Huntsman (HUN) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues were $1.41 billion, down 4% year-over-year, with a net loss of $5 million and adjusted EBITDA of $72 million, reflecting ongoing market headwinds, cost initiatives, and muted seasonal trends.

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

• Management is focused on cost controls, portfolio optimization, and capitalizing on volatility, with restructuring and workforce reductions underway.

• Free cash flow from continuing operations was a use of $107 million, similar to the prior year.

• Significant events included a $33 million litigation award, SLIC JV liquidation, and $75 million collected from settlements.

Financial highlights

• Adjusted EBITDA margin was 5.1% in Q1 2025, down from 5.5% in Q1 2024; gross profit remained flat at $201 million year-over-year.

• Net cash used in operating activities was $71 million; capital expenditures were $36 million for the quarter.

• Net debt at quarter-end was $1.62 billion, with net leverage at 4.0x; liquidity at quarter-end was $1.3 billion, including $334 million in cash.

• Dividend maintained at $0.25 per share; no share repurchases in Q1 2025.

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

Outlook and guidance

• 2Q25 adjusted EBITDA guidance: $60M–$90M, with Polyurethanes $35M–$50M, Performance Products $30M–$40M, Advanced Materials $35M–$40M.

• Capital expenditures for 2025 are projected at $180–$190 million, with a focus on the lower end.

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

• Cost savings target doubled to $100 million by end of 2026, with further details to be provided.

• No full-year guidance provided due to heightened uncertainty; outlook remains cautious with minimal near-term improvement expected.