5.27 billion for the year to December 31 2025, down 2.2 percent from USD 5.39 billion year earlier. Operating income declined 30.8 percent to USD 383.7 million, while ordinary income fell 36.8 percent to USD 335.0 million.

Net income attributable to owners of the parent dropped 76.5 percent to USD 48.9 million, reflecting extraordinary losses that included USD 193.5 million in impairment charges related to the isoprene chemical business and thermoplastic styrene elastomers.

Total assets rose to USD 8.49 billion at year end from USD 8.44 billion , while net assets fell to USD 4.92 billion, resulting in an equity ratio of 57.0 percent. Interest-bearing debt increased, contributing to a rise in total liabilities.

Net cash provided by operating activities amounted to USD 642.3 million, compared with USD 901 million in the previous year. Investing activities used USD 641 million, largely for capital expenditure, and financing activities used USD 106.5 million, including USD 196.1 million in share buybacks and USD 113.7 million in dividends. Cash and cash equivalents at the end of the period stood at USD 705.5 million.

By segment, vinyl acetate sales declined 2.5 percent to USD 2.64 billion while the isoprene business recorded sales growth of 5.3 percent to USD 523.8 million but remained loss-making. Functional materials sales were broadly flat, while operating income fell. Fibres and textiles saw lower sales but improved profitability. Trading sales edged higher.

For 2026, Kuraray forecasts net sales of USD 5.54 billion and operating income of USD 456.0 million. Net income attributable to owners of the parent is expected to recover to USD 260.6 million.

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