Huntsman Narrows Loss as Sales and Margins Rebound
Adjusted EBITDA climbed 62% to $120 million as margins expanded.
Huntsman Corp. (HUN), the chemicals maker, narrowed its second-quarter net loss to $6 million as revenue and profitability improved across its businesses.
The rebound came as Huntsman signed an all-stock merger of equals with Olin, a transaction that would create a company with about $12.5 billion in combined 2025 revenue. The companies are targeting more than $400 million in cost savings and integration benefits.
Revenue rose 14% from a year earlier to $1.663 billion, accelerating from the first quarter’s $1.420 billion and marking a 17% sequential increase. The loss amounted to $0.03 a share, compared with $0.92 a share a year earlier and $0.31 a share in the first quarter. Adjusted earnings improved to break-even from a loss of $0.20 a share in both comparison periods.
Pricing and mix increased 8% in local currencies, while sales volume rose 4% and currency contributed 2%. Gross margin widened to 14.7% from 12.5%, and Huntsman posted operating income of $37 million after a $120 million loss a year earlier.
Polyurethanes drove the improvement, with revenue rising 16% to $1.079 billion as local-currency pricing and mix increased 10%. Segment adjusted EBITDA more than doubled to $66 million. Advanced Materials grew faster, with revenue up 19% and adjusted EBITDA rising 42% on improved aerospace, power and automotive demand.
Performance Products revenue increased 5%, the slowest pace among the segments, while adjusted EBITDA rose 16% to $37 million. Higher performance-amines demand and lower fixed costs supported the gain.
Cash generation remained under pressure. Huntsman used $90 million of free cash flow, nearly unchanged from the first quarter and reversing a $55 million inflow a year earlier, as working capital absorbed $120 million.
Net debt increased to $1.741 billion from $1.582 billion at year-end as cash declined and borrowings rose. The planned Olin combination centers on more than $300 million of targeted benefits largely within 24 months, with another $100 million expected to begin in 2031.