Huntsman Announces First Quarter 2026 Earnings

Three months ended

March 31,

In millions, except per share amounts

2026

2025

Revenues

$     1,420

$     1,410

Net loss attributable to Huntsman Corporation

$        (53)

$          (5)

Adjusted net loss⁽¹⁾

$        (35)

$        (19)

Diluted loss per share

$     (0.31)

$     (0.03)

Adjusted diluted loss per share⁽¹⁾

$     (0.20)

$     (0.11)

Adjusted EBITDA⁽¹⁾

$         73

$         72

Net cash used in operating activities from continuing operations

$        (53)

$        (71)

Free cash flow⁽²⁾

$        (91)

$      (107)

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Table 1 -- Results of Operations

Three months ended

March 31,

In millions, except per share amounts

2026

2025

Revenues

$     1,420

$     1,410

Cost of goods sold

1,237

1,209

Gross profit

183

201

Operating expenses:

Selling, general and administrative

163

166

Research and development

29

32

Restructuring, impairment and plant closing costs

6

1

Gain on acquisition of assets, net

-

(5)

Income associated with litigation matter, net

-

(33)

Other operating expense (income), net

1

(2)

Total operating expenses

199

159

Operating (loss) income

(16)

42

Interest expense, net

(21)

(19)

Equity in income of investment in unconsolidated affiliates

5

1

Other income, net

3

3

(Loss) income from continuing operations before income taxes

(29)

27

Income tax expense

(11)

(15)

(Loss) income from continuing operations

(40)

12

Loss from discontinued operations, net of tax

(1)

(1)

Net (loss) income

(41)

11

Net income attributable to noncontrolling interests

(12)

(16)

Net loss attributable to Huntsman Corporation

$        (53)

$          (5)

Adjusted EBITDA⁽¹⁾

$         73

$         72

Adjusted net loss ⁽¹⁾

$        (35)

$        (19)

Basic loss per share

$     (0.31)

$     (0.03)

Diluted loss per share

$     (0.31)

$     (0.03)

Adjusted diluted loss per share⁽¹⁾

$     (0.20)

$     (0.11)

Common share information:

Basic weighted average shares

173

172

Diluted weighted average shares

173

172

Diluted shares for adjusted diluted loss per share

173

172

See end of press release for footnote explanations.

Table 2 -- Results of Operations by Segment

Three months ended

March 31,

Better /

In millions

2026

2025

(worse)

Segment revenues:

Polyurethanes

$       923

$       912

1 %

Performance Products

228

257

(11 %)

Advanced Materials

279

249

12 %

Total reportable segments' revenues

1,430

1,418

1 %

Intersegment eliminations

(10)

(8)

N/M

Total revenues

$     1,420

$     1,410

1 %

Segment adjusted EBITDA⁽¹⁾:

Polyurethanes

$         39

$         42

(7 %)

Performance Products

26

30

(13 %)

Advanced Materials

45

36

25 %

N/M = not meaningful

See end of press release for footnote explanations.

Three months ended

March 31, 2026 vs. 2025

Average selling price^(a)

Local

Exchange

Sales

currency & mix

rate

volume^(b)

Total

Polyurethanes

(6 %)

3 %

4 %

1 %

Performance Products

(4 %)

2 %

(9 %)

(11 %)

Advanced Materials

4 %

5 %

3 %

12 %

Combined segments

(4 %)

4 %

1 %

1 %

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

Table 4 -- Reconciliation of U.S. GAAP to Non-GAAP Measures

 Income tax 

 Net 

 Diluted (loss) income 

 EBITDA 

and other expense

 (loss) income 

 per share 

Three months ended

Three months ended

Three months ended

Three months ended

March 31,

March 31,

March 31,

March 31,

In millions, except per share amounts

2026

2025

2026

2025

2026

2025

2026

2025

Net (loss) income

$         (41)

$          11

$         (41)

$          11

$      (0.24)

$       0.06

Net income attributable to noncontrolling interests

(12)

(16)

(12)

(16)

(0.07)

(0.09)

Net loss attributable to Huntsman Corporation

(53)

(5)

(53)

(5)

(0.31)

(0.03)

Interest expense, net

21

19

Income tax expense

11

15

$         (11)

$         (15)

Depreciation and amortization

73

69

Business acquisition and integration gain and purchase accounting inventory adjustments, net

-

(5)

-

-

-

(5)

-

(0.03)

EBITDA / Loss from discontinued operations

1

1

 N/A 

 N/A 

1

1

0.01

0.01

Establishment of significant deferred tax asset valuation allowances

-

-

-

9

-

9

-

0.05

Loss on early extinguishment of debt

1

-

-

-

1

-

0.01

-

Certain legal and other settlements and related expenses (income), net

4

(33)

-

7

4

(26)

0.02

(0.15)

Amortization of pension and postretirement actuarial losses

7

7

(2)

(2)

5

5

0.03

0.03

Restructuring, impairment and plant closing and transition costs

8

4

(1)

(2)

7

2

0.04

0.01

Adjusted⁽¹⁾

$          73

$          72

$         (14)

$          (3)

(35)

(19)

$      (0.20)

$      (0.11)

Adjusted income tax expense⁽¹⁾

14

3

Net income attributable to noncontrolling interests

12

16

Adjusted pre-tax loss ⁽¹⁾

$          (9)

$          -

Adjusted effective tax rate⁽³⁾

N/M

N/M

Effective tax rate

(38 %)

56 %

N/M = not meaningful

N/A = not applicable

See end of press release for footnote explanations.

Table 5 -- Selected Balance Sheet Items

March 31,

December 31,

In millions

2026

2025

Cash

$              369

$              429

Accounts and notes receivable, net

776

677

Inventories

885

818

Prepaid expenses

104

94

Other current assets

45

46

Property, plant and equipment, net

2,441

2,486

Other noncurrent assets

2,511

2,465

Total assets

$            7,131

$            7,015

Accounts payable⁽⁵⁾

$              843

$              758

Other current liabilities⁽⁵⁾

500

478

Current portion of debt

376

353

Long-term debt

1,680

1,658

Other noncurrent liabilities

830

811

Huntsman Corporation stockholders' equity

2,681

2,750

Noncontrolling interests in subsidiaries

221

207

Total liabilities and equity

$            7,131

$            7,015

See end of press release for footnote explanations.

Table 6 -- Outstanding Debt

March 31,

December 31,

In millions

2026

2025

Debt:

Revolving credit facility

$              367

$              343

Senior notes

1,489

1,488

Amounts outstanding under A/R programs

173

152

Variable interest entities

5

7

Other debt

22

21

Total debt - excluding affiliates

2,056

2,011

Total cash

369

429

Net debt - excluding affiliates⁽⁴⁾

$            1,687

$            1,582

See end of press release for footnote explanations.

Table 7 -- Summarized Statement of Cash Flows

Three months ended

March 31,

In millions

2026

2025

Total cash at beginning of period

$           429

$           340

Net cash used in operating activities from continuing operations

(53)

(71)

Net cash used in operating activities from discontinued operations

-

(3)

Net cash (used in) provided by investing activities

(37)

6

Net cash provided by financing activities

30

60

Effect of exchange rate changes on cash

-

2

Total cash at end of period

$           369

$           334

Free cash flow⁽²⁾:

Net cash used in operating activities from continuing operations

$            (53)

$            (71)

Capital expenditures

(38)

(36)

Free cash flow from continuing operations⁽²⁾

$            (91)

$          (107)

Supplemental cash flow information:

Cash paid for interest

$              (5)

$              (8)

Cash paid for income taxes

(14)

(12)

Cash paid for restructuring and integration

(12)

(3)

Cash paid for pensions

(9)

(8)

Depreciation and amortization from continuing operations

73

69

Change in primary working capital:

Accounts and notes receivable

$          (111)

$            (65)

Inventories

(75)

(101)

Accounts payable⁽⁵⁾

(27)

Total change in primary working capital

$            (81)

$          (193)

See end of press release for footnote explanations.

(1)

We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments.  We provide adjusted net income (loss) because we feel it provides meaningful insight for the investment community into the performance of our business.  We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss).  Additional information with respect to our use of each of these financial measures follows:

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.

Adjusted EBITDA is computed by eliminating the following from net income (loss):  (a) net income attributable to noncontrolling interests; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA in Table 4 above. 

Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.  The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.

We may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, net, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

We believe free cash flow is an important indicator of our liquidity as it measures the amount of cash we generate. Management internally uses free cash flow measure to: (a) evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by (used in) operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

(3)

We believe the adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4 for details regarding the tax impacts of our non-GAAP adjustments.

(4)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.

(5)

Certain prior period amounts have been reclassified in the condensed consolidated financial statements to conform to current period presentation.