Huntsman (HUN) Q4 2024 earnings summary

Executive summary

• Executed significant restructuring, including closures and relocations in Europe, Asia, and the Americas to optimize asset footprint and reduce costs, with workforce reductions and strategic reviews in Polyurethanes and European maleic anhydride business.

• Fourth quarter 2024 revenues reached $1.45B, up 3% year-over-year, with adjusted EBITDA of $71M and a net loss attributable to Huntsman of $141M; full-year 2024 revenues totaled $6.04B, with adjusted EBITDA of $414M and a net loss of $189M.

• Delivered over $150 million in cost savings since 2022, offsetting inflationary pressures and reducing SG&A by more than 6%.

• Free cash flow from continuing operations improved to $101M for the year, and operating cash flow was $285M.

• Cautious optimism for 2025, emphasizing margin expansion, cost discipline, and asset optimization amid ongoing market volatility.

Financial highlights

• 4Q24 adjusted diluted loss per share was $0.25, compared to $0.21 in 4Q23; GAAP diluted loss per share was $0.82.

• Adjusted EBITDA margin for 4Q24 was 5%, with a full-year margin of 7%.

• Net debt at year-end was $1.5B, with net debt leverage at 3.6x and $1.7B in liquidity.

• Dividend per share increased to $1.00 in 2024 from $0.95 in 2023.

• Free cash flow conversion improved to 24% in 2024 from 4% in 2023.

Outlook and guidance

• No full-year guidance due to market and geopolitical uncertainty; divisional outlook provided for Q1.

• 1Q25 adjusted EBITDA guidance is $70M–$100M, with Polyurethanes at $45M–$60M, Performance Products at $25M–$35M, and Advanced Materials at $40M–$45M.

• 2025 adjusted effective tax rate expected to decrease to ~35% from 55% in 2024.

• Full-year 2025 capital expenditures projected at $180M–$190M, similar to 2024.

• Management expects subdued conditions in construction and automotive markets, with modest growth in Chinese automotive and ongoing strategic reviews in Europe.