8-K: Huntsman Reports Q2 2026 Results, Merger Progress

Huntsman Corporation announced its second quarter 2026 financial results, reporting a reduced net loss and improved adjusted EBITDA, while continuing to advance its proposed merger with Olin Corporation.

Summary

• Huntsman Corporation reported its second quarter 2026 financial results, with revenues of $1,663 million, a significant improvement from $1,458 million in the prior year period.
• The company reported a net loss attributable to Huntsman of $6 million for Q2 2026, a substantial decrease from a net loss of $158 million in Q2 2025.
• Adjusted net income attributable to Huntsman was nil in Q2 2026, compared to an adjusted net loss of $34 million in the prior year period.
• Adjusted EBITDA for the second quarter of 2026 was $120 million, up from $74 million in the same period of 2025.
• Net cash used in operating activities from continuing operations was $60 million in Q2 2026, a decrease from $92 million provided by operations in Q2 2025.
• Free cash flow was a use of $90 million in Q2 2026, compared to a source of $55 million in Q2 2025.
• The company continues to progress with its planned all-stock merger of equals with Olin Corporation, with a stockholder vote scheduled for August 25, 2026.
• Capital expenditures for 2026 are expected to be approximately $170 million.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, with significant improvements in profitability metrics and progress on a major strategic merger, though free cash flow remains a concern.

Positives

• Significant reduction in net loss to $6 million in Q2 2026 from $158 million in Q2 2025.
• Improvement in adjusted net income to nil in Q2 2026 from an adjusted net loss of $34 million in Q2 2025.
• Adjusted EBITDA increased by 62% to $120 million in Q2 2026 from $74 million in Q2 2025.
• Revenues increased by 14% to $1,663 million in Q2 2026 compared to $1,458 million in Q2 2025.
• Higher volumes across all three segments (Polyurethanes, Performance Products, Advanced Materials) contributed to revenue growth.
• Pricing actions offset significant increases in raw material costs.
• The planned merger with Olin Corporation is progressing, with management expressing confidence in synergy targets and future benefits of vertical integration and scale.

Negatives

• Free cash flow was a use of $90 million in Q2 2026, a significant decrease from a source of $55 million in Q2 2025.
• Net cash used in operating activities from continuing operations was $60 million in Q2 2026, compared to cash provided by operations of $92 million in Q2 2025.
• Rising and volatile energy and crude oil related costs, particularly in Europe, remain a headwind.
• Continued softness in the construction market impacted industrial demand.

Risks

• Uncertainty regarding the timing of the contemplated merger with Olin Corporation.
• Potential for governmental entities to prohibit, delay, or refuse necessary regulatory approvals for the merger.
• Disruption caused by the merger announcement, potentially making it difficult to maintain relationships with employees, customers, vendors, and other business partners.
• Risk of stockholder litigation related to the merger affecting its timing or occurrence, or resulting in significant defense costs.
• Ability to refinance existing indebtedness in connection with the merger.
• General industry, economic, or political conditions outside of the parties' control.
• Transaction costs associated with the merger.
• High energy costs in Europe, inflation, volatile global economic conditions, and geopolitical instability.

Future Outlook

The company is progressing with its planned merger of equals with Olin Corporation, with a stockholder vote scheduled for August 25, 2026. Management expects the combined company to benefit from vertical integration, greater scale, and a stronger financial profile, creating value for shareholders. The company anticipates capital expenditures of approximately $170 million for the full year 2026.

Management Comments

• "We delivered a solid quarter, supported by higher volumes across all three segments and pricing actions that offset a significant increase in raw material costs."
• "Improved industrial demand helped counter continued softness in construction."
• "Rising and volatile energy and crude oil related costs, particularly in Europe, remain a headwind, and we will stay focused on additional price increases and cost-reduction initiatives to help offset these pressures."
• "Our planned merger of equals with Olin Corporation continues to progress at pace. The strong collaboration between our teams reinforces my confidence in our ability to deliver the synergy targets we have outlined."
• "We also expect the combined company to benefit from vertical integration, greater scale, and a stronger financial profile, creating meaningful value for shareholders of both companies."
• "We are excited about the future of OlinHuntsman."

Industry Context

StockSavvy.ai notes that Huntsman's Q2 2026 results reflect a challenging but improving chemical market. While raw material and energy costs present headwinds, the company's ability to increase prices and volumes across its segments, particularly in Polyurethanes and Advanced Materials, indicates resilience. The ongoing merger with Olin Corporation is a significant strategic move aimed at creating a larger, more integrated entity, which aligns with broader industry trends of consolidation and scale to navigate market volatility and enhance competitive positioning.

Stakeholder Impact

• Shareholders: Potential for increased value through the proposed merger with Olin Corporation, which is expected to create synergies and a stronger financial profile. The improved Q2 results also signal operational recovery.
• Employees: The merger with Olin may lead to organizational changes and integration efforts, with potential impacts on roles and responsibilities.
• Customers: Continued supply of chemical products, with potential benefits from a larger, more integrated entity in the long term.
• Suppliers: Ongoing business relationships, with potential for shifts in procurement strategies post-merger.

Next Steps

• Hold conference call to discuss Q2 2026 financial results on July 31, 2026.
• Management to present at various investor conferences in Q3 2026.
• Stockholder vote on the merger with Olin Corporation scheduled for August 25, 2026.

Key Dates

Recommendation

The company shows operational improvement and strategic progress with the Olin merger, but the negative free cash flow and ongoing integration risks warrant a hold rating. Investors should await further clarity on merger completion and post-merger performance.

Keywords

Huntsman Corporation, Olin Corporation, Merger of Equals, Chemicals, Polyurethanes, Performance Products, Advanced Materials, Q2 2026 Earnings