Huntsman Corp
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.50%.
Did HUN Beat Earnings? Q4 2025 Results
Huntsman Corporation delivered a disappointing fourth quarter of 2025, missing bottom-line expectations while eking out a slim revenue beat against a backdrop of worsening profitability. The chemical maker posted a loss of $0.37 per share, falling short of the consensus estimate of $0.31 by 17.57%, even as revenue of $1.35 billion edged 0.89% above expectations, though that top-line figure still represented a 6.7% decline from a year earlier. The primary culprit was severe margin compression in Polyurethanes, the company's largest segment, where deteriorating MDI supply-demand dynamics pushed adjusted EBITDA for the quarter down to just $35 million from $71 million in the prior year period. The weakness drew broader scrutiny, with a major ratings agency downgrading Huntsman's credit and flagging expectations of continued poor performance through 2027. Looking ahead, management offered little near-term comfort, acknowledging that meaningful market recovery may not arrive soon while pledging to prioritize cash discipline and balance sheet preservation as the company navigates a prolonged downturn.
- Lower MDI average selling prices due to less favorable supply and demand dynamics
- Competitive pressures on average selling prices in Performance Products
- Soft demand in infrastructure coatings and general industry segments within Advanced Materials
- Higher sales volumes in Americas and Asia regions for Polyurethanes
- Positive impact of foreign currency exchange rate movements on Advanced Materials selling prices
- Lower fixed costs partially offset revenue declines in Performance Products
- Significant restructuring activity with $148 million in full-year restructuring, impairment and plant closing costs
“During 2025, there was an exceptional amount of work accomplished by the Company in restructuring our business and generating cash despite the depressed level of earnings. We generated close to $300 million of cash flow from operations in 2025 and our 45% full year free cash flow conversion reflects timely, definitive decisions as we recognized the challenging market landscape early in the year. We remain confident that the economic cycle for chemicals will eventually improve in our core markets, though we recognize that meaningful changes may not occur in the immediate term. We are committed to maintaining a disciplined approach, prioritizing cash management, the balance sheet and controlling our fixed costs to ensure the Company is well-positioned when our markets improve.”
Huntsman CEO, on the earnings call
Forward Guidance & Outlook
Huntsman expects capital expenditure levels in 2026 to be similar to 2025 levels. Management acknowledges that meaningful improvement in chemical market conditions may not occur in the immediate term, and the company is focused on maintaining a disciplined approach prioritizing cash management, balance sheet strength, and fixed cost control to position the company for when markets improve.
HUN YoY Financials
HUN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.