Huntsman 2025 Q1 Earnings Revenue Decline Despite Net Income Upswing

Huntsman (HUN) reported its fiscal 2025 Q1 earnings on May 01st, 2025. The company's earnings per share improved significantly over the same period last year, narrowing losses from $0.22 to just $0.03, marking an 86.4% improvement. Huntsman's net income saw a remarkable turnaround, achieving $11 million compared to a $23 million loss in Q1 2024, a positive swing of 147.8%. Despite these improvements, huntsman faced challenges, with revenue dipping 4.1% year-over-year to $1.41 billion, missing analyst expectations of $1.51 billion for the quarter. The company remains committed to aggressive cost management and cash generation as part of its strategic response.

Revenue

Huntsman's Q1 2025 revenue totaled $1.41 billion, marking a 4.1% decrease from the same period last year. The Polyurethanes segment led revenue with $912 million, followed by Performance Products at $257 million. Advanced Materials contributed $249 million, and after accounting for intersegment eliminations of $8 million, the total revenue stood at $1.41 billion. This decline reflects challenges in market demand and pricing dynamics.

Earnings/Net Income

Huntsman improved its earnings per share significantly in Q1 2025, narrowing losses from $0.22 to $0.03 per share. This improvement reflects a substantial reduction in losses, underscoring a positive trend in the company's financial performance.

Post-Earnings Price Action Review

Huntsman's stock price shows a generally positive short-term response to earnings report metrics. A backtest from May 2020 to May 2025 indicates a 60% 3-day win rate following revenue-related events, with a 65% 10-day win rate and a 50% 30-day win rate. Net income-related events also show a 65% 10-day win rate and a 50% 30-day win rate, while EPS-related events mirror revenue's performance with a 60% 3-day win rate. The maximum return observed within 30 days post-earnings was 3.71%. These patterns suggest that the stock tends to experience moderate short-term gains immediately following earnings disclosures, with the impact often stabilizing over longer periods.

CEO Commentary

Peter R. Huntsman, Chairman, President, and CEO, noted significant changes in short-term business conditions, with low visibility and customer uncertainty affecting demand trends in construction, transportation, and industrial markets. He emphasized a proactive approach to cost management, including workforce reductions and asset optimization in Europe and North America. Huntsman continues to focus on protecting the balance sheet and generating cash as the company navigates current challenges.

Guidance

Huntsman Corporation remains committed to reviewing strategic options for its European maleic anhydride business by summer 2025. The company plans to maintain aggressive cost management while addressing market challenges. It prioritizes cash generation and balance sheet protection as key operational strategies, hoping for an improvement in demand conditions.

Additional News

Recently, Huntsman Corporation announced several significant updates. On May 1, 2025, the company declared a quarterly dividend of $0.25 per share, maintaining its commitment to returning value to shareholders. Additionally, Huntsman reported a leadership change as Tony Hankins, the Division President of the Polyurethanes business unit, decided to retire. Steen Weien Hansen has been appointed as the new Division President. Furthermore, Huntsman unveiled a new purification and packaging capability through its E-GRADE® unit in Conroe, Texas, aimed at enhancing its Performance Products division. These developments reflect Huntsman's ongoing strategic initiatives and efforts to strengthen its market position.

Ask Aime: What impact does Huntsman's Q1 earnings have on its stock price?