Huntsman (HUN) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 2026 increased 14% year-over-year to $1.66 billion, driven by higher volumes and pricing across all segments, with net loss narrowing to $6 million from $158 million in Q2 2025.

• Adjusted EBITDA rose 62% to $120 million, reflecting margin improvements, cost optimization, and improved sales mix.

• 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.

• Collaboration between teams is strong, with the merger expected to provide vertical integration and a stronger financial profile.

Financial highlights

• Polyurethanes segment revenue increased 16% year-over-year to $1.08 billion, with adjusted EBITDA up 78% to $66 million.

• Advanced Materials revenue grew 19% to $313 million, adjusted EBITDA up 42% to $64 million, led by aerospace, power, and automotive.

• Performance Products revenue rose 5% to $283 million, adjusted EBITDA up 16% to $37 million.

• Gross profit increased 35% year-over-year to $245 million.

• Net leverage improved to 5.4x from 6.1x sequentially.

Outlook and guidance

• Q3 2026 adjusted EBITDA guidance: Polyurethanes $60–75 million, Performance Products $25–35 million, Advanced Materials $55–60 million, total $100–130 million.

• Capital expenditures for 2026 expected to be approximately $170 million.

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

• Management remains focused on price increases and cost-reduction initiatives to offset volatile energy and raw material costs.