Huntsman (HUN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $1.57 billion, down 1% year-over-year, with net income attributable to Huntsman at $22 million and adjusted EBITDA at $131 million, reflecting lower selling prices but higher sales volumes.

• Diluted EPS was $0.13, adjusted diluted EPS $0.14; free cash flow from continuing operations improved to $5 million from a loss of $11 million in Q2 2023.

• Operating cash flow from continuing operations was $55 million, up from $40 million in Q2 2023.

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

• Cost initiatives and disciplined cash management supported margin recovery amid macroeconomic and geopolitical uncertainties.

Financial highlights

• Revenues decreased 1% year-over-year to $1.57 billion; adjusted EBITDA fell 16% to $131 million.

• Net income attributable to Huntsman increased to $22 million from $19 million in Q2 2023.

• Free cash flow conversion improved to 26% from 4% year-over-year.

• Net debt leverage at 4.0x, with net debt at $1.58 billion and liquidity at $1.3 billion.

• Dividend per share increased to $0.25, a 5% rise year-over-year.

Outlook and guidance

• Q3 2024 order patterns expected to be flat; adjusted EBITDA guidance for Q3 is $115–$145 million.

• Full-year 2024 capital expenditures projected at $180–$200 million, with additional pension contributions of $15 million.

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

• Management expects no substantial change in global economic activity through Q3 2024 and remains focused on cost control and cash flow.

• Advanced Materials expected to improve in 2025 as mix and raw material issues normalize and aerospace recovers.