10-Q: Huntsman Corp. Q2 2026 Earnings Show Revenue Growth Amid Merger Uncertainty

Huntsman Corporation reported increased revenues in Q2 2026 driven by higher selling prices and volumes across its segments, alongside significant progress on its merger with Olin Corporation.

Summary

• Huntsman Corporation reported a net loss of $6 million for the six months ended June 30, 2026, an improvement from a net loss of $158 million in the same period of 2025.
• Total revenues for the six months ended June 30, 2026, increased by 7% to $3.083 billion compared to $2.868 billion in the prior year period.
• The company completed the sale of its Gomet business on June 5, 2026, recognizing a net gain of $22 million.
• Huntsman and Olin Corporation announced a proposed all-stock merger of equals on June 16, 2026, expected to close in the first half of 2027.
• Adjusted EBITDA for the six months ended June 30, 2026, was $193 million, up from $146 million in the prior year period.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this filing as moderately positive, with strong revenue growth and improved profitability metrics, but tempered by the reported net loss and significant uncertainties surrounding the pending merger with Olin Corporation.

Positives

• Revenues increased by 14% to $1.663 billion for the three months ended June 30, 2026, compared to $1.458 billion in the prior year period, driven by higher average selling prices and sales volumes across all segments.
• Gross profit increased by 35% to $245 million for the three months ended June 30, 2026, compared to $182 million in the prior year period.
• Segment adjusted EBITDA for the three months ended June 30, 2026, was $120 million, a 62% increase from $74 million in the prior year period.
• The sale of the Gomet business on June 5, 2026, resulted in a $22 million net gain.
• The company has $346 million in cash and cash equivalents as of June 30, 2026.
• Availability under the 2026 Revolving Credit Facility and A/R Programs provides an additional $511 million in liquidity.

Negatives

• The company reported a net loss of $6 million for the six months ended June 30, 2026.
• Loss from continuing operations attributable to Huntsman Corporation was $56 million for the six months ended June 30, 2026.
• Selling, general and administrative expenses increased by 14% to $183 million for the three months ended June 30, 2026.
• Free cash flow from continuing operations was a use of cash of $181 million for the six months ended June 30, 2026.
• Accounts and notes receivable increased by $203 million, and inventories increased by $117 million.

Risks

• The fixed exchange ratio in the proposed merger with Olin Corporation means Huntsman stockholders cannot be sure of the market value of the merger consideration they will receive.
• Failure to complete the merger with Olin, or a delay in closing, could negatively impact Huntsman's business, results of operations, financial condition, and stock price.
• The merger agreement imposes restrictions on Huntsman's business conduct prior to closing, potentially affecting its ability to operate as usual.
• If the merger agreement is terminated under specified circumstances, Huntsman may be required to pay Olin a termination fee of $121 million or reimburse expenses.
• Uncertainties associated with the merger may lead to a loss of management personnel and other key employees.
• The need for regulatory approvals for the merger may delay closing or diminish its benefits.
• There is no assurance that the merger will qualify as a reorganization for U.S. federal income tax purposes.
• The company is subject to various other legal proceedings, although it does not believe their outcome will materially affect its financial condition.

Future Outlook

The merger with Olin Corporation is expected to close in the first half of 2027, subject to customary closing conditions. Huntsman expects to record further restructuring expenses of approximately $7 million through 2027 for its Advanced Materials segment and approximately $1 million through 2026 for its Performance Products segment. The company expects to make additional contributions of approximately $24 million to its pension and other postretirement benefit plans during the remainder of 2026.

Management Comments

• Peter R. Huntsman, Chief Executive Officer, certified that the report complies with SEC requirements and fairly presents the financial condition and results of operations.
• Philip M. Lister, Chief Financial Officer, certified that the report complies with SEC requirements and fairly presents the financial condition and results of operations.

Industry Context

StockSavvy.ai notes that Huntsman's reported revenue growth in Q2 2026, driven by price and volume increases, aligns with a general trend of recovery in the chemical sector. However, the significant restructuring costs and the pending merger with Olin introduce considerable complexity and potential disruption.

Comparison to Industry Standards

• Huntsman's reported revenue growth of 7% for the first six months of 2026 is a positive indicator, though specific industry benchmarks for chemical manufacturers in this period would require further comparative analysis.
• The company's adjusted EBITDA margin for the first six months of 2026 was approximately 6.2% ($193M / $3.083B), which needs to be compared against industry peers like Dow Inc., DuPont, and BASF to assess performance relative to standards.
• The net loss reported for the first six months of 2026, while an improvement year-over-year, indicates ongoing challenges that may differ from industry leaders who might be reporting consistent profitability.

Legal Proceedings

• Texas Emissions Enforcement: Matter resolved with a payment of $1,350,000 in civil penalties and $150,000 in attorneys fees, with Indorama indemnifying Huntsman for the full amount paid.
• Various other proceedings arising under environmental, products liability, and other laws are ongoing, but management does not believe their outcome will materially affect the company's financial condition.

Related Party Transactions

• Related party sales of $36 million and $69 million were recorded for the three and six months ended June 30, 2026, respectively.
• Accounts payable to affiliates were $25 million as of June 30, 2026.

Stakeholder Impact

• Shareholders: The proposed merger with Olin introduces uncertainty regarding the value of future shareholdings due to a fixed exchange ratio and potential market fluctuations of Olin's stock.
• Employees: Potential for job uncertainty and role changes due to the pending merger and ongoing restructuring activities.
• Creditors: The company's liquidity appears sufficient, with $857 million in combined cash and unused borrowing capacity as of June 30, 2026.
• Suppliers: The supplier finance program outstanding obligations were $50 million as of June 30, 2026.

Next Steps

• Continue to operate independently of Olin until the merger is completed.
• Satisfy customary closing conditions for the merger with Olin, including regulatory approvals and stockholder approvals.
• Record further restructuring expenses through 2027 for the Advanced Materials segment and through 2026 for the Performance Products segment.
• Make additional contributions to pension and other postretirement benefit plans.

Key Dates

Recommendation

The company shows strong operational improvements with revenue growth and increased adjusted EBITDA. However, the pending merger with Olin introduces significant uncertainty regarding future share value and potential integration challenges. The reported net loss, while improved, still warrants caution. Therefore, a 'hold' recommendation is appropriate pending further clarity on the merger's outcome and its impact on the combined entity.

Keywords

Huntsman Corporation, Form 10-Q, Quarterly Report, Merger, Olin Corporation, Chemicals, Polyurethanes, Performance Products