Huntsman Corporation Reports Q4 2024 Earnings: Significant Net Loss, Adjustments, and Strategic Shifts Ahead

Huntsman Corporation, a leading global manufacturer and marketer of differentiated and specialty chemicals, released its fourth quarter 2024 earnings report, revealing a significant net loss and detailing adjustments aimed at improving its financial health in the coming year.

Key Financial Indicators:

The company reported a net loss attributable to Huntsman of $141 million during the fourth quarter of 2024. This compares to a net loss of $71 million in the same period of the previous year. The adjusted net loss for the period was $43 million, down from $36 million.

Huntsman’s adjusted EBITDA improved to $71 million in Q4 2024, a notable rise from $44 million reported in Q4 2023. Free cash flow from continuing operations stood at $108 million for the fourth quarter, up from $83 million in the prior year.

Corporate Performance and Insights:

Peter R. Huntsman, Chairman, President, and CEO of Huntsman Corporation, outlined several key takeaways from the financial report. He noted that despite a 5% year-over-year increase in quarterly volume, the company has yet to see that growth translate into improved margins.

The fourth quarter was within our expectations as trough conditions continued in our core markets. We do not intend to sit idly by, waiting for markets to improve, and will remain aggressive in costs, including announced workforce reductions in our Polyurethanes segment.

Segment Analysis:

The Polyurethanes segment experienced growth in both revenues and adjusted EBITDA, driven by higher sales volumes and improved margins, partially offset by a drop in equity earnings from a minority-owned joint venture in China.

The Performance Products segment, however, saw a decrease in revenues and adjusted EBITDA. This decline was attributed to lower sales volumes resulting from prolonged Maleic Anhydride outages, slow construction activity, and weak demand in industrial markets.

The Advanced Materials segment registered an increase in revenues along with relatively flat adjusted EBITDA. Higher sales volumes were partially offset by lower average selling prices due to unfavorable sales mix.

For the Corporate and other segment, adjusted EBITDA showed a loss of $39 million, slightly worse than the loss of $35 million reported last year.

Liquidity and Capital Outlook:

During Q4 2024, Huntsman maintained a strong liquidity position with approximately $1.7 billion in combined cash and unused borrowing capacity. The company plans to spend between $180 and $190 million on capital expenditures in 2025.

Operational Adjustments:

To address the challenging market conditions, Huntsman will focus on several strategic initiatives, including:

• Workforce reductions in the Polyurethanes segment to reduce costs.
• Assessment of strategic options for the European maleic anhydride business.
• Closure of downstream Polyurethanes facilities.
• Protection of the balance sheet with a focus on cash and creating a leaner company ready for increased demand.

Upcoming Events:

Huntsman Corporation will host a conference call to discuss the fourth quarter 2024 financial results on February 18, 2025, at 10:00 a.m. ET. Participants can join via webcast or by calling (877) 402-8037 for domestic calls or (201) 378-4913 for international calls.

Additionally, a member of management is expected to present at the following conferences during the first quarter of 2025:

• Bank of America Securities 2025 Global Agriculture and Materials Conference, February 26, 2025
• Alembic Materials and Industrials Conference, March 6-7, 2025

Future Outlook:

Looking ahead, Huntsman remains vigilant about the global economic climate but anticipates modest growth in the automotive sector in China while expecting relative stability in overall profitability there. European markets face challenges due to high energy costs and regulatory burdens.

The CEO echoed a commitment to agile cost management and strategic repositioning to ensure the company is well-prepared for a recovery in demand.

Conclusion:

Huntsman Corporation’s fourth quarter 2024 financial results reflect the ongoing economic challenges across its core markets. While the company reported a net loss, it also outlined significant progress in key segments and strategic adjustments to strengthen its financial position. With aggressive cost management andTwo-thirds of Huntsman’s portfolio is influenced by construction and automotive sectors, which remain subdued. As the company looks to 2025, it plans to implement workforce reductions, reassess strategic assets, and prepare for a potential uptick in demand.

Investors and stakeholders should keep a close eye on Huntsman’s upcoming conference call and potential presentations at industry conferences to gain deeper insights into the company’s strategic moves and performance expectations.

Join the Discussion:

We invite you to share your thoughts on Huntsman Corporation’s Q4 2024 earnings report and their strategic plans for the future. Your insights and questions can help foster a deeper understanding of the company’s performance and outlook.

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