Huntsman's Earnings In Line, Revenues Lag Estimates in Q1

Huntsman Corporation’s HUN first-quarter 2025 loss (as reported) was 3 cents per share, narrower than the year-ago loss of 22 cents per share.  

Barring one-time items, adjusted loss per share was 11 cents, compared with a loss of 6 cents in the year-ago quarter. It was in line with the Zacks Consensus Estimate.

Revenues were $1,410 million, down around 4% year over year. The top line missed the Zacks Consensus Estimate of $1,479.2 million.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Huntsman Corporation Price, Consensus and EPS Surprise

Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote

HUN’s Segment Highlights

Polyurethanes: Revenues from the segment fell 2% year over year to $912 million. The figure missed our estimate of $983.9 million. The downside was due to lower average selling prices, partly offset by higher sales volumes. Prices fell mainly due to unfavorable sales mix, while volumes rose on the back of improved demand and share gains in certain markets.  

Performance Products: Revenues moved down 12% to $257 million, which was below our estimate of $288.2 million. The decrease was mainly caused by lower sales volumes, which were partly offset by a favorable sales mix. Sales volumes fell primarily owing to reduced customer demand and unplanned production outages at the Moers, Germany, facility. 

Advanced Materials: Revenues from the unit decreased 5% to $249 million but fell short of our estimate of $250.6 million. Sales declined due to lower average selling prices, which fell mainly due to unfavorable sales mix and negative foreign currency swings. 

HUN’s Financials

Free cash flow from continuing operations was a use of $107 million as compared to a use of $105 million in the prior-year quarter. The company had around $1.3 billion combined cash and unused borrowing capacity as of March 31, 2025.

The company spent $36 million on capital expenditures from continuing operations compared with $42 million in the prior-year quarter.

Net cash used in operating activities from continuing operations was $71 million in the reported quarter.

HUN’s Outlook

Moving ahead, HUN noted that order patterns in many of its key markets, including construction, transportation, and other industrial-related markets, are being pressured by low visibility and customer uncertainty regarding demand trends. The cautious customer order patterns are impacting the seasonal volume improvement in its markets. While HUN is optimistic about an improvement in demand conditions, it remains focused on cost actions, which include workforce reductions as well as asset optimization in both Europe and North America. 

In 2025, Huntsman expects capital expenditures to be between $180 million and $190 million. 

HUN’s Stock Price Performance

Shares of Huntsman have lost 53.1% in the past year compared with the Zacks Chemicals Diversified industry’s 25.5% decline.

HUN’s Zacks Rank & Other Key Picks

HUN currently carries a Zacks Rank #5 (Strong Sell).

Better-ranked stocks in the Basic Materials space are Hawkins, Inc. HWKN, Coeur Mining, Inc. CDE and Franco-Nevada Corporation FNV. While HWKN carries a Zacks Rank #1 (Strong Buy), CDE and FNV carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is scheduled to report fiscal fourth-quarter results on May 14. The consensus estimate for Hawkins’ fourth-quarter earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

Coeur Mining is slated to release first-quarter results on May 7. The consensus estimate for CDE's first-quarter earnings is pegged at 2 cents. CDE has a trailing four-quarter earnings surprise of 27.9%, on average.  

Franco-Nevada is slated to release first-quarter results on May 8. The consensus estimate for FNV’s first-quarter earnings is pegged at $1. The Zacks Consensus Estimate for first-quarter earnings has been going up over the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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