Huntsman's Q2 Loss Widens to $287M Amidst Challenging Market
Ticker: HUN · Form: 10-Q · Filed: Aug 1, 2025 · CIK: 1307954
| Field | Detail |
|---|---|
| Company | Huntsman Corp (HUN) |
| Form Type | 10-Q |
| Filed Date | Aug 1, 2025 |
| Risk Level | high |
| Sentiment | bearish |
Sentiment: bearish
Topics: Chemicals, Quarterly Earnings, Net Loss, Debt, 10-Q Filing, Financial Performance, SEC Filing
Related Tickers: HUN
TL;DR
**Huntsman's Q2 loss is a red flag; expect continued pressure on the stock as debt and market conditions bite.**
AI Summary
Huntsman Corp (HUN) reported a net loss of $287 million for the quarter ended June 30, 2025, a significant increase from the $233 million net loss in the prior year's comparable quarter. The diluted loss per share also widened to $0.25 for Q2 2025, compared to $0.01 in Q2 2024. Despite the increased net loss, the company's total assets remained substantial, with accounts payable at $1.2 billion as of June 30, 2025. Huntsman's debt structure includes a $750 million term loan due January 31, 2027, and a $400 million term loan due July 31, 2027, indicating ongoing financial obligations. The company also noted reclassifications from accumulated other comprehensive loss related to pension and other postretirement benefits, with amounts net of tax of $51 million as of June 30, 2025. Adjusted fixed costs, including personnel and maintenance, are a key focus, with details on pension and other postretirement benefits reclassifications provided in Note 13. The filing highlights the company's exposure to fluctuating interest rates like Term SOFR, EURIBOR, and SONIA for its A/R Programs.
Why It Matters
Huntsman's widening net loss to $287 million in Q2 2025 signals persistent headwinds in the chemicals sector, impacting investor confidence and potentially future dividend payouts. For employees, continued losses could lead to cost-cutting measures, including workforce reductions or benefit adjustments. Customers might see price volatility or changes in product offerings as Huntsman navigates its financial challenges. In a competitive landscape, this performance could allow rivals to gain market share, especially given the company's substantial debt obligations like the $750 million term loan due in 2027.
Risk Assessment
Risk Level: high — The company reported a net loss of $287 million for Q2 2025, a significant increase from $233 million in Q2 2024, indicating deteriorating profitability. The diluted loss per share also widened to $0.25 from $0.01. Additionally, Huntsman has substantial debt, including a $750 million term loan due January 31, 2027, and a $400 million term loan due July 31, 2027, which could strain liquidity if market conditions worsen.
Analyst Insight
Investors should consider reducing exposure to HUN given the widening net losses and significant debt maturities in the near term. Monitor the company's ability to manage its debt obligations and any further deterioration in profitability before considering new positions.
Financial Highlights
- net Income
- -$287 million
- eps
- -$0.25
Key Numbers
- $287 million — Net Loss (Increased from $233 million in Q2 2024 to $287 million in Q2 2025, indicating worsening profitability.)
- $0.25 — Diluted Loss Per Share (Widened from $0.01 in Q2 2024 to $0.25 in Q2 2025, reflecting higher per-share losses.)
- $1.2 billion — Accounts Payable (Total accounts payable as of June 30, 2025, representing a significant current liability.)
- $750 million — Term Loan (Principal amount of a term loan due January 31, 2027, a key debt maturity.)
- $400 million — Term Loan (Principal amount of another term loan due July 31, 2027, adding to future debt obligations.)
- $51 million — Pension and Postretirement Benefits (Net of tax amount reclassified from accumulated other comprehensive loss as of June 30, 2025.)
Key Players & Entities
- Huntsman CORP (company) — filer of the 10-Q
- Huntsman International LLC (company) — co-filer of the 10-Q
- $287 million (dollar_amount) — net loss for Q2 2025
- $233 million (dollar_amount) — net loss for Q2 2024
- $0.25 (dollar_amount) — diluted loss per share for Q2 2025
- $0.01 (dollar_amount) — diluted loss per share for Q2 2024
- $1.2 billion (dollar_amount) — accounts payable as of June 30, 2025
- $750 million (dollar_amount) — term loan due January 31, 2027
- $400 million (dollar_amount) — term loan due July 31, 2027
- SEC (regulator) — recipient of the 10-Q filing
FAQ
What was Huntsman Corp's net income for the second quarter of 2025?
Huntsman Corp reported a net loss of $287 million for the quarter ended June 30, 2025, which is a significant increase from the $233 million net loss in the comparable prior-year quarter.
How did Huntsman's diluted loss per share change in Q2 2025?
The diluted loss per share for Huntsman Corp widened to $0.25 in Q2 2025, compared to a diluted loss per share of $0.01 in Q2 2024.
What are Huntsman Corp's significant debt obligations?
Huntsman Corp has a $750 million term loan due on January 31, 2027, and another $400 million term loan due on July 31, 2027, representing substantial future financial commitments.
What are the key risks highlighted in Huntsman's 10-Q filing?
The key risks include the widening net loss of $287 million, increased diluted loss per share to $0.25, and significant debt maturities totaling $1.15 billion by July 2027, which could impact liquidity and financial stability.
What is the impact of pension and other postretirement benefits on Huntsman's financials?
Huntsman reclassified amounts from accumulated other comprehensive loss related to pension and other postretirement benefits, with a net of tax amount of $51 million as of June 30, 2025, impacting the overall financial position.
Where is Huntsman Corp's business address located?
Huntsman Corp's business address is 10003 Woodloch Forest Drive, The Woodlands, TX 77380, as stated in the 10-Q filing.
What is Huntsman's fiscal year end?
Huntsman Corp's fiscal year end is December 31, as indicated in the company data section of the 10-Q filing.
What is the Central Index Key (CIK) for Huntsman CORP?
The Central Index Key (CIK) for Huntsman CORP is 0001307954, as provided in the filer information of the 10-Q.
What interest rates are applicable to Huntsman's A/R Programs?
The applicable rates for Huntsman's U.S. A/R Program are defined by the lender as Term SOFR, while the EU A/R Program uses Term SOFR, EURIBOR, or SONIA (Sterling Overnight Interbank Average Rate).
What are 'adjusted fixed costs' for Huntsman Corp?
Adjusted fixed costs primarily include personnel and maintenance costs at manufacturing facilities, selling, general and administrative expenses, and research and development expenses, less depreciation, amortization, and certain adjustments.
Risk Factors
- Interest Rate Fluctuations [medium — financial]: Huntsman's Accounts Receivable (A/R) Programs are exposed to fluctuating interest rates such as Term SOFR, EURIBOR, and SONIA. This exposure can impact borrowing costs and overall financial performance, especially given the company's significant debt obligations.
- Debt Maturities [high — financial]: The company has significant debt maturities in the near term, including a $750 million term loan due January 31, 2027, and a $400 million term loan due July 31, 2027. Failure to refinance or manage these obligations could lead to liquidity issues.
- Net Loss and EPS Deterioration [high — financial]: Huntsman reported a net loss of $287 million for Q2 2025, a substantial increase from $233 million in Q2 2024. Diluted loss per share widened to $0.25 from $0.01, indicating a significant decline in profitability.
- Pension and Postretirement Benefit Obligations [medium — operational]: The company has reclassified $51 million (net of tax) from accumulated other comprehensive loss related to pension and other postretirement benefits as of June 30, 2025. Managing these long-term obligations is crucial for financial stability.
Industry Context
The chemical industry is characterized by cyclical demand, intense competition, and significant capital investment. Companies like Huntsman face pressures from fluctuating raw material costs, global economic conditions, and evolving regulatory landscapes. Innovation in specialty chemicals and sustainable solutions are key drivers for growth and differentiation.
Regulatory Implications
Huntsman operates in a highly regulated industry, subject to environmental, health, and safety standards globally. Compliance with these regulations requires ongoing investment and can lead to significant liabilities if not managed effectively. Changes in trade policies and tariffs can also impact international operations and profitability.
What Investors Should Do
- Monitor debt refinancing plans
- Analyze drivers of net loss
- Assess impact of interest rate volatility
- Evaluate pension and postretirement benefit management
Key Dates
- 2027-01-31: Term Loan Maturity — A $750 million debt obligation comes due, requiring refinancing or repayment.
- 2027-07-31: Term Loan Maturity — Another $400 million debt obligation comes due, requiring refinancing or repayment.
- 2025-06-30: Quarter End Reporting — Reported a net loss of $287 million and a diluted loss per share of $0.25.
Glossary
- Term SOFR
- Secured Overnight Financing Rate, a benchmark interest rate used for various financial products, including loans and derivatives. (Huntsman's A/R Programs are exposed to this fluctuating interest rate, impacting borrowing costs.)
- EURIBOR
- Euro Interbank Offered Rate, a benchmark interest rate for short-term euro-denominated loans. (One of the interest rates that can affect Huntsman's A/R Programs in the EU.)
- SONIA
- Sterling Overnight Interbank Average Rate, a benchmark interest rate for overnight sterling borrowing. (Another interest rate that can affect Huntsman's A/R Programs in the EU.)
- Accumulated Other Comprehensive Loss
- A component of shareholders' equity that includes unrealized gains and losses on certain investments, foreign currency translations, and pension adjustments. (Huntsman reclassified $51 million (net of tax) from this account related to pension benefits, impacting equity.)
- Accounts Payable Current
- The total amount of money a company owes to its suppliers for goods and services received but not yet paid for, due within one year. (Huntsman had $1.2 billion in current accounts payable as of June 30, 2025, representing a significant short-term liability.)
- Adjusted Fixed Costs
- Costs that are not directly tied to production volume and are adjusted for specific items like depreciation and amortization. (These costs, including personnel and maintenance, are a key focus for Huntsman's management.)
Year-Over-Year Comparison
Huntsman's Q2 2025 results show a marked deterioration compared to the prior year's comparable quarter. The net loss widened significantly from $233 million to $287 million, and diluted loss per share increased from $0.01 to $0.25. While specific revenue and margin data for this period are not detailed in the provided context, the increased net loss suggests pressure on profitability. No new major risks were explicitly detailed in the provided context, but the existing financial risks, such as debt maturities and interest rate exposure, remain critical.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on August 1, 2025 regarding Huntsman CORP (HUN).