Huntsman Q3 Adjusted EBITDA Rises to $132 Million

Huntsman Corporation reported stronger third-quarter 2026 revenue and adjusted earnings, supported by higher pricing, increased volumes and cost savings, but projected a sequential decline in fourth-quarter adjusted EBITDA as seasonal weakness and rising raw-material and energy costs weigh on results.

Revenue rose 18% to $1.72 billion from $1.46 billion a year earlier. Adjusted EBITDA increased 40% to $132 million from $94 million, lifting the non-GAAP adjusted EBITDA margin to 8% from 6%. The GAAP net loss attributable to Huntsman narrowed to $18 million, or $0.10 per diluted share, from $25 million, or $0.14 per share.

On an adjusted basis, Huntsman earned $7 million, or $0.04 per diluted share, compared with a loss of $5 million, or $0.03 per share, in the prior-year quarter. Year-over-year revenue growth included a $209 million contribution from price and mix, $44 million from volume and $4 million from foreign exchange.

Segment performance

Polyurethanes, Huntsman’s largest segment, generated revenue of $1.15 billion, up 21% from $956 million a year earlier. Adjusted EBITDA increased to $75 million from $48 million, while the margin rose to 7% from 5%. Volumes increased 2%, driven by growth in the Americas, and were 3% higher than in the second quarter. Cost-optimization programs also supported the year-over-year result.

Compared with the second quarter, Polyurethanes faced higher raw-material costs, partly offset by increased volumes, improved pricing and restructuring benefits. The segment also experienced an outage in Rotterdam stemming from a third-party operating issue, with an estimated adjusted EBITDA impact of $10 million to $15 million across September and October.

Performance Products revenue increased 6% to $260 million, while adjusted EBITDA rose to $31 million from $29 million. Its adjusted EBITDA margin remained at 12%. Volumes declined 1% year over year and were also lower than in the second quarter, but price increases offset higher feedstock costs. Huntsman also cited improved profitability in Performance Amines and lower fixed costs from restructuring initiatives.

Advanced Materials recorded the strongest volume growth among the company’s divisions. Revenue climbed 18% to $314 million, and adjusted EBITDA increased 41% to $62 million. The margin expanded to 20% from 17%, reflecting higher volumes and a more favorable sales mix. Volumes rose 12%, led primarily by aerospace, power and automotive markets.

Cash flow and cost reductions

Net cash provided by continuing operations was $115 million, down from $200 million a year earlier. Free cash flow declined to $82 million from $157 million, with Huntsman noting that the prior-year period benefited from inventory reductions normally realized in the fourth quarter. Capital expenditures totaled $33 million.

The company ended the quarter with $910 million of liquidity and $1.68 billion of net debt. Net debt leverage improved to 4.7 times from approximately 6 times at the beginning of 2026. Huntsman expects a fourth-quarter working-capital release and said full-year free cash flow should cover its dividend requirements. Full-year capital expenditures are expected to be approximately $160 million.

Huntsman’s cost-realignment plans had reached an annualized run rate of about $120 million by the third quarter. The company expects more than $50 million of in-year cost-optimization benefits in 2026, excluding inflation. The program includes an estimated reduction of about 500 positions and multiple site closures. Expected restructuring cash costs total approximately $90 million, while associated capital expenditures of about $20 million are included in annual spending guidance.

Fourth-quarter outlook

Huntsman projected fourth-quarter adjusted EBITDA of approximately $60 million to $80 million, including about $40 million of corporate and other costs. The outlook comprises $35 million to $50 million from Polyurethanes, $20 million to $25 million from Performance Products and $42 million to $47 million from Advanced Materials.

The forecast assumes a significant sequential increase in global benzene and European natural-gas prices. Huntsman expects price increases and continued cost savings to help mitigate those pressures. The company also anticipates improved volumes from a year earlier, particularly in industrial markets, and continued growth in aerospace and power. Construction markets are expected to remain weak, while interest rates are assumed to stay high. Typical seasonality is also expected to reduce fourth-quarter volumes in Performance Products and construction-related Polyurethanes markets.

Olin merger remains targeted for first-quarter 2027

Huntsman said its all-stock merger of equals with Olin Corporation is now expected to close in the first quarter of 2027. Shareholders have approved the transaction, regulatory clearances have been received in the United States, Brazil and other jurisdictions, and a credit agreement has been secured to provide financing at closing. Other reviews, including by the European Commission, remain in progress.

The companies expect the combination to generate $400 million of cost synergies and integration benefits. Integration and operational-readiness planning is underway, but completion remains subject to outstanding regulatory approvals and other closing conditions. Huntsman also identified potential risks from merger-related disruption, litigation, refinancing needs and transaction costs, alongside volatile raw-material and energy prices, geopolitical instability, weak economic conditions and uncertainty over the timing and realization of restructuring savings.