Huntsman (HUN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues rose 2% year-over-year to $1.54 billion, with total company volumes up 5%, but net loss attributable was $33 million due to higher interest expense and lower equity income.

• Adjusted EBITDA for Q3 2024 was $131 million, down 4% year-over-year, with declines across all segments.

• Free cash flow from continuing operations was $93 million in Q3 2024, with improved cash flow conversion year-over-year.

• Management expects trough conditions in core construction and industrial markets to persist through Q4, with potential medium-term improvement from global rate cuts and stimulus.

• A $50 million cost reduction program in the global polyurethane business will be initiated, mainly targeting Europe, with expected run-rate savings by end of 2025.

Financial highlights

• Q3 2024 adjusted EBITDA margin was 8–8.5%, compared to 9% in Q3 2023.

• Q3 2024 diluted loss per share was $(0.19); adjusted diluted EPS was $0.10.

• Dividend per share increased to $0.25 from $0.2375 year-over-year.

• Net cash provided by operating activities from continuing operations was $134 million in Q3 2024.

• As of September 30, 2024, liquidity was $1.7–$1.73 billion, including $330 million in cash and $1.4 billion in available credit facilities.

Outlook and guidance

• Q4 2024 adjusted EBITDA guidance is $60–$90 million, with Polyurethanes $45–$60 million, Performance Products $20–$30 million, and Advanced Materials $35–$40 million.

• Q4 MDI volumes expected to decline 10–20% globally due to seasonality and inventory management.

• 2025 outlook is optimistic, with expectations for margin expansion if demand, especially in North American housing and China, improves.

• 2024 capital expenditures expected to be $180–$190 million, funded by operating cash flows.

• Management anticipates further restructuring expenses of approximately $8 million through 2026, mainly in Advanced Materials.