Huntsman's Leadership Transition: A Steady Hand for a Critical Division
37min read Huntsman Corporation’s recent announcement of leadership changes within its Polyurethanes division has investors scrutinizing the implications for one of the company’s most vital business units. Tony Hankins, who has led the division for decades, will retire by year-end, with Steen Weien Hansen stepping into the role of Division President effective June 1, 2025. This transition comes amid mixed financial performance for the division, raising questions about whether Hansen’s experience can stabilize growth and navigate industry headwinds.
Steen Weien Hansen: A Veteran Leader with Global Experience
Hansen’s 26-year tenure at Huntsman positions him as a seasoned insider with deep operational expertise. Having joined in 1999 through the acquisition of ICI’s polyurethanes division, he transitioned from corporate purchasing to leadership roles in Europe, Asia Pacific, and the Americas. His most recent role as Senior Vice President overseeing global automotive, elastomers, and Americas operations highlights his ability to manage complex, cross-regional challenges.
Crucially, Hansen’s tenure in the U.S. since 2022 has been marked by cost-cutting and operational improvements, as noted by CEO Peter R. Huntsman. This experience is critical for a division that reported a 2% revenue decline in Q1 2025 ($912 million vs. $926 million in 2024) but managed to boost adjusted EBITDA by 8% to $42 million due to cost efficiencies.
Polyurethanes Division: Resilience Amid Revenue Headwinds
The Polyurethanes division, which accounts for 65% of Huntsman’s total revenue, faces structural challenges. Weakness in U.S. construction—a major end market—and tariff-related uncertainty have constrained top-line growth. However, the division’s profitability has held up, thanks to:
- Lower raw material costs and reduced fixed expenses.
- Volume gains from improved demand and market share in insulation and composite wood panels.
Despite these positives, foreign exchange headwinds and an unfavorable sales mix—driven by lower-margin products—have limited revenue growth. The division’s Q1 2025 adjusted EBITDA margin expanded to 4.6%, up from 4.2% in 2024, underscoring Hansen’s potential to leverage cost discipline.
Strategic Priorities and Risks Ahead
Hansen’s leadership will focus on three key areas:
1. Cost Management: Huntsman has already announced workforce reductions and asset optimization in Europe and North America. These moves aim to offset margin pressures from tariffs and currency fluctuations.
2. Growth Initiatives: The U.S. MDI splitter project, which aims to boost production flexibility, is progressing. While its full impact may take time, it could reduce reliance on imports and support long-term demand.
3. Market Recovery: The division’s performance hinges on stabilization in construction markets and resolution of trade disputes.
However, risks remain:
- Global Economic Uncertainty: Weak demand in China and Europe, exacerbated by high energy costs and regulatory hurdles, could prolong stagnation.
- Tariff Volatility: While direct exposure is limited ($20–30 million in annual sales), indirect impacts on global industrial activity pose a threat.
Investment Implications: Positioning for Recovery
Investors should monitor Huntsman’s ability to execute on cost-saving measures and capitalize on niche markets. The stock, which has underperformed the S&P 500 over the past year, could rebound if the Polyurethanes division stabilizes its top-line growth and margins expand further.
Conclusion: A Leader for a Turning Point
Hansen’s appointment signals continuity and expertise at a pivotal moment for Huntsman. His deep operational knowledge and track record in cost management align with the division’s need to balance near-term challenges with long-term growth. While Q1 2025 results show resilience in profitability, the coming quarters will test his ability to navigate macroeconomic headwinds.
With the Polyurethanes division contributing nearly two-thirds of total revenue and adjusted EBITDA margins improving, Huntsman’s stock offers a compelling risk-reward profile for investors willing to bet on a recovery in specialty chemicals. If Hansen can stabilize volumes and drive margin expansion, the $6 billion company could regain momentum in a sector where execution at the division level is key to overall success.
Data sources: huntsman corporation Q1 2025 earnings release, CEO commentary, and internal leadership announcements.
