Huntsman (HUN) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 revenues reached $1.5 billion, with adjusted EBITDA of $71 million and a net loss of $141 million; operating cash flow from continuing operations was $159 million.

• Full-year 2024 revenues totaled $6.04 billion, with adjusted EBITDA of $414 million and a net loss of $189 million.

• Significant restructuring and cost reduction initiatives are underway, including closures and relocations in Europe, Asia, and the Americas, particularly in Polyurethanes, to optimize assets and reduce costs.

• 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 $101 million for the year, and operating cash flow was $285 million.

Financial highlights

• Adjusted EBITDA for Q4 2024 was $71 million, up from $44 million in Q4 2023; adjusted EBITDA margin was 5%.

• 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 $1.5 billion, with net debt leverage at 3.6x and $1.7 billion in liquidity.

• Dividend per share increased to $1.00 in 2024 from $0.95 in 2023, with a yield of approximately 6%.

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

Outlook and guidance

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

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

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

• Adjusted effective tax rate for 2025 anticipated at approximately 35%, down from 55% in 2024.

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