Huntsman (HUN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $1.57 billion, down 1% year-over-year, with adjusted EBITDA of $131 million and net income attributable to the company at $22 million; net income rose 23% to $38 million in some reports.

• Operating cash flow from continuing operations was $55 million, up from $40 million in Q2 2023, and free cash flow turned positive at $5 million.

• Sales volumes increased 9% year-over-year and 8% sequentially, with destocking trends from 2023 now behind.

• The company completed the acquisition of SLIC joint venture assets and finalized the sale of its Textile Effects business.

• Cost initiatives and cash discipline supported margin recovery and helped offset inflationary pressures.

Financial highlights

• Revenues decreased 1% year-over-year to $1.57 billion, with adjusted EBITDA down 16% to $131 million.

• Net income attributable to the company was $22 million, with diluted EPS of $0.13 and adjusted diluted EPS of $0.14.

• Free cash flow conversion improved to 26% from 4% year-over-year; $1.3 billion in liquidity at quarter-end.

• Dividend per share increased to $0.25, with a yield of 4.5%; net debt at $1.58 billion and leverage at 4x EBITDA.

• Gross profit for Q2 2024 was $243 million, down 4% from Q2 2023; operating income was $34–$50 million.

Outlook and guidance

• Q3 2024 adjusted EBITDA expected between $115 million and $145 million; Polyurethanes $75–$90 million, Performance Products $35–$45 million, Advanced Materials $48–$53 million.

• Full-year 2024 capital expenditures projected at $180–$200 million.

• Adjusted effective tax rate for 2024 expected at 30%–34%; long-term rate 22%–24%.

• Management expects stable global economic activity through Q3 2024, with a focus on cost control and cash flow.

• Margin improvement in polyurethanes depends on construction demand recovery, interest rate cuts, and regional economic growth.