Huntsman 2025 Q3 Earnings 35.3% Reduction in Net Loss Amid Cost-Cutting Measures

Huntsman (HUN) reported fiscal 2025 Q3 earnings on Nov 8, 2025, with a 5.2% revenue decline to $1.46 billion and a 35.3% reduction in net losses to $11 million. The company narrowed per-share losses to $0.14, a 26.3% improvement year-over-year. Despite softer demand, management highlighted progress on cost reductions and cash preservation, though no formal 2026 guidance was provided due to uncertain market conditions.

Revenue

Huntsman’s total revenue fell to $1.46 billion in 2025 Q3, a 5.2% decline from $1.54 billion in 2024 Q3. The Polyurethanes segment led with $956 million, driven by strategic market share gains in North America. Performance Products revenue dropped to $246 million, while Advanced Materials reported $265 million, reflecting mixed demand dynamics. Intersegment eliminations reduced total revenue by $7 million. The Polyurethanes division’s 6% year-over-year MDI volume growth in North America underscored its resilience amid broader challenges.

Earnings/Net Income

The company improved its financial position, narrowing its net loss to $11 million in 2025 Q3, a 35.3% reduction from $17 million in 2024 Q3. Earnings per share (EPS) improved to a loss of $0.14 from $0.19, representing a 26.3% improvement. While the EPS result reflects ongoing industry headwinds, the reduction in losses highlights effective cost management and operational adjustments.

Post-Earnings Price Action Review

Following the earnings release, Huntsman’s stock experienced mixed short-term performance. Shares rose 5.68% on the latest trading day but edged down 1.21% for the week, reflecting investor caution amid macroeconomic uncertainties. Month-to-date, the stock declined 9.11%, aligning with broader market volatility. Analysts noted that while the earnings beat expectations, persistent challenges in U.S. consumer demand, Chinese oversupply, and European deindustrialization weigh on near-term sentiment. The stock’s trajectory remains tied to trade normalization, rate cuts, and inventory management strategies outlined by management.

CEO Commentary

Peter Huntsman emphasized strategic cost reductions, including $100 million in savings through 600+ job cuts and seven site closures, primarily in Europe. The CEO highlighted $200 million in Q3 operating cash flow and over $100 million in year-to-date free cash flow, underscoring the company’s focus on cash preservation. He reiterated plans to optimize supply chains, explore industry consolidation, and maintain balance sheet strength. Huntsman’s cautious optimism hinges on trade easing and rate cuts, with a shift in priorities from EBITDA to cash generation in Q4.

Guidance

Huntsman provided no formal 2026 guidance but outlined key priorities: continuing $100 million in cost savings, with $40 million incremental in 2026; prioritizing cash generation in Performance Products; and managing inventory to align with demand. The company anticipates Q4 destocking pressures in Europe and emphasized no debt-driven dividend increases until market conditions improve.

Additional News

Recent developments include a 65% dividend reduction to $0.0875 per share quarterly, aimed at preserving $115 million in cash. Leadership changes saw Julia Wright withdraw as General Counsel, delaying her succession plan, while Steen Weien Hansen was named Division President of Polyurethanes. Additionally, the company announced the closure of its Moors, Germany, Maleic Anhydride facility, shifting European customers to U.S. operations to reduce costs. These moves reflect a broader strategy to streamline operations and enhance competitiveness in a challenging global market.