Huntsman (HUN) Q4 2025 earnings summary

Executive summary

• 2025 was marked by global economic headwinds, including weak North American housing, sluggish Chinese consumer confidence, and record chemical production losses in Europe, but cost restructuring and facility closures helped offset these challenges.

• Fourth quarter 2025 revenues were $1,355M, down from $1,452M in 4Q24; full-year 2025 revenues were $5,683M, down from $6,036M in 2024.

• Net loss attributable to shareholders was $(96)M for Q4 2025 and $(284)M for the full year; adjusted net loss was $(63)M for Q4 and $(121)M for the year.

• Achieved tonnage growth above market rates and led multiple price increases, converting 45% of EBITDA to free cash flow, outperforming many industry peers.

• Early 2026 shows signs of recovery in North American homebuilding, durable goods, and Chinese domestic markets, with cautious optimism for improved volumes and pricing in Europe.

Financial highlights

• Achieved $100 million in annualized cost savings by end of 2025, including 500 headcount reductions (about 10% of workforce) and closure of seven facilities.

• Adjusted EBITDA for Q4 2025 was $35M, down from $71M in Q4 2024; full-year adjusted EBITDA was $275M, down from $414M in 2024.

• Free cash flow from continuing operations was $20M in Q4 2025 and $125M for the year, with a 45% conversion rate.

• Net cash provided by operating activities from continuing operations was $77M in Q4 2025 and $298M for 2025.

• Net debt at year-end was $1,582M, with net debt leverage at 5.8x.

Outlook and guidance

• 2026 expected to bring gradual recovery in North American construction and Chinese demand, with early green shoots in Europe.

• Q1 2026 polyurethanes EBITDA guidance is $25–$40 million, down from $42 million in Q1 2025, due to higher natural gas costs and ongoing pricing pressure.

• Full-year 2026 capital expenditures expected to be similar to 2025 at around $150 million for critical maintenance and compliance.

• Additional $45M cost savings expected in 2026 from ongoing programs.

• Targeting at least enough free cash flow to cover the dividend, with further structural changes planned.