[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) The company reported a significant downturn in Q2 2025, marked by revenue and profitability declines, yet demonstrated improved free cash flow and robust liquidity [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%20Highlights) Huntsman reported a significant Q2 2025 downturn with revenues declining 7% to $1,458 million and a net loss of $158 million, alongside a 44% Adjusted EBITDA drop, yet achieved significantly improved free cash flow of $55 million Q2 2025 vs Q2 2024 Key Financial Metrics (in millions, except per share) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $1,458 | $1,574 | | Net (Loss) Income | $(158) | $22 | | Adjusted Net (Loss) Income | $(34) | $24 | | Diluted (Loss) Income per Share | $(0.92) | $0.13 | | Adjusted Diluted (Loss) Income per Share | $(0.20) | $0.14 | | Adjusted EBITDA | $74 | $131 | | Free Cash Flow from Continuing Operations | $55 | $5 | [CEO Commentary and Strategic Actions](index=2&type=section&id=CEO%20Commentary%20and%20Strategic%20Actions) CEO Peter R. Huntsman attributed weak Q2 performance to muted global construction and industrial activity, prompting decisive cost-saving measures including facility closures and significant workforce reductions to prioritize balance sheet protection and cash generation - Performance was pressured by **lower global construction and industrial activity**, with a muted seasonal uplift in Q2[6](index=6&type=chunk) - The company is undertaking **significant restructuring**, including the **closure** of its European Maleic Anhydride facility in Moers, Germany, and other downstream facilities[6](index=6&type=chunk) - Restructuring efforts are expected to reduce the global workforce by **nearly 10%**, with the largest reduction in Europe[6](index=6&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) This section analyzes the Q2 2025 financial performance across the Polyurethanes, Performance Products, and Advanced Materials segments, all experiencing revenue and EBITDA declines [Polyurethanes](index=2&type=section&id=Polyurethanes) The Polyurethanes segment's Q2 2025 revenue decreased 7% to $932 million due to lower MDI prices and reduced volumes from weak construction demand and a plant turnaround, leading to a 61% Adjusted EBITDA plummet to $31 million Polyurethanes Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $932 | $1,001 | (7)% | | Adjusted EBITDA | $31 | $80 | (61)% | - The **7%** revenue decline was driven by a **5%** decrease in average selling price & mix and a **2%** decrease in sales volume[19](index=19&type=chunk) - Lower sales volumes were attributed to **weak demand in construction markets** and a **scheduled turnaround** at the Rotterdam, Netherlands facility[7](index=7&type=chunk) [Performance Products](index=2&type=section&id=Performance%20Products) Performance Products revenue fell 10% to $270 million, primarily due to a 9% drop in sales volumes from softer market conditions and lower operating rates at the Moers, Germany facility, resulting in a 30% Adjusted EBITDA decrease to $32 million Performance Products Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $270 | $299 | (10)% | | Adjusted EBITDA | $32 | $46 | (30)% | - The **10%** revenue decline was almost entirely due to a **9%** decrease in sales volume[19](index=19&type=chunk) - Volume decrease was caused by **lower operating rates** at the Moers, Germany facility and **softer market conditions**[8](index=8&type=chunk) [Advanced Materials](index=2&type=section&id=Advanced%20Materials) The Advanced Materials segment's revenue declined 5% to $264 million, impacted by both lower average selling prices (-3%) and sales volumes (-3%) due to reduced demand in coatings and aerospace markets, leading to a 13% Adjusted EBITDA fall to $45 million Advanced Materials Q2 Performance (in millions) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $264 | $279 | (5)% | | Adjusted EBITDA | $45 | $52 | (13)% | - The **5%** revenue decline was caused by a **3%** drop in average selling prices and a **3%** drop in sales volumes[19](index=19&type=chunk) - Sales volumes decreased primarily due to **reduced demand** in the coatings and aerospace markets[9](index=9&type=chunk) [Financial Condition and Liquidity](index=2&type=section&id=Financial%20Condition%20and%20Liquidity) This section details the company's robust liquidity, improved cash flow, and changes in its balance sheet and debt structure as of Q2 2025 [Liquidity, Capital Resources, and Cash Flow](index=2&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20and%20Cash%20Flow) The company maintained strong liquidity with approximately $1.3 billion in combined cash and unused borrowing capacity as of June 30, 2025, while free cash flow from continuing operations significantly improved to $55 million, and capital expenditures were reduced to $37 million in Q2 2025, with a full-year forecast of $180-$190 million - As of June 30, 2025, the company had approximately **$1.3 billion** of combined cash and unused borrowing capacity[10](index=10&type=chunk) Cash Flow Summary (in millions) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $92 | $55 | | Free cash flow from continuing operations | $55 | $5 | - Capital expenditures for full-year 2025 are expected to be between **$180 million** and **$190 million**, down from **$37 million** spent in Q2 2025[11](index=11&type=chunk) [Balance Sheet and Debt](index=8&type=section&id=Balance%20Sheet%20and%20Debt) As of June 30, 2025, Huntsman's total assets were $7.15 billion, with total debt increasing to $2.04 billion from $1.84 billion at year-end 2024, primarily due to drawing $361 million on the revolving credit facility, resulting in net debt of $1.64 billion Key Balance Sheet Items (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash | $399 | $340 | | Total Assets | $7,147 | $7,114 | | Total Liabilities | $4,084 | $3,951 | | Huntsman Stockholders' Equity | $2,828 | $2,959 | Outstanding Debt (in millions) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Revolving credit facility | $361 | $ - | | Total debt | $2,035 | $1,835 | | Net debt | $1,636 | $1,495 | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides additional details on income taxes, investor communications, non-GAAP financial measures, and forward-looking statements [Income Taxes](index=3&type=section&id=Income%20Taxes) For the second quarter of 2025, the company reported an effective tax rate of **-5%**, with the adjusted effective tax rate not considered meaningful for the period - The effective tax rate in Q2 2025 was **-5%**, and the adjusted effective tax rate was not meaningful[12](index=12&type=chunk) [Investor Communications](index=3&type=section&id=Investor%20Communications) Huntsman will host a conference call on August 1, 2025, to discuss its Q2 2025 results, with management also scheduled to present at three investor conferences during the third quarter of 2025 - A conference call to discuss Q2 2025 financial results will be held on **Friday, August 1, 2025, at 10:00 a.m. ET**[13](index=13&type=chunk) - Management is scheduled to present at **Mizuho**, **UBS**, and **Jefferies** conferences in August and September 2025[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow to evaluate operating performance, liquidity, and strategic investments, excluding items such as restructuring costs and amortization to provide a clearer view of underlying business performance, with reconciliations provided in the report's tables - The company uses **Adjusted EBITDA** and **Adjusted Net Income** to provide insight into the performance of the business[28](index=28&type=chunk) - **Free cash flow** is defined as net cash provided by operating activities less capital expenditures and is used to evaluate liquidity and strategic planning[33](index=33&type=chunk) [Forward-Looking Statements](index=12&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements concerning future performance, plans, and business trends, which are subject to significant risks and uncertainties including high European energy costs, inflation, geopolitical instability, and cyclical markets, as detailed in the company's SEC filings - The report contains **forward-looking statements** based on current expectations that are subject to risks and uncertainties[36](index=36&type=chunk) - Significant risks include, but are not limited to, **high energy costs in Europe**, **inflation**, **geopolitical instability**, and **volatile global economic conditions**[36](index=36&type=chunk)

Core Insights - Huntsman Corporation reported a significant net loss of $158 million for Q2 2025, compared to a net income of $22 million in Q2 2024, indicating a challenging financial environment [2][10] - The company's revenues decreased to $1,458 million in Q2 2025 from $1,574 million in Q2 2024, reflecting a 7% decline [2][10] - Adjusted EBITDA fell to $74 million in Q2 2025, down from $131 million in the same period last year, highlighting operational difficulties [2][10] Financial Performance - Revenues for the first half of 2025 totaled $2,868 million, down from $3,044 million in the first half of 2024 [13] - The diluted loss per share for Q2 2025 was $0.92, compared to a diluted income per share of $0.13 in Q2 2024 [10][13] - Free cash flow from continuing operations improved to $55 million in Q2 2025, up from $5 million in Q2 2024 [7][10] Segment Analysis - The Polyurethanes segment saw a revenue decrease of 7% year-over-year, primarily due to lower average selling prices and sales volumes [4][13] - Performance Products segment revenues declined by 10%, driven by lower sales volumes despite stable average selling prices [5][13] - Advanced Materials segment revenues fell by 5%, attributed to lower average selling prices and reduced demand in coatings and aerospace markets [6][13] Cost Management and Restructuring - The company is implementing cost reduction measures, including the closure of its European Maleic Anhydride facility and a global workforce reduction of nearly 10% [3] - Restructuring efforts initiated at the end of 2024 have expanded in 2025, reflecting the need to adapt to current market conditions [3] Liquidity and Capital Resources - As of June 30, 2025, Huntsman had approximately $1.3 billion in combined cash and unused borrowing capacity [7] - Capital expenditures for Q2 2025 were $37 million, down from $50 million in Q2 2024, with expectations to spend between $180 million to $190 million for the full year [8][10] Tax and Effective Rates - The effective tax rate for Q2 2025 was reported at -5%, indicating a unique tax situation for the period [9]

Core Viewpoint - The market anticipates Huntsman (HUN) will report a year-over-year decline in earnings due to lower revenues, with a consensus EPS estimate of a loss of $0.15 per share, reflecting a significant decrease of 207.1% compared to the previous year [1][3]. Group 1: Earnings Expectations - Huntsman is expected to report revenues of $1.48 billion, which is a decline of 5.8% from the same quarter last year [3]. - The consensus EPS estimate has been revised down by 35.29% over the last 30 days, indicating a reassessment by analysts [4]. - A positive Earnings ESP of +19.23% suggests that analysts have recently become more optimistic about Huntsman's earnings prospects, despite the stock's Zacks Rank of 5, which complicates predictions of an earnings beat [12]. Group 2: Earnings Surprise History - Huntsman has matched consensus EPS estimates in the past, with no surprise reported in the last quarter where it was expected to post a loss of $0.11 per share and did so [13]. - Over the last four quarters, Huntsman has beaten consensus EPS estimates two times [14]. Group 3: Industry Context - In the Zacks Chemical - Diversified industry, Tronox (TROX) is also expected to report a loss of $0.04 per share, indicating a year-over-year change of -157.1% [18]. - Tronox's revenue is projected to be $777.52 million, down 5.2% from the previous year, with a consensus EPS estimate revised down by 43.1% over the last 30 days [19]. - Tronox has a Zacks Rank of 4 (Sell) and has not beaten consensus EPS estimates in any of the last four quarters, making predictions of an earnings beat difficult [20].

Core Viewpoint - Huntsman Corporation will hold a conference call on August 1, 2025, to discuss its second quarter 2025 financial results, with a question and answer session following the opening remarks [1]. Financial Information - The earnings press release, including financial statements and segment information, will be distributed after the market closes on July 31, 2025 [2]. - The company reported revenues of approximately $6 billion for the year 2024 [3]. Company Overview - Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals, operating over 60 manufacturing, R&D, and operations facilities in about 25 countries [3]. - The company employs approximately 6,300 associates within its continuing operations [3].

Group 1 - Huntsman shares are yielding above 9% based on its quarterly dividend, with the stock trading as low as $10.98 [1] - Historically, dividends have contributed significantly to the total return of the stock market, exemplified by the iShares Russell 3000 ETF, which saw a 0.6% decrease in share price over twelve years but provided $10.77 per share in dividends, resulting in a total return of 13.15% [1] - Collecting a yield above 9% is considered attractive if sustainable, especially when compared to the average annual total return of about 1.0% from reinvested dividends [1] Group 2 - Dividend amounts are unpredictable and typically fluctuate with company profitability, making historical performance important for assessing future dividend sustainability [2]

Group 1 - Huntsman Corporation has completed a strategic review of its European Maleic Anhydride business, leading to the decision to permanently close its facility in Moers, Germany, by the end of the current quarter [1][2] - The closure is a response to underperformance, with the European Maleic Anhydride operations recording an adjusted EBITDA loss of approximately $10 million in 2024 [2] - Huntsman plans to serve European customers through its North American facilities located in Pensacola, FL, and Geismar, LA [2] Group 2 - The company expects to incur a one-time, non-cash asset impairment charge of around $75 million in the second quarter of 2025 due to the facility closure [2] - Huntsman shares have lost 54% in the past year, significantly underperforming compared to the Zacks Chemicals Diversified industry's 27.8% decline [3] - Order patterns in key markets such as construction and transportation are negatively impacted by low visibility and customer uncertainty regarding demand trends [4] Group 3 - Huntsman is focused on cost actions, including workforce reductions and asset optimization in both Europe and North America, in response to the current market conditions [4] - The company currently carries a Zacks Rank 5 (Strong Sell) [5] - Better-ranked stocks in the basic materials space include Carpenter Technology Corporation, Alamos Gold Inc., and Hawkins, Inc., with Carpenter Technology showing significant performance improvement [5][6][8]

Core Insights - Hunstman Corporation has celebrated its 30th anniversary in China, having invested over 15 billion RMB since entering the market in 1995 [1][2] - The company focuses on three key areas under its "Four Sustainable Innovations" strategy: new energy vehicles, new energy buildings, and consumer goods upgrades [1][3] Group 1: Company Overview - Hunstman Corporation is a global specialty chemicals company with nearly 60 manufacturing, research, and operational facilities across approximately 25 countries [1] - The polyurethane division is the largest segment of Hunstman's operations in China, which includes advanced materials and functional products [1][2] Group 2: Market Strategy - Hunstman has shifted from being a supplier of upstream chemical raw materials to expanding into downstream applications in various sectors, including construction, automotive, and consumer goods [2][3] - The company plans to leverage its position in the polyurethane market to capitalize on the growth of new energy vehicles, energy-efficient building materials, and upgraded consumer products in China [3][4] Group 3: Future Outlook - The company aims to establish its Asia-Pacific headquarters and R&D hub in China, coordinating with production bases in Singapore to create a high-quality, low-carbon industrial ecosystem in the region [4]

Core Viewpoint - Huntsman Corporation has completed a strategic review of its European Maleic Anhydride business, leading to the closure of its facility in Moers, Germany, by the end of the current quarter [1]. Group 1: Business Operations - The closure of the Moers facility is expected to result in a one-time non-cash asset impairment charge of approximately $75 million during the second quarter of 2025 [1]. - In 2024, the European Maleic Anhydride business reported an adjusted EBITDA loss of around $10 million [1]. - Post-closure, Huntsman plans to serve European customers from its North American facilities located in Pensacola, Florida, and Geismar, Louisiana [1]. Group 2: Company Overview - Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals, with revenues of approximately $6 billion in 2024 [2]. - The company operates over 60 manufacturing, R&D, and operations facilities across approximately 25 countries, employing around 6,300 associates [2].

Core Viewpoint - The implementation of the "Residential Project Standards" on May 1 has led to a significant upgrade in industry standards, particularly focusing on sound insulation performance, creating new opportunities for the construction of soundproof residential buildings [1][2] Group 1: Industry Standards and Innovations - The new standards require systematic sound insulation performance, prompting companies like Huntsman to introduce innovative solutions such as the SILENTANE acoustic system [1] - Huntsman's polyurethane damping elastomer, with over 20 years of mature technology, is widely applied in construction, high-speed rail, and automotive sound insulation, highlighting its effectiveness in the industry [1] Group 2: Product Features and Market Impact - Huntsman has launched an integrated system for floating floor insulation and soundproofing, utilizing high-performance polyurethane elastomers combined with porous fiber materials, which effectively suppresses low-frequency solid sound transmission [2] - This solution meets the new standard's requirement for impact sound levels to be less than or equal to 65 decibels, with the capability to achieve performance below 55 decibels, setting a new benchmark in the industry [2] - The system has been successfully applied in residential projects in Shanghai and has received certification from the UK’s Robust Details, providing a replicable technical model for the industry [2]

Core Viewpoint - Huntsman Corporation reported a narrower loss in Q1 2025 compared to the previous year, but revenues fell short of expectations, indicating ongoing challenges in demand and pricing across its segments [1][5][6]. Financial Performance - The reported loss was 3 cents per share, an improvement from a loss of 22 cents per share in the same quarter last year [1]. - Adjusted loss per share was 11 cents, compared to a loss of 6 cents in the prior year, aligning with Zacks Consensus Estimate [1]. - Revenues totaled $1,410 million, down approximately 4% year over year, missing the Zacks Consensus Estimate of $1,479.2 million [1]. Segment Highlights - **Polyurethanes**: Revenues decreased by 2% to $912 million, missing estimates due to lower average selling prices, although sales volumes improved [2]. - **Performance Products**: Revenues fell 12% to $257 million, below estimates, primarily due to reduced sales volumes from lower customer demand and production outages [3]. - **Advanced Materials**: Revenues decreased by 5% to $249 million, falling short of estimates, driven by lower average selling prices and negative foreign currency impacts [4]. Cash Flow and Expenditures - Free cash flow from continuing operations was a use of $107 million, slightly higher than the $105 million used in the prior-year quarter [5]. - Capital expenditures were $36 million, down from $42 million in the previous year [5]. - As of March 31, 2025, the company had approximately $1.3 billion in combined cash and unused borrowing capacity [5]. Outlook - The company anticipates continued pressure on order patterns in key markets due to low visibility and customer uncertainty regarding demand trends [6]. - Huntsman is focusing on cost actions, including workforce reductions and asset optimization in Europe and North America [6]. - Capital expenditures for 2025 are expected to be between $180 million and $190 million [7]. Stock Performance - Huntsman shares have declined by 53.1% over the past year, compared to a 25.5% decline in the Zacks Chemicals Diversified industry [8]. Zacks Rank - Huntsman currently holds a Zacks Rank of 5 (Strong Sell), indicating a challenging outlook compared to better-ranked stocks in the Basic Materials sector [9].