10-Q - Huntsman CORP (0001307954) (Filer)

Fri, May 2, 4:27 PM (21 days ago)

**Huntsman Corporation (HUN) Q1 2025 Financial Summary** **Company Overview:** Huntsman Corporation (HUN) is a global manufacturer of diversified organic chemical products, operating in three segments: Polyurethanes, Performance Products, and Advanced Materials. The company's financial health and performance metrics for Q1 2025 are detailed below. **Financial Performance:** - **Revenue:** Total revenues for Q1 2025 were $1,410 million, a 4% decrease from $1,470 million in Q1 2024. This decline was primarily due to lower sales volumes in the Performance Products segment and lower average selling prices in the Polyurethanes and Advanced Materials segments. - **Profit Margins:** Gross profit remained stable at $201 million for both Q1 2025 and Q1 2024. Operating expenses, net, decreased by 6% to $159 million, primarily due to reductions in selling, general, and administrative expenses and favorable foreign currency translations. - **Net Income:** Net income for Q1 2025 was $11 million, compared to a net loss of $23 million in Q1 2024. This improvement was driven by lower restructuring costs, gains on asset acquisitions, and income associated with a litigation matter. - **Earnings Changes:** Operating income for Q1 2025 was $42 million, a significant improvement from a loss of $38 million in Q1 2024. This turnaround was attributed to cost reductions and favorable foreign currency impacts. - **Cash Flow:** Net cash used in operating activities from continuing operations was $71 million for Q1 2025, compared to $63 million in Q1 2024. Capital expenditures were $36 million, a decrease from $42 million in the previous year. **Segment Performance:** - **Polyurethanes:** Revenues decreased by 2% due to lower average selling prices, but segment adjusted EBITDA increased by 8% due to lower raw material costs and higher sales volumes. - **Performance Products:** Revenues decreased by 12% due to lower sales volumes, but segment adjusted EBITDA decreased by 29% due to lower sales volumes and unfavorable foreign currency impacts. - **Advanced Materials:** Revenues decreased by 5% due to lower average selling prices, and segment adjusted EBITDA decreased by 16% due to lower average selling prices. **Future Operations Impact:** - **Capital Expenditures:** Huntsman expects to spend between $180 million and $190 million on capital expenditures in 2025, focusing on environmental, health, and safety upgrades, as well as expansions and upgrades of existing facilities. - **Debt and Liquidity:** As of March 31, 2025, Huntsman had $1,294 million in combined cash and unused borrowing capacity, consisting of $334 million in cash, $924 million in availability under the 2022 Revolving Credit Facility, and $36 million in availability under the A/R Programs. - **Share Repurchase Program:** As of March 31, 2025, Huntsman had approximately $547 million remaining under the authorization of its existing share repurchase program. **Uncertainties and Risks:** - **Market Risks:** Huntsman is exposed to market risks such as changes in interest rates, foreign exchange rates, and commodity prices. The company uses derivative instruments to manage these risks. - **Legal Matters:** Huntsman is involved in various legal proceedings, but the company does not believe that the outcome of any of these matters will have a material effect on its financial condition, results of operations, or liquidity. - **Environmental and Regulatory Risks:** Huntsman may incur future costs for capital improvements and general compliance under environmental, health, and safety laws. The company's capital expenditures for these matters have varied significantly from year to year and depend on evolving regulatory requirements. **Conclusion:** Huntsman Corporation showed improved financial health in Q1 2025, with stable gross profit margins, reduced operating expenses, and a significant turnaround in net income. The company's focus on cost reductions and strategic investments positions it for future growth, despite market uncertainties and regulatory challenges. Huntsman's strong liquidity and share repurchase program further support its financial stability and shareholder value.