On February 18, 2025, Huntsman Corp (HUN, Financial) released its 8-K filing detailing its financial results for the fourth quarter of 2024. The company reported a net loss attributable to Huntsman of $141 million, translating to a diluted loss per share of $0.82. This performance fell short of analyst estimates, which anticipated a quarterly earnings per share of -$0.11. Actual revenue for the quarter was $1,452 million, slightly above expectations of $1,443.33 million.
Company Overview
Huntsman Corp is a U.S.-based manufacturer of differentiated organic chemical products. Its diverse product portfolio includes Methyl diphenyl diisocyanate (MDI), Amines, Maleic anhydride, and Epoxy-based polymer formulations. These products serve various industries such as adhesives, aerospace, automotive, and construction. The company operates through segments including Polyurethanes, Performance Products, and Advanced Materials, with the Polyurethanes segment being the primary revenue driver.
Performance and Challenges
Huntsman Corp faced significant challenges in the fourth quarter of 2024, with a net loss of $141 million compared to a $71 million loss in the same period the previous year. The adjusted net loss was $43 million, up from $36 million in the prior year. Despite a 5% increase in quarterly volume year-on-year, the company struggled to achieve margin improvements. The construction and automotive markets, which constitute a significant portion of Huntsman's portfolio, remained subdued, particularly in Europe due to high energy costs and regulatory pressures.
Financial Achievements
Despite the challenges, Huntsman Corp reported an adjusted EBITDA of $71 million, an improvement from $44 million in the prior year. The company generated $159 million in net cash from operating activities and $108 million in free cash flow from continuing operations, up from $83 million in the previous year. These achievements underscore the company's focus on maintaining liquidity and operational efficiency amid challenging market conditions.
Segment Analysis
The Polyurethanes segment saw increased revenues due to higher sales volumes, driven by demand in insulation and composite wood panels. However, the Performance Products segment experienced a decline in revenues due to lower sales volumes, despite higher average selling prices. The Advanced Materials segment reported increased revenues from higher sales volumes, although this was offset by lower average selling prices.
Liquidity and Capital Resources
Huntsman Corp ended the quarter with approximately $1.7 billion in combined cash and unused borrowing capacity. The company reduced capital expenditures to $51 million from $83 million in the same period of 2023, reflecting a strategic focus on cost management. For 2025, capital expenditures are expected to range between $180 million and $190 million.
Commentary
"The fourth quarter was within our expectations as trough conditions continued in our core markets. Despite quarterly volume improvement year-on-year of 5% for the Company leading to full year volume growth of 6%, we are yet to see that growth translate into needed margin improvement." - Peter R. Huntsman, Chairman, President, and CEO
Analysis
Huntsman Corp's fourth-quarter performance highlights the ongoing challenges in the chemical industry, particularly in key markets like construction and automotive. The company's strategic focus on cost management and operational efficiency is crucial as it navigates these headwinds. While revenue slightly exceeded expectations, the significant net loss underscores the need for continued strategic adjustments, particularly in the European market.
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Explore the complete 8-K earnings release (here) from Huntsman Corp for further details.
