Core Viewpoint - Huntsman Corporation is facing an unplanned outage at its Polyurethanes facility in Rotterdam, which is expected to negatively impact its fourth quarter 2025 adjusted EBITDA by approximately $10 million, leading to expectations of adjusted EBITDA at the low end of the previously communicated range of $25 million to $50 million [1]. 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 and employs around 6,300 associates [2].

Core Insights - Huntsman Corporation reported a narrower loss of 14 cents per share in Q3 2025, compared to a loss of 19 cents per share in the same quarter last year, and adjusted loss per share was 3 cents, better than the expected loss of 13 cents [1][9] Revenue Performance - Revenues for Huntsman Corporation were $1,460 million, reflecting a 5% year-over-year decline, but exceeded the Zacks Consensus Estimate of $1,443.4 million [2][9] - The Polyurethanes segment saw revenues decrease by 5% to $956 million, missing the estimate of $971 million due to lower average selling prices despite higher sales volumes [3] - Performance Products revenues fell 12% to $246 million, below the estimate of $256 million, primarily due to lower sales volumes and prices [4] - Advanced Materials revenues increased by 2% to $265 million, surpassing the estimate of $261 million, driven by higher average selling prices [4] Financial Highlights - Free cash flow from continuing operations was $157 million, up from $93 million in the prior-year quarter [5] - The company had approximately $1.4 billion in combined cash and unused borrowing capacity as of September 30, 2025 [5] - Net cash provided by operating activities from continuing operations was $200 million in the reported quarter [5] Strategic Outlook - Huntsman Corporation emphasized cost management and cash generation as top priorities, with restructuring programs expected to yield over $100 million in savings [6] - The company reduced its annual dividend to 35 cents per share, a 65% decrease, to maintain financial flexibility amid challenging economic conditions [7] Stock Performance - Huntsman shares have declined by 58.5% over the past year, compared to a 37% decline in the Zacks Chemicals Diversified industry [8]

Financial Performance - Revenues for Q3 2025 were $1,460 million, a decrease of 5% compared to $1,540 million in Q3 2024[151] - Gross profit for Q3 2025 was $204 million, down 13% from $234 million in Q3 2024[151] - Operating income for Q3 2025 was $6 million, an 86% decline from $42 million in Q3 2024[151] - Adjusted EBITDA for Q3 2025 was $94 million, a decrease of 28% from $131 million in Q3 2024[152] - Loss from continuing operations for Q3 2025 was $24 million, compared to a loss of $21 million in Q3 2024[152] - Net loss for Q3 2025 was $25 million, a decrease from a net loss of $33 million in Q3 2024[152] - Operating income for Q3 2025 was $7 million, an 84% decline from $43 million in Q3 2024[153] - Adjusted EBITDA for Q3 2025 was $95 million, a decrease of 28% from $132 million in Q3 2024[155] - The company reported a net loss of $11 million for Q3 2025, compared to a net loss of $16 million in Q3 2024[154] - For the nine months ended September 30, 2025, the net loss attributable to Huntsman Corporation was $145 million, compared to a net loss of $2 million for the same period in 2024[156] - Adjusted net loss income for the nine months ended September 30, 2025, was $58 million, while adjusted net income for the same period in 2024 was $30 million[156] Cash Flow and Expenses - Net cash provided by operating activities from continuing operations increased by 75% to $221 million compared to $126 million in Q3 2024[152] - Total operating expenses for Q3 2025 were $198 million, a 3% increase from $192 million in Q3 2024[151] - Capital expenditures from continuing operations were $116 million, down 13% from $133 million in Q3 2024[152] - Free cash flow from continuing operations for the nine months ended September 30, 2025, was $105 million, compared to a negative free cash flow of $7 million for the same period in 2024[156] - Net cash provided by operating activities from continuing operations increased to $221 million for the nine months ended September 30, 2025, compared to $126 million in the same period of 2024[182] - Net cash used in investing activities decreased to $74 million for the nine months ended September 30, 2025, from $87 million in the prior year[183] - Cash and cash equivalents increased by $128 million to $468 million as of September 30, 2025, representing a 38% increase from December 2024[187] - Total current assets rose by $57 million to $2,182 million, a 3% increase compared to December 2024[187] - Working capital increased by $21 million to $581 million, reflecting a 4% change from December 2024[187] Segment Performance - Revenues for the three months ended September 30, 2025, decreased by $80 million, or 5%, compared to the same period in 2024, primarily due to lower average selling prices[165] - Gross profit for the three months ended September 30, 2025, decreased by $30 million, or 13%, compared to the same period in 2024, driven by lower gross profits in the Polyurethanes and Performance Products segments[165] - Segment adjusted EBITDA for Polyurethanes decreased by 37% to $48 million, while Performance Products saw a 31% decline to $29 million for the three months ended September 30, 2025[169] - Performance Products segment revenues decreased by 11% for the nine months ended September 30, 2025, primarily due to lower sales volumes[174] - Advanced Materials segment revenues increased slightly by 2% for the three months ended September 30, 2025, primarily due to higher average selling prices[171] Tax and Capital Expenditures - Income tax expense from continuing operations decreased by 92% to $3 million compared to $39 million in Q3 2024[151] - The effective tax rate for the nine months ended September 30, 2025, was (21)%, compared to 76% for the same period in 2024[156] - The company expects to spend between $170 million to $180 million on capital expenditures during 2025[193] Shareholder Returns and Debt - A cash dividend of $0.0875 per share was declared, marking a 65% decrease from the previous dividend[190] - Approximately $547 million remains under the authorization of the existing share repurchase program[193] - The current portion of debt increased by $53 million to $378 million, primarily due to increased borrowings under the 2022 Revolving Credit Facility[187] - The company has approximately $465 million of cash held by foreign subsidiaries, intended to fund local operations[191]

Financial Data and Key Metrics Changes - The company delivered $200 million of operating cash in Q3 2025, with year-to-date free cash flow exceeding $100 million [7] - The latest dividend levels were adjusted down by 65%, resulting in approximately $60 million of cash requirements for the dividend next year, down from $115 million [9][49] - The company is on track to complete a $100 million cost reduction program, which includes the elimination or relocation of over 600 positions and the closure of seven sites, primarily in Europe [6][7] Business Line Data and Key Metrics Changes - The performance products division is expected to see modest recovery starting in 2026, with new capacities being introduced and improvements in contracts within automotive segments [56][57] - The maleic anhydride market remains strong in North America, with the company positioned as the low-cost producer [67] - Performance products volumes have been running down close to double digits, but the reduction is significantly influenced by the closure of the Moors site in Germany [66][68] Market Data and Key Metrics Changes - The U.S. economy is under pressure due to high inflation and rising interest rates, impacting consumer durables and home building [4][5] - Consumer confidence and spending in China are low, while European deindustrialization continues due to high business costs and regulations [5][6] - The U.S. MDI market is experiencing a sluggish demand, with a year-over-year growth of about 6% in Q3 2025 [36][72] Company Strategy and Development Direction - The company plans to continue calibrating its cost structure to align with market realities and manage cash flow during prolonged downturns [6][7] - There is a focus on sourcing energy-intensive raw materials from regions with more competitive costs, while maintaining a strong presence in profitable markets like aerospace and automotive [7][8] - The company is exploring opportunities for consolidations and rationalizing capacities to enhance competitiveness [8] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a potential recovery in the U.S. and China economies as trade tensions ease and consumer confidence returns [5][6] - The company anticipates typical seasonality in Q4 2025, coupled with higher-than-average destocking, particularly in Europe [10] - Management emphasized the importance of protecting the balance sheet for long-term stability and growth [8][9] Other Important Information - The company is not planning to take on more debt to increase dividends and will consider dividend increases only when market conditions improve [9] - The company is actively managing working capital and has been aggressive in reducing inventory levels [13][15] Q&A Session Summary Question: Cash flow and inventory reduction actions in Q3 - Management indicated that inventory reduction actions may lead to lower utilization rates in Q4, but they aim to calibrate production to actual demand as they enter 2026 [13][17] Question: Risk of European manufacturing capacity leaving - Management is closely monitoring the situation and believes that their supply chain remains strong, particularly in Rotterdam, despite potential risks [22][24] Question: U.S. MDI imports from Europe - Management hopes that the increase in U.S. MDI imports from Europe is not a structural change, as it may not make economic sense in the long term [30][31] Question: Performance products market demand - Management expects gradual improvement in the maleic market and flat to positive performance in ethyleneamines, despite competitive conditions [66][67] Question: Future MDI growth rates - Management anticipates MDI growth to align with GDP growth, plus additional growth from product substitution, estimating a growth rate of about 1.5 times GDP [89]

Financial Performance - Q3 2025 - Revenues decreased to $1460 million from $1540 million in 3Q24[8], a decrease of approximately 5%[16] - Net loss attributable to Huntsman Corporation was $25 million, compared to a net loss of $33 million in 3Q24[8] - Adjusted net loss was $5 million, compared to an adjusted net income of $17 million in 3Q24[8] - Adjusted EBITDA decreased to $94 million from $131 million in 3Q24[8] - Free cash flow from continuing operations increased to $157 million from $93 million in 3Q24[8] Segment Performance - Q3 2025 - **Polyurethanes:** Revenues decreased to $956 million from $1003 million in 3Q24[11], and adjusted EBITDA margin was 5% compared to 8% in 3Q24[13] - **Performance Products:** Revenues decreased to $246 million from $280 million in 3Q24[20], a 12% decrease[25], and adjusted EBITDA margin was 12% compared to 15% in 3Q24[22] - **Advanced Materials:** Revenues increased slightly to $265 million from $261 million in 3Q24[28], a 2% increase[33], and adjusted EBITDA margin was 17% compared to 18% in 3Q24[30] Cash Flow and Liquidity - Cash flow from operations increased to $200 million in 3Q25 from $134 million in 3Q24[43] - Liquidity at the close of the quarter was $1372 million[43] - Net debt was $1540 million[43] Cost Realignment Plans - Targeted run rate benefits of approximately $100 million by the end of 2026[45] - Expected restructuring cash costs of approximately $80 million[45] - Total headcount reduction of approximately 500[45] Q4 2025 Outlook - Total adjusted EBITDA is expected to be between approximately $25 million and $50 million[52]

Core Viewpoint - Huntsman Corporation (HUN) has experienced a significant decline in stock value, losing over 60% in the past year due to a challenging macroeconomic environment affecting the chemicals sector, particularly weak construction activity and excess supply [1] Company Performance - Huntsman's stock has been a poor performer, with a loss exceeding 60% over the last year [1] Industry Context - The chemicals sector is currently facing a brutal macro environment characterized by weak construction activity and meaningful excess supply [1]

Core Viewpoint - Huntsman Corporation (HUN) has experienced a significant decline in its stock value, losing over 60% in the past year due to a challenging macroeconomic environment affecting the chemicals sector, particularly weak construction activity and excess supply [1]. Company Performance - Huntsman's stock has been a poor performer, with a loss exceeding 60% over the last year [1]. Industry Context - The chemicals sector is currently facing a brutal macro environment characterized by weak construction activity and meaningful excess supply [1].

Core Insights - Huntsman reported a quarterly loss of $0.03 per share, outperforming the Zacks Consensus Estimate of a loss of $0.13, marking an earnings surprise of +76.92% [1] - The company generated revenues of $1.46 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.15%, although this represents a decline from $1.54 billion in the same quarter last year [2] - Huntsman shares have decreased by approximately 57.4% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is -$0.20 on revenues of $1.45 billion, and for the current fiscal year, it is -$0.66 on revenues of $5.76 billion [7] Industry Context - The Chemical - Diversified industry, to which Huntsman belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Huntsman's stock performance [5]

Financial Performance - Third quarter 2025 revenues were $1,460 million, a decrease of 5% compared to $1,540 million in the prior year period[5][18]. - Net loss attributable to Huntsman Corporation for Q3 2025 was $25 million, an improvement from a net loss of $33 million in Q3 2024[4][5]. - Adjusted EBITDA for Q3 2025 was $94 million, down from $131 million in the same period last year, reflecting a decrease of 28%[4][5]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $240 million, down from $343 million for the same period in 2024, indicating a decline of approximately 30%[21]. - The company reported a net loss of $188 million attributable to Huntsman Corporation for the nine months ended September 30, 2025, compared to a net loss of $48 million for the same period in 2024, representing a significant deterioration in performance[21]. Cash Flow and Liquidity - Free cash flow from continuing operations was $157 million in Q3 2025, compared to $93 million in Q3 2024, representing a 68% increase[4][10]. - Total cash at the end of the period increased to $468 million in Q3 2025, up from $330 million in Q3 2024, representing a 42% increase[25]. - Free cash flow from continuing operations for the nine months ended September 30, 2025, was $105 million, compared to a negative $7 million in the same period of 2024[25]. - Net cash provided by operating activities from continuing operations was $200 million for Q3 2025, a 49% increase from $134 million in Q3 2024[25]. - Cash paid for interest decreased to $5 million in Q3 2025 from $14 million in Q3 2024, a reduction of 64%[25]. - Cash paid for income taxes increased to $18 million in Q3 2025 from $16 million in Q3 2024, reflecting a 13% increase[25]. Dividends and Shareholder Returns - The regular quarterly dividend was reset to $0.0875 per share, a reduction of 65% from the previous dividend, resulting in an annual payout of $0.35 per share[4][6]. Segment Performance - Polyurethanes segment revenues decreased by 5% to $956 million in Q3 2025, primarily due to lower average selling prices[7][18]. - Performance Products segment revenues fell by 12% to $246 million, driven by lower sales volumes and average selling prices[8][18]. - Advanced Materials segment revenues increased by 2% to $265 million, primarily due to higher average selling prices[9][18]. Restructuring and Cost Savings - The company expects to achieve over $100 million in savings from ongoing restructuring programs, projected to be completed by 2026[6]. Balance Sheet and Financial Position - Total assets as of September 30, 2025, were $7,082 million, slightly down from $7,114 million as of December 31, 2024[22]. - Cash increased to $468 million as of September 30, 2025, up from $340 million at the end of 2024, indicating a significant liquidity improvement[22]. - Total debt excluding affiliates rose to $2,008 million as of September 30, 2025, compared to $1,835 million at the end of 2024, reflecting increased leverage[23]. - Net debt excluding affiliates increased to $1,540 million as of September 30, 2025, from $1,495 million at the end of 2024, reflecting a slight increase in financial obligations[23]. - The effective tax rate for the nine months ended September 30, 2025, was -21%, compared to 76% for the same period in 2024, showing a significant tax benefit[21]. - The adjusted effective tax rate for the nine months ended September 30, 2025, was 267%, compared to 34% for the same period in 2024, indicating a substantial increase in tax liabilities[21]. Inventory Management - Inventory levels decreased to $836 million as of September 30, 2025, from $917 million as of December 31, 2024, indicating improved inventory management[22]. Operational Overview - The company operates over 60 manufacturing, R&D, and operations facilities in approximately 25 countries, employing around 6,300 associates[31]. - The company reported revenues of approximately $6 billion from continuing operations for the year 2024[31]. - Adjusted EBITDA is used to measure the operating performance of the business, providing meaningful insight into performance trends[27].

Core Insights - Huntsman Corporation reported third quarter 2025 results with revenues of $1,460 million, a decrease of 5% compared to $1,540 million in the same period of 2024 [2][10] - The net loss attributable to Huntsman was $25 million, an improvement from a net loss of $33 million in the prior year [2][10] - Adjusted EBITDA for the third quarter was $94 million, down from $131 million year-over-year [2][10] Financial Performance - Revenues for the nine months ended September 30, 2025, were $4,328 million, compared to $4,584 million in 2024, reflecting a 6% decline [13] - The diluted loss per share for Q3 2025 was $0.14, compared to a diluted loss per share of $0.19 in Q3 2024 [10] - Free cash flow from continuing operations increased to $157 million in Q3 2025 from $93 million in Q3 2024 [6][10] Segment Analysis - **Polyurethanes**: Revenues decreased by 5% to $956 million due to lower average selling prices, despite higher sales volumes [3][14] - **Performance Products**: Revenues fell by 12% to $246 million, primarily due to lower sales volumes and average selling prices [4][14] - **Advanced Materials**: Revenues increased by 2% to $265 million, driven by higher average selling prices [5][14] Cost Management and Restructuring - The company is on track with restructuring programs expected to yield over $100 million in savings by 2026 [2] - Operating expenses for Q3 2025 were $198 million, slightly higher than $192 million in Q3 2024 [13] Dividend and Capital Allocation - The Board of Huntsman Corporation decided to reset the regular dividend to $0.35 annually, a reduction of 65% from previous levels, to maintain financial flexibility [2][10] - The company anticipates returning to a higher dividend payout when conditions improve [2] Liquidity and Capital Resources - As of September 30, 2025, Huntsman had approximately $1.4 billion in combined cash and unused borrowing capacity [6] - Capital expenditures for Q3 2025 were $43 million, slightly up from $41 million in the same period of 2024 [7]