#USA #financial results #The Woodlands, Texas #Q2 2025 #Huntsman Corporation

Huntsman Corporation's Second Quarter 2025 Financial Results

Huntsman Corporation recently announced its financial results for the second quarter of 2025, revealing a net loss of $158 million. This contrasts starkly with the net income of $22 million recorded during the same period last year, indicating considerable challenges faced by the company in the current economic environment.

Key Financial Highlights

For the second quarter of 2025, Huntsman reported:

• - Revenues of $1.458 billion, a decrease from $1.574 billion in Q2 2024.
• - A diluted loss per share of $0.92 compared to a gain of $0.13 in the previous year.
• - Adjusted net loss of $34 million versus an adjusted net income of $24 million last year, with an adjusted EBITDA down to $74 million from $131 million in Q2 2024.
• - Positive cash flow from operations of $92 million and free cash flow of $55 million, significantly higher than the prior year's $5 million.

Peter R. Huntsman, CEO, expressed that the second quarter's performance was expected due to a slowdown in global construction and industrial activities that negatively affected sales volume. He noted, "The seasonal boost in construction demand that we typically see in Q2 was less prominent in 2025, and we don’t foresee substantial changes in this trend for the third quarter."

Market Conditions and Company Response

The recent market conditions have prompted Huntsman to implement a stringent cost-reduction strategy and a restructuring plan that includes closing its maleic anhydride production facility in Moers, Germany, along with other plants in Europe and North America. This restructuring process, initiated at the end of 2024, is expected to lead to a roughly 10% reduction in the company's global workforce, with Europe experiencing the most significant cuts.

Management has underscored that maintaining a healthy balance sheet and prioritizing cash generation is essential for navigating the current economic landscape. Despite the losses, the company managed to generate positive cash flow due to enhanced cash management practices.

Segment Performance

The results varied significantly across different business segments.

• - Polyurethanes: Revenue reduction was attributed to lower average selling prices and decreased sales volumes, particularly in construction-related markets. The adjusted EBITDA dropped sharply from $80 million to $31 million, largely due to these factors.
• - Performance Products: Experienced a drop in revenues due to lowered sales volumes, though average selling prices remained relatively stable. The segment's adjusted EBITDA also declined by nearly 30%.
• - Advanced Materials: Saw a decrease in both sales volumes and average selling prices, leading to diminished adjusted EBITDA results compared to last year.

Future Outlook

As Huntsman moves forward, the focus remains on mitigating the impacts of the current challenges in the market. They are taking a cautious approach towards future strategies while expecting limited recovery in the short term. This outlook includes further engagements and discussions to manage operational efficiencies and cost-effectiveness across all segments.

Huntsman plans to provide further insight into these developments during their upcoming earnings conference call scheduled for August 1, 2025, where they will address the broader implications of Q2 2025 results and future strategies.

In conclusion, Huntsman’s report for the second quarter of 2025 illustrates the complex challenges faced amid a shifting market landscape and the measures being taken to adapt accordingly. Stakeholders will be closely monitoring the company's recovery strategies and market adjustments moving ahead.