Huntsman International's Q3 Loss Narrows, But YTD Deepens Amid Restructuring

TL;DR

**Huntsman International is bleeding cash year-to-date, and while Q3 showed a slight improvement, the massive restructuring costs mean more pain before any potential gain.**

AI Summary

Huntsman International LLC reported a net loss of $11 million for the three months ended September 30, 2025, an improvement from a net loss of $17 million in the same period of 2024. However, for the nine months ended September 30, 2025, the net loss significantly widened to $145 million, compared to a net loss of $2 million in the prior year. Total revenues decreased to $1,460 million for the third quarter of 2025 from $1,540 million in Q3 2024, and for the nine-month period, revenues fell to $4,328 million from $4,584 million. Operating income saw a sharp decline, dropping to $6 million in Q3 2025 from $42 million in Q3 2024, and the company recorded an operating loss of $72 million for the nine months ended September 30, 2025, a significant reversal from an operating income of $38 million in the prior year. Restructuring, impairment, and plant closing costs surged to $137 million for the nine-month period in 2025, up from $20 million in 2024, indicating significant operational adjustments. Cash and cash equivalents increased to $468 million as of September 30, 2025, from $340 million at December 31, 2024, primarily due to net cash provided by operating activities of $213 million. Long-term debt increased to $1,630 million from $1,510 million, while total assets slightly decreased to $7,082 million from $7,114 million.

Why It Matters

Huntsman International's widening year-to-date net loss and significant increase in restructuring costs signal a challenging operating environment and ongoing strategic adjustments. For investors, this indicates potential continued pressure on profitability and a need to monitor the effectiveness of these restructuring efforts. Employees might face further job insecurity or operational changes as the company streamlines. Customers could experience shifts in product availability or pricing as Huntsman re-evaluates its portfolio. In the broader chemical market, these results reflect potential industry-wide headwinds, and Huntsman's actions could influence competitive dynamics as rivals adapt to similar pressures.

Risk Assessment

Risk Level: high — The company reported a net loss of $145 million for the nine months ended September 30, 2025, a substantial increase from a $2 million net loss in the prior year. This is compounded by a significant surge in restructuring, impairment, and plant closing costs to $137 million for the nine-month period, up from $20 million in 2024, indicating ongoing operational distress and potential future charges.

Analyst Insight

Investors should exercise caution and closely monitor Huntsman International's upcoming earnings reports for signs of stabilization in revenue and a reduction in restructuring charges. Consider holding off on new investments until there's clear evidence that the significant operational adjustments are yielding positive financial results and reversing the trend of widening losses.

Financial Highlights

debt To Equity

1.37

revenue

$4,328M

operating Margin

-1.66%

total Assets

$7,082M

total Debt

$2,008M

net Income

-$145M

eps

N/A

gross Margin

N/A

cash Position

$468M

revenue Growth

-5.37%

Key Numbers

• $145M — Net Loss (YTD) (Widened significantly from $2M in prior year, indicating worsening profitability.)
• $137M — Restructuring Costs (YTD) (Increased dramatically from $20M, reflecting extensive operational changes.)
• $4,328M — Total Revenues (YTD) (Decreased from $4,584M, showing a decline in sales performance.)
• $72M — Operating Loss (YTD) (Reversed from $38M operating income, highlighting operational challenges.)
• $468M — Cash and Cash Equivalents (Increased from $340M, providing some liquidity despite losses.)
• $1,630M — Long-term Debt (Increased from $1,510M, adding to financial leverage.)
• $11M — Net Loss (Q3) (Improved from $17M loss in Q3 2024, a positive quarterly trend.)
• $1,460M — Total Revenues (Q3) (Decreased from $1,540M in Q3 2024, indicating continued sales pressure.)

Key Players & Entities

• Huntsman International LLC (company) — principal operating company and registrant
• Huntsman Corporation (company) — parent company and registrant
• $11 million (dollar_amount) — net loss for Q3 2025
• $17 million (dollar_amount) — net loss for Q3 2024
• $145 million (dollar_amount) — net loss for nine months ended September 30, 2025
• $2 million (dollar_amount) — net loss for nine months ended September 30, 2024
• $1,460 million (dollar_amount) — total revenues for Q3 2025
• $1,540 million (dollar_amount) — total revenues for Q3 2024
• $137 million (dollar_amount) — restructuring, impairment and plant closing costs for nine months ended September 30, 2025
• $20 million (dollar_amount) — restructuring, impairment and plant closing costs for nine months ended September 30, 2024

FAQ

Risk Factors

• Restructuring and Impairment Costs [high — operational]: The company incurred $137 million in restructuring, impairment, and plant closing costs for the nine months ended September 30, 2025, a significant increase from $20 million in the prior year. This indicates substantial operational adjustments and potential challenges in maintaining efficient operations.
• Widening Net Loss and Operating Decline [high — financial]: Huntsman reported a net loss of $145 million for the nine months ended September 30, 2025, a sharp reversal from a $2 million net loss in the prior year. Operating income also declined to a loss of $72 million from an income of $38 million, signaling deteriorating profitability and operational performance.
• Increased Leverage [medium — financial]: Long-term debt increased to $1,630 million as of September 30, 2025, from $1,510 million at December 31, 2024. This increase in debt, coupled with declining profitability, raises concerns about the company's financial leverage and ability to service its debt.
• Declining Revenues [medium — market]: Total revenues for the nine months ended September 30, 2025, decreased to $4,328 million from $4,584 million in the prior year. The third quarter also saw a revenue decline to $1,460 million from $1,540 million, indicating ongoing sales pressure and potential market demand issues.

Industry Context

The chemical industry is subject to cyclical demand, raw material price volatility, and increasing regulatory scrutiny. Huntsman operates in segments like polyurethanes, performance products, and advanced materials, facing competition from global players. Trends include a focus on sustainability, specialty chemicals, and regional supply chain dynamics.

Regulatory Implications

The company's operations are subject to environmental, health, and safety regulations globally. Increased focus on sustainability and ESG (Environmental, Social, and Governance) factors may lead to new compliance requirements and reporting standards. Potential fines or operational disruptions can arise from non-compliance.

What Investors Should Do

1. Monitor the impact of restructuring costs on future profitability and operational efficiency.
2. Analyze the drivers behind the significant widening of the year-to-date net loss and operating loss.
3. Assess the company's ability to manage its increased long-term debt in light of declining revenues and profitability.
4. Evaluate the sustainability of the current cash position given the ongoing operational challenges.

Glossary

Operating lease right-of-use assets

Assets recognized by a lessee under a lease, representing the right to use an underlying asset for the lease term. (These assets decreased slightly to $365 million from $382 million, indicating a reduction in the company's leased asset base.)

Noncontrolling interests in subsidiaries

The portion of equity in a subsidiary that is not attributable to the parent company. (These interests increased to $235 million from $204 million, suggesting a larger share of subsidiary profits or losses are allocated to external parties.)

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses that have not yet been realized as revenue or expense. (This account decreased to a loss of $1,094 million from $1,200 million, indicating a reduction in unrealized losses.)

Variable interest entities

Entities for which the equity is insufficient to permit the entity to finance its activities without additional financial support from other parties, or where the equity investors do not have the characteristics of a controlling financial interest. (The company has consolidated VIEs, and specific assets and liabilities related to these entities are disclosed, impacting the overall financial statements.)

Year-Over-Year Comparison

Compared to the prior year, Huntsman International LLC has experienced a significant deterioration in its year-to-date financial performance, with net losses widening substantially and operating income turning into a loss. While Q3 showed a slight improvement in net loss, overall revenues have declined for both the quarter and the year-to-date period. A key concern is the dramatic increase in restructuring, impairment, and plant closing costs, signaling significant operational challenges and adjustments. The company's cash position has improved, but this is offset by an increase in long-term debt, raising leverage concerns.

Key Financial Figures

• $0.01 — an Corporation Common Stock, par value $0.01 per share HUN New York Stock Exchan
• $16 — 25 and December 31, 2024, respectively, $16 and $6 of cash and cash equivalents, $1
• $6 — ecember 31, 2024, respectively, $16 and $6 of cash and cash equivalents, $18 and $
• $18 — 16 and $6 of cash and cash equivalents, $18 and $19 of accounts and notes receivabl
• $19 — 6 of cash and cash equivalents, $18 and $19 of accounts and notes receivable (net),
• $46 — of accounts and notes receivable (net), $46 and $57 of inventories, $123 and $124 o
• $57 — nts and notes receivable (net), $46 and $57 of inventories, $123 and $124 of proper
• $123 — able (net), $46 and $57 of inventories, $123 and $124 of property, plant and equipme
• $124 — ), $46 and $57 of inventories, $123 and $124 of property, plant and equipment (net),
• $35 — of property, plant and equipment (net), $35 and $37 of other noncurrent assets, $90
• $37 — rty, plant and equipment (net), $35 and $37 of other noncurrent assets, $90 and $11
• $90 — $35 and $37 of other noncurrent assets, $90 and $111 of accounts payable, $15 and $
• $111 — $37 of other noncurrent assets, $90 and $111 of accounts payable, $15 and $21 of acc
• $15 — sets, $90 and $111 of accounts payable, $15 and $21 of accrued liabilities, $9 each
• $21 — 0 and $111 of accounts payable, $15 and $21 of accrued liabilities, $9 each of curr

Filing Documents

• hun20250930_10q.htm (10-Q) — 4464KB
• ex_847262.htm (EX-31.1) — 10KB
• ex_847263.htm (EX-31.2) — 10KB
• ex_847264.htm (EX-32.1) — 5KB
• ex_847265.htm (EX-32.2) — 5KB
• 0001437749-25-033805.txt ( ) — 17201KB
• hun-20250930.xsd (EX-101.SCH) — 87KB
• hun-20250930_cal.xml (EX-101.CAL) — 62KB
• hun-20250930_def.xml (EX-101.DEF) — 575KB
• hun-20250930_lab.xml (EX-101.LAB) — 486KB
• hun-20250930_pre.xml (EX-101.PRE) — 630KB
• hun20250930_10q_htm.xml (XML) — 4323KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 39 ITEM 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 51 ITEM 4.

Controls and Procedures

Controls and Procedures 51 PART II , OTHER INFORMATION 52 ITEM 1.

Legal Proceedings

Legal Proceedings 52 ITEM 1A.

Risk Factors

Risk Factors 52 ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 ITEM 6. Exhibits 53 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS Certain information set forth in this report contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; management's plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, spin-offs or other distributions, strategic opportunities, financing activities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets we sell into; new or modified laws, regulations and accounting pronouncements; outstanding claims, legal proceedings, or the potential outcomes thereof, tax audits and assessments and other contingent liabilities; foreign currency exchange rates and fluctuations in those rates; general economic and capital markets conditions; the timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that we intend or believe will or may occur in the future. In some cases, forward-looking statements can be identified by terminology such as "believes," "expects," "may," "will," "should," "anticipates" or "intends" or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking stateme

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) HUNTSMAN CORPORATION AND SUBSIDIARIES UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In Millions, Except Share and Per Share Amounts) September 30, December 31, 2025 2024 ASSETS Current assets: Cash and cash equivalents (1) $ 468 $ 340 Accounts and notes receivable (net of allowance for doubtful accounts of $ 10 and $ 8 , respectively), ($ 275 and $ 233 pledged as collateral, respectively) (1) 761 718 Accounts receivable from affiliates 7 7 Inventories (1) 836 917 Prepaid expenses 57 114 Other current assets 53 29 Total current assets 2,182 2,125 Property, plant and equipment, net (1) 2,475 2,493 Investment in unconsolidated affiliates 301 346 Intangible assets, net 317 344 Goodwill 628 633 Deferred income taxes 63 69 Operating lease right-of-use assets 365 382 Other noncurrent assets (1) 751 722 Total assets $ 7,082 $ 7,114 LIABILITIES AND EQUITY Current liabilities: Accounts payable (1) $ 667 $ 758 Accounts payable to affiliates 21 12 Accrued liabilities (1) 478 416 Current portion of debt (1) 378 325 Current operating lease liabilities (1) 57 54 Total current liabilities 1,601 1,565 Long-term debt (1) 1,630 1,510 Deferred income taxes 177 204 Noncurrent operating lease liabilities (1) 336 348 Other noncurrent liabilities (1) 337 324 Total liabilities 4,081 3,951 Commitments and contingencies (Notes 16 and 17) Equity Huntsman Corporation stockholders' equity: Common stock $ 0.01 par value, 1,200,000,000 shares authorized, 263,205,484 and 262,751,907 shares issued and 172,598,356 and 172,144,779 shares outstanding, respectively 3 3 Additional paid-in capital 4,260 4,233 Treasury stock, 90,607,128 shares ( 2,290 ) ( 2,290 ) Unearned stock-based compensation ( 35 ) ( 32 ) Retained earnings 1,922 2,245 Accumulated other comprehensive loss ( 1,094 ) ( 1,200 ) Total

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