Huntsman Corporation Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 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 company operates globally with significant exposure to foreign currency fluctuations and commodity price volatility.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Total Revenues | $1,420 million | $1,410 million |
| Gross Profit | $183 million | $201 million |
| Operating Income (Loss) | $(16) million | $42 million |
| Net Loss (GAAP) | $(41) million | $11 million |
| Net Loss Attributable to Huntsman Corp | $(53) million | $(5) million |
| Adjusted EBITDA | $73 million | $72 million |
| Free Cash Flow | $(91) million | $(107) million |
| Cash and Equivalents | $369 million | $334 million |
| Total Debt | $2,056 million | $2,011 million |
Material Changes vs. Prior Period
- Profitability Decline: The company reported a net loss of $41 million compared to net income of $11 million in Q1 2025. This shift was primarily driven by the absence of a $33 million litigation gain recognized in Q1 2025 related to a settlement with Praxair/Linde.
- Revenue Growth: Revenues increased 1% year-over-year, driven by higher average selling prices in Advanced Materials and higher sales volumes in Polyurethanes and Advanced Materials.
- Gross Margin Compression: Gross profit decreased 9% to $183 million due to lower margins in the Polyurethanes and Performance Products segments.
- Restructuring Costs: Restructuring, impairment, and plant closing costs increased to $6 million from $1 million in the prior year, primarily related to workforce reductions and accelerated depreciation in the Advanced Materials and Polyurethanes segments.
- Debt Refinancing: In February 2026, the company entered into a new $800 million revolving credit facility, replacing the 2022 facility. This resulted in a $1 million loss on early extinguishment of debt.
Outlook, Risks, and Management Commentary
- Segment Performance:
- Polyurethanes: Adjusted EBITDA declined 7% due to lower margins, partially offset by volume growth.
- Performance Products: Adjusted EBITDA declined 13% due to lower volumes (impacted by the closure of the Moers, Germany facility) and competitive pricing pressures.
- Advanced Materials: Adjusted EBITDA increased 25% driven by higher sales volumes in aerospace, power, and automotive markets.
- Liquidity: As of March 31, 2026, the company had $867 million in combined cash and unused borrowing capacity. Management expects capital expenditures in 2026 to approximate 2025 levels.
- Restructuring Outlook: The company expects to record approximately $7 million in further restructuring expenses through 2027 across its segments.
- Risks: Key risks include foreign currency exchange rate fluctuations, commodity price volatility, and ongoing environmental remediation obligations. The company maintains a $16 million accrual for environmental liabilities.
Investor Verification Checklist
- Exclusion of One-Time Gains: Verify the impact of the $33 million litigation gain in Q1 2025 on year-over-year comparisons; the current quarter lacks this non-recurring income.
- Debt Structure: Review the terms of the new 2026 Revolving Credit Facility and the associated loss on extinguishment of the prior debt.
- Working Capital Trends: Monitor the increase in Accounts Receivable ($99 million increase) and Inventories ($67 million increase) which contributed to negative operating cash flow.
- Restructuring Progress: Track the execution of ongoing restructuring programs in Advanced Materials and Polyurethanes against the projected $7 million future expense.
- Foreign Currency Impact: Assess the sensitivity of earnings to foreign currency translation, which resulted in a $13 million loss in other comprehensive income for the quarter.