The stock dropped 15.4% following the quarter as investors reacted negatively to a cautious outlook and signs of demand weakness across major end markets, undermining confidence in the company’s near-term growth prospects.

• Management acknowledged weak demand across key end markets, with only transient uplift from order pattern distortions (prebuys) in Q1.
• The guidance for the second half assumes supply chain normalization and a moderate recovery in volumes and margins, reflecting continued uncertainty.
• Despite operating some assets at high utilization (Clear Lake), supply chain challenges and cautious capacity ramp-ups highlight ongoing execution risks.
• Engineered Materials segment shows resilience with pricing actions to offset feedstock inflation, but feedthrough delays persist.
• Equity earnings from benzene-related operations are expected to remain flat versus last year, constrained by recent shutdowns and shipping disruptions.