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].

Financial Performance - Revenues for Huntsman Corporation decreased by 4% to $1,410 million in Q1 2025 compared to $1,470 million in Q1 2024[141] - Gross profit remained stable at $201 million for both Q1 2025 and Q1 2024[141] - Adjusted EBITDA decreased by 11% to $72 million in Q1 2025 from $81 million in Q1 2024[141] - Net income for Huntsman Corporation was $11 million in Q1 2025, a significant improvement from a net loss of $23 million in Q1 2024[141] - Operating income improved to $42 million in Q1 2025 from a loss of $38 million in Q1 2024[141] - For the three months ended March 31, 2025, loss from continuing operations attributable to Huntsman Corporation improved by $26 million to a loss of $4 million compared to a loss of $30 million in the same period of 2024[154] - Adjusted EBITDA for total reportable segments decreased by $16 million, or 13%, to $108 million for the three months ended March 31, 2025 compared to $124 million in 2024[156] - Corporate and other adjusted EBITDA loss improved to $36 million for Huntsman Corporation from a loss of $43 million in the same period of 2024[162] Cash Flow and Capital Expenditures - Net cash used in operating activities from continuing operations increased by 13% to $(71) million in Q1 2025 compared to $(63) million in Q1 2024[141] - Capital expenditures from continuing operations decreased by 14% to $(36) million in Q1 2025 from $(42) million in Q1 2024[141] - Net cash provided by investing activities for Q1 2025 was $6 million, compared to a cash use of $(30) million in Q1 2024[165] - Free cash flow from continuing operations for Q1 2025 was a cash use of $107 million, slightly increasing from $105 million in Q1 2024[168] - The company expects to spend approximately $180 million to $190 million on capital expenditures in 2025, focusing on environmental upgrades and facility expansions[175] Tax and Interest - The effective tax rate for Huntsman Corporation was 56% in Q1 2025, consistent with the previous year[143] - Income tax expense for the three months ended March 31, 2025 was $15 million, compared to an income tax benefit of $20 million in the same period of 2024[154] - Interest expense remained unchanged at $(19) million for both Q1 2025 and Q1 2024[141] Discontinued Operations and Other Income - Loss from discontinued operations decreased by 86% to $(1) million in Q1 2025 from $(7) million in Q1 2024[141] - Equity in income of investment in unconsolidated affiliates decreased to $1 million from $19 million in the 2024 period, primarily due to a decrease in income at a joint venture in China[154] Working Capital and Debt - Working capital increased by $186 million, with total current assets rising to $2,286 million, an 8% increase from $2,125 million in Q1 2024[169] - The current portion of debt decreased by $41 million to $284 million, primarily due to the discharge of obligations under the 2025 Senior Notes[169] Inventory and Receivables - Accounts and notes receivable increased by $72 million, primarily due to higher revenues in March 2025 compared to December 2024[169] - Inventories rose by $113 million, attributed to higher inventory costs and volumes[169] Pension and Share Repurchase - The company plans to make additional contributions of approximately $27 million to pension and other postretirement benefit plans during 2025[175] - The company has approximately $547 million remaining under the existing share repurchase program, with repurchases potentially commencing or being suspended without prior notice[175]