Huntsman (HUN) Q4 2024 earnings summary

Executive summary

• Announced significant restructuring actions, including closures, relocations, and workforce reductions in Europe, Asia, and the Americas to optimize assets and reduce costs.

• Fourth quarter 2024 revenues reached $1.45B, up 3% year-over-year, with adjusted EBITDA of $71M and a net loss of $141M.

• Achieved 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.

• Focus remains on margin expansion, cost minimization, and capitalizing on emerging market opportunities in 2025.

Financial highlights

• Polyurethanes volumes up 6% in 2024, with Q1 2025 expected to see around 5% year-over-year growth, though still below pre-COVID levels.

• Performance Products EBITDA projected at ~$30M for Q1 2025, down from $42M last year, mainly due to European maleic facility profitability drop.

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

• 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.

Outlook and guidance

• No full-year guidance due to market volatility; divisional outlook provided for Q1 2025.

• 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.

• Expecting gradual recovery in Performance Products, driven by construction and new capacity in Conroe, Texas.

• Management expects subdued conditions in construction and automotive markets, which represent about two-thirds of the portfolio, to persist into 2025.