Huntsman Corporation has released its financial results for the third quarter of 2024, revealing challenges and strategic efforts across its core segments amid a steady, yet constrained, global market environment.

Financial Highlights

• Net Income: The third quarter recorded a net loss attributable to Huntsman of $33 million, a shift from net income of $0 million in the same period last year. This equates to a diluted loss per share of $0.19, compared to breakeven results per share in the prior year.
• Adjusted Net Income: Adjusted net income was $17 million, down from $27 million in Q3 2023, with adjusted diluted income per share at $0.10 versus $0.15 in the prior year.
• Adjusted EBITDA: Adjusted EBITDA reached $131 million, a slight decrease from $136 million in Q3 2023.
• Cash Flow and Liquidity: Huntsman generated $134 million in net cash from operating activities and $93 million in free cash flow from continuing operations, a drop from $117 million in Q3 2023. The company maintains approximately $1.7 billion in combined cash and borrowing capacity.

The company also secured $350 million in senior notes due 2034 at a 5.7% coupon rate, reinforcing its financial flexibility for future strategic investments.

CEO Commentary

Peter R. Huntsman, Chairman, President, and CEO, stated:

"This quarter's results align with our expectation of a stabilized market in key construction and industrial sectors, albeit at trough levels. With a 5% year-over-year increase in total volumes, we anticipate continuing this trend as we move through a seasonally slower fourth quarter. Looking forward, anticipated interest rate cuts from the Federal Reserve and ECB, along with China’s economic stimulus, should positively impact our global portfolio, particularly in the construction sector. Until then, our focus remains on optimizing costs and fortifying our balance sheet to support disciplined investments in core areas. The success of our recent bond placement reflects the resilience of our portfolio and our readiness for future market growth."

Segment Performance

Polyurethanes: Revenue growth in the Polyurethanes segment was driven by higher sales volumes, despite a decrease in MDI average selling prices due to softer supply-demand dynamics. Segment adjusted EBITDA declined, impacted by lower MDI prices and reduced equity earnings from a Chinese joint venture, partially offset by cost reductions and volume growth.

Performance Products: Increased sales volumes in fuels, lubes, coatings, and adhesives markets drove revenue growth, although competitive pricing pressures lowered average selling prices. Segment adjusted EBITDA declined, affected by pricing and sales mix changes, though mitigated by increased volumes and lower fixed costs.

Advanced Materials: Revenue in the Advanced Materials segment declined due to reduced average selling prices, despite volume gains in aerospace and coatings markets. Segment adjusted EBITDA fell, primarily due to increased fixed costs.

Corporate, LIFO, and Other: Adjusted EBITDA from Corporate and other improved to a $34 million loss, from a $41 million loss in Q3 2023, benefiting from reduced corporate overhead and minimized foreign exchange losses, despite higher LIFO valuation losses.

Capital Expenditures and Tax Outlook

Free cash flow from continuing operations reached $93 million, compared to $117 million in Q3 2023. Huntsman also committed $41 million in capital expenditures, aligning with an anticipated full-year spend of $180-$190 million. The company reported an effective tax rate of 115% for Q3, with an adjusted effective tax rate of 41%, and expects its long-term adjusted tax rate to range between 22% and 24%.

This quarter underscores Huntsman’s focus on maintaining operational resilience and positioning itself for future market growth through strategic financial management and disciplined investments.