Breaking Down Huntsman Corporation (HUN) Financial Health: Key Insights for Investors

You're looking at Huntsman Corporation (HUN) right now and asking the right question: is the specialty chemicals giant navigating the global industrial slowdown, or is the cycle still too heavy? Honestly, the numbers from the third quarter of 2025 give us a mixed but very clear picture: the top-line pressure is real, but management is executing on cash flow, which is a big deal in this environment.

While the company reported Q3 2025 revenues of $1,460 million, a dip from the prior year, the real story is the bottom line and the cash discipline. Huntsman posted a net loss of $25 million for the quarter, but they generated strong free cash flow of $157 million, up significantly from $93 million in the same period last year. Here's the quick math: they're tightening the belt, which is why they reset the regular quarterly dividend by 65% to $0.0875 per share to preserve financial flexibility, a necessary but painful move.

The near-term risk is clear-pricing remains under pressure due to a soft durables market and overseas competition-but the opportunity lies in their restructuring programs, which are on track to exceed $100 million in savings by 2026. The analyst consensus is a cautious 'Reduce' or 'Hold' with an average price target around $10.00, so you defintely need to look past the headline losses and focus on the operational efficiency gains to make an informed decision.

Revenue Analysis

Huntsman Corporation (HUN) is navigating a cyclical trough, which is defintely reflected in its 2025 revenue figures. The direct takeaway is that while the company's trailing twelve months (TTM) revenue through Q3 2025 stood at $5.78 billion, this represents a year-over-year decline of approximately 3.46% as the dual headwind of lower pricing and softer market demand persists.

The primary revenue stream for Huntsman Corporation remains its differentiated and specialty chemicals, with the Polyurethanes division being the backbone. To be fair, the company's focus on downstream, specialty products-like those for energy-saving insulation and light-weighting automotive materials-is what keeps the revenue base sticky, but the broader chemical market slump is a powerful force.

Here's the quick math on the near-term trend: Quarterly revenue for 2025 has been relatively flat, but still showing year-over-year weakness. For instance, Q3 2025 revenue was $1,460 million, marking a 5.19% decrease from the same period in 2024. In Q2 2025, revenue was $1,458 million, down about 7% from the prior year. The good news is that management is controlling what they can, and sales volumes actually improved in Q3 2025 compared to the prior year, partially offsetting the lower average selling prices.

The company's revenue streams are globally diversified, which helps mitigate regional economic shocks. This geographic spread is a key strength, especially in a volatile global economy.

• U.S. and Canada: 39% of TTM sales revenue.
• Asia Pacific: 28% of TTM sales revenue.
• Europe: 26% of TTM sales revenue.
• Rest of World: 7% of TTM sales revenue.

The contribution of different business segments to the overall profitability-a strong proxy for revenue contribution-shows a balanced portfolio, though Polyurethanes is the largest driver. This balance is critical; it means no single end-market failure will crush the whole business. You can read more about their long-term strategy in their Mission Statement, Vision, & Core Values of Huntsman Corporation (HUN).

The most significant change in revenue dynamics for 2025 is the pressure on average selling prices across all divisions, especially in Polyurethanes. This is a direct result of a less favorable supply and demand environment, forcing prices down. The company is actively restructuring, including the closure of certain European facilities, to right-size its cost base against this lower price environment, so expect to see a cleaner, more efficient revenue stream moving forward.

Finance: draft a quarterly volume-vs-price variance analysis by Friday.

Profitability Metrics

You need to know if Huntsman Corporation (HUN) is actually making money, or if they're just moving product. The short answer for 2025 is that profitability has been under severe pressure, especially at the operating and net income levels, largely due to a cyclical downturn and significant restructuring costs.

Here's the quick math on the core profitability ratios for the first half of the 2025 fiscal year, which tells a clear story of margin compression:

• Gross Profit Margin: Dropped from 14.26% in Q1 2025 to 12.48% in Q2 2025.
• Operating Profit Margin: Plunged from a positive 2.98% in Q1 2025 to a loss of -8.23% in Q2 2025.
• Net Profit Margin: Worsened from a slight loss of -0.35% in Q1 2025 to a substantial loss of -9.95% in Q2 2025.

The third quarter of 2025 showed some improvement, with a net loss attributable to Huntsman Corporation of $\mathbf{\$25\text{ million}}$ on revenues of $\mathbf{\$1,460\text{ million}}$, translating to a net margin of about -1.71%. Still, that's a loss.

Trends in Operational Efficiency and Cost Management

The trend in profitability over 2025 is defintely negative, but you have to look past the headline net loss to see why. The Gross Profit margin-which is revenue minus the cost of goods sold (COGS)-is the first sign of trouble. The drop from 14.26% to 12.48% indicates that the core business of making and selling specialty chemicals is facing lower average selling prices and/or higher input costs, or a poor product mix. This is a red flag for core operational health.

What really hammered the second quarter was the one-time impact of restructuring. Huntsman Corporation registered an Operating Loss of $\mathbf{\$(120)\text{ million}}$ in Q2 2025, largely driven by $\mathbf{\$124\text{ million}}$ in restructuring and impairment costs. That's a huge, necessary expense for a company trying to right-size its operations in a downturn, but it temporarily obliterates the operating profit (earnings before interest and taxes, or EBIT).

Here is a snapshot of the operational shift in 2025 (all figures in millions USD):

Industry Comparison: A Margin Gap

The specialty chemicals sector is supposed to deliver higher margins than basic commodity chemicals. This is the whole point of being a specialty player. For context, a successful peer in the specialty chemicals space, Clariant, provided a full-year 2025 profit margin (Adjusted EBITDA margin) guidance in the 17-18% range. Huntsman Corporation's (HUN) Adjusted EBITDA margin was only 5% in Q2 2025 and 6.4% in Q3 2025 (calculated as $\mathbf{\$94\text{ million}}$ / $\mathbf{\$1,460\text{ million}}$).

This comparison shows a significant margin gap. Huntsman Corporation's (HUN) gross margins in the 12% to 14% range are far below what a premium specialty chemicals company should be generating in a stable environment. The industry as a whole has seen net profit margins drop sharply and remain low in the first half of 2025, so Huntsman Corporation is not alone in the cyclical pain, but the depth of their operating loss suggests their cost structure is still too heavy for the current demand environment. They are spending money now to fix it, which is the right action. You can read more about their strategic focus here: Mission Statement, Vision, & Core Values of Huntsman Corporation (HUN).

Debt vs. Equity Structure

You're looking at Huntsman Corporation (HUN)'s balance sheet, and the first thing you need to know is that their capital structure is currently leaning on debt more than their stated targets, a clear reflection of the cyclical downturn. As of September 2025, the company holds approximately $2.0 Billion in total debt against roughly $3.0 Billion in total shareholder equity. That's a leverage position that demands a closer look.

Here's the quick math on their financial leverage (gearing): Huntsman Corporation's debt-to-equity (D/E) ratio sits at about 0.67 (or 66.9%) as of late Q3 2025. For a capital-intensive business like specialty chemicals, that ratio isn't inherently alarming-the industry average for Specialty Chemicals is around 0.65. But, honestly, a D/E ratio near the industry average is only part of the story; what really matters is their ability to service that debt.

• Total Debt (Sep 2025): ~$2.0 Billion
• Total Equity (Sep 2025): ~$3.0 Billion
• Debt-to-Equity Ratio: 0.67

The bigger concern is the debt coverage, or how much cash flow they generate relative to their debt load. Huntsman Corporation's management targets a through-the-cycle net debt-to-EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of 2.0x. However, due to weak earnings in 2025, that leverage ratio has surged, hitting 4.7 times by the end of Q2 2025, and an even higher 5.7x on an adjusted basis in Q1 2025. That's a huge spike, and it's why credit rating agencies are nervous.

Speaking of ratings, the market's view of their debt risk has shifted dramatically in 2025. Both S&P Global Ratings and Moody's downgraded the company's credit rating, pushing them out of investment-grade territory. S&P lowered the rating to 'BB+' in April 2025, and Moody's followed, downgrading to 'Ba1' in July 2025. This means borrowing costs get higher, and financial flexibility gets tighter. The stable outlook S&P had was even revised to Negative in September 2025, reflecting continued pressure on earnings through the year.

The company has been actively managing its debt maturity profile. In Q1 2025, Huntsman Corporation issued $427 million of new debt, but they also satisfied obligations for approximately $315 million of 4.25% senior notes that matured in April 2025. This shows a mixed approach: they are clearly using debt financing to manage liquidity and capital spending during this low point in the chemical cycle, but they are also honoring their near-term obligations. They are balancing the need for growth capital with the immediate need for debt repayment, but the current environment forces a reliance on debt over equity funding due to the depressed stock price. To understand who is taking on this risk, you should check out Exploring Huntsman Corporation (HUN) Investor Profile: Who's Buying and Why?

Here is a snapshot of the key debt metrics and recent actions:

Liquidity and Solvency

You need to know if Huntsman Corporation (HUN) can meet its near-term obligations, and the quick answer is yes, but you must look past the headline numbers. The company's liquidity position is stable, backed by a significant cash cushion, but the underlying ratios show a reliance on inventory to cover short-term debt, which is typical for a chemical manufacturer.

As of the most recent reporting, Huntsman Corporation's (HUN) Current Ratio sits at 1.36. This means for every dollar of short-term liability, they have $1.36 in current assets (cash, receivables, inventory) to cover it. That's a healthy buffer. However, the Quick Ratio (Acid-Test Ratio), which strips out inventory-the least liquid current asset-is only 0.77. This lower number tells us that without selling off inventory, the company has less than a dollar of immediately liquid assets for every dollar of current debt. It's a classic chemical industry profile, still, it's a key detail for investors.

Working Capital and Cash Flow Strength

Huntsman Corporation's (HUN) management has been laser-focused on cash generation, a necessary move in a challenging market. They've aggressively managed working capital (current assets minus current liabilities), which was a major contributor to their cash performance in 2025. This aggressive approach, particularly through inventory reductions, led to a positive change in working capital of $108 million in the third quarter of 2025. That's a strong sign of discipline, but it's a one-time lever that can't be pulled forever.

The cash flow statement for the nine months ended September 30, 2025, clearly maps their strategy. Here's the quick math on the major cash flow components (in millions):

Net cash provided by operating activities (CFO) was robust at $200 million in Q3 2025 alone, a significant jump from the prior year. This strong operational cash flow, coupled with capital expenditures (CapEx) expected to be moderate-between $170 million to $180 million for the full year 2025-resulted in a Q3 2025 Free Cash Flow (FCF) of $157 million. That's a defintely impressive cash conversion rate in a tough environment.

Near-Term Liquidity Actions and Outlook

The most telling action regarding liquidity preservation was the decision to significantly reduce the regular quarterly dividend by 65% to $0.0875 per share. This isn't a sign of immediate crisis, but a proactive move to preserve financial flexibility and free up approximately $115 million in annual cash. That's a realist's move in an uncertain market.

The company's overall liquidity remains a core strength. As of September 30, 2025, Huntsman Corporation (HUN) had approximately $1.4 billion in combined cash and unused borrowing capacity. This substantial liquidity pool provides a strong defense against prolonged market weakness and ensures they can meet their expected 2025 capital expenditure range. Still, the dividend cut shows management is prioritizing the balance sheet over immediate shareholder payouts, which is the right call for long-term stability. You can dive deeper into the shareholder base dynamics here: Exploring Huntsman Corporation (HUN) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Huntsman Corporation (HUN) and asking the core question: Is it a bargain or a value trap? Based on the latest fiscal year data through November 2025, the picture is complex, suggesting the market sees significant near-term risk but is pricing the company's underlying assets cheaply.

The short answer is that Huntsman Corporation appears undervalued on an asset basis but is highly expensive or unquantifiable based on current earnings and cash flow. That's a classic cyclical materials stock problem.

Is Huntsman Corporation (HUN) Overvalued or Undervalued?

When we look at traditional valuation multiples, Huntsman Corporation presents a mixed signal. The Price-to-Book (P/B) ratio, which compares the stock price to the company's net tangible assets (equity), is exceptionally low. As of November 2025, the P/B ratio sits around 0.53. Here's the quick math: this means the market is valuing the company's equity at only 53 cents for every dollar of book value on its balance sheet. This kind of deep discount often signals undervaluation, but it also reflects the market's skepticism about the company's ability to generate a decent return on those assets (Return on Equity is currently negative at -8.01%).

However, the earnings and cash flow picture is much tougher. The trailing twelve months (TTM) Earnings Per Share (EPS) through September 2025 was a loss of $-1.910, so the Price-to-Earnings (P/E) ratio is negative, or 'At Loss.' This makes the P/E useless for valuation right now. Plus, the Enterprise Value-to-EBITDA (EV/EBITDA) ratio-a better metric for capital-intensive companies like this-is elevated. While the industry median is lower, Huntsman Corporation's TTM EV/EBITDA is around 11.01x, which is high for a cyclical business in a downturn. To be fair, some TTM calculations show it as high as 21.54x, reflecting very weak TTM EBITDA of only $168 million as of September 2025. Simply put, the company is expensive relative to its recent operating cash flow.

• P/B Ratio: 0.53 (Undervalued on assets)
• P/E Ratio: N/A or <1 (At Loss)
• EV/EBITDA: 11.01x (High for a cyclical stock)

Stock Price and Dividend Reset

The market has defintely punished Huntsman Corporation over the last year. The stock price, which was trading around $8.52 as of November 21, 2025, has plummeted by nearly 56% over the past 12 months. The 52-week trading range shows the severity of the decline, moving from a high of $20.94 down to a low of $7.30. This steep drop reflects the challenging global economic conditions and pricing pressure in the chemicals industry.

The dividend story is a crucial part of the risk map. In November 2025, the company announced a major reset of its regular dividend, cutting it by 65% to an annual rate of $0.35 per share (or $0.0875 quarterly). This move, while painful for income investors, is a realist's action to preserve financial flexibility during a prolonged cyclical downturn, a smart move for long-term balance sheet health. The resulting dividend yield is now closer to 4.1%, down from the double-digit yields based on the old, unsustainable payout. Since the company is reporting a loss, the dividend payout ratio is technically 'N/A.'

Analyst Sentiment and Price Targets

The analyst community reflects this cautious and mixed financial outlook. The consensus rating on Huntsman Corporation is generally a 'Hold' or 'Reduce' across major firms. This means most analysts don't see a catalyst for a massive upswing, but they also don't see the stock collapsing from its current depressed levels. The average consensus price target is approximately $10.00, suggesting a modest upside of about 17% from the current price. Two analysts maintain a 'Buy' rating, seven a 'Hold,' and four a 'Sell,' confirming the lack of a strong, unified bullish case right now.

If you are looking for a deeper dive into the company's operational strengths and weaknesses, you should review the full analysis at Breaking Down Huntsman Corporation (HUN) Financial Health: Key Insights for Investors.

Next Action: Portfolio Managers should model a scenario where Huntsman Corporation's EV/EBITDA compresses to the historical median of 9.25x by the end of 2026, using the consensus 2026 EBITDA forecast to establish a target entry price.

Risk Factors

You're looking at Huntsman Corporation (HUN) right now and seeing a company navigating a tough, cyclical market. The core takeaway is that external risks-especially in Europe and China-are driving a sharp focus on cash preservation and aggressive internal cost-cutting. The company is taking decisive action, but the near-term risk remains a prolonged global demand slump.

Honestly, the biggest risks for Huntsman Corporation in 2025 are macroeconomic and geopolitical, hitting their core markets hard. CEO Peter Huntsman called the current challenges in Europe, China, and the U.S. unprecedented in their duration and magnitude. This isn't just a minor blip; it's a fundamental shift in global demand and operating costs.

Here's the quick math on the external pressure: the combination of high energy costs in Europe, oversupply in China, and U.S. economic pressures from inflation and high interest rates has led to significant pricing pressure. For example, the Polyurethanes segment, which accounts for a large chunk of revenue, saw its adjusted EBITDA decline to $31 million in Q2 2025, reflecting this competitive environment.

The primary external risks you should watch are:

• European Deindustrialization: High energy costs and weak demand, especially in the construction and industrial sectors, make European assets less viable. Profitability in this region remains below breakeven on an adjusted EBITDA basis.
• Chinese Oversupply: Lack of consumer confidence and overcapacity in China are creating a volatile product market, driving down prices globally.
• Volatile Product Markets: Cyclicality in key end-markets like automotive and construction, which account for about 75% of Polyurethanes sales, means volume and pricing are unpredictable.

Operational and Financial Risks in the Near-Term

The financial results for Q3 2025 clearly show the strain. Huntsman Corporation reported a net loss attributable to the company of $25 million for the quarter, an improvement from the prior year but still a loss. Adjusted EBITDA for Q3 2025 was $94 million, a significant drop from $131 million in Q3 2024. That's a 28% year-over-year decline in a key profitability metric. Plus, the company's net debt leverage increased to 4.7 times at the end of Q2 2025, driven by a reduction in the last twelve months' EBITDA.

The operational risk is tied directly to their restructuring plan. They are closing seven sites, including the Moers maleic anhydride facility, and eliminating or relocating over 600 positions. While this saves money, any delay in these complex reorganization efforts could negatively affect the ability to realize anticipated cost savings and disrupt production.

Mitigation Strategies and Actionable Insights

The good news is that management is not standing still; their response is aggressive and focused on cash. They are prioritizing balance sheet protection over short-term earnings growth, which is the right move in a downturn.

The core mitigation strategy is a global restructuring program expected to deliver approximately $100 million of annualized run rate savings by the end of 2026.

To preserve financial flexibility, the Board executed a 65% reduction in the quarterly dividend, resetting it to $0.0875 per share, which frees up about $115 million in cash requirements for the next year. This action, while painful for income investors, is a clear signal that cash is king right now.

Here's a snapshot of their defensive financial posture based on Q3 2025 data:

The company has a clear focus on the balance sheet, as evidenced by the $1.4 billion in combined cash and unused borrowing capacity as of September 30, 2025. Still, investors need to defintely monitor the execution of the $100 million cost-cutting plan, as that is the primary lever for margin improvement in the coming year. You can learn more about their long-term direction here: Mission Statement, Vision, & Core Values of Huntsman Corporation (HUN).

Growth Opportunities

You're looking for a clear map of where Huntsman Corporation (HUN) goes from here, especially given the market headwinds in 2025. Honestly, the near-term story is less about explosive growth and more about a surgical, margin-focused turnaround. The company's strategic moves are defintely setting the stage for a stronger 2026, but 2025 is the year of aggressive cost-cutting and portfolio cleanup.

The core growth drivers aren't broad-market recovery yet, but highly specific, differentiated plays. Huntsman is leaning hard into its specialty segments where it holds a competitive advantage (a differentiated product portfolio and market leadership in key lines like MDI, amines, and epoxy-based polymer formulations). This focus is what will stabilize earnings as the broader construction and automotive markets remain soft.

Near-Term Revenue and Earnings Reality

The financial projections for the full 2025 fiscal year reflect a challenging environment, but they also show the impact of decisive management action. The consensus for full-year revenue is around $5.78 billion (based on trailing twelve months data as of Q3 2025). While the company is forecasting a modest annual revenue growth rate of about 2.43%, that is below the broader US Chemicals industry average.

The earnings picture is mixed, which is typical during a deep restructuring phase. The Wall Street consensus for full-year 2025 Earnings Per Share (EPS) is $0.32 per share, but some analysts are forecasting a loss, with the average forecast earnings for 2025 at a net loss of approximately -$119.7 million. Here's the quick math on the expected range:

What this estimate hides is the underlying operational improvement. Capital expenditures for 2025 are expected to be between $180 million and $190 million, a necessary investment for future efficiency.

Strategic Actions Driving Future Margin

Huntsman Corporation is not waiting for a cyclical upswing; they are forcing a margin recovery through aggressive cost control and portfolio optimization. This is a crucial distinction for a mature chemical company. They are on track to meet or exceed a $100 million cost-reduction program, which includes the elimination of over 600 positions and the closure of seven sites, predominantly in Europe. This restructuring, which includes the closure of the European Maleic Anhydride facility, is painful but necessary to align their cost base with market realities.

Plus, they are pursuing clear, high-margin product innovations:

• Gaining market share in spray-foam and insulation, where Q3 sales volumes increased by 7% year-over-year.
• Advancing wins in the high-value automotive, aerospace, and electronics sectors.
• Targeting a $15 million EBITDA uplift in 2025 from capacity expansions, including new capacity in Conroe, Texas, specifically for the chip industry.

These strategic initiatives are what will generate an incremental ~$40 million in savings in 2026, proving that the 2025 pain is an investment in a leaner, more profitable future structure. To understand the investor landscape during this transition, you should be Exploring Huntsman Corporation (HUN) Investor Profile: Who's Buying and Why?