Huntsman CORP SEC 10-Q Report

Huntsman Corporation, a global manufacturer and marketer of differentiated chemicals, has released its Form 10-Q report for the second quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational activities, highlighting significant challenges and strategic initiatives undertaken during the period.

Financial Highlights

Huntsman Corporation reported a decline in key financial metrics for the three months ended June 30, 2025, reflecting a challenging business environment:

• Total Revenues: $2,868 million, down from $3,044 million in the prior year period, primarily due to lower trade sales, services, and fees.
• Gross Profit: $383 million, a decrease from $444 million, indicating reduced profitability due to increased cost of goods sold.
• Operating (Loss) Income: $(78) million, compared to $(4) million in the previous year, largely impacted by restructuring, impairment, and plant closing costs.
• Net (Loss) Income: $(134) million, a significant decline from $15 million, driven by higher operating expenses and restructuring costs.
• Net (Loss) Income Attributable to Huntsman Corporation: $(163) million, compared to $(15) million, reflecting the overall decrease in profitability.
• Basic (Loss) Income Per Share: $(0.94), compared to $(0.09), indicating a substantial decrease in earnings per share.
• Diluted (Loss) Income Per Share: $(0.94), consistent with basic loss per share, highlighting the impact of the net loss on shareholder value.

Business Highlights

The company's operational performance during the quarter was marked by significant restructuring activities and geographical revenue contributions:

• Revenue Segments: Huntsman operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment generated $932 million in revenue, with significant contributions from the U.S. and Canada, Europe, and Asia Pacific. The Performance Products and Advanced Materials segments contributed $270 million and $264 million, respectively, with notable sales in Europe and Asia Pacific.
• Geographical Performance: The U.S. and Canada remain the largest market, contributing $562 million in revenue. Europe and Asia Pacific also showed strong performance, with revenues of $387 million and $406 million, respectively. The Rest of the World contributed $103 million, indicating a diverse geographical revenue base.
• Restructuring Activities: The Performance Products segment initiated a restructuring program to close its European maleic anhydride manufacturing facility in Moers, Germany, resulting in a net restructuring expense of approximately $88 million. The Polyurethanes segment expanded its restructuring program to optimize its European business organization, incurring a net restructuring expense of approximately $38 million.
• Future Outlook: Huntsman expects to record further restructuring expenses of approximately $24 million through 2027 in the Polyurethanes segment, primarily related to workforce reductions, accelerated depreciation, and site closures. The Advanced Materials segment anticipates additional restructuring expenses of approximately $6 million through 2027.
• Legal Matters: The company received a final award of approximately $66 million from a legal case against Praxair/Linde, which included mandatory pre-judgment and post-judgment interest. This legal victory is expected to positively impact future cash flows.
• Environmental, Health, and Safety (EHS) Matters: Huntsman incurred capital expenditures of $15 million for EHS compliance during the six months ended June 30, 2025. These expenditures are part of ongoing efforts to maintain and improve pollution control equipment and comply with evolving regulatory requirements.

SEC Filing: Huntsman CORP [ HUN ] - 10-Q - Aug. 01, 2025