Huntsman(US:HUN)2026-02-18 19:53Financial Performance - Revenues for Huntsman Corporation decreased by 6% to $5,683 million in 2025 from $6,036 million in 2024[227] - Gross profit declined by 13% to $751 million in 2025 compared to $866 million in 2024[227] - Operating loss increased significantly to $(131) million in 2025 from $(25) million in 2024, representing a 424% decline[227] - Adjusted EBITDA fell by 34% to $275 million in 2025 from $414 million in 2024[227] - Net loss attributable to Huntsman Corporation was $(284) million in 2025, compared to $(189) million in 2024[228] - For the year ended December 31, 2025, Huntsman Corporation reported a net loss of $227 million, compared to a net income of $153 million for the year ended December 31, 2023[229] - Adjusted net loss income for the year ended December 31, 2025 was $121 million, a significant decline from an adjusted net income of $67 million in 2023[229] - The diluted adjusted net loss income per share for the year ended December 31, 2025 was $(0.70), compared to $(0.08) in 2024 and $0.37 in 2023[229] - For the year ended December 31, 2025, Huntsman Corporation reported a loss from continuing operations of $275 million, an increase from a loss of $162 million in 2024, reflecting a 69% increase in losses[239] Cash Flow and Capital Expenditures - Net cash provided by operating activities from continuing operations increased by 5% to $298 million in 2025 compared to $285 million in 2024[227] - Free cash flow from continuing operations was $125 million for the year ended December 31, 2025, compared to $21 million in 2023[229] - Free cash flow from continuing operations improved to $125 million in 2025 from $101 million in 2024, attributed to increased cash from operating activities and reduced capital expenditures[251] - Capital expenditures from continuing operations decreased by 6% to $173 million in 2025 from $184 million in 2024[228] - Capital expenditures from continuing operations were $173 million for the year ended December 31, 2025, down from $230 million in 2023[229] - The company expects capital expenditures in 2026 to approximate the 2025 spend, focusing on environmental upgrades and facility expansions[261] Assets and Liabilities - Total current assets decreased by $61 million, or 3%, from 2024 to 2025, with cash and cash equivalents increasing by 26% to $429 million[253] - The company's working capital decreased by $85 million, or 15%, primarily due to changes in accounts receivable and inventories[254] - The company had $1,323 million in combined cash and unused borrowing capacity as of December 31, 2025, consisting of $429 million in cash and $854 million available under its revolving credit facility[254] - As of December 31, 2025, the company had $353 million classified as the current portion of debt, including $343 million outstanding under the 2022 Revolving Credit Facility[257] - The current portion of debt increased by $28 million primarily due to increased borrowings under the 2022 Revolving Credit Facility[260] Tax and Valuation - The effective tax rate for the year ended December 31, 2025 was -14%, a notable improvement from -156% in 2024[229] - The adjusted effective tax rate for the year ended December 31, 2025 was -88%, compared to 55% in 2024[229] - Total valuation allowances for deferred tax assets increased by $85 million to $340 million as of December 31, 2025[263] Market Risks - The company is exposed to market risks, including interest rates and foreign exchange rates, and utilizes derivative instruments to manage these exposures[266] Dividends - The Board of Directors declared a cash dividend of $0.0875 per share, representing a 65% decrease from the previous dividend[261] Segment Performance - Segment adjusted EBITDA for Polyurethanes dropped by 40% to $146 million, while Performance Products and Advanced Materials segments saw decreases of 30% and 10%, respectively[240] - Revenues for 2025 decreased by $353 million, or 6%, compared to 2024, primarily due to lower average selling prices and sales volumes in the Performance Products and Advanced Materials segments[239] - Gross profit for 2025 decreased by $115 million, or 13%, compared to 2024, driven by lower gross profits across all segments[239] - Average selling prices across combined segments decreased by 5%, with Polyurethanes experiencing a 7% decline[241] Other Financial Metrics - Interest expense remained stable at $(79) million in both 2025 and 2024, but increased by 22% from $(65) million in 2023[228] - The company reported a significant decline in equity income from investments in unconsolidated affiliates, dropping 91% to $4 million in 2025 from $44 million in 2024[228] - The company incurred restructuring, impairment, and plant closing costs of $153 million for the year ended December 31, 2025, compared to $25 million in 2023[229] - Restructuring, impairment, and plant closing costs surged by 279% to $148 million in 2025 from $39 million in 2024[228] - Cash and cash equivalents increased by $89 million compared to the previous year, while accounts and notes receivable decreased by $48 million due to lower revenues in Q4 2025[260] - The company had approximately $427 million of cash and cash equivalents, including restricted cash, held by foreign subsidiaries[258]