Huntsman (HUN.N): A Good Quarter, But 3Q Outlook Modestly Below Expectations

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Huntsman (HUN.N): A Good Quarter, But 3Q Outlook Modestly Below Expectations

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30 Jul 2026 18:35:27 ET │ 12 pages

Huntsman (HUN.N)

A Good Quarter, But 3Q Outlook Modestly Below Expectations

CITI'S TAKE

Rating Suspended HUN reported adj. EBITDA of $120mm against our $131mm and

consensus (FactSet) of $117mm. PU fell short against our expectations Price (30 Jul 26 16:00) US$12.07

as volumes saw growth in Americas and Europe, while Asia was lower. Target price -

While NA demand was relatively stable, and Europe subdued, Asia saw Expected share price return -

headwinds in insulation and automotive markets. In AM, volumes Expected dividend yield -

increased 8%, mostly driven by strength in aerospace, with some degree of Expected total return -

pull-forward demand as customers looked to secure supply. Power

Market Cap US$2,117M segment also saw DD revenue growth, given steady demand in power

generation and grid infrastructure. PP was modestly above our

expectations, given higher volumes from supplier outages in maleic

anhydride and lower Chinese imports into Western markets, along with Patrick CunninghamAC

fixed cost savings from restructuring actions. Overall, 3Q26 midpoint +1-212-816-6684

EBITDA guide of $115mm is a bit soft against the $120mm consensus, patrick.cunningham@citi.com

although a modest degree of conservatism is likely assumed as well.

Segment Analysis — Polyurethanes sales increased 16% Y/Y to $1,079mm (vs our

$1,128mm estimate), driven by higher prices (10%), higher volumes (+4%) and FX

tailwind (+2%). Segment EBITDA of $66mm (vs our $79mm estimate) increased

113% Y/Y. Higher segment EBITDA was primarily due to higher volumes in Americas,

and to a lesser extent, Europe, partly offset by lower volumes in Asia. Performance