Huntsman (HUN) Financials

Huntsman’s Q2 2026 results show a meaningful improvement in operating performance, but cash generation and shareholder profitability remain weak. Revenue increased to $1.66 billion from $1.46 billion in Q2 2025, a 14% year-over-year gain and a 17% improvement from Q1 2026. Gross profit rose 35% year over year to $245 million, lifting the gross margin to approximately 14.7% from 12.5%.

• Operating performance improved substantially. Huntsman generated $37 million of operating income in Q2 2026, compared with a $120 million operating loss in the restated Q2 2025 period and a $16 million loss in Q1 2026.
• Revenue trends have begun to recover. Quarterly revenue rose from approximately $1.40 billion in Q4 2023 and $1.41 billion in Q1 2025 to $1.66 billion in Q2 2026. Although still below the $2.01 billion reported in Q3 2022, the latest sequential and year-over-year gains suggest improving demand or pricing conditions.
• Gross margins are moving in the right direction. Gross profit increased to $245 million in Q2 2026 from $182 million in Q2 2025, while selling, general and administrative expense rose at a slower rate than revenue.
• Inventory levels have improved from the prior year. Net inventory declined to $1.87 billion at June 30, 2026, from $2.06 billion at March 31, 2025, which could reduce working-capital pressure if demand continues to improve.
• Liquidity remains adequate on a current-ratio basis. Huntsman reported $4.56 billion of current assets and $3.44 billion of current liabilities, producing a current ratio of roughly 1.3. Cash and equivalents stood at $692 million.
• The company returned to near break-even profitability at the consolidated level. Consolidated net income was $7 million in Q2 2026, versus a $145 million loss in Q2 2025. However, $13 million of earnings was attributable to noncontrolling interests, leaving common shareholders with a $6 million loss, or negative $0.03 per share.
• Restructuring charges have declined from the 2025 peak. The Q2 2026 restructuring charge was $9 million, compared with $124 million in Q2 2025. Continued restructuring could eventually improve efficiency, but it also indicates that the business is still undergoing adjustment.
• Operating cash flow deteriorated sharply. Huntsman used $60 million of cash in operating activities during Q2 2026, compared with $91 million of cash generated in Q2 2025 and $200 million in Q3 2025. The latest result included a $165 million use of cash from changes in operating assets and liabilities.
• Cash balances have declined while debt has increased. Cash fell from $936 million in Q3 2025 and $798 million in Q2 2025 to $692 million in Q2 2026. Total short- and long-term debt rose to approximately $4.17 billion from $4.07 billion a year earlier, leaving roughly $3.48 billion of net debt.
• Common-equity earnings remain negative despite the operating recovery. Common shareholders have reported losses in each of the first two quarters of 2026, while the company also paid $44 million in dividends and $7 million toward debt repayment in Q2. Sustained negative free cash flow could make the dividend and other capital returns more difficult to maintain.

Across the broader period, Huntsman’s statements show a cyclical business recovering from the severe downturn evident in 2024 and early 2025. Revenue and margins have improved in 2026, and losses have narrowed considerably. Nevertheless, the company has not yet demonstrated consistent earnings or operating cash flow, and the balance sheet remains leveraged. Investors should focus on whether the recent revenue recovery converts into positive cash flow and earnings attributable to common shareholders in the next several quarters.