Celanese Targets $800 Million Free Cash Flow by 2025

Published 1 hours agoCE

Celanese Targets $800 Million Free Cash Flow by 2025

Celanese Corporation has set its sights on generating between $700 million to $800 million in free cash flow by 2025. This ambitious target will be pursued through a series of strategic initiatives focused primarily on cost reductions and divestitures. As part of this effort, Celanese has already achieved over $75 million in cost-saving measures, mainly within selling, general, and administrative expenses. Furthermore, the company plans to reduce its 2025 capital expenditure budget to $300-$350 million—a $100 million cut from prior projections, according to a report on GuruFocus.

In addition to cost-cutting, Celanese is also refining its assets through divestitures. A significant move includes the closure of its Luxembourg Mylar Specialty Films manufacturing operations, a joint venture with Teijin. This step is part of a broader strategy to exit higher-cost facilities and enhance productivity, as noted by MarketScreener. The company continues to pursue other divestitures, aiming to improve its operating model and better align with strategic objectives.

As Celanese navigates these changes, a renewed focus on leadership and productivity emerges. They have appointed Todd Elliott to lead the Engineered Materials division and brought on Chris Kean and Scott Sutton to its Board of Directors. The company emphasizes key areas such as cash generation, margin expansion, and productivity to bolster shareholder value. GuruFocus highlights that Celanese is optimistic about increasing its free cash flow in 2025, thanks to better working capital management, lower cash taxes, and reduced capital expenditures.

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Celanese Targets $800 Million Free Cash Flow by 2025

Celanese Targets $800 Million Free Cash Flow by 2025

Celanese Corporation has set its sights on generating between $700 million to $800 million in free cash flow by 2025. This ambitious target will be pursued through a series of strategic initiatives focused primarily on cost reductions and divestitures. As part of this effort, Celanese has already achieved over $75 million in cost-saving measures, mainly within selling, general, and administrative expenses. Furthermore, the company plans to reduce its 2025 capital expenditure budget to $300-$350 million—a $100 million cut from prior projections, according to a report on GuruFocus. In addition to cost-cutting, Celanese is also refining its assets through divestitures. A significant move includes the closure of its Luxembourg Mylar Specialty Films manufacturing operations, a joint venture with Teijin. This step is part of a broader strategy to exit higher-cost facilities and enhance productivity, as noted by MarketScreener. The company continues to pursue other divestitures, aiming to improve its operating model and better align with strategic objectives. As Celanese navigates these changes, a renewed focus on leadership and productivity emerges. They have appointed Todd Elliott to lead the Engineered Materials division and brought on Chris Kean and Scott Sutton to its Board of Directors. The company emphasizes key areas such as cash generation, margin expansion, and productivity to bolster shareholder value. GuruFocus highlights that Celanese is optimistic about increasing its free cash flow in 2025, thanks to better working capital management, lower cash taxes, and reduced capital expenditures.