Huntsman Corporation 2026 Q2 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2026, for Huntsman Corporation and its wholly-owned subsidiary, Huntsman International LLC. Huntsman is a global manufacturer of diversified organic chemical products operating in three segments: Polyurethanes, Performance Products, and Advanced Materials. The filing highlights a significant corporate development: on June 16, 2026, Huntsman announced a proposed all-stock merger of equals with Olin Corporation, expected to close in the first half of 2027.
Key Financial Metrics (Six Months Ended June 30, 2026)
| Metric | 2026 (YTD) | 2025 (YTD) |
|---|---|---|
| Total Revenues | $3,083 million | $2,868 million |
| Gross Profit | $428 million | $383 million |
| Operating Income (Loss) | $21 million | $(78) million |
| Net Loss (Attributable to Huntsman) | $(59) million | $(163) million |
| Adjusted EBITDA | $193 million | $146 million |
| Free Cash Flow | $(181) million | $(52) million |
| Total Debt | $2,087 million | $2,011 million |
| Cash and Equivalents | $346 million | $429 million |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 7% year-over-year (YTD) and 14% quarter-over-quarter (Q2), driven by higher average selling prices and sales volumes across all segments, particularly in Polyurethanes and Advanced Materials.
- Profitability Improvement: Operating loss narrowed significantly from $(78) million in 2025 to a profit of $21 million in 2026. This improvement was primarily due to a $110 million reduction in restructuring, impairment, and plant closing costs compared to the prior year.
- Restructuring Costs: Restructuring expenses dropped to $15 million (YTD 2026) from $125 million (YTD 2025). The prior year included a $77 million impairment charge related to the closure of the Moers, Germany facility.
- Asset Sale: The company recognized a $22 million gain on the sale of its Huntsman Gomet business in Q2 2026.
- Cash Flow: Operating cash flow turned negative at $(113) million (YTD 2026) compared to positive $21 million in 2025, largely due to increased working capital requirements (higher receivables and inventories).
Guidance, Outlook, and Risks
- Merger with Olin: The proposed merger is a central focus. Huntsman stockholders will receive 0.5476 shares of Olin common stock for each Huntsman share. The transaction is subject to regulatory approvals and shareholder votes. Risks include potential delays, failure to close, and disruption to business operations.
- Capital Expenditures: The company expects to spend approximately $170 million on capital expenditures for the full year 2026, funded by cash from operations.
- Dividends: Dividends were declared at $0.0875 per share in Q1 and Q2 2026, a reduction from the $0.25 per share paid in 2025.
- Share Repurchases: No shares were repurchased under the $2 billion program during the first half of 2026. Approximately $547 million remains authorized.
- Liquidity: As of June 30, 2026, the company had $857 million in combined cash and unused borrowing capacity ($346 million cash, $438 million revolver availability, $73 million A/R program availability).
Investor Verification Checklist
- Merger Status: Verify the progress of regulatory approvals and shareholder voting for the Olin merger, as this dictates the company's future structure and stock value.
- Working Capital Trends: Monitor the increase in accounts receivable (+$203 million) and inventories (+$117 million) to ensure they align with revenue growth and do not signal collection or obsolescence issues.
- Free Cash Flow: Assess the drivers behind the negative free cash flow of $(181) million and the company's ability to fund operations and dividends without further debt issuance.
- Segment Performance: Review the specific margin improvements in the Polyurethanes and Advanced Materials segments to confirm the sustainability of the pricing power cited by management.
- Debt Covenants: Confirm continued compliance with the leverage and fixed charge coverage covenants in the new 2026 Revolving Credit Facility.