Core Viewpoint - Huntsman Corporation (HUN) has experienced a significant decline in 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 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 - 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]

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]

Core Insights - Huntsman Corporation announced that Julia Wright has withdrawn from the position of Executive Vice President, General Counsel and Secretary for personal reasons, and David Stryker will continue in his role while a search for a successor is conducted [1]. Company Overview - Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals, with approximately $6 billion in revenues for 2024 [2]. - The company operates over 60 manufacturing, R&D, and operations facilities in around 25 countries, employing approximately 6,300 associates [2].

Core Points - Huntsman Exploration Inc. has received approval from the TSX Venture Exchange to change its name to Lux Metals Corp. [1] - The name change will take effect at the start of trading on September 25, 2025, with the new trading symbol "LXM" [2] - Huntsman Exploration is focused on advancing gold and critical mineral projects in premier mining jurisdictions [3]