Core Insights - Huntsman Corporation reported a second-quarter 2025 loss of 92 cents per share, a significant decline from earnings of 13 cents per share in the same quarter last year [1] - Adjusted loss per share was 20 cents, wider than the expected loss of 15 cents, compared to earnings of 14 cents in the prior year [1][9] - Revenues decreased by approximately 7% year over year to $1,458 million, missing the consensus estimate of $1,476.7 million due to lower global construction and industrial activity [2][9] Segment Highlights - **Polyurethanes**: Revenues fell 7% year over year to $932 million, surpassing the estimate of $906 million, primarily due to lower average selling prices and reduced sales volumes [3] - **Performance Products**: Revenues decreased by 10% to $270 million, below the estimate of $300 million, driven by lower sales volumes attributed to reduced operating rates at the Moers facility in Germany [4] - **Advanced Materials**: Revenues declined 5% to $264 million, falling short of the estimate of $267 million, with decreases in both average selling prices and volumes due to unfavorable sales mix and reduced demand in coatings and aerospace markets [5] Financials - Free cash flow from continuing operations was $55 million, up from $5 million in the prior-year quarter [6] - The company had approximately $1.3 billion in combined cash and unused borrowing capacity as of June 30, 2025 [6] - Net cash provided by operating activities from continuing operations was $92 million in the reported quarter [6] Outlook - The company anticipates continued muted construction demand in the third quarter and has implemented cost-cutting measures, including the closure of the European Maleic Anhydride facility in Moers and other downstream facilities in North America and Europe [7] Stock Performance - Huntsman shares have declined by 57.1% over the past year, compared to a 25% decline in the Zacks Chemicals Diversified industry [8]

Company Overview - Huntsman Corporation held its Second Quarter 2025 Earnings Call on July 31, 2025, where key executives participated, including Peter Huntsman (Chairman, CEO, and President) and Phil Lister (Executive Vice President and CFO) [3]. Earnings Release - The company released its earnings for the second quarter of 2025 via a press release and made additional materials available on its website, including slides and detailed commentary [3]. Conference Call Structure - The earnings call included an introduction by Ivan Marcuse, Vice President of Investor Relations and Corporate Development, followed by opening comments from Peter Huntsman and a Q&A session [2][3]. Participants - The call featured a range of participants from various financial institutions, including JPMorgan Chase, KeyBanc Capital Markets, RBC Capital Markets, Deutsche Bank, and others, indicating significant interest from the investment community [1].

PART I. FINANCIAL INFORMATION [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for both Huntsman Corporation and its principal operating subsidiary, Huntsman International LLC, for the quarterly period ended June 30, 2025 [Huntsman Corporation and Subsidiaries Financial Statements](index=5&type=section&id=Huntsman%20Corporation%20and%20Subsidiaries%20Financial%20Statements) For the six months ended June 30, 2025, Huntsman Corporation reported a **net loss** of **$134 million** on **total revenues** of **$2.87 billion**, a **significant shift** from a **net income** of **$15 million** on **total revenues** of **$3.04 billion** in the prior-year period Huntsman Corporation - Key Financials (Six Months Ended June 30) | Financial Metric (In Millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenues** | $2,868 | $3,044 | | **Gross Profit** | $383 | $444 | | **Operating (Loss) Income** | $(78) | $(4) | | **Net (Loss) Income** | $(134) | $15 | | **Net (Loss) Income Attributable to Huntsman** | $(163) | $(15) | | **Diluted (Loss) per Share** | $(0.94) | $(0.09) | Huntsman Corporation - Balance Sheet Summary (In Millions) | Balance Sheet Item | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,208 | $2,125 | | **Total Assets** | $7,147 | $7,114 | | **Total Current Liabilities** | $1,544 | $1,565 | | **Total Liabilities** | $4,086 | $3,951 | | **Total Equity** | $3,061 | $3,163 | Huntsman Corporation - Cash Flow Summary (Six Months Ended June 30, In Millions) | Cash Flow Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $17 | $(19) | | **Net Cash from Investing Activities** | $(32) | $(80) | | **Net Cash from Financing Activities** | $69 | $(102) | | **Capital Expenditures** | $(73) | $(92) | [Huntsman International LLC and Subsidiaries Financial Statements](index=12&type=section&id=Huntsman%20International%20LLC%20and%20Subsidiaries%20Financial%20Statements) Huntsman International LLC, the primary operating company, reported a **net loss** of **$132 million** for the first six months of 2025, compared to a **net income** of **$17 million** in the same period of 2024 Huntsman International LLC - Key Financials (Six Months Ended June 30) | Financial Metric (In Millions) | 2025 | 2024 | | :--- | :--- | :--- | | **Total Revenues** | $2,868 | $3,044 | | **Gross Profit** | $383 | $444 | | **Operating (Loss) Income** | $(76) | $(2) | | **Net (Loss) Income** | $(132) | $17 | | **Net (Loss) Income Attributable to Huntsman Int'l** | $(161) | $(13) | Huntsman International LLC - Cash Flow Summary (Six Months Ended June 30, In Millions) | Cash Flow Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $18 | $(18) | | **Net Cash from Investing Activities** | $(37) | $(89) | | **Net Cash from Financing Activities** | $73 | $(94) | [Notes to Unaudited Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes provide critical context to the financial statements, detailing accounting policies, business combinations, restructuring activities, debt structure, and segment performance - The company operates in three segments: **Polyurethanes**, **Performance Products**, and **Advanced Materials**[43](index=43&type=chunk) - In Q1 2025, the company received a final liquidating distribution of approximately **$41 million** from the SLIC joint venture separation, with the acquisition resulting in a **net gain** of approximately **$5 million** in Q1 2025[49](index=49&type=chunk)[50](index=50&type=chunk) - The **Performance Products** segment initiated a **restructuring program** in Q2 2025 to close its European maleic anhydride facility in Moers, Germany, resulting in an **$88 million charge**, including a **$77 million asset impairment**[62](index=62&type=chunk) - The **Polyurethanes** segment expanded its **restructuring program** in Q2 2025 to optimize its European organization, recording a **$38 million expense** in H1 2025, with an additional **$24 million expected** through 2027[63](index=63&type=chunk)[64](index=64&type=chunk) - On March 28, 2025, the company redeemed its **4.25%** senior notes due April 2025 for approximately **$315 million**[76](index=76&type=chunk) - In Q1 2025, the company received a final **legal award** of approximately **$66 million** in its case against Praxair/Linde, recognizing **net income** of **$33 million** after legal fees[115](index=115&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a challenging quarter, with **total revenues** and profits **decreasing** year-over-year due to **lower average selling prices** and **lower sales volumes** across all segments, leading to a **significant net loss** driven by weaker market conditions and substantial **restructuring** and **asset impairment charges** [Results of Operations](index=48&type=section&id=Results%20of%20Operations) In Q2 2025, Huntsman's **total revenues** **decreased by 7%** to **$1.46 billion**, and **gross profit** **dropped 25%** to **$182 million** compared to Q2 2024, resulting in a **stark reversal** to a **loss from continuing operations** of **$146 million** from a **$31 million income** in the prior-year quarter Huntsman Corporation - Overall Performance (In Millions) | Metric | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $1,458 | $1,574 | (7)% | $2,868 | $3,044 | (6)% | | **Gross Profit** | $182 | $243 | (25)% | $383 | $444 | (14)% | | **Operating (Loss) Income** | $(120) | $34 | NM | $(78) | $(4) | NM | | **(Loss) Income from Cont. Ops.** | $(146) | $31 | NM | $(134) | $15 | NM | | **Adjusted EBITDA** | $74 | $131 | (44)% | $146 | $212 | (31)% | - The **decline** in Q2 2025 results was driven by **lower average selling prices** and **lower sales volumes**, a **$120 million increase** in **restructuring costs**, and an **$18 million decrease** in **equity income** from unconsolidated affiliates[168](index=168&type=chunk) - **Selling, general and administrative (SG&A) expenses** **decreased by 9%** in Q2 2025 due to the impact of **restructuring programs** and favorable currency translation[168](index=168&type=chunk) [Segment Analysis](index=59&type=section&id=Segment%20Analysis) All three segments experienced year-over-year declines in Q2 2025, with **Polyurethanes' Adjusted EBITDA** **falling 61%** due to **lower MDI average selling prices** and **lower sales volumes**, **Performance Products' Adjusted EBITDA** **dropping 30%** impacted by **lower sales volumes** from softer markets and **reduced operating rates**, and **Advanced Materials' Adjusted EBITDA** **decreasing 13%** on **lower average selling prices** and **lower sales volumes** Segment Adjusted EBITDA (In Millions) | Segment | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Polyurethanes** | $31 | $80 | (61)% | $73 | $119 | (39)% | | **Performance Products** | $32 | $46 | (30)% | $62 | $88 | (30)% | | **Advanced Materials** | $45 | $52 | (13)% | $81 | $95 | (15)% | - **Polyurethanes:** The **decrease** was driven by **lower MDI average selling prices** from unfavorable supply/demand dynamics and **lower sales volumes** due to weak construction demand and a plant turnaround in Rotterdam[173](index=173&type=chunk) - **Performance Products:** The **decline** was caused by **lower sales volumes** from **reduced operating rates** at the Moers, Germany facility and softer market conditions[174](index=174&type=chunk) - **Advanced Materials:** The **decrease** was due to **lower average selling prices** from unfavorable sales mix and **reduced demand** in coatings and aerospace markets[175](index=175&type=chunk) [Liquidity and Capital Resources](index=63&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, Huntsman had **total liquidity** of **$1.287 billion**, including **$399 million** in **cash** and **$888 million** in **available credit**, with **net cash from operating activities** improving to a **$21 million** inflow for H1 2025 from an **$8 million** outflow in H1 2024 - **Total liquidity** as of June 30, 2025, was **$1,287 million**, comprising **$399 million** in **cash**, **$836 million** available under the 2022 Revolving Credit Facility, and **$52 million** under A/R Programs[191](index=191&type=chunk) Cash Flow Comparison (Six Months Ended June 30, In Millions) | Cash Flow Item | 2025 | 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $21 | $(8) | | **Net Cash from Investing Activities** | $(32) | $(80) | | **Net Cash from Financing Activities** | $69 | $(102) | - **Working capital** **increased by $104 million** to **$664 million** from December 31, 2024, primarily due to an **increase** in **accounts receivable** and a **decrease** in **accounts payable**[190](index=190&type=chunk) - The company expects to spend between **$180 million and $190 million** on **capital expenditures** in 2025[196](index=196&type=chunk) - The company has **$547 million** remaining under its **share repurchase program**, but repurchases are **limited** by the **Second Amendment to the 2022 Revolving Credit Facility**[196](index=196&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=66&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to **market risks** including changes in **interest rates**, **foreign exchange rates**, and **commodity prices** - Huntsman is exposed to **market risks** from **interest rates**, **foreign exchange rates**, and **commodity prices**[197](index=197&type=chunk) - The company uses **derivative instruments** to manage exposures and **hedges its net investment** in some European operations[197](index=197&type=chunk) [Controls and Procedures](index=66&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's **disclosure controls and procedures** and concluded they were **effective** as of June 30, 2025 - Management concluded that as of June 30, 2025, the company's **disclosure controls and procedures** were **effective**[198](index=198&type=chunk) - **No material changes** were made to **internal control over financial reporting** during the quarter ended June 30, 2025[199](index=199&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=67&type=section&id=ITEM%201.%20Legal%20Proceedings) There have been **no material developments** in the **legal proceedings** previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - **No material developments** have occurred regarding **legal proceedings** since the last Annual Report[201](index=201&type=chunk) [Risk Factors](index=67&type=page&id=ITEM%201A.%20Risk%20Factors) This section refers investors to the detailed discussion of **risk factors** in the company's Annual Report on Form 10-K for the year ended December 31, 2024, indicating no new **material risk factors** have emerged - For information on **risk factors**, the report refers to the Annual Report on Form 10-K for the year ended December 31, 2024[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=67&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the three months ended June 30, 2025, the company did **no shares were repurchased** under its publicly announced **share repurchase program**, though **$547 million** remained authorized for future repurchases, which are currently **limited** by a **credit facility amendment** - **No shares were repurchased** under the company's **share repurchase program** during the three months ended June 30, 2025[205](index=205&type=chunk) - Approximately **$547 million** remains available for repurchase under the existing program as of the end of the quarter[204](index=204&type=chunk) - **Share repurchases** are currently **limited** by the **Second Amendment to the 2022 Revolving Credit Facility**[205](index=205&type=chunk) [Exhibits](index=68&type=section&id=ITEM%206.%20Exhibits) This section lists the **exhibits** filed with the Form 10-Q, including **certifications** by the CEO and CFO, and various agreements related to **stock incentive plans** and **credit facilities** - **Exhibits** filed include CEO/CFO **certifications** under **Sarbanes-Oxley Sections 302 and 906**[208](index=208&type=chunk) - The **Second Amendment to the Credit Agreement**, dated May 23, 2025, is included as an **exhibit**[208](index=208&type=chunk)

Financial Data and Key Metrics Changes - The second quarter results were in line with expectations, showing a rebound in Advanced Materials, which offset sluggish construction activity and tariff uncertainties, particularly in polyurethanes [6][8] - Positive cash flow was generated in the second quarter, despite a $25 million EBITDA impact due to aggressive inventory and working capital management [9] Business Line Data and Key Metrics Changes - Advanced Materials showed normalized earnings, while construction activity remained disappointing [6][8] - The polyurethane segment faced challenges with low utilization rates, operating in the low to mid-80 percent range [12][22] Market Data and Key Metrics Changes - The overall market conditions are characterized by low inventories and muted consumer confidence, with expectations for gradual improvement in construction [7][8] - MDI utilization rates are expected to be higher in North America compared to China, which is operating at lower rates [12][13] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet and is cautious about capital spending beyond necessary safety and maintenance [8][10] - There is an ongoing review of the asset portfolio, with a focus on creating value over volume [10] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautious outlook for the third quarter, indicating neither panic nor excessive optimism, while anticipating long-term improvements in construction [8] - The company is preparing for potential impacts from higher tariffs and interest rate cuts, aiming for better profit and loss outcomes [10][11] Other Important Information - The closure of the Maleka anhydride facility was due to a lack of competitiveness in the European market, with the decision made after exploring all options [60][61] - The company is not planning to build a new MDI plant, citing sufficient global capacity [51][53] Q&A Session Summary Question: MDI utilization rates in the second quarter and expectations for the third quarter - The industry is operating in the low to mid-80 percent range, with North America slightly higher and China lower [12][13] Question: Update on order books in July - The order books are stable, with customers ordering just in time due to low inventories [17][18] Question: Thoughts on the dividend - The board is carefully considering the dividend, focusing on cash generation and market conditions [29][30] Question: Impact of trade finality on customer behavior - Customers prefer clarity on trade policies to reduce volatility, which affects purchasing behavior [36][42] Question: Future of European footprint and MDI facility - The European facility is expected to remain competitive, with ongoing evaluations of operating costs [62] Question: Price declines in polyurethanes - A 5% year-over-year price decline was noted, primarily driven by competitive dynamics in Europe [90][91] Question: Expectations for MTBE margins - Margins are expected to struggle in the second half of the year, with typical seasonal performance [114] Question: Rate cuts and their impact on construction - The direction of rate cuts is more important than the amount, with potential for significant economic catalysis if multiple cuts are anticipated [116]

Financial Data and Key Metrics Changes - The second quarter results were in line with expectations, showing a rebound in Advanced Materials, which offset sluggish construction activity and tariff uncertainties, particularly in polyurethanes [5][6] - Positive cash flow was generated in the second quarter, despite a $25 million EBITDA impact due to aggressive inventory and working capital management [7] Business Line Data and Key Metrics Changes - Advanced Materials showed normalized earnings, while construction activity remained weak, impacting overall performance [5][6] - Polyurethanes utilization rates were reported in the low to mid-80s percentile, with North America slightly higher than China [11][20] Market Data and Key Metrics Changes - Order books in July were described as stable, with customers ordering just in time due to low inventories [14][15] - The automotive sector in China continues to perform well, contrasting with struggles in Europe and North America [20][21] Company Strategy and Development Direction - The company remains focused on maintaining a strong balance sheet and prudent capital spending, emphasizing value creation over volume [6][8] - There is an ongoing review of the asset portfolio, with a focus on bolt-on acquisitions in Advanced Materials rather than in the more volatile polyurethane sector [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about potential improvements in construction and consumer confidence, particularly in the long term [6][30] - The impact of tariffs and trade disputes remains a concern, with management advocating for clarity in trade policies to reduce volatility [35][40] Other Important Information - The closure of the Maleka anhydride facility was attributed to a lack of competitiveness in the European market, with the decision made after exploring all options [58][59] - The company does not foresee new MDI plants being built under current market conditions, citing sufficient existing capacity [48][102] Q&A Session Summary Question: MDI utilization rates in the second quarter and expectations for the third quarter - Management indicated that the industry is operating in the low to mid-80s percentile, with North America slightly higher and China lower [11][20] Question: Update on order books in July - Management described the situation as stable, with customers ordering just in time due to low inventories [14][15] Question: Thoughts on the dividend - The board is carefully considering the dividend, focusing on cash generation and market conditions, with no immediate changes expected [26][30] Question: Impact of trade finality on customer behavior - Management noted that volatility is the primary concern, and customers prefer clarity in trade policies to stabilize purchasing behavior [35][40] Question: Future of the European footprint and MDI facility - Management believes the Rotterdam facility will remain competitive for several years, despite market challenges [60][61] Question: Price declines in polyurethanes - A 5% year-over-year price decline was noted, primarily driven by competitive dynamics in Europe [89] Question: Expectations for MTBE margins - Management indicated that MTBE typically performs best during driving seasons, but struggles are expected to continue through the end of the year [113]

Financial Performance Overview - Revenues for 2Q25 were $1458 million, a decrease compared to $1574 million in 2Q24[8] - Net loss attributable to Huntsman Corporation was $(158) million in 2Q25, compared to a net income of $22 million in 2Q24[8] - Adjusted net loss was $(34) million in 2Q25, compared to an adjusted net income of $24 million in 2Q24[8] - Adjusted EBITDA decreased to $74 million in 2Q25 from $131 million in 2Q24[8] - Free cash flow from continuing operations increased to $55 million in 2Q25 from $5 million in 2Q24[8] Segment Performance - **Polyurethanes:** Revenues decreased to $932 million in 2Q25 from $1001 million in 2Q24, with adjusted EBITDA at $31 million (3% margin) compared to $80 million (8% margin) in 2Q24[10, 12] - **Performance Products:** Revenues decreased to $270 million in 2Q25 from $299 million in 2Q24, with adjusted EBITDA at $32 million (12% margin) compared to $46 million (15% margin) in 2Q24[19, 21] - **Advanced Materials:** Revenues decreased to $264 million in 2Q25 from $279 million in 2Q24, with adjusted EBITDA at $45 million (17% margin) compared to $52 million (19% margin) in 2Q24[27, 29] Cost Realignment Plans - The company plans to deliver ~$100 million in run rate benefits by the end of 2026[43] - Expected restructuring cash costs are approximately ~$100 million, with associated capital expenditures of ~$20 million[43] - The cost savings program is expected to provide a benefit of ~$65 million in 2025, excluding inflation[54] 3Q25 Outlook - Polyurethanes adjusted EBITDA is estimated to be between $35 million and $50 million[50] - Performance Products adjusted EBITDA is estimated to be between $20 million and $30 million[50] - Advanced Materials adjusted EBITDA is estimated to be between $40 million and $45 million[50] - Corporate adjusted EBITDA is expected to be around ~($40 million)[50]

Core Insights - Huntsman reported revenue of $1.46 billion for the quarter ended June 2025, a decrease of 7.4% year-over-year, with an EPS of -$0.20 compared to $0.14 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $1.48 billion by 1.26%, and the EPS was 33.33% below the consensus estimate of -$0.15 [1] Financial Performance - Huntsman's stock has returned -12.5% over the past month, contrasting with the Zacks S&P 500 composite's +2.7% change, and currently holds a Zacks Rank 5 (Strong Sell) [3] - Sales volume for Polyurethanes decreased by 2%, while the average estimate was a decline of 5.4% [4] - Revenue from Polyurethanes was reported at $932 million, which is lower than the average estimate of $942.75 million, reflecting a year-over-year change of -6.9% [4] - Revenue from Advanced Materials was $264 million, slightly below the estimated $267.32 million, marking a -5.4% change year-over-year [4] - Performance Products revenue was reported at $270 million, compared to the average estimate of $292.22 million, indicating a -9.7% year-over-year change [4]

分组1 - Huntsman reported a quarterly loss of $0.2 per share, missing the Zacks Consensus Estimate of a loss of $0.15, compared to earnings of $0.14 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $1.46 billion for the quarter ended June 2025, missing the Zacks Consensus Estimate by 1.26%, and down from $1.57 billion year-over-year [2] - Huntsman shares have declined approximately 45% since the beginning of the year, while the S&P 500 has gained 8.2% [3] 分组2 - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $1.55 billion, and -$0.49 on revenues of $5.93 billion for the current fiscal year [7] - The Zacks Industry Rank for Chemical - Diversified is currently in the bottom 6% of over 250 Zacks industries, indicating a challenging environment for the sector [8] 分组3 - The estimate revisions trend for Huntsman was unfavorable ahead of the earnings release, resulting in a Zacks Rank 5 (Strong Sell) for the stock, suggesting expected underperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Points - Huntsman Corporation declared a cash dividend of $0.25 per share on its common stock, payable on September 30, 2025, to stockholders of record as of September 15, 2025 [1] - Huntsman Corporation reported approximately $6 billion in revenues for 2024, indicating a strong market presence in the specialty chemicals sector [2] - The company operates over 60 manufacturing, R&D, and operations facilities across approximately 25 countries, employing around 6,300 associates [2]

[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)