8-K: Huntsman Corporation Reports First Quarter 2025 Results: Net Loss Narrowed, but Adjusted EBITDA Declines

• Huntsman Corporation reported a net loss attributable to Huntsman of $5 million for the first quarter of 2025, compared to a net loss of $37 million in the same period last year.
• The diluted loss per share was $0.03, an improvement from the $0.22 loss per share in the prior year period.
• However, the adjusted net loss attributable to Huntsman was $19 million, compared to an adjusted net loss of $11 million in the first quarter of 2024.
• Adjusted diluted loss per share was $0.11, compared to $0.06 in the prior year period.
• Adjusted EBITDA decreased to $72 million from $81 million in the prior year period.
• Revenues for the first quarter of 2025 were $1,410 million, down from $1,470 million in the first quarter of 2024.
• Net cash used in operating activities from continuing operations was $71 million.
• Free cash flow from continuing operations was a use of cash of $107 million, compared to a use of $105 million in the prior year period.
• The company had approximately $1.3 billion of combined cash and unused borrowing capacity as of March 31, 2025.
• Capital expenditures are expected to be between $180 million and $190 million for 2025.

Score: 5

Explanation: The sentiment is neutral. While the net loss improved, adjusted earnings and revenue declined, indicating mixed performance. Management's focus on cost-cutting and balance sheet protection suggests a cautious outlook.

• The net loss attributable to Huntsman improved to $5 million from $37 million in the prior year period.
• The company had approximately $1.3 billion of combined cash and unused borrowing capacity as of March 31, 2025.
• Huntsman is on track to complete its review of strategic options for its European maleic anhydride business by this summer.

• Adjusted net loss attributable to Huntsman increased to $19 million from $11 million in the prior year period.
• Adjusted EBITDA decreased to $72 million from $81 million in the prior year period.
• Revenues decreased to $1,410 million from $1,470 million in the prior year period.
• Free cash flow from continuing operations was a use of cash of $107 million.
• The Polyurethanes segment experienced lower average selling prices due to unfavorable sales mix.
• The Performance Products segment experienced lower sales volumes due to lower customer demand and unplanned production outages at the Moers, Germany facility.
• The Advanced Materials segment experienced lower average selling prices due to unfavorable sales mix and the negative impact of major foreign currency exchange rate movements against the U.S. dollar.

• Low visibility and customer uncertainty regarding demand trends are pressuring order patterns in key markets.
• The cautious customer order patterns are muting the seasonal volume improvement typically experienced during the second quarter.
• The company faces risks related to high energy costs in Europe, inflation, geopolitical instability, and volatile global economic conditions.
• Disruptions in production at manufacturing facilities could negatively impact results.
• Unfavorable sales mix and foreign currency exchange rate movements negatively impacted revenues and adjusted EBITDA in certain segments.

Short-term business conditions continue to change markedly with low visibility and customer uncertainty regarding demand trends. The company remains aggressive on costs, including workforce reductions and asset optimization in Europe and North America. Huntsman is on track to complete its review of strategic options for its European maleic anhydride business by this summer.

• Peter R. Huntsman, Chairman, President, and CEO, commented that short term business conditions continue to change markedly.
• He noted low visibility and customer uncertainty regarding demand trends are pressuring order patterns in many key markets.
• He stated that the company is not waiting for demand conditions to improve and remains aggressive on costs, including workforce reductions and asset optimization.
• He mentioned that protecting the balance sheet remains a priority in addition to focusing on cash generation.

The announcement reflects the challenges faced by chemical companies in the current economic environment, including fluctuating demand, high energy costs, and geopolitical instability. Huntsman's focus on cost reduction and asset optimization aligns with industry trends aimed at improving profitability and efficiency in a challenging market.

• Compared to companies like Dow and BASF, Huntsman's revenue decline of 4% is within the range of what other major chemical companies have experienced in similar market conditions.
• Huntsman's adjusted EBITDA margin of approximately 5% is lower than the industry average, which is closer to 10-15% for large chemical manufacturers.
• The company's focus on cost reduction and asset optimization mirrors strategies employed by competitors such as LyondellBasell and DuPont to navigate economic headwinds.
• Huntsman's capital expenditure plans of $180-190 million are relatively conservative compared to larger peers who are investing more heavily in growth projects and sustainability initiatives.

• Shareholders may be concerned about the decrease in adjusted EBITDA and revenues.
• Employees may be affected by workforce reductions as part of cost-cutting measures.
• Customers may experience changes in pricing or product availability due to market conditions and production adjustments.
• Suppliers may face pressure on pricing and volumes due to the company's focus on cost reduction.
• Creditors will monitor the company's cash flow and debt levels.

• The company will hold a conference call on May 2, 2025, to discuss the first quarter 2025 financial results.
• A member of management is expected to present at several conferences during the second quarter 2025.
• Huntsman is on track to complete its review of strategic options for its European maleic anhydride business by this summer.

• 2025-03-31: End of first quarter 2025
• 2025-05-01: Date of the press release and 8-K filing regarding first quarter 2025 earnings
• 2025-05-02: Conference call to discuss first quarter 2025 financial results at 10:00 a.m. ET
• 2025-05-28: Expected presentation at KeyBanc Industrials & Materials Conference
• 2025-06-04: Expected presentation at Deutsche Bank Global Industrials & Materials Conference
• 2025-06-10: Expected presentation at Wells Fargo Industrials & Materials Conference
• 2025-06-24: Expected presentation at Fermium Research Annual C-Suite Conference