Huntsman (HUN) Q3 2025 earnings summary

Executive summary

• Revenues for Q3 2025 declined 5% year-over-year to $1.46 billion, with a net loss of $25 million, an improvement from a $33 million loss in Q3 2024; adjusted EBITDA was $94 million, down from $131 million.

• Free cash flow from continuing operations improved to $157 million from $93 million year-over-year, with strong cash generation attributed to working capital and capex control.

• Dividend reduced by 65% to $0.0875 per share quarterly ($0.35 annualized), freeing up $115 million in cash and preserving balance sheet strength.

• Aggressive cost and cash management continues, with a $100 million cost reduction program on track, including 600 position eliminations and multiple site closures.

• Facing unprecedented macro challenges in the U.S., China, and Europe, including inflation, weak consumer demand, and deindustrialization pressures.

Financial highlights

• Q3 2025 revenue: $1.46 billion (down 5% year-over-year); adjusted EBITDA: $94 million (down 28%); net loss: $25 million.

• Free cash flow for nine months: $105 million; operating cash flow for Q3: $200 million.

• Net debt at quarter-end: $1.54 billion; liquidity of $1.4 billion.

• Dividend cash requirement for 2026 set at $60 million, down from $175 million.

• Adjusted EBITDA margin for Q3 2025 was 6%, down from 9% in Q3 2024.

Outlook and guidance

• 4Q25 adjusted EBITDA expected between $25 million and $50 million, with continued market challenges and seasonal volume declines anticipated.

• Cost savings program expected to deliver $100 million in run-rate benefits by end of 2026, with $75 million benefit in 2025.

• Capital expenditures for 2025 projected at $170–$180 million, funded by operating cash flow.

• Too early to forecast 2026; expect typical Q4 seasonality with higher-than-average destocking, especially in Europe.

• Incremental EBITDA upside in 2026 expected from new product introductions, business turnarounds, and contract wins.