Huntsman (HUN) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues declined 7% year-over-year to $1.46 billion, with a net loss of $158 million and adjusted EBITDA of $74 million, reflecting lower prices, volumes, and significant restructuring charges, especially in Europe.

• Adjusted diluted loss per share was $0.20, compared to adjusted diluted income per share of $0.14 in Q2 2024; free cash flow from continuing operations improved to $55 million from $5 million year-over-year.

• Cost reduction and restructuring initiatives expanded, including closure of European facilities, a global workforce reduction of nearly 10%, and a $77–88 million impairment for the Moers, Germany site.

• All divisions experienced year-over-year volume declines, with the most pronounced drop in Europe; North America and Asia were flat.

• Operating cash flow from continuing operations was $92 million, and dividend per share was maintained at $0.25.

Financial highlights

• Revenues for Q2 2025 were $1.46 billion (down 7% year-over-year); adjusted EBITDA was $74 million (down 44% year-over-year); net loss was $158 million.

• Gross profit for Q2 2025 was $182 million, down 25% year-over-year; gross margin was 12.5%, down from 15.4% in Q2 2024.

• Free cash flow from continuing operations improved to $55 million; operating cash flow was $92 million.

• Net debt at June 30, 2025 was approximately $1.6 billion; net debt leverage increased to 4.7x.

• Dividend per share maintained at $0.25; capital expenditures for Q2 were $37 million.

Outlook and guidance

• Q3 2025 adjusted EBITDA expected between $55 million and $85 million, with Polyurethanes at $35–$50 million, Performance Products at $20–$30 million, and Advanced Materials at $40–$45 million.

• Capital expenditures for 2025 expected at the low end of $180–$190 million, funded by operating cash flow.

• Cost reduction programs are expected to deliver $100 million in annualized run-rate savings by end of 2026, with full benefit in 2027.

• Management expects muted construction and industrial demand trends to persist into Q3 2025.

• Focus remains on cost control, cash generation, and balance sheet protection amid challenging market conditions.