Huntsman (HUN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $1.41 billion, down 4% year-over-year, with net loss attributable to Huntsman of $5 million, a significant improvement from the prior year; adjusted EBITDA declined 11% to $72 million, reflecting ongoing market headwinds and cost initiatives.

• Operating income improved to $42 million from a loss of $38 million in the prior year, driven by lower restructuring costs and a $33 million litigation award.

• Management is aggressively managing costs, including workforce reductions, asset optimization, and portfolio rationalization, amid continued demand uncertainty in key markets.

• The company completed the final liquidation of the SLIC joint venture, receiving a $41 million cash distribution.

• Significant market volatility driven by global trade tensions, tariffs, and supply chain disruptions, especially post-Liberation Day and new tariff regimes between the U.S. and China.

Financial highlights

• Revenues declined 4% year-over-year to $1.41 billion; adjusted EBITDA decreased from $81 million in Q1 2024 to $72 million in Q1 2025.

• Gross profit remained flat at $201 million year-over-year despite lower revenues.

• Free cash flow from continuing operations was a use of $107 million, similar to the prior year; capital expenditures were $36 million, down from $42 million.

• Net debt at quarter-end was $1.62 billion, with net debt leverage at 4.0x; liquidity at quarter-end was $1.3 billion.

• Paid ~$315 million to discharge €300 million senior notes due April 2025.

Outlook and guidance

• 2Q25 adjusted EBITDA guidance: $60 million–$90 million, with Polyurethanes $35 million–$50 million, Performance Products $30 million–$40 million, Advanced Materials $35 million–$40 million, and Corporate (~$40 million); full-year 2025 capital expenditures expected at $180–$190 million.

• No full-year guidance provided due to heightened uncertainty; Q2 outlook hinges on volume and pricing recovery as market certainty returns.

• Management expects continued low visibility and customer uncertainty to pressure order patterns, especially in construction, transportation, and industrial markets.

• Strategic review of the European maleic anhydride business is on track for completion by summer 2025.

• $547 million remains authorized for share repurchases; no shares were repurchased in Q1 2025.