HUN · Huntsman Corporation

Performance Products volumes declined primarily due to the closure of the Moers, Germany maleic anhydride facility announced in May 2025 and lower demand, contributing to overall revenue stability at $1.4 billion despite these headwinds. This closure reflects Huntsman's strategic restructuring to enhance long-term efficiency, though it created near-term shipment disruptions and volume gaps that pressured results.

Segment adjusted EBITDA decreases stemmed mainly from lower margins, partially mitigated by higher sales volumes in certain areas, elevated equity earnings from the minority-owned joint venture in China, and cost savings from the ongoing cost optimization program. These offsets highlight resilience in select operations and joint venture contributions, which helped temper the impact of pricing weakness and competitive pressures on average selling prices.

Gross profit fell to $183 million with a 12.9% margin, underscoring the margin compression dynamic as supply/demand imbalances and competition eroded profitability despite modest revenue growth. Operating income turned negative at -$16 million, with a -1.1% margin, as these pressures overwhelmed operational improvements. The wider net loss to -$53 million and -$0.31 EPS further reflect how these factors compounded, including interest expense variability tied to capital structure and debt levels.

On cash flow, net cash used in operations improved to -$53 million from -$74 million prior year, driven by favorable working capital changes that eased cash burn. After $38 million in capital expenditures, free cash flow was -$91 million. Management uses this metric internally to assess liquidity, evaluate strategic investments, plan dividends and buybacks, and gauge debt servicing capacity—emphasizing its role in navigating periods of negative generation like this quarter.