Quaker Houghton First Quarter 2025 Results Investor Conference Call Forward-Looking Statements Regulation G The attached charts include Company information that does not conform to generally accepted accounting principles ("GAAP"). Management believes that an analysis of this data is meaningful to investors because it provides insight with respect to ongoing operating results of the Company and helps investors to evaluate the financial results of the Company. These measures should not be viewed as an altern ...

May 2, 2025 Overview On January 15, 2025, DuPont de Nemours, Inc. ("DuPont", or after the completion of the Intended Electronics Separation, "New DuPont") announced it is targeting November 1, 2025 to complete the intended separation of its Electronics business (the "Intended Electronics Separation") by way of a spin-off transaction, thereby creating a new independent, publicly traded electronics company ("ElectronicsCo"). The Intended Electronics Separation will not require a shareholder vote and is subjec ...

Core Insights - DuPont reported strong financial performance in Q1 2025, with a 5% increase in net sales to $3.066 billion and a 6% organic sales growth year-over-year [4][8][9] - The company experienced a significant GAAP loss of $548 million, primarily due to a $768 million non-cash goodwill impairment charge related to the Aramids reporting unit [5][8] - Operating EBITDA increased by 16% to $788 million, with an operating EBITDA margin of 25.7%, reflecting volume benefits and restructuring savings [4][6][9] Financial Performance - Net sales for Q1 2025 were $3,066 million, up from $2,931 million in Q1 2024, marking a 5% increase [4][8] - Organic sales growth was 6%, driven by an 8% increase in volume, partially offset by a 2% decrease in price [9] - GAAP loss from continuing operations was $(548) million, compared to income of $183 million in the prior year, representing a 399% decline [4][8] - Adjusted EPS rose by 30% to $1.03, up from $0.79 in Q1 2024 [4][8] Segment Performance - ElectronicsCo segment net sales increased by 14% to $1,118 million, with an operating EBITDA of $373 million, up 26% [14][20] - IndustrialsCo segment net sales were flat at $1,948 million, with a 6% increase in operating EBITDA to $464 million [16][21] - The ElectronicsCo segment saw a 14% organic sales growth, while IndustrialsCo experienced a 2% organic sales growth [9][14] Cash Flow and Guidance - Cash provided by operating activities from continuing operations was $382 million, down 23% from $493 million in Q1 2024 [4][7] - Transaction-adjusted free cash flow was $212 million, a decrease of 26% compared to the previous year [4][7] - The company maintains its full-year 2025 financial guidance, estimating Q2 2025 net sales of approximately $3.2 billion and adjusted EPS of about $1.05 [17][18] Strategic Developments - DuPont is on track for the spin-off of its Electronics business, named Qnity, scheduled for November 1, 2025 [2][25] - The company is actively managing the impact of tariffs through its global manufacturing footprint and flexible supply chain [2][8]

Core Insights - Huntsman reported $1.41 billion in revenue for Q1 2025, a year-over-year decline of 4.1% and an EPS of -$0.11 compared to -$0.06 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.48 billion, resulting in a surprise of -4.68% [1] - The company has not delivered an EPS surprise, with the consensus EPS estimate being -$0.11 [1] Performance Metrics - Huntsman's shares have returned -14.2% over the past month, while the Zacks S&P 500 composite changed by -0.7% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance against the broader market [3] Segment Performance - Polyurethanes sales volume decreased by 3%, compared to an estimated 4.2% decline by analysts [4] - Local currency price for Polyurethanes fell by 3%, against an expected increase of 1.5% [4] - Total revenues for Polyurethanes were reported at $912 million, below the average estimate of $943.78 million, representing a year-over-year change of -1.5% [4] - Advanced Materials revenues were $249 million, compared to an estimated $264.13 million, reflecting a -4.6% change year-over-year [4] - Performance Products revenues were $257 million, below the average estimate of $282.54 million, indicating an -11.7% year-over-year change [4]

Core Viewpoint - Huntsman Corporation announces the retirement of Tony Hankins, Division President of Polyurethanes, effective at the end of 2025, with Steen Weien Hansen appointed as his successor starting June 1, 2025 [1][2]. Company Leadership Transition - Tony Hankins has had a long career at Huntsman and its predecessor, starting in 1980, and will continue to advise management until December 31, 2025 [2]. - Steen Weien Hansen has been with the company since its acquisition of the polyurethanes division in 1999 and has held various leadership roles, including Vice President of Asia Pacific operations [3]. Executive Comments - Peter R. Huntsman, President, CEO, and Chairman, praised Hankins for his distinguished service and influence on future managers, while also highlighting Hansen's strong leadership and strategic capabilities [4]. Company Overview - Huntsman Corporation is a global manufacturer of specialty chemicals with approximately $6 billion in revenues for 2024, operating over 60 facilities in about 25 countries and employing around 6,300 associates [5].

Core Viewpoint - Huntsman Corporation has declared a cash dividend of $0.25 per share on its common stock, payable on June 30, 2025, to stockholders of record as of June 13, 2025 [1]. Company Overview - Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals, with 2024 revenues of approximately $6 billion [2]. - The company offers thousands of chemical products sold worldwide, serving a diverse range of consumer and industrial end markets [2]. - Huntsman operates over 60 manufacturing, R&D, and operations facilities in around 25 countries and employs approximately 6,300 associates [2].

Financial Performance - Revenues for 1Q25 were $1410 million, compared to $1470 million in 1Q24[8] - Net loss attributable to Huntsman Corporation was $5 million in 1Q25, compared to a net loss of $37 million in 1Q24[8] - Adjusted net loss was $19 million in 1Q25, compared to $11 million in 1Q24[8] - Adjusted EBITDA was $72 million in 1Q25, compared to $81 million in 1Q24[8] - Free cash flow from continuing operations was negative $107 million in 1Q25, compared to negative $105 million in 1Q24[8] Segment Performance - **Polyurethanes:** Revenues were $912 million in 1Q25, a decrease from $926 million in 1Q24; Adjusted EBITDA margin increased to 4% from 5%[10, 12] - **Performance Products:** Revenues were $257 million in 1Q25, a decrease from $291 million in 1Q24; Adjusted EBITDA margin decreased to 12% from 14%[19, 21] - **Advanced Materials:** Revenues were $249 million in 1Q25, a decrease from $261 million in 1Q24; Adjusted EBITDA margin decreased to 14% from 16%[28, 30] Outlook - Second quarter 2025 adjusted EBITDA is estimated to be between $35 million and $50 million for Polyurethanes[17, 50] - Second quarter 2025 adjusted EBITDA is estimated to be between $30 million and $40 million for Performance Products[26, 50] - Second quarter 2025 adjusted EBITDA is estimated to be between $35 million and $40 million for Advanced Materials[35, 50]

Core Insights - Huntsman Corporation reported first quarter 2025 revenues of $1,410 million, a decrease of 4% compared to $1,470 million in the same period of 2024 [2][11] - The net loss attributable to Huntsman was $5 million, significantly improved from a net loss of $37 million in the prior year [11] - Adjusted EBITDA for the first quarter of 2025 was $72 million, down from $81 million in the same period of 2024, reflecting an 11% decline [11][17] Financial Performance - Revenues decreased across all segments: Polyurethanes by 2% to $912 million, Performance Products by 12% to $257 million, and Advanced Materials by 5% to $249 million [16][17] - Adjusted net loss for the first quarter was $19 million, compared to an adjusted net loss of $11 million in the prior year [11][17] - The diluted loss per share improved to $0.03 from $0.22 year-over-year [11] Segment Analysis - In the Polyurethanes segment, lower average selling prices were partially offset by higher sales volumes, leading to an increase in adjusted EBITDA by 8% [4] - The Performance Products segment saw a decrease in revenues primarily due to lower sales volumes and unplanned production outages, resulting in a 29% drop in adjusted EBITDA [5] - Advanced Materials experienced a decline in revenues due to lower average selling prices, with adjusted EBITDA decreasing by 16% [6] Liquidity and Capital Resources - Free cash flow used in continuing operations was $107 million, slightly higher than the $105 million used in the same period of 2024 [8][11] - As of March 31, 2025, Huntsman had approximately $1.3 billion in combined cash and unused borrowing capacity [8] Management Commentary - The CEO noted significant changes in short-term business conditions, with low visibility and customer uncertainty impacting demand trends in key markets [3] - The company is focusing on cost management, including workforce reductions and asset optimization, while prioritizing balance sheet protection and cash generation [3]

Core Insights - Stocks typically face challenges in May, making it difficult to select top momentum stocks, but the Richard Driehaus strategy, which advocates "buy high and sell higher," can be applied to identify potential picks [1][2] Driehaus Strategy Overview - Richard Driehaus emphasized a preference for investing in stocks that are increasing in price rather than those in decline, which aligns with the philosophy of the American Association of Individual Investors (AAII) that uses the percentage 50-day moving average as a key criterion [2][4] - The strategy incorporates a calculation that compares the month-end price to the 50-day moving average, along with a positive relative strength indicator, to identify stocks in an uptrend [3][4] Screening Parameters - The strategy focuses on stocks with a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, which historically have shown better upside potential [5][6] - Key screening parameters include: - Last 5-year average EPS growth rates above 2% to ensure improving business performance [7] - Trailing 12-month EPS growth greater than 0 and above the industry median, indicating superior earnings performance [7] - Last four-quarter average EPS surprise greater than 5%, suggesting better price performance [7] - Positive percentage change in the 50-day moving average and relative strength over 4 weeks, signaling an uptrend [7][8] Selected Momentum Stocks - Nomad Foods Limited (NOMD) produces and distributes frozen food products globally, with a Momentum Score of A and an average trailing four-quarter earnings surprise of 5% [9] - Hawkins, Inc. (HWKN) is a U.S. specialty chemical and ingredients company, holding a Momentum Score of B and an average trailing four-quarter earnings surprise of 6.1% [10] - PCB Bancorp (PCB) provides banking services to small businesses and individuals, with a Momentum Score of A and an average trailing four-quarter earnings surprise of 7.4% [11]

Financial Data and Key Metrics Changes - Q2 sales were $479 million, a 17% year-on-year decrease, including a $67 million impact from portfolio optimization, resulting in a 5% revenue decline excluding this impact [8][12] - Adjusted EBITDA was $108 million, down 14% year-over-year, with an organic decline of 4% [8][12] - Adjusted EPS, excluding acquisition amortization, was $0.99 per share, down 22% from the prior year [13] Business Line Data and Key Metrics Changes - Life Sciences sales declined 23% year-over-year to $172 million, primarily due to portfolio optimization initiatives [16] - Personal Care sales decreased by 14% year-over-year to $146 million, largely due to divestitures and low-margin product exits [21] - Specialty Additives sales fell by 15% to $134 million, with organic sales down 9% [26] Market Data and Key Metrics Changes - The demand environment was mixed, with slower trends than expected, particularly in Europe and the U.S. [7][43] - Intermediates generated $2 million in adjusted EBITDA, representing a 5.4% adjusted EBITDA margin, down from $12 million in the prior year [20] Company Strategy and Development Direction - The company is focused on achieving a $90 million cost savings target and has completed its restructuring efforts ahead of schedule [28] - Strategic priorities include enhancing financial performance through controllable factors and navigating the evolving tariff landscape [28][35] - The company aims for $100 million in incremental revenue from its Globalize and Innovate initiatives by fiscal year 2027 [31] Management's Comments on Operating Environment and Future Outlook - Management noted increasing economic uncertainty and anticipated softer consumer demand, prompting an adjustment to the fiscal year 2025 outlook [10][49] - The company expects flattish organic sales volume growth for the full fiscal year, with a positive inflection anticipated in the second half [45] - Management emphasized the importance of adapting and executing with discipline to navigate near-term challenges [10][50] Other Important Information - The company has over $700 million in liquidity and a manageable net leverage of 2.8 times, positioning it well to navigate the current environment [15] - The completion of portfolio optimization is expected to enhance long-term profitability despite short-term impacts [10][50] Q&A Session Summary Question: Order volatility and customer expectations - Management observed reduced volatility in orders over the last two quarters, with volumes picking up and pricing aligning with guidance [54][55] Question: Mitigation of risks related to U.S. produced China sales - Management indicated that over half of the risks could be mitigated through customer partnerships and production shifts, although some challenges remain [58][60] Question: Impact of delayed reciprocal tariffs on other regions - Management noted limited impact from tariffs outside of China, with most raw materials sourced regionally [67][68] Question: Competitive pressures in Specialty Additives - Management reported stable conditions in China, with pricing pressures continuing but manageable [71][72] Question: Cash flow expectations for the year - Management expects free cash flow to be in the range of $150 million to $200 million, depending on inventory and FX developments [91]