Here are 1-2 analogies to describe Trinseo (TSE):

• Like Dow Inc., but specializing in plastics, latex binders, and synthetic rubber for other manufacturers.
• A specialized version of BASF, focusing on providing essential polymer materials for industries ranging from automotive to consumer goods.

• Latex Binders: Essential ingredients used in various coatings, adhesives, and binders for paper, carpet, and construction materials.
• Synthetic Rubber: Key components for manufacturing tires, industrial rubber products, and footwear, providing durability and performance.
• Engineered Materials: High-performance plastic resins and compounds, such as ABS, SAN, and polycarbonate, used in automotive, electronics, medical, and appliance industries.
• Polystyrene: A versatile thermoplastic polymer used for packaging, insulation, consumer goods, and construction applications.

Trinseo (symbol: TSE) sells primarily to other companies (B2B).

Based on its public filings, no single customer accounted for more than 10% of Trinseo's consolidated net sales in recent fiscal years. Therefore, Trinseo does not have individually identified 'major customers' in the traditional sense of specific companies representing a significant portion of its revenue that are publicly disclosed.

However, Trinseo's diverse customer base consists of manufacturers across various industries that utilize its plastics, latex binders, and synthetic rubber products. These customer companies operate in industries such as:

• Automotive: Manufacturers of vehicles and automotive components utilize Trinseo's plastics and rubber for various parts.
• Appliances & Consumer Goods: Companies producing consumer electronics, home appliances, toys, and other durable goods use Trinseo's materials.
• Building & Construction: Manufacturers of building materials, insulation, flooring, and adhesives incorporate Trinseo's products.
• Tires: Tire manufacturers are major customers for Trinseo's synthetic rubber products.
• Paper & Board: Producers of coated paper and board for packaging and printing use Trinseo's latex binders.
• Adhesives & Coatings: Companies manufacturing paints, coatings, and adhesives are customers for Trinseo's binders and polymers.
• Medical: Manufacturers of medical devices and components use specialized Trinseo materials.

• BASF (OTCQX: BASFY)
• Shell (NYSE: SHEL)
• ExxonMobil (NYSE: XOM)
• Versalis (a subsidiary of Eni - NYSE: E)
• Dow Chemical (NYSE: DOW)
• Reliance Industries (NSE: RELIANCE)

Frank Bozich President and Chief Executive Officer

Frank Bozich was appointed President and CEO of Trinseo in March 2019. Prior to joining Trinseo, he served as President and CEO of SI Group, a global specialty chemical company, from 2013 to 2019. During his leadership, SI Group was acquired by SK Capital Partners in 2018. Before that, he held several executive management positions at BASF, including President of its Catalysts Division. He also served as Group Vice President, Enterprise Technologies and Ventures at Engelhard Corporation, which was acquired by BASF in 2006. Earlier in his career, he founded Apex Adhesives in 1986 and held leadership roles at Rohm and Haas and Croda Adhesives, Inc.

David Stasse Executive Vice President and Chief Financial Officer

David Stasse was named Executive Vice President and Chief Financial Officer of Trinseo on July 1, 2019. He joined Trinseo (formerly Styron) in July 2013 as Vice President and Treasurer, later taking on responsibilities for Investor Relations and Corporate Finance. Before his time at Trinseo, Mr. Stasse served as Vice President and Treasurer from 2008 to 2013, and Assistant Treasurer from 2006 to 2008, at Freescale Semiconductor Inc. His experience also includes roles as First Vice President, Debt Capital Markets, at MBNA Corporation, Treasury Manager at SPX Corporation, and various financial leadership positions at Honeywell International from 1998 to 2004, where he was Director of Corporate Finance.

Francesca Reverberi Senior Vice President, Engineered Materials and Plastics Solutions

Francesca Reverberi assumed leadership of the combined Engineered Materials and Plastics Solutions business as Senior Vice President in October 2024. She joined Trinseo in June 2010 following the company's carve-out from The Dow Chemical Company. At Dow Chemical, her roles included Commercial Manager for Hydrocarbons & Energy and Product Director for Emulsion Polymers, Europe and the Americas. During her tenure at Trinseo, she has held several leadership positions, including Chief Sustainability Officer, Vice President of Engineered Materials & Synthetic Rubber, Global Business Director of Performance Plastics, Global Business Director of Basic Plastics, and Global Business Director for Synthetic Rubber.

Bregje Roseboom-Van Kessel Senior Vice President, Corporate Development, Investor Relations & Treasury

Bregje Roseboom-Van Kessel is the Senior Vice President, Corporate Development, Investor Relations & Treasury at Trinseo. In August 2023, she assumed leadership of the combined Plastics Solutions and Polystyrene & Feedstocks business. Her previous role was Senior Vice President, Plastic Solutions.

James Ni Senior Vice President, Latex Binders

James Ni is the Senior Vice President, Latex Binders at Trinseo. In August 2023, he assumed responsibility for marketing and commercial excellence across Trinseo.

The key risks to Trinseo's business include:

1. High Indebtedness and Poor Financial Health: Trinseo is facing significant challenges due to excessive debt, with its financial strength rated as poor. The company's debt-to-equity ratio is concerning, and its Altman Z-Score suggests a potential bankruptcy risk. Recently, Trinseo refinanced its debt, incurring higher interest rates and more restrictive covenants.
2. Weak Market Demand, Lower Volumes, and Poor Margins: The company has experienced a substantial decline in sales volumes and persistent weak customer demand across all its business segments, leading to poor margins and negative revenue growth over the past decade. This is primarily influenced by prevailing conditions in the global economy and capital markets, including recessionary pressures.
3. Increased Raw Material and Energy Costs: Trinseo is exposed to risks associated with increased costs or disruptions in the supply of raw materials and heightened energy costs. Soaring energy expenses in Europe, a significant operating region for the company, particularly impact its profitability.

Trinseo (symbol: TSE) operates in several key markets for its main products and services, primarily plastics and latex binders. The addressable markets for their principal product categories are as follows:

• Latex Binders: The global latex binders market was valued at approximately USD 7.6 billion in 2023 and is projected to reach USD 13.35 billion by 2032, growing at a Compound Annual Growth Rate (CAGR) of 6.5% during the forecast period. The U.S. market for latex binders was estimated at USD 2.2 billion in 2024. The Asia Pacific region held the largest market share, accounting for about 48% in 2023.

• Polystyrene: The global polystyrene market size was approximately USD 9.48 billion in 2023 and is projected to grow to USD 10.41 billion by 2032, with a CAGR of 0.7%. Other reports indicate the market was valued at USD 48.91 billion in 2024 and is anticipated to reach USD 61.36 billion by 2030. The polystyrene market in the U.S. is projected to reach an estimated value of USD 1.37 billion by 2032. Asia Pacific dominated the polystyrene market, holding a 46.52% market share in 2023.

• Engineered Materials (Polycarbonate component): Trinseo's Engineered Materials segment includes products like polycarbonate. The global polycarbonate market size was estimated at USD 25.74 billion in 2024 and is predicted to grow to USD 40.11 billion by 2034, with a CAGR of 5.70% between 2025 and 2034. Another estimate places the global market at USD 15.11 billion in 2023, projected to reach USD 24.31 billion by 2032 with a CAGR of 5.4%. North America holds a leading share of the global polycarbonate market. The U.S. polycarbonate market is projected to reach USD 1.84 billion by 2032. Asia Pacific dominated the market, accounting for over 57.0% of the global revenue in 2022, and held a 68.76% market share in 2023.

• Synthetic Rubber: Trinseo produces synthetic rubber, including solution styrene butadiene rubber (SSBR). The global synthetic rubber market size was valued at USD 31.31 billion in 2023 and is projected to grow to USD 48.17 billion by 2032, exhibiting a CAGR of 4.9%. Another report indicates the global market size was USD 38.90 billion in 2024 and is predicted to reach approximately USD 66.44 billion by 2034, expanding at a CAGR of 5.50%. The synthetic rubber market size in the U.S. is projected to reach an estimated value of USD 6.52 billion by 2032. Asia Pacific dominated the synthetic rubber market with a market share of 53.15% in 2023.

Trinseo (TSE) is expected to drive future revenue growth over the next 2-3 years through a combination of strategic shifts, portfolio optimization, and market recovery.

1. Strategic Shift to Specialty Materials and Sustainable Solutions: Trinseo is focusing its strategy on transforming towards higher-value specialty materials and sustainable solutions. This includes increasing sales of recycled content products, which saw a 40% rise in Q3 2024 and a 47% increase year-over-year in Q4 2024. The company is also experiencing growth in higher-margin targeted areas such as compounds for consumer electronics applications (up 36% in Q3 2024 and 43% in Q1 2025) and CASE (coatings, adhesives, sealants, and elastomers) applications (up 7% in Q3 2024 and 3% in Q1 2025). This pivot towards profitable specialty segments and recycling technologies is central to its future success.
2. Portfolio Optimization and Cost Restructuring: Trinseo is actively exiting lower-margin businesses to streamline operations and enhance profitability, which in turn supports revenue growth in more strategic areas. For example, the company exited virgin polycarbonate production, opting to purchase from external suppliers, a move expected to improve annual profitability by $15 million to $20 million. Restructuring initiatives are projected to yield significant cost savings, with approximately $25 million in 2025 and a full run-rate of $30 million by the end of 2026. These actions also include intentionally reducing low-margin polystyrene sales.
3. Polycarbonate Technology Licensing Income: The company has a proprietary asset and technology license deal with Deepak Chem Tech, which contributed $26 million in licensing income in Q1 2025. These projects are reported to be on track and are estimated to be worth a total of $52 million, indicating further potential revenue from this source.
4. Recovery in Key End Markets: Trinseo anticipates a rebound in demand within certain end markets. Specifically, increased demand in building and construction is expected to drive growth in the first half of the coming year, with seasonally stronger volumes anticipated in Q2 2025. Although other sectors like automotive and consumer durables have shown weakness, a broader market recovery would positively impact Trinseo's revenue.
5. Geographic Expansion of High-Value Products: Trinseo is seeing growth from geographic expansion initiatives, particularly for its PMMA (polymethyl methacrylate) resin. PMMA resin volumes in Asia more than doubled in Q1 2025, contributing to sales volume growth in consumer electronics applications. This targeted expansion in specific high-value product lines and regions is a key driver for future revenue.

Share Repurchases

• In December 2021, Trinseo's Board of Directors authorized the repurchase of up to $200 million of its ordinary shares, with the authorization expiring in 18 months.
• A new share repurchase program of up to $200 million was authorized in September 2022, following the full repurchase of the December 2021 authorization. This new authorization also expires in 18 months.

Outbound Investments

• In December 2020, Trinseo entered into a binding agreement to acquire Arkema's polymethyl methacrylates (PMMA) business for approximately $1.36 billion (or €1.137 billion).
• In September 2021, the company completed the acquisition of Aristech Surfaces LLC, a North American manufacturer of PMMA products, as part of its transformation to a specialty materials and sustainable solutions provider.

Capital Expenditures

• Trinseo reported capital expenditures of $9 million in the first quarter of 2025 and $16 million in the third quarter of 2025.
• For the full year 2025, capital expenditures are projected at $50 million. Approximately $40 million of the expected 2025 capital expenditures are allocated for maintenance, with the remaining portion focused on sustainability projects.
• Strategic decisions to cease virgin MMA production in Italy and close a polystyrene asset in Germany are anticipated to result in an annual capital expenditure reduction of $10 million.