Huntsman (HUN) Q1 2026 earnings summary

Executive summary

• Revenues for Q1 2026 increased 1% year-over-year to $1.42 billion, driven by higher sales in Polyurethanes and Advanced Materials, while Performance Products declined.

• Net loss attributable to shareholders was $53 million, compared to a $5 million loss in Q1 2025, reflecting lower gross profit and absence of prior-year litigation income.

• Adjusted EBITDA remained stable at $73 million, with segment performance mixed across business lines.

• Free cash flow usage improved to $91 million from $107 million in the prior year.

• Aggressive price increases and cost realignment programs were implemented to offset rising raw material costs and expand margins.

Financial highlights

• Gross profit declined 9% year-over-year to $183 million due to margin compression in Polyurethanes and Performance Products.

• Operating loss was $16 million, compared to operating income of $42 million in Q1 2025.

• Operating cash flow from continuing operations was negative $53 million, an improvement from negative $71 million in Q1 2025.

• Net debt (excluding affiliates) increased to $1,687 million from $1,582 million at year-end 2025.

• Adjusted EBITDA margin remained at 5%.

Outlook and guidance

• Q2 2026 is expected to see margin expansion in Polyurethanes, with pricing exceeding raw material cost increases.

• 2Q26 adjusted EBITDA guidance: $100–$130 million total, with Polyurethanes $60–$75 million, Performance Products $30–$40 million, Advanced Materials $50–$55 million.

• Capital expenditures for 2026 are expected to be in line with 2025 levels.

• No share repurchases are anticipated for the remainder of 2026, with $547 million remaining under the current authorization.

• Additional pension and postretirement contributions of $33 million are planned for the rest of 2026.