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]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Analyst Ratings and Price Targets - Huntsman Corporation (NYSE:HUN) has a dividend yield of 12.67%. Mizuho analyst John Roberts maintained an Underperform rating and reduced the price target from $9 to $8, while Jefferies analyst Laurance Alexander maintained a Buy rating and lowered the price target from $15 to $14 [8] - International Paper Co (NYSE:IP) has a dividend yield of 5.06%. Citigroup analyst Anthony Pettinari maintained a Buy rating and cut the price target from $55 to $46, while Wells Fargo analyst Gabe Hajde maintained an Underweight rating and slashed the price target from $44 to $36 [8] - Eastman Chemical Co (NYSE:EMN) has a dividend yield of 5.47%. Mizuho analyst John Roberts maintained an Outperform rating and reduced the price target from $80 to $75, while Morgan Stanley analyst Vincent Andrews maintained an Overweight rating and cut the price target from $125 to $115 [8] Group 2: Recent News - Huntsman Corporation will hold a conference call on November 7 to discuss its third-quarter 2025 financial results [8] - International Paper reported third-quarter results below estimates on October 30 [8] - Eastman Chemical posted disappointing quarterly results on November 3 [8]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Ratings - **Huntsman Corporation (NYSE:HUN)**: - Dividend Yield: 12.17% - Mizuho analyst John Roberts maintained an Underperform rating and reduced the price target from $9 to $8 [7] - Jefferies analyst Laurance Alexander maintained a Buy rating and lowered the price target from $15 to $14 [7] - Upcoming conference call on Nov. 7 to discuss Q3 2025 results [7] - **Dow Inc (NYSE:DOW)**: - Dividend Yield: 6.40% - Mizuho analyst John Roberts maintained a Neutral rating and cut the price target from $30 to $26 [7] - Jefferies analyst Laurence Alexander maintained a Hold rating and reduced the price target from $28 to $23 [7] - Declared a quarterly dividend of 35 cents per share on Oct. 9 [7] - **Sonoco Products Co (NYSE:SON)**: - Dividend Yield: 5.30% - Wells Fargo analyst Gabe Hajde maintained an Overweight rating and lowered the price target from $55 to $50 [7] - Citigroup analyst Anthony Pettinari maintained a Buy rating and cut the price target from $56 to $55 [7] - Recently agreed to sell Temperature-Assured Packaging business to Arsenal Capital Partners [7]

Core Insights - Investors are increasingly turning to dividend-yielding stocks during market turbulence and uncertainty, as these companies typically have high free cash flows and offer substantial dividend payouts [1] Company Summaries Huntsman Corporation (NYSE:HUN) - Dividend Yield: 12.17% - Mizuho analyst John Roberts maintained an Underperform rating and reduced the price target from $9 to $8 on October 3, 2025, with an accuracy rate of 70% [7] - Jefferies analyst Laurance Alexander maintained a Buy rating but lowered the price target from $15 to $14 on September 10, 2025, with an accuracy rate of 74% [7] - Upcoming event: Huntsman will hold a conference call on November 7 to discuss its Q3 2025 financial results [7] Dow Inc (NYSE:DOW) - Dividend Yield: 6.40% - Mizuho analyst John Roberts maintained a Neutral rating and cut the price target from $30 to $26 on October 3, 2025, with an accuracy rate of 70% [7] - Jefferies analyst Laurence Alexander maintained a Hold rating and reduced the price target from $28 to $23 on September 8, 2025, with an accuracy rate of 74% [7] - Recent news: Dow declared a quarterly dividend of 35 cents per share on October 9 [7] Sonoco Products Co (NYSE:SON) - Dividend Yield: 5.30% - Wells Fargo analyst Gabe Hajde maintained an Overweight rating and lowered the price target from $55 to $50 on October 15, 2025, with an accuracy rate of 77% [7] - Citigroup analyst Anthony Pettinari maintained a Buy rating and cut the price target from $56 to $55 on September 29, 2025, with an accuracy rate of 74% [7] - Recent news: Sonoco agreed to sell its Temperature-Assured Packaging business to Arsenal Capital Partners on September 8 [7]

Core Insights - The European chemical industry is facing dual pressures from high energy costs and regulatory expenses, leading to a continuous contraction in scale [1] - Over 5 million tons of ethylene production capacity in Europe is planned to exit the market through shutdowns, sales, or strategic adjustments [1] - The CEO of Hexion, Peter Huntsman, suggests that European chemical companies need to explore new collaboration models to create stronger regional leaders in response to increasing global competition [1] Industry Challenges - The surge in natural gas and energy prices following the Russia-Ukraine conflict has initiated a wave of shutdowns in chemical facilities, with an acceleration expected by 2025 [1] - Despite stabilization in energy prices, they remain at least four times higher than in major competitive regions like the U.S. and the Middle East [1] - Global chemical companies with operations in Europe may opt to shut down or sell more European plants, increasing reliance on imported products [1] Strategic Recommendations - Huntsman proposes reducing the number of chemical industry clusters in Europe to focus resources on fewer, stronger, and more competitive regional leaders [2] - He emphasizes the need for collaboration among industry leaders and regulatory authorities to reshape the European chemical landscape with a focus on "fewer but stronger production bases" [2] - Key locations such as Rotterdam, Antwerp, Ludwigshafen, and Leverkusen should be prioritized for investment, supported by tax incentives and the removal of trade barriers to enhance competitiveness [2]

Group 1 - The chemicals sector is experiencing a prolonged downtrend, leading to some stocks offering very high dividend yields [1] - The focus of the analysis is primarily on the financial sector, but there is an interest in the chemicals sector for personal retirement investments [1] Group 2 - The author has over 18 years of experience in the financial markets, specifically in portfolio management on the buy side [1]

Core Points - Huntsman Corporation will hold a conference call on November 7, 2025, at 10:00 a.m. ET to discuss its Q3 2025 financial results [1] - The earnings press release, including financial statements and segment information, will be distributed after the market closes on November 6, 2025 [2] - The conference call will be accessible via a webcast link and Huntsman's investor relations website, with a replay available post-call [3] Company Overview - Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals, with approximately $6 billion in revenues for 2024 [4] - The company operates over 60 manufacturing, R&D, and operations facilities in around 25 countries, employing approximately 6,300 associates [4]