Huntsman 2025 Q3 Earnings Narrowed Net Loss by 35.3%

Huntsman (HUN) reported Q3 2025 results that outperformed expectations, with a 35.3% reduction in net loss to -$11 million compared to 2024 Q3. The company also exceeded revenue estimates, and its guidance emphasized cash prioritization over EBITDA, reflecting strategic cost-cutting and operational adjustments.

Revenue

Huntsman’s total revenue for 2025 Q3 decreased by 5.2% year-over-year to $1.46 billion, driven by weaker performance across key segments. Polyurethanes, the largest division, generated $956 million in revenue, while Performance Products and Advanced Materials contributed $246 million and $265 million, respectively. Intersegment eliminations reduced total revenue by $7 million. The decline reflects ongoing global demand pressures, particularly in construction and consumer goods markets.

Earnings/Net Income

The company narrowed its net loss to $-11 million in 2025 Q3, a 35.3% improvement from the $-17 million loss in the prior-year period. Earnings per share also improved, with losses decreasing to $0.14 per share from $0.19 per share. This positive trend underscores Huntsman’s progress in cost reductions and operational efficiency.

Price Action

Huntsman’s stock price surged 5.68% on the latest trading day but fell 1.21% during the week and declined 9.11% month-to-date.

Post-Earnings Price Action Review

Post-earnings, Huntsman’s stock exhibited mixed short-term performance, reflecting investor uncertainty amid macroeconomic headwinds. While the 5.68% intraday gain suggested optimism over the company’s narrowed losses and cost-cutting progress, the 9.11% monthly decline highlighted persistent concerns about global demand and competitive pressures. Analysts noted that the stock’s volatility aligns with broader market jitters over inflation and industrial slowdowns, particularly in Europe and China.

CEO Commentary

Peter Huntsman emphasized strategic priorities, including $100 million in cost reductions through site closures and workforce adjustments, with 600+ roles impacted. The CEO highlighted $200 million in Q3 operating cash flow and $100 million in year-to-date free cash flow, underscoring a focus on liquidity. Guidance for Q4 reiterated cash prioritization over EBITDA, with dividend cuts freeing $115 million in cash to align with current market conditions.

Guidance

Huntsman expects continued cost discipline, with $40 million in incremental savings targeted for 2026. The company anticipates modest EBITDA recovery in 2026 but deferred detailed forecasts due to short-term visibility constraints. Free cash flow generation remains central, supported by working capital efficiency and $105 million in trailing 12-month performance.

Additional News

Recent developments include the completion of a $100 million cost reduction program, involving the closure of seven sites and over 600 job cuts, primarily in Europe. The company also announced a 65% dividend reduction to $0.0875 per share, preserving $115 million in cash. CEO Peter Huntsman highlighted progress in optimizing supply chains and managing cash flow amid prolonged downturn risks, while strategic partnerships and capacity consolidations are being explored to enhance competitiveness.