Can Celanese’s (CE) Divestiture Push Reveal a New Chapter in Its Financial Efficiency Strategy?

• Celanese recently completed the sale of its Micromax business, marking significant progress toward its US$1 billion divestiture target by 2027 and following its Q3 2025 earnings update.
• This move reflects Celanese's ongoing emphasis on strengthening cash flow, intensifying cost improvements, and prioritizing growth in its Engineered Materials segment.
• We’ll now explore how Celanese’s business divestiture, aimed at boosting financial efficiency, impacts its broader investment narrative.

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Celanese Investment Narrative Recap

To be a shareholder in Celanese today, you have to believe in the company’s ability to streamline its portfolio and unlock value from its Engineered Materials segment, while managing industry volatility and financial leverage. The recent Micromax business sale supports the short-term divestiture target, though persistent margin pressure from overcapacity and uncertain end-market demand remain the key challenges; the impact of this single transaction on those fundamental risks appears limited.

The most relevant announcement is Celanese’s decision to close its acetate tow facility in Lanaken, scheduled for 2026. This move aligns with efforts to optimize the cost structure and footprint, underscoring the company’s pivot to higher-growth segments even as short-term volume and margin headwinds continue to test operational improvements.

But, while Celanese is advancing its cost initiatives, investors should also be aware of how ongoing margin compression in China could...

Read the full narrative on Celanese (it's free!)

Celanese's outlook projects $10.2 billion in revenue and $799.9 million in earnings by 2028. This scenario assumes a 1.0% annual revenue decline and a $2.4 billion increase in earnings from the current level of -$1.6 billion.

Uncover how Celanese's forecasts yield a $52.50 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Six community contributors at Simply Wall St value Celanese between US$52.50 and US$90.02 per share. With the business undergoing major portfolio shifts, your view on margin recovery could shape your outlook as much as theirs, explore how other investors assess these risks and opportunities.

Explore 6 other fair value estimates on Celanese - why the stock might be worth over 2x more than the current price!

Build Your Own Celanese Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Celanese research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Celanese research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Celanese's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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