NYSE:HUN
Huntsman CORP
Huntsman Corporation delivers specialty chemical solutions globally, navigating recent profitability challenges amidst stable mid-single-digit billion-dollar revenue levels.
Key Metrics
Investment Thesis
Bull Case
The stock offers value at depressed levels where the market prices in severe distress, potentially creating an opportunity if management can successfully execute cost reduction initiatives and restore profitability. Huntsman possesses a resilient franchise with sticky customer relationships in essential specialty markets that could rebound as global economic conditions stabilize and construction activity picks up. The strong positive cash flow from operations provides the internal liquidity needed to deleverage the balance sheet and fund strategic growth projects without relying heavily on external financing.
Bear Case
Investors should avoid the stock due to persistent earnings losses and a deteriorating trend where net income has fallen from $523M in 2022 to -$227M, signaling deep structural or cyclical issues within the core business. The company's accumulated other comprehensive loss of over $1B combined with a retained earnings deficit indicates significant balance sheet stress that could lead to credit rating downgrades or covenant violations. Continued revenue contraction from an $8B peak in 2022 suggests a prolonged industry downturn that may not resolve quickly enough to justify the current valuation.
About Huntsman CORP
Huntsman Corporation is a global specialty chemicals manufacturer primarily serving markets in construction, coatings, automotive, and oilfield services through its diverse portfolio of performance polymers, surfactants, and color pigments. The company operates manufacturing facilities across the Americas, Europe, and Asia, delivering high-value ingredients for industries requiring specific aesthetic or functional properties. While revenue has stabilized around $5.7B, recent annual results show a net loss driven by elevated operating expenses and significant non-cash adjustments to accumulated other comprehensive income.
Analysis
Management Discussion
Management must address a challenging operational reality where operating expenses of $882M significantly outpaced gross profit generation, resulting in an operating loss of $131M and a net loss of $227M for the latest fiscal year. Despite generating strong positive cash flow from operations of $289M, substantial capital expenditures of $173M and significant debt repayments pressured liquidity and contributed to a decline in total shareholder equity. The company continues to navigate a complex macroeconomic environment that has compressed margins while maintaining revenue near historical lows compared to the 2022 peak.
Industry Overview
The specialty chemicals industry is characterized by high barriers to entry, intense competition between established players and emerging innovators, and significant sensitivity to global economic cycles. Demand for Huntsman's products is tightly correlated with residential and commercial construction activity as well as consumer spending on paints, plastics, and personal care goods. Recent macroeconomic headwinds have led to volume compression and margin pressure across the sector, forcing companies to prioritize cost efficiency and operational flexibility.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $8.02B | $6.11B | $6.04B | $5.68B |
| Cost of Revenue | $6.48B | $5.21B | $5.17B | $4.93B |
| Gross Profit | $1.55B | $906.0M | $866.0M | $751.0M |
| Operating Expenses | $874.0M | $822.0M | $891.0M | $882.0M |
| Operating Income | $672.0M | $84.0M | $-25.0M | $-131.0M |
| R&D | $125.0M | $115.0M | $121.0M | $120.0M |
| G&A | $711.0M | $689.0M | $671.0M | $670.0M |
| Stock-Based Comp | $29.0M | $28.0M | $30.0M | $31.0M |
| D&A | $281.0M | $278.0M | $289.0M | $287.0M |
| Depreciation | $233.0M | $231.0M | $238.0M | $238.0M |
| Amortization | $40.0M | $40.0M | $40.0M | $40.0M |
| Other OpEx | $38.0M | $18.0M | $99.0M | $92.0M |
| Non-Operating Income | $25.0M | $15.0M | $-14.0M | $-61.0M |
| Pre-Tax Income | $697.0M | $99.0M | $-39.0M | $-192.0M |
| Income Tax | $186.0M | $64.0M | $61.0M | $26.0M |
| Continuing Ops | $511.0M | $35.0M | $-100.0M | $-218.0M |
| Discontinued Ops | $12.0M | $118.0M | $-27.0M | $-9.0M |
| Net Income | $523.0M | $153.0M | $-127.0M | $-227.0M |
| Minority Interest | $63.0M | $52.0M | $62.0M | $57.0M |
| Net to Common | $460.0M | $101.0M | $-189.0M | $-284.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $3.15B | $2.31B | $2.12B | $2.06B |
| Cash & Equivalents | $654.0M | $540.0M | $340.0M | $429.0M |
| Inventory | $995.0M | $867.0M | $917.0M | $818.0M |
| Other Current Assets | $1.50B | $907.0M | $868.0M | $817.0M |
| Long-Term Assets | $5.08B | $4.93B | $4.99B | $4.95B |
| PP&E (Net) | $2.38B | $2.38B | $2.49B | $2.49B |
| Intangibles | $425.0M | $387.0M | $344.0M | $308.0M |
| Goodwill | $641.0M | $644.0M | $633.0M | $630.0M |
| Operating Leases | $374.0M | $366.0M | $382.0M | $365.0M |
| Other LT Assets | $833.0M | $723.0M | $791.0M | $853.0M |
| Total Assets | $8.22B | $7.25B | $7.11B | $7.01B |
| Current Liabilities | $1.70B | $1.17B | $1.56B | $1.59B |
| Accounts Payable | $907.0M | — | — | — |
| Current Debt | $66.0M | $12.0M | $325.0M | $353.0M |
| Current Leases | $51.0M | $46.0M | $54.0M | $57.0M |
| Taxes Payable | $68.0M | $67.0M | $78.0M | $32.0M |
| Other Current Liab | $180.0M | $652.0M | $692.0M | $689.0M |
| Long-Term Liabilities | $2.68B | $2.60B | $2.39B | $2.47B |
| Long-Term Debt | $1.67B | $1.68B | $1.51B | $1.66B |
| LT Operating Leases | $336.0M | $334.0M | $348.0M | $333.0M |
| Other LT Liab | $672.0M | $588.0M | $528.0M | $478.0M |
| Total Liabilities | $4.38B | $3.77B | $3.95B | $4.06B |
| Shareholders' Equity | $3.84B | $3.48B | $3.16B | $2.96B |
| Paid-In Capital | $4.16B | $4.20B | $4.23B | $4.26B |
| Retained Earnings | $2.71B | $2.62B | $2.25B | $1.81B |
| AOCI | $-1.27B | $-1.25B | $-1.20B | $-1.01B |
| Total L&E | $8.22B | $7.25B | $7.11B | $7.01B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $523.0M | $153.0M | $-127.0M | $-227.0M |
| Non-Cash Adjustments | $876.0M | $851.0M | $30.0M | $754.0M |
| Working Capital Changes | $-485.0M | $-795.0M | $360.0M | $-238.0M |
| Cash from Operations | $914.0M | $209.0M | $263.0M | $289.0M |
| Capital Expenditures | $272.0M | $230.0M | $184.0M | $173.0M |
| Cash from Investing | $-279.0M | $305.0M | $-126.0M | $-132.0M |
| Debt Issuances | $0 | $0 | $349.0M | $0 |
| Debt Repayments | $12.0M | $11.0M | $13.0M | $328.0M |
| Share Buybacks | $1.00B | $349.0M | $4.0M | $0 |
| Dividends Paid | $171.0M | $169.0M | $174.0M | $146.0M |
| Cash from Financing | $-994.0M | $-620.0M | $-326.0M | $-76.0M |
| FX Effect | $-28.0M | $-8.0M | $-11.0M | $8.0M |
| Net Change in Cash | $-387.0M | $-114.0M | $-200.0M | $89.0M |
| Beginning Cash | $1.04B | $654.0M | $540.0M | $340.0M |
| Ending Cash | $654.0M | $540.0M | $340.0M | $429.0M |
Frequently Asked Questions
How does Huntsman CORP make money?
The company's revenue is generated through multiple distinct lines including performance polymers for construction and coatings, surfactants for personal care and industrial cleaning, color pigments for plastics and paints, and oilfield chemicals for energy sector applications.
What are the main risks for HUN?
The company faces significant exposure to cyclical fluctuations in the construction and automotive industries which are primary drivers of demand for its performance polymers and pigments. Elevated operating costs and legacy liabilities are contributing to recent net losses, raising concerns about the sustainability of current profitability levels without a turnaround in margins. The balance sheet carries substantial long-term debt obligations that could constrain financial flexibility during periods of tighter credit or rising interest rates.
What is HUN's competitive advantage?
Huntsman leverages a unique portfolio of proprietary technologies that offer customers specific functional benefits not easily replicated by commodity producers. The company benefits from an integrated global manufacturing footprint that provides supply chain resilience and localized service capabilities in key end-market regions. Its focus on high-value specialty ingredients allows for better pricing power compared to low-margin bulk chemical competitors.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.