Huntsman Q3 2026 Earnings: Revenue Rises 18% as Adjusted EBITDA Improves

Huntsman Corporation (NYSE: HUN) reported Q3 2026 revenue of $1.717 billion, up 18% from $1.460 billion, while its diluted loss per share narrowed to $0.10 from $0.14. Adjusted EBITDA rose 40% to $132 million, but free cash flow fell to $82 million from $157 million despite lower capital spending.

Core Financial Results

Revenue growth reflected a 15% increase from local-currency pricing and mix and a 3% increase in sales volume, with no contribution from exchange rates. Gross profit increased 16%, although gross margin edged down to approximately 13.8% from 14.0%.

Total operating expenses remained unchanged at $198 million, allowing the $33 million increase in gross profit to flow through to operating income. Adjusted earnings also improved, with adjusted net income turning positive and adjusted EBITDA rising by $38 million.

Adjusted EPS, adjusted EBITDA and free cash flow are non-GAAP measures. Free cash flow is defined by Huntsman as operating cash flow from continuing operations less capital expenditures; margins above are approximate calculations based on reported figures.

Business and Segment Performance

Polyurethanes remained Huntsman’s largest segment and produced the biggest dollar increases in revenue and adjusted EBITDA. Advanced Materials recorded the strongest volume contribution, while Performance Products grew more modestly and experienced a slight volume decline.

Polyurethanes benefited from a 19% increase in local-currency pricing and mix and 2% volume growth. MDI prices rose across the Americas, Europe and Asia because of improved supply-demand conditions and higher raw-material costs, while volumes increased in the Americas and Europe. Cost savings and higher equity earnings from Huntsman’s minority-owned Chinese joint venture also supported EBITDA, partially offset by raw-material inflation.

Performance Products generated 7% growth from pricing and mix, offset by a 1% volume decline. Huntsman attributed higher prices to raw-material and logistics costs and a more favorable product mix, while improved margins lifted segment adjusted EBITDA.

Advanced Materials revenue growth included a 12% volume contribution and 6% from pricing and mix. Demand increased primarily in aerospace, automotive and power markets, and the higher volumes were the main driver of the segment’s EBITDA growth.

Reportable segment revenue totaled $1.726 billion before $9 million of intersegment eliminations.

Higher Earnings Did Not Translate Into Stronger Cash Flow

The improvement in adjusted EBITDA was not matched by cash generation. Operating cash flow from continuing operations declined to $115 million from $200 million, while lower capital expenditures of $33 million, compared with $43 million, only partially cushioned the resulting decline in free cash flow.

The quarterly change in primary working capital was $12 million, substantially below the $90 million reported a year earlier. On a nine-month basis, operating cash flow was only $2 million versus $221 million, and free cash flow was negative $99 million compared with positive $105 million in the prior-year period.

At September 30, Huntsman held $359 million in cash, down from $429 million at the end of 2025. Total debt excluding affiliates increased to $2.043 billion from $2.011 billion, taking net debt to $1.684 billion from $1.582 billion. The company nevertheless reported approximately $0.9 billion of combined cash and unused borrowing capacity.

Tax Expense Kept GAAP Earnings Negative

Huntsman generated $26 million of income from continuing operations before taxes, but recorded $28 million of tax expense. That produced a $2 million loss from continuing operations, followed by a $3 million loss from discontinued operations.

The resulting consolidated net loss was $5 million. After accounting for $13 million of net income attributable to noncontrolling interests, the net loss attributable to Huntsman shareholders was $18 million. The GAAP effective tax rate was 108%, while the adjusted effective tax rate increased to 56% from 40%, limiting the conversion of improved operating results into net income.

Outlook and Olin Merger Timeline

Management expects better operating results and cash generation to reduce net debt leverage to approximately four times by the end of 2026. Huntsman also continues to expect approximately $160 million of capital expenditures for the full year.

The planned merger of equals with Olin received Huntsman shareholder approval on August 25 and U.S. regulatory clearance in September. Approvals are still required from remaining jurisdictions, and Huntsman now expects the transaction to close in the first quarter of 2027.

After completion, the combined OlinHuntsman company is expected to trade on the NYSE under the ticker OHN.

Risks Investors Need to Watch

• Cash conversion: Quarterly adjusted EBITDA improved, but free cash flow declined, and nine-month free cash flow remained negative. Sustained cash generation is important to management’s year-end leverage objective.
• Debt and liquidity: Net debt increased by $102 million from the end of 2025 through September 30. Huntsman’s expected leverage reduction depends on the better results and cash flow described by management.
• Input and logistics costs: Polyurethanes faced higher raw-material costs, while Performance Products raised prices partly in response to raw-material and logistics expenses. These costs remain important to segment margins.
• Tax burden: The 108% GAAP effective tax rate and 56% adjusted rate limited the earnings benefit from higher operating income.
• Merger execution: The Olin transaction still requires approvals in remaining jurisdictions, making regulatory clearance and the Q1 2027 closing timeline key items to monitor.

Summary

Huntsman’s Q3 2026 results showed a broad operating recovery led by higher pricing, increased volumes and cost savings, with Polyurethanes and Advanced Materials delivering the largest gains. The main offset was weaker cash generation, while elevated tax expense kept GAAP earnings negative. Investors’ next areas of focus are cash conversion, progress toward lower year-end leverage and completion of the Olin merger approvals.