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Huntsman Corporation Reports First Quarter 2025 Earnings

On May 1, 2025, Huntsman Corporation (NYSE: HUN) announced its financial results for the first quarter of 2025, showcasing a notable improvement in performance relative to the same quarter last year. The company reported a net loss of $5 million, a significant decrease from the $37 million net loss recorded in the first quarter of 2024. This shift reflects a deeper strategic adjustment amid the challenging market landscape. The diluted loss per share was clocked at $0.03, significantly better than the $0.22 loss per share reported in the same period the previous year.

Financial Performance Overview

During Q1 2025, Huntsman generated revenues totaling $1,410 million, slightly down from $1,470 million in Q1 2024. The adjusted net loss attributable to the company was $19 million, up from an adjusted net loss of $11 million a year earlier. This increase in adjusted loss indicates ongoing pressures in the business environment, primarily linked to fluctuating customer demand and economic uncertainty.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) recorded at $72 million marked a decrease from $81 million compared to the same quarter last year. Meanwhile, the company saw cash utilized in operating activities from continuing operations reach $71 million. Moreover, free cash flow from ongoing operations consumed $107 million, slightly higher than the $105 million utilized during the prior year segment.

Peter R. Huntsman, the Chairman and CEO, remarked on the prevailing uncertainty affecting various markets, particularly in construction and transportation. Citing low visibility and customer hesitance regarding demand trends, he emphasized the cautious order patterns which are dampening the usual seasonal volume enhancements expected in Q2.

Segment Performance

Huntsman categorizes its operations into major segments. The Polyurethanes segment reported a revenue decline mainly due to lower average selling prices, although this was partially compensated by increased sales volumes driven by improved demand in select markets. The segment’s adjusted EBITDA, however, saw an uptick due to reduced raw material expenses.

The Performance Products segment, conversely, encountered a decline attributed to diminished sales volumes amid weakened customer demand and unexpected production halts at its Moers, Germany facility. The adjusted EBITDA in this sector dropped significantly.

In the Advanced Materials segment, revenue deterioration stemmed from lower selling prices, which were influenced by both sales mix challenges and shifts in foreign exchange rates against the U.S. dollar. Sales volumes for this segment were relatively steady, but the adjusted EBITDA fell notably due to price decreases.

As for corporate operations, Huntsman reported an adjusted EBITDA loss of $36 million, a smaller loss compared to $43 million from the same period last year, resulting primarily from decreased overhead costs.

Strategic Outlook and Steps Forward

Looking ahead, Huntsman is actively pursuing aggressive cost-management strategies, including workforce reductions and asset optimization initiatives in both Europe and North America. Huntsman is also focused on reviewing strategic options for its European maleic anhydride operations, with a comprehensive review anticipated by mid-summer 2025.

The company emphasizes the importance of safeguarding its balance sheet and generating cash flow even amid these turbulent market conditions. Huntsman is prepared to adapt as necessary to navigate through this evolving economic landscape, maintaining a commitment to future business health and stability.

Huntsman's earnings conference call to elaborate on these results is scheduled for May 2, 2025, at 10:00 AM ET. This call will be accessible through the company’s investor relations website and will include accompanying slides detailing the financial disclosures.

Overall, while the first quarter of 2025 presented various hurdles, Huntsman Corporation’s strategic measures and focus on adaptation position it to better manage challenges and pursue opportunities in the future.