Huntsman (HUN) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 revenues rose 14% year-over-year to $1.66–$1.7 billion, with adjusted EBITDA up 62% to $120 million and net loss narrowing to $6 million from $158 million in Q2 2025.

• All segments—Polyurethanes, Performance Products, and Advanced Materials—reported higher volumes and improved margins, with North America leading growth.

• Announced an all-stock merger of equals with Olin Corporation, expected to close in H1 2027, targeting $300–$400 million in synergies and enhanced shareholder value.

• Cost optimization, restructuring, and site closures delivered over $100 million in run-rate benefits, with headcount reduced by 500.

• Free cash flow was a use of $90 million in Q2, with net cash used in operating activities and continued focus on deleveraging.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $120 million, up from $74 million in Q2 2025; adjusted EBITDA margin improved to 7–7.2%.

• Net loss attributable to the company was $6 million; adjusted diluted income per share was nil.

• Net debt at quarter-end was $1.7–$1.74 billion; net leverage improved to 5.4x from 6.1x sequentially.

• Gross profit increased to $245 million, and operating income was $37 million, reversing a prior-year loss.

• Dividend per share was $0.0875, with no share repurchases during the quarter.

Outlook and guidance

• Q3 2026 adjusted EBITDA guidance: Polyurethanes $60–75 million, Performance Products $25–35 million, Advanced Materials $55–60 million.

• Full-year 2026 capital expenditures expected to be approximately $170 million, funded by operations.

• No share repurchases planned for 2026; $547 million remains authorized.

• The merger with Olin is anticipated to close in H1 2027, subject to regulatory and shareholder approvals.

• Management expects free cash flow to cover dividend requirements for the year.