Key Takeaways:
Huntsman Corporation (NYSE: HUN) reported first-quarter revenue of $1.42 billion, narrowly beating analyst expectations and showing a 1% increase from the prior-year period on the back of stronger volumes in its key Polyurethanes division.
"From the first hours of this conflict, our number one commercial priority has been to increase prices enough to offset rising costs," Peter R. Huntsman, Chairman, President, and CEO, said during the company’s earnings call. "I believe we have been successful in doing this."
The specialty chemicals maker posted an adjusted loss of 20 cents per share, which was narrower than the consensus estimate of a 23-cent loss. The top-line revenue of $1.42 billion surpassed the Zacks Consensus Estimate of $1.37 billion. The results come after the stock has already seen a 39.55% year-to-date return, according to Simply Wall St.
For the second quarter of 2026, Huntsman projects sequential improvement, with adjusted EBITDA guidance of $60 million to $75 million for Polyurethanes, $30 million to $40 million for Performance Products, and $50 million to $55 million for its Advanced Materials segment.
The Polyurethanes segment, Huntsman's largest, saw revenues climb 1% year-over-year to $923 million, driven by higher sales volumes in the Americas and Europe that offset lower MDI (methylene diphenyl diisocyanate) selling prices.
Advanced Materials was a bright spot, with revenues increasing 12% to $279 million, benefiting from higher pricing and improved volumes in the aerospace, power, and automotive markets. CEO Peter Huntsman noted this performance was largely in line with expectations set before the recent Middle East conflict, stating the recovery in these end markets continues to gain traction.
Conversely, the Performance Products division reported an 11% revenue decline to $228 million. The company attributed the drop to lower sales volumes, partly from the closure of its Moers, Germany facility, and increased competitive pressure on pricing.
Huntsman ended the quarter with approximately $0.9 billion in combined cash and unused borrowing capacity. The company used $91 million in free cash flow from continuing operations during the quarter. The results follow a recent credit downgrade from Moody's to Ba2 from Ba1, which CFO Phil Lister said was "not a surprise, given the extended trough in the chemical industry." Lister affirmed the company has "more than ample liquidity," citing a newly extended $800 million revolver and a net debt position of around $1.5 billion.
Looking ahead, management is focused on raising prices to expand margins from what Peter Huntsman described as "trough economics we have been experiencing for the past three years." He noted strong order patterns heading into the second quarter, driven by seasonality, customer buying ahead of price hikes, and supply chain disruptions affecting competitors.
The guidance for Q2 suggests management expects pricing initiatives to take hold and demand to continue its recovery. Investors will be watching the second-quarter results to see if the company can sustain margin expansion amid rising raw material costs and uncertain global demand later in the year.
This article is for informational purposes only and does not constitute investment advice.
