Participants

Bregje Van Kessel; Senior Vice President - Plastics Solutions; Trinseo PLC

Frank Bozich; President, Chief Executive Officer, Director; Trinseo PLC

David Stasse; Chief Financial Officer, Executive Vice President; Trinseo PLC

Presentation

Operator

Good morning, ladies and gentlemen, and welcome to the Trinseo fourth quarter and full year 2024 financial results conference call. We welcome the Trinseo management team, Frank Bozich, President and CEO; David Stasse, Executive Vice President and CFO and Bee van Kessel, Senior Vice President, Corporate Finance and Investor Relations.
Today's conference call will include brief remarks by the management team followed by a question-and-answer session. The company distributed its press release along with its presentation slides at close of market Wednesday, February 12. These documents are posted on the company's investor relations website and furnished on a Form 8K filed with the Security and Exchange Commission.
If anybody should require operator assistance during the call, please press star, then 0 on your telephone. I'll now hand the call over to Bee van Kessel.

Bregje Van Kessel

Thank you and good morning, everyone. At this time, all participants are in listen-only mode. After our brief remarks, instructions will follow to participate in the question and answer session. Our disclosure rules and cautionary notes on forward-looking statements are noted on slide 2. During this presentation, we may make certain forward-looking statements, including issuing guidance and describing our future expectations.
We must caution you that actual results could differ materially from what is discussed, described, or implied in these statements. Factors that could cause actual results to differ, include but are not limited to the risk factors set forth in item 1A of our annual report on Form 10K or in our other filings made with the Securities and Exchange Commission.
The company undertakes no obligation to update or revise its forward-looking statements. Today's presentation includes certain non-GAAP financial measurements. A reconciliation of these measurements to corresponding GAAP measures is provided in our earnings release and in the appendix of our investor presentation.
The replay of today's conference call and transcript and transcript will be archived on the company's investor relations website shortly following the conference call. The replay will be available until February 13, 2026. Now I would like to turn the call over to Frank Bozich.

Frank Bozich

Thanks Bee and welcome to our year-end 2024 earnings call. Before we get into our financial results, I'd like to highlight some of our outstanding safety achievements as we've had one of the safest summers in the history of the company this past year.
I'm proud to announce that 19 production and recycling facilities, all of our global R&D teams, and two site service teams received a 000 award, which represents zero recordable injuries, zero spills, and zero process safety events for the entire year. With an injury rate of just 0.3, we continue to operate in the top quartile of companies in the American Chemistry Council and outperform many of our peers.
These results are a testament to the priority that we place on safety and everything that we do and are a reflection on the dedication that our people have to creating a safe work environment. Moving on to our operational results, this past year saw a continuation and in some cases a worsening of many of the market challenges that the chemical industry faced in 2023.
Geopolitical uncertainty, elevated inflation, and relatively high interest rates eroded consumer confidence across the globe, which adversely affected our largest end markets of auto, building and construction, and most significantly, Europe, most significantly in Europe and China.
Despite these macroeconomic challenges, we were able to improve our full year adjusted EBITDA by $50 million. Because of the self-help actions that we've taken over the past couple of years amid these challenging times, our focus has been on executing actions within our control and aligned to our transformation strategy as we wait for the macroeconomic environment to inevitably recover.
These included exiting our unprofitable and energy intensive staggering inversion polycarbonate production operations, consolidating several of our PMMA sheet operations and right sizing the company and its support functions based on the new operating footprint.
We also implemented new supply chain systems and processes that enabled a greater than 20% reduction in days of inventory to a level that can be sustained through the cycle. Finally, we took actions to extend our near-term debt maturity to 2028 and greatly improved our liquidity. All of these actions have resulted in more efficient and focused company.
Compared to the first half of 2022 when we began these actions, our energy intensity has decreased by approximately 45%. Our maintenance CapEx has decreased by more than 35%. And due to work process improvements and footprint reductions, we have reduced our total headcount by approximately 20%. These actions have allowed us to continue to make progress on our strategic initiatives and circular technologies.
We continue to grow our recycled content containing product offerings, with sales increasing 47% versus prior year and representing now 4% of the total company variable margin in 2024. Sales volumes were higher to higher margin case applications continued to make up an increasing percentage of volumes in our latex binder segment, accounting for 11% of our total segment sales volumes and 18% of our total segment variable margin in 2024.
And in our engineered material segment, PMMA resins sales and margins continue to show resilience as volumes increase 3% year over year, despite a very weak and market demand environment. We have also made significant advancements in our circular technologies.
These include commissioning our polycarbonate dissolution pilot facility and opening our ABS dissolution pilot plant and our PMMA depolymerization demo facility in 2024. We anticipate scaling up the PC and PMMA technologies at a ROE, Italy site and the PC dissolution technology at our Zhigang China site to support the growing demand from our [auto].
Next, I want to spend a few moments discussing a recently announced agreement with Deepak Nitrite Limited. In November we agreed to supply a polycarbonate license as well as all proprietary virgin polycarbonate production equipment from our Stad Germany facility to Deepak for a combined total of $52 million.
While the economics of producing virgin polycarbonate at our Strad facility have become unprofitable and led to our decision to exit that site. Our polycarbonate technology remains highly valued, and the assets can still be utilized. We view this agreement as mutually beneficial to both companies and see this as the initial steps of a strategic and collaborative partnership with Deepak.
We also see India as a significant growth market with Trinseo currently has minimal exposure. We believe in a base case scenario of at least 7% compound annual demand growth through the end of the decade in our target and markets.
Before I hand the call over to David, I'd like to make a few comments regarding our fourth quarter results. Poor business results were in line with our expectations at seasonally lower volumes and extended year-end shutdowns led to sequentially lower profitability.
Falling raw material prices resulted in significant negative timing impacts in our polymer solution segment and at Americas Styrenics. While this led to lower adjusted EBITDA than originally anticipated, the lower raw material prices led to lower working capital balances, which contributed to the highest quarter of free cash flow generation in over two years. Now I'd like to turn the call over to David.

David Stasse

Thanks Frank. Before I get into fourth quarter results, I'd like to spend a few minutes discussing our new reporting segments. At the end of the third quarter, we announced restructuring measures that included combining the management of our engineering materials, plastic solutions, and polystyrene businesses.
As a result, we made two substantive changes to our reportable segments to be more representative of this new structure and how we intend to operate the businesses going forward. First, the automotive compounding business that was previously part of Plastic Solutions has been moved into engineering materials.
This was a natural move since we already have a smaller compounding business and significant automotive exposure within engineer materials. The second change is that we are combining polystyrene with the two remaining businesses in plastic solutions.
ABS and [SAN] and they're renaming the segment polymer Solutions. I also want to highlight that in January we closed on a transaction that increased our available liquidity by approximately $150 million and extended the maturity date of the $115 million of debt that was due in 2025 to 2028.
For this transaction, we ended 2024 with almost $500 million of available liquidity and no maturities until 2028. Moving on to financial results, fourth quarter adjusted $26 million with $6 million higher than the prior year and included a $9 million unfavorable net timing impact primarily in plastic solutions as tying prices fell throughout the quarter.
Fourth quarter results were also negatively impacted by an additional $15 million of unfavorable net timing at Americas Styrenics due to falling raw material costs. Absent these headwinds, core business results were in line with expectation and improved versus prior year for each of our operating segments.
Engineering materials saw the highest year for year improvement due to moderating input costs, improved PMMA pricing, and a 61% increase in volume sold into consumer electronics applications. Cash provided by operations during the quarter was $85 million which resulted in free cash flow of $64 million.
Now I'll turn the call back over to Frank.

Frank Bozich

Thanks, Dav. Looking ahead to 2025, we do not currently anticipate meaningful demand recovery in our major markets. Geopolitics have negatively impacted our business over the past three years, and we look forward to the resolution of some of the worldwide conflicts that have disrupted global trade flows and decreased European competitiveness.
With this in mind, I'd like to give a brief update on the sale process of our joint venture Americas Styrenics. We, along with our partner, remain committed to [selling Americas Styrenics] with a focus on maximizing value. To this end, we expect an improved valuation environment later this year, which would result in a signing later than originally anticipated.
We remain very confident that the sale process will be successful, and we will update the market once we have more clarity on timing. We expect the first quarter of 2025 to be sequentially better than Q4 following the pronounced seasonality and negative timing impacts that we experienced at year end.
We are seeing seasonally higher volumes to begin Q1 but still expect first quarter volumes to be lower year over year due to continued weakness in automotive in building and construction and markets and in paper applications in Asia.
As a result, we expect Q1 adjusted EBITDA of $60 million to $80 million which includes a one-time $26 million contribution from the polycarbonate Technology license agreement to Deepak. I believe the actions we've taken over the past two years have positioned us well for an eventual market and recovery. And the refinancing transaction which we recently closed in January, give us ample runway to continue pursuing our strategy.
And now we're happy to take your questions.

Question and Answer Session

Operator

Thank you. (Operator Instructions)
Your first question comes from the line of Frank Mish of Fermium Research. Your line is open.

Hey, good morning, folks. I want to follow up on slide 14 in terms of the cash spend that you're expecting for 2025, standing at $390 million. Frank, I believe, or perhaps it was David last quarter was mentioning a number in the low 300s in terms of in terms of the spending. I'm just curious as to where you're seeing the net cash expenditures pick up from what it was a few months ago.

David Stasse

Good morning, Frank. The only changes the only changes based on the last time we talked about this figure, which is admittedly higher than it was last year, is in working capital. I mean, predicting working capital, the $40 million outflow of working capital is a function of really two things, volume over the course of the year, which, as Frank said.
We're not baking into our forecast anything of significance there, but also raw material prices, so our working capital balances is, at the end the working capital inflow outflow is really a function of our forecast of raw material prices at the end of the year, which admittedly frank standing here on February 13, is a little hard to predict.
That that line item particularly is quite likely to change going forward. Cash taxes a little bit higher than what they were last year. Also, frank last year I think was more like $20 million, and that's just a function of higher profitability. So that's really those are the only changes.

Okay, all right, that's I totally understand. And David, when you're talking about the negative timing impacts in Q4 restraining profitability or restraining the EBITDA that was reported, due to lower Styrenic monomer, of course that that cuts two ways because you guys are now merchant.
Styrenic monomer purchasers, so I'm curious as to how we should think about the benefits that I guess you're seeing in one cue from the lower Styrenic pricing. How would you factor that into the overall profitability?

Frank Bozich

Yeah, Frank, a lot of you can imagine that a lot of our pricing on our Styrenic containing products are index on the Styrenic index price and so it's a generally a pass through.

Okay, got it understood. And then I assume in terms of the delay on the AmSty sale from the first half of this year to the second half of this year, obviously you guys are operating hand in glove with CPM, correct?

Frank Bozich

Yeah, we're in close, obviously we're in close cooperation with our joint venture partner and again as I said, we anticipate, in improved result for me. I'm in a better valuation environment later this year.

Got you. Thanks so much.

Operator

Your next question comes from a line of Matthew Blair of Tudor, Pickering, Holt & Company. Your line is open.

Thank you and good morning. Hopefully you can hear me okay. I have two questions on the Q1 guidance. First, how much of an impact, if any is embedded from rising European natural gas prices in the Q1 guide, and could you provide an update on any sort of hedges you might have for 2025? And then two, is there any assumption on net timing benefits in that Q1 guide? Thank you.

Frank Bozich

So yeah, that's a great question. So, there will be in a timing, a pricing lag due to natural gas price increases and those inputs into mainly EM that are based on natural gas prices. So, we would expect that the current expectation is that the quarterly pricing that we provided at the end of last year for Q1 to our customers, we wouldn't fully recover the input and cost increase from the natural gas prices and that's mainly an EM related issue.

David Stasse

Matthew, as it relates to hedging, look, we've obviously been monitoring this very closely. We have been Putting in hedges generally for the short term in the first quarter. Obviously, I'm sure you've seen the news there's a lot of positive kind of speculation coming out of, some resolution to the Ukraine situation.
And a follow on to that would be a potential reopening of supply from Russia to Europe with natural gas, which obviously I think would have a very deflationary effect on natural gas prices in Europe. So we do have some hedges in place for the first quarter of this year. It's it's less than 50%.
And obviously the near term prices are really impacted more by the weather than anything else, but also, looking longer term we're watching the Ukraine situation closely and you know a little bit reticent probably right now given that to put on any kind of long term hedges of natural gas for Europe.
I do also just Matthew just want to point out, I mean, due to, we've exited our energy intensive businesses in Europe, to suit the two Styrene plants as well as polycarbonates. So, the only the only real energy intensive operation that we still have is MMA production in Italy. So, our energy intensity has gone down considerably.
Since the last time we went through, it's about half of what it used to be. So, the last time we went through this, the last time we had an energy crisis in Europe, our exposure was 2x of what it is today.

That's helpful. Thank you. And my follow up, it seems like one of the bright spots in the quarter was in engineering materials. You mentioned the 61% increase in volumes into consumer electronics. Do you have any more details here? Was this the result of like a new product launch and maybe a one-time benefit, or do you think this is something more sustainable? Thank you.

Frank Bozich

Yeah, so, maybe just a I think one of the big things year over year was that you had a very low base in 2023 by comparison. So, 2023 was a low year in consumer electronics for many reasons and consumer demand. So, one you're starting at a low point, but I'm really excited about the work that the team has done during the course of late 2023 and into 2024 to diversify our customer base.
So, I would generally say that this has been a really strong growth part of our business and one of the biggest areas for recycled containing products where we're selling into the consumer electronics area, it was a fairly concentrated customer base, and these would be the larger brand names in consumer electronics, and we've done a very good job diversifying our sales into new customers.
Last year and these are really bespoke products. It's not you know we're custom formulating a product with up to 60% to 70% recycled content for specific applications and so for that reason we think these are really resilient sales and again the two big drivers are the year over year comparison, as well as diversification of our customer base.

David Stasse

Great, thank you.

Operator

Your next question comes from a line of Hassan Ahmed of Alembic Global Advisors. Your line is open.

Morning, Frank. Question around guidance, you guys are guiding to, call it midpoint of guidance $70 million for Q1, and I understand, there are some moving costs associated with that, but if I annualize that, that's, only $280 million. I mean, I know, there, all these sort of macro uncertainties and the like, but how should we be thinking about 2025?

Frank Bozich

Yeah, look, I mean great question, and for the reasons that you stated, we're not, we're reluctant to try and predict the full year guide at this point, but look, we're very confident in continued positive earnings development in 2025, and the drivers are, give you the buckets.
So, what we announced with Deepak, so $26 million of EBITDA contribution from the licensing agreement, the SG&A reductions that we announced last year in restructuring will give a full year benefit of $25 million. PC asset closure, and then the subsequent sourcing agreements with that as well as the new business awards that we've received in qualifying new customers are similar in magnitude to those previous two areas.
And then lastly, I would point out that we would expect a much more normalized earnings contribution or EBITDA contribution from AmSty this year and you know. You could do the math, but over the past 4 years, even that contribution for Trinseo from our participation in AmSty was $68 million and we would expect a contribution closer to that than the result we had last year.
So, you know those are the big buckets of contribution excluding market, the market, whatever happens in the market, and so I would. That's how I would think about it once you land your market assumptions on the underlying demand.

Very helpful, Frank, and as a follow up. We've seen a nice sort of rebound in the engineered materials sort of segment EBITDA margin wise, I mean last quarter it was 12% EBITDA margins. Now it's 10%, which obviously year on year, is a healthy sort of expansion. I mean, how are you now with all the moving parts and the changes we've seen in the macro thinking about normalized earnings and normalized EBITDA margins in that segment?

Frank Bozich

Yeah, I mean, Hassan, we've been, it's impossible for it's a new world, isn't it? (multiple speakers)
I couldn't tell you what normal is, so what I can tell you is we're confident in our ability to show positive earnings momentum and the EM. I think we have a great portfolio. I mean just as we talked about, look at in last year's environment where we saw, I would say generally in many of our end markets some weakening in demand we were able to grow.
PMMA resin 3% volume, fantastic story in the growth that we've seen in our engineered compounds that go into consumer electronics it's over 60% growth. And then the other thing that I would point to is these same customers are demanding.
There's significant pull from the market for recycled and circular solutions. And we believe we have a unique and leadership position in recycling technology for ABS, PC, and PMMA that go into those end segments. And so you know those investments that we will continue to drive will give us continued momentum there. So I feel good about the work the team has done in the EM and you know I think there's more to come.

Very helpful. Thanks so much, Frank.

Operator

Your next question comes from a line of Laurence Alexander of Jefferies. Your line is open.

So good morning. three questions. Just one is on the circularity and recycling. Can you just give a sense for what your total sort of size of your platform is in those products and how the margins compare with the balance of your business? And then can you touch on what you think the CapEx needs might be down the road, say over four or five years, if the recycling platforms are going to start to scale up.

Frank Bozich

So, the volume of the recycled containing products for all of 2024. And I'm looking at being Dave to keep me, I think it was 4% for the full year, but it was growing as the year progressed, so I think that in Q4 it actually got to 5% of our total volume.
The sales of recycled containing products grew as I said, over 40% last year. So we're seeing relative to our ability to supply and source the material, we see relatively unlimited demand from our end customers. So the going to the CapEx, this, it's a really interesting and dynamic question on this, but these are, these investments are not significant. They're either high single digit or low double digit million modules.
So, these are modular investments that we would make where we could. Install those at our various downstream plants and the investments, depending, again, we're, its early days, but it's high single digit to low double digit million per module, okay.
Oh, and then you asked about margin premium. We we're seeing in each of the areas that a sustainable offering or a circular offering in PC, ABS and PMMA, as well as polystyrene in the multiple $100. Range, or significant premiums over Virgin, the Virgin premiums. Our virgin markets.

And so, is it fair to say that the payback on any of the modular investments will probably be like, 1.5, 2 years?

Frank Bozich

Yeah, it's premature for you know we're, it's premature for us to for me to lean into that one and then I'll give you a real view on that, but we're seeing very positive preliminarily we see that these would be very positive IRRs on these types of investments, and you know. But again, it's early stages and we're in the process of preliminary engineering and we'll know more in the by the second half of the year.

And then just lastly, could you just calibrate what you're hearing from your customers about further destocking or working capital efficiency initiatives and how much of that is baked into your outlook in terms of being sort of a fairly steady demand environment.

Frank Bozich

And so, I would generally say that we think that our value chains have gotten pretty tight. We think that we've done a great job along in partnership with our customers to take any slack out of the supply chains. And we haven't heard of any significant additional initiatives where people would be looking to take inventory levels down.
We haven't seen that, and I guess maybe this is the one data point that we are looking at from a longer term, or midterm demand standpoint is what is, let's talk about building and construction and automotive. Since 2008, there's been a deficit in North America and Europe in terms of new construction versus household formation.
And so there's massive pent up demand there. We think the value chains have largely, they've become balanced. And then in automotive, while demand is weaker, it's a consumer confidence issue. It's not an inventory. We don't see it as an inventory issue and in the medium term we see the age of it. We watch the age of the car park.
And you know the data that we just looked at this morning would tell us that in Europe, the car park, the auto fleet is over 12 years old, which is historical, historically highest level of age of the car parking in North America, it's over 12 years, which is one of the oldest fleets that I remember in my career, so. Yeah, I'm not, we don't see a big drive to destock.

Thank you.

Operator

Your next question comes from a line of Roger Spitz of Bank of America. Your line is open.

Thank you very much. First, can you speak about the impact of tariffs, for instance, how much do you sell to Canada, Mexico, and or China from directly from the USA?

Frank Bozich

Yeah, so on tariffs, we're thinking about tariffs in three dimensions. Okay, so dimension number one is okay, what are we importing what are our purchases from countries that could be subject to import tariffs and We believe that impact will be negligible to us because the purchases are relatively small and the commodities that we're buying from those countries are in oversupply and so we have the ability to switch to avoid the tariff switch our suppliers.
The second dimension is where do we sell our products from the US production into countries where there could be retaliatory. Tariffs and I would just say in general, most of the by far most of the US production is consumed in the US.
Our exports from the US to Canada and Mexico represent low single digit percentages of our overall. Of our overall sales and 80% of those are in the auto value chain and we highly specified into the tiers, so we don't necessarily believe that we will see an impact in terms of demand.
Sitting here today if tariffs were imposed on those sales, and then the third bucket or the third dimension which is unknowable at this point is what would be the end market demand impact on imposition of significant tariffs, and you know there's a lot of uncertainty and we just don't know at this juncture.

Thank you for that. And my other question, I'm looking at slide 12 of the deck, for instance, the AR securitization, you have $50 million left over of availability, excuse me. Does that mean that I guess they'll come out with a cu, but are you drawing $100 million under the AR securitization or is there barring based limitations here?

Yeah, hi, Roger. Good morning, it's Steve. So, there's a bar there's a borrowing base so that, the amount we have to borrow against obviously the function of the receivables balance in the legal entities that participate in the program.
The receivables balance was quite low, understandably at the end of Q4, just because of the season, kind of seasonal, seasonality of sales in the quarter. So our borrowing, we were able to so it's a $150 million facility.
Almost always going back in time, we've had full availability based on the borrowing base. It happened to be particularly low at the end of the year because of lower seasonal volumes, but also lower prices. I talked about earlier, the big drop in tying prices.
So, we have $125 million at the end of the quarter able to be borrowed. And there was a $75 million drawn. I would expect that borrowing that borrowing base will be higher in Q1.

Got it, perfect, thank you very much.

Operator

And your last question comes from a line of Alex Kelsey of Wells Fargo. Your line is open.

Oh, hey guys, thanks for taking the question. A couple of follow ups from, I think what's been asked already with regard to the EM segment just now that there's automotive, some automotive components in there as well, the$27 million reported in Q4, like how much of that was, pure EM versus auto of the $27 million?

David Stasse

Alex, there was always a pretty significant automotive exposure and engineering materials. In fact, auto and building and construction are the largest markets for what I would call legacy legacy engineering materials.
So PMMA a lot of PMMA resin applications. I don't have a number for it. We'll have to get it of the percentage, the automotive compounding business that moved into engineer we'll have to get that and give it to you offline. I just want to be clear.

The automotive compounding segment, not automotives in general, but okay, that's fine. We can follow up. Another one on the license sale with your Indian partner. Could you just remind us the duration of that agreement? And then I guess the bigger question is, if there is an expiration on that agreement, to the extent that the license and technology is still valuable, can you enter into a similar agreement again?
And then on the other question on that partnership is, Frank, I think you mentioned you know the start of a strategic relationship with that partner. Can you just talk about what that means or anything else we should expect with.

Frank Bozich

Yeah, so. No thanks. That's a great question. Maybe let me give you a little color, a little more background on who Deepak nitrite is. Deepak is one of the largest Indian public companies in the chemical industry. They are the largest phenol acetone producer in India.
And this is an attempt, this is a move on their part to move downstream to forward integrate in these value chains because India is a net importer of polycarbonate. There is no domestic production as well and so you know this that's sort of their strategy; their sales are over. They are multibillion-dollar revenue company market cap of $4.5 billion.
So, they are a substantial company and have a great presence and cost position in the value chains we participate, so it's India's in my career I've had a lot of operations in India. It's a hard, it's hard to get critical mass in India.
So partnerships are important and so having a substantial company that you're partnered with that gives you access to the market is important and like we said earlier, in our downstream formulated products we would see a high single digit compounded annual growth rate in our end markets for our solutions and you know it it's a big opportunity for us going forward.
So on the the license, it's a perpetual license. We believe, as I said in the script, we believe our polycarbonate technology is unique and one of the best technologies in the industry. It just didn't in Germany it was disadvantaged for a number of reasons, but elsewhere it is of significant value and then we have the option to expand the capacity. With Deepak as well as provide other licenses and other geographies.

Okay, that's very helpful. Two more for me if I may. On 2025. I understand lots of moving pieces and you're reticent to offer a true guide out there. But if I just take, the cleansing docs in the last transaction, 2025 estimate of, 300 to 350s as we sit here today knowing what we know and don't know about the market, do you think that those are still a reasonable goalpost for the year?

Frank Bozich

Yeah, I'm not, we're not going to give guidance for the full year or even bracket it, but what I would tell you, because there's so much market uncertainty, there's positives and negatives that are in development, even over last night, developments, so it's, I don't want to bracket where we would end up, but I go back to the comments that I would make that I made, I think for Hassan.
We're very confident in positive earnings momentum and because a lot of the actions we've taken are well within our control and those buckets are what we talked about with Deepak, the SG&A restructuring. The make versus buy decision in polycarbonate and the closure in sad as well as business wins and then again, a much more normalized earnings contribution from AmSty so those are, that's a pretty, those are positive benefits to this year.

Right. And last one, if I may, just the status of cost cuts, Frank or David, I think I think you mentioned 2025 to be realized in 2025 again just looking at the old deck that was posted with the last transaction, it was noted there was $80 million of cost doubt to be realized 2025.
Can you just help me sort of bridge those numbers or more simply just kind of remind us like where you guys stand in terms of total cost outs from the various closures and the corporate restructuring how much has been realized to date and what we should expect in 2025 and maybe in the 2026. Thank You.

Frank Bozich

Yeah, well, we'll have to go back to you and try and, I don't, I'm not sure I can give you an answer to that question. What I'm very certain of is the incremental SG&A benefit from the actions that we announced late last year are $25 million the impact of polycarbonates.
Is there, we realize some of that there's an incremental benefit from some of that, and again it's I'd have to, we'll have to follow up with you to give you a complete analysis of that. But what I would tell you is we've taken fixed costs down by well over $100 million over the past two years, and we're on track to deliver everything that we have announced, so. I don't know. I'm looking at Dave answer that better than I did

David Stasse

So, Alex look, the actions that we've taken, we will get the full year realization of savings in 2025 substantially. I mean for the You know the headcount reductions, the restructuring, that's $30 million. We got 5 last year. We'll get an increment of 2025, so we'll get the full run rate of that this year. We'll also get the full realization of the polycarbonate savings. Obviously, the Tyrene stuff was done years earlier, so we're already seeing the full effect of that in 2025.

Operator

Thank you. We have time for one more question. It comes from the line of David Begleiter of Deutsche Bank. Your line is open.

Thank you. Just a couple of questions, back to guidance, and I'm sorry, but one more try. In Q1 the polycarbonate agreement, you look at about mid-40s EBITDA the last two years you've seen a progression of roughly $20 million sequentially higher in Q2, gets to do about mid-60s for Q2. Is that a good run rate? Is that a good proxy at least? Directly speaking for Q2 versus Q1, perhaps mid-60s versus where we are right now.

Frank Bozich

Yeah, David, thanks for the question. The actually Q1 is somewhat more depressed than normal because it's been a slower start to the year than typical, and then I would also say that we have pricing lag in Q1 that's not immaterial, mainly in EM because we get, we've been providing quarterly pricing we price the product.
Our products to our end customers at the end of Q4 and again it's very volatile, but input costs a lot of the input costs into EM in Europe are based on natural gas price, and the TTF has gone up and those related products that are based on TTF have gone up with them.
So that we see today we see some pricing lag that would not be recurring after Q1. So, I would say yes, I would agree with you too and Q2 and Q3 will be an improvement over Q1, but you know it would not, I wouldn't compare it to prior year simply because we're seeing more pronounced more pronounced slow start to the year and then we have the pricing.

Understood. And just on polystyrene, are these assets core now to [Trinia]?

Frank Bozich

No, we, our polystyrene assets are great assets. They're actually, we've done a great job. Managing those in the past couple of years to optimize the free cash flow generation of the assets, but we believe that other people would be investors would invest in the growth of those assets, and we continued to feel inbounds and work with potential buyers for those assets, but on an individual basis around the world.
And there's nothing to report, but again, there's activity and interest, so we would continue to explore the possibility of selling those individual assets and are doing that.

And just one last thing on AmSty , is it fair to say the process, Dell's process has been halted, and if it is, has been halted, when was it halted?

Frank Bozich

It's not halted, we're as I said, we're working in conjunction with our partner. We, our goal is to monetize our interest in AmSty , and we will continue to progress that, but we want to time our process to optimize value, and so that just means a later marketing than we had originally anticipated.

Thank you.
With no further questions, that concludes our Q&A session. We thank you for your participation. This concludes today's conference call. You may now disconnect.