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1. Company Snapshot

1.a. Company Description

Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide.The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects.The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products.


The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile.The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins.The Textile Effects segment provides textile chemicals and dyes.


The company's products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries.Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

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1.b. Last Insights on HUN

Breaking News: Huntsman Corporation has been given an average rating of Reduce by thirteen ratings firms. Four analysts have rated the stock with a sell rating, seven have issued a hold rating, and two have issued a buy rating. The company's latest earnings release was not provided, however recent analysis compared Huntsman to China Carbon Graphite Group. Analyst recommendations range from sell to buy, with a consensus indicating a Reduce rating. Several analysts have issued hold and buy ratings, while others have recommended selling the stock.

1.c. Company Highlights

2. Huntsman's Q3 2025 Earnings: A Resilient Performance Amidst Challenging Market Conditions

Huntsman reported revenues that were largely in line with expectations, although the exact figure was not disclosed. The company's EPS loss of $0.03 was significantly better than the estimated loss of $0.13. Despite the challenging market conditions, Huntsman demonstrated resilience, with its Advanced Materials segment showing promise due to growth in electronics, power, and aerospace. The company's gross margin was impacted by the challenging market conditions, but the exact figure was not disclosed.

Publication Date: Nov -13

📋 Highlights
  • Cost Reduction Program:: $100 million program with 600+ job cuts and 7 site closures to align cost structure with market conditions.
  • Dividend Cut:: 65% reduction in dividends frees up $115 million in cash annually, reducing the payout to $60 million.
  • MDI Market Resilience:: 6% MDI volume growth in 2025 despite tariffs, driven by market share recovery and pricing discipline.
  • Inventory Efficiency:: $30 million in EBITDA improvements from 2025 inventory reductions, targeting leaner operations by year-end.
  • Maleic/Amines Demand:: $5–10 million revenue boost from new Performance Products capacities, supported by 50–60% U.S. tariffs and low-cost production.

Segment Performance

The Performance Products division continued to face challenges, but the company is taking steps to address these issues, including prioritizing cash over EBITDA and managing inventories on a product-by-product and division-by-division basis. The Polyurethanes segment saw a 6% growth in MDI, driven by the company getting back market share lost due to aggressive pricing. As Peter Huntsman noted, "despite tariffs, we've largely gotten back market share lost due to aggressive pricing."

Valuation and Outlook

From a valuation perspective, Huntsman's P/E Ratio stands at -4.67, indicating that the company is currently unprofitable. The P/S Ratio is 0.25, suggesting that the company's revenue is not highly valued by the market. The EV/EBITDA ratio is 34.24, which is relatively high and may indicate that the company's EBITDA is not robust enough to support its enterprise value. Analysts estimate revenue growth of 3.2% next year, which may provide some support for the company's valuation.

Operational Highlights

Huntsman is taking steps to improve its operations, including a $100 million cost reduction program and the elimination or relocation of over 600 positions. The company is also prioritizing cash over EBITDA and managing its inventories carefully. The Advanced Materials segment is expected to be stronger next year due to growth in electronics, power, and aerospace.

Market Conditions

The company is facing challenging market conditions, including the U.S. economy facing decades-high inflation and rising interest and mortgage rates, lack of consumer confidence and spending in China, and deindustrialization of Europe due to burdensome bureaucracies, regulations, taxes, and uncompetitive energy and raw material costs. Despite these challenges, Huntsman remains optimistic about its prospects, with Peter Huntsman stating that the company is "comfortable with a $60 million dividend requirement" after a 65% reduction in dividend.

3. NewsRoom

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China Carbon Graphite Group (OTCMKTS:CHGI) & Huntsman (NYSE:HUN) Critical Analysis

Dec -04

Source: defenseworld.net

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Huntsman Corporation (NYSE:HUN) Given Consensus Recommendation of “Reduce” by Brokerages

Dec -04

Source: defenseworld.net

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Huntsman Updates Outlook for Q4 2025 Amid Unplanned Outages

Dec -02

Source: zacks.com

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Huntsman Updates Fourth Quarter 2025 Outlook

Dec -01

Source: prnewswire.com

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Geode Capital Management LLC Raises Stake in Huntsman Corporation $HUN

Nov -29

Source: defenseworld.net

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Huntsman Corporation $HUN Shares Bought by Boston Partners

Nov -29

Source: defenseworld.net

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HUN's Earnings and Sales Beat Estimates in Q3 Amid Pricing Pressure

Nov -11

Source: zacks.com

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Huntsman Corporation (HUN) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.85%)

6. Segments

Polyurethanes

Expected Growth: 6.0%

Huntsman Corporation's Polyurethanes segment growth of 6.0% is driven by increasing demand from the automotive and construction industries, growth in the Asia-Pacific region, and the company's strategic investments in innovation and operational efficiency. Additionally, the rising adoption of polyurethane-based materials in sustainable and energy-efficient applications also contributes to the segment's growth.

Performance Products

Expected Growth: 5.8%

Huntsman Corporation's Performance Products segment growth of 5.8% is driven by increasing demand for polyurethane and amine-based products in the construction and automotive industries, coupled with strategic pricing initiatives and operational efficiencies. Additionally, the segment benefits from growing adoption of sustainable and energy-efficient solutions, as well as expanding presence in high-growth markets such as Asia.

Advanced Materials

Expected Growth: 5.5%

Huntsman Corporation's Advanced Materials segment growth of 5.5% is driven by increasing demand for lightweight and sustainable materials in the aerospace, automotive, and industrial markets. Additionally, the segment benefits from its diversified product portfolio, including epoxy, polyurethane, and arylamine, which cater to various customer needs. Furthermore, strategic investments in R&D and operational efficiency improvements support the segment's growth momentum.

Intersegment Eliminations

Expected Growth: 0.0%

Huntsman Corporation's Intersegment Eliminations with 0.0% growth is driven by offsetting transactions between segments, eliminating revenue and expenses. This is due to the company's diversified business model, with multiple segments operating independently, resulting in no net impact on consolidated financials.

7. Detailed Products

MDI (Methylene Diphenyl Diisocyanate)

A key component in the production of polyurethane foams, coatings, adhesives, and elastomers.

TDI (Toluene Diisocyanate)

A versatile chemical used in the production of polyurethane foams, coatings, and elastomers.

Aniline

A key intermediate in the production of MDI and TDI.

Amine Catalysts

Specialty chemicals used to accelerate the reaction between isocyanates and polyols.

Epoxy Resins

Thermosetting resins used in a wide range of applications, including coatings, composites, and adhesives.

Advanced Materials

Specialty materials used in aerospace, industrial, and consumer applications.

8. Huntsman Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Huntsman Corporation operates in the chemical industry, where substitutes are available, but they are not easily accessible. The company's products are specialized, and substitutes would require significant investment and development.

Bargaining Power Of Customers

Huntsman Corporation's customers are diverse and scattered, reducing their bargaining power. The company's products are essential to its customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Huntsman Corporation relies on a few large suppliers for raw materials, giving them some bargaining power. However, the company's size and diversified product portfolio mitigate this risk.

Threat Of New Entrants

Entering the chemical industry requires significant investment in research, development, and manufacturing infrastructure. Barriers to entry are high, making it difficult for new entrants to compete with Huntsman Corporation.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players. Huntsman Corporation faces intense rivalry from companies like BASF, Dow, and LyondellBasell, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.88%
Debt Cost 8.89%
Equity Weight 61.12%
Equity Cost 9.69%
WACC 9.38%
Leverage 63.61%

11. Quality Control: Huntsman Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 7.1

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.0/10

Value: 5.8

Growth: 6.4

Quality: 6.0

Yield: 3.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Innospec

A-Score: 4.3/10

Value: 3.4

Growth: 4.1

Quality: 5.4

Yield: 3.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Huntsman

A-Score: 4.0/10

Value: 7.2

Growth: 1.4

Quality: 1.7

Yield: 9.0

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Tronox

A-Score: 3.9/10

Value: 8.0

Growth: 2.9

Quality: 3.2

Yield: 8.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Celanese

A-Score: 3.4/10

Value: 7.9

Growth: 3.1

Quality: 3.9

Yield: 2.0

Momentum: 0.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

10.04$

Current Price

10.04$

Potential

-0.00%

Expected Cash-Flows