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1. Company Snapshot

1.a. Company Description

Huntsman Corporation manufactures and sells differentiated organic chemical products worldwide.The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects.The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products.


The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile.The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins.The Textile Effects segment provides textile chemicals and dyes.


The company's products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries.Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.

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1.b. Last Insights on HUN

Huntsman Corporation's recent performance was positively driven by several factors. The company's announcement of a dividend led to a significant increase in shares traded. Additionally, Allianz Asset Management GmbH boosted its stake in the company by 48.6%. The company's Q4 earnings report also provided insight into its performance, with revenue beating estimates despite a quarterly loss of $0.37 per share. Furthermore, management prioritizes survival and deleveraging, targeting free cash flow of at least $90 million in 2026.

1.c. Company Highlights

2. Huntsman Corporation's Resilience Amidst Industry Headwinds

Huntsman Corporation reported a challenging year, with the industry facing headwinds such as a slow North American housing market, decreased Chinese consumer confidence, and European policymakers' decisions that impacted competitiveness. Despite these hurdles, the company achieved growth in most of its tonnage, exceeded market growth, and converted 45% of its EBITDA to free cash flow. The actual EPS came out at '-0.37' relative to estimates at '-0.29'. The company's financial performance was marked by revenue growth, although the exact figure was not disclosed. The P/S Ratio stands at 0.38, indicating that the market has already priced in some of the challenges the company is facing.

Publication Date: Feb -22

📋 Highlights
  • Resilient Performance Amid Challenges: Achieved 45% EBITDA-to-free-cash-flow conversion despite slow North American housing market and decreased Chinese consumer confidence.
  • 2026 Cost Savings Target: Aiming for $100M total cost savings through 500 headcount reductions and 7 facility closures, with $45M expected in 2026.
  • Debt Covenant Strength: Maintains net debt/EBITDA ratio ~6x, with CFO expressing no leverage concerns in 2026 despite $500M borrowing against $400M cash.
  • MDI Pricing Strategy: Implemented North American MDI price hikes to offset $10M+ natural gas and benzene cost headwinds, supporting margin stability.
  • Strategic M&A Focus: Eyes mergers, joint ventures, and industry consolidation in Europe, where high capacity and energy costs create restructuring opportunities.

Operational Highlights

The company saw progress in its building solutions business, particularly urethane spray foam insulation, gaining market share and increasing margins in North America. Europe and Asia were monitored for opportunities, but the main focus remained on North America. The global MDI market is experiencing a structural issue in Europe, with too much capacity and a disparate cost curve. As Peter R. Huntsman, Chairman, CEO, and President, noted, the company is focused on controllable factors, creating value, and being prepared to capitalize on opportunities for margin expansion and revenue growth.

Cost Savings and Debt Covenants

Huntsman targets $100 million in cost savings, achieved through headcount reductions of approximately 500 and closure of seven facilities. About $45 million of in-year savings are expected in 2026. The company's updated debt agreement shows a net debt to EBITDA ratio of around six times, but Philip M. Lister, Executive Vice President and CFO, expressed no concern about meeting the leverage ratios in 2026. The Net Debt / EBITDA stands at 8.55, indicating a high level of indebtedness.

Outlook and Valuation

The company expects a gradual recovery in North American homebuilding, durable goods, and Chinese domestic markets in 2026. Huntsman's management believes that mid-cycle earnings levels could be achievable through the end of the decade, with potential for $800-900 million EBITDA and 10% margin if Europe recovers and volumes normalize. The EV/EBITDA stands at 20.38, indicating that the market is pricing in some of the challenges the company is facing. Analysts estimate next year's revenue growth at 5.5%.

Capital Structure and Future Plans

The company has secured an $800 million revolver, extended its maturity, and increased its securitization program capacity to approximately $300 million. At year-end, it had over $400 million in cash and was borrowing around $500 million across its securitization program and revolver, resulting in a net amount of approximately $1 billion. There are no plans to tap equity to shore up the balance sheet. The P/E Ratio stands at -7.67, and the ROE (%) is -10.06, indicating that the company is currently facing challenges in terms of profitability.

3. NewsRoom

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Huntsman: A Compelling Long-Term Value Opportunity

Feb -20

Source: seekingalpha.com

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Here Are Thursday’s Top Wall Street Analyst Research Calls: Analog Devices, Chewy, Credo Technology, eBay, Fiverr, Shopify, Verizon, and More

Feb -19

Source: 247wallst.com

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Huntsman Corporation $HUN Shares Sold by Oppenheimer & Co. Inc.

Feb -19

Source: defenseworld.net

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Huntsman (NYSE:HUN) Shares Up 9.4% Following Dividend Announcement

Feb -19

Source: defenseworld.net

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Huntsman Corporation (HUN) Q4 2025 Earnings Call Transcript

Feb -18

Source: seekingalpha.com

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HUN Q4 Earnings Miss, Sales Top Estimates Amid Pricing Pressure

Feb -18

Source: zacks.com

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Huntsman (HUN) Reports Q4 Earnings: What Key Metrics Have to Say

Feb -18

Source: zacks.com

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Huntsman (HUN) Reports Q4 Loss, Beats Revenue Estimates

Feb -17

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.85%)

6. Segments

Polyurethanes

Expected Growth: 6.0%

Huntsman Corporation's Polyurethanes segment growth of 6.0% is driven by increasing demand from the automotive and construction industries, growth in the Asia-Pacific region, and the company's strategic investments in innovation and operational efficiency. Additionally, the rising adoption of polyurethane-based materials in sustainable and energy-efficient applications also contributes to the segment's growth.

Performance Products

Expected Growth: 5.8%

Huntsman Corporation's Performance Products segment growth of 5.8% is driven by increasing demand for polyurethane and amine-based products in the construction and automotive industries, coupled with strategic pricing initiatives and operational efficiencies. Additionally, the segment benefits from growing adoption of sustainable and energy-efficient solutions, as well as expanding presence in high-growth markets such as Asia.

Advanced Materials

Expected Growth: 5.5%

Huntsman Corporation's Advanced Materials segment growth of 5.5% is driven by increasing demand for lightweight and sustainable materials in the aerospace, automotive, and industrial markets. Additionally, the segment benefits from its diversified product portfolio, including epoxy, polyurethane, and arylamine, which cater to various customer needs. Furthermore, strategic investments in R&D and operational efficiency improvements support the segment's growth momentum.

Intersegment Eliminations

Expected Growth: 0.0%

Huntsman Corporation's Intersegment Eliminations with 0.0% growth is driven by offsetting transactions between segments, eliminating revenue and expenses. This is due to the company's diversified business model, with multiple segments operating independently, resulting in no net impact on consolidated financials.

7. Detailed Products

MDI (Methylene Diphenyl Diisocyanate)

A key component in the production of polyurethane foams, coatings, adhesives, and elastomers.

TDI (Toluene Diisocyanate)

A versatile chemical used in the production of polyurethane foams, coatings, and elastomers.

Aniline

A key intermediate in the production of MDI and TDI.

Amine Catalysts

Specialty chemicals used to accelerate the reaction between isocyanates and polyols.

Epoxy Resins

Thermosetting resins used in a wide range of applications, including coatings, composites, and adhesives.

Advanced Materials

Specialty materials used in aerospace, industrial, and consumer applications.

8. Huntsman Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Huntsman Corporation operates in the chemical industry, where substitutes are available, but they are not easily accessible. The company's products are specialized, and substitutes would require significant investment and development.

Bargaining Power Of Customers

Huntsman Corporation's customers are diverse and scattered, reducing their bargaining power. The company's products are essential to its customers' operations, making it difficult for them to negotiate prices.

Bargaining Power Of Suppliers

Huntsman Corporation relies on a few large suppliers for raw materials, giving them some bargaining power. However, the company's size and diversified product portfolio mitigate this risk.

Threat Of New Entrants

Entering the chemical industry requires significant investment in research, development, and manufacturing infrastructure. Barriers to entry are high, making it difficult for new entrants to compete with Huntsman Corporation.

Intensity Of Rivalry

The chemical industry is highly competitive, with many established players. Huntsman Corporation faces intense rivalry from companies like BASF, Dow, and LyondellBasell, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.88%
Debt Cost 8.89%
Equity Weight 61.12%
Equity Cost 9.69%
WACC 9.38%
Leverage 63.61%

11. Quality Control: Huntsman Corporation passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.8

Growth: 5.8

Quality: 7.1

Yield: 5.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
UFP Industries

A-Score: 5.3/10

Value: 6.2

Growth: 6.4

Quality: 5.8

Yield: 3.0

Momentum: 2.5

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Innospec

A-Score: 4.5/10

Value: 5.0

Growth: 4.1

Quality: 4.8

Yield: 3.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
Huntsman

A-Score: 4.1/10

Value: 7.5

Growth: 1.4

Quality: 2.3

Yield: 9.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Tronox

A-Score: 3.8/10

Value: 9.0

Growth: 3.0

Quality: 1.4

Yield: 8.0

Momentum: 0.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Celanese

A-Score: 3.6/10

Value: 9.4

Growth: 3.1

Quality: 3.2

Yield: 2.0

Momentum: 1.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.38$

Current Price

12.38$

Potential

-0.00%

Expected Cash-Flows