Huntsman's Earnings and Revenues Lag Estimates in Q2, Down Y/Y

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]