Bite the Bullet: Olin (OLN) and Huntsman (HUN)

Research evidence excerpt

Bite the Bullet: Olin (OLN) and Huntsman (HUN)

Barclays | Olin (OLN) and Huntsman (HUN)

Huntsman (HUN) 2Q26 Earnings Review

Huntsman reported 2Q26 results modestly ahead of consensus, with adjusted EBITDA of

$120mn (vs. $117mn consensus) on revenue of $1.66bn (vs. $1.59bn consensus). Performance

was driven by higher volumes and pricing across all three segments, with management noting

that price increases more than offset higher raw material costs during the quarter.

Polyurethanes, Performance Products and Advanced Materials all saw both volume and pricing

improvement y/y, with Advanced Materials benefiting from continued strength in aerospace,

power and automotive end markets. Free cash flow usage was $90mn, reflecting a $120mn

working capital build tied to higher raw material costs and inflationary pressures, though

liquidity remained solid at ~$0.9bn.

Management guided 3Q26 adjusted EBITDA to $100-130mn (vs. a $119mn consensus midpoint),

implying results broadly in line with expectations. The company expects improved industrial

demand and higher volumes y/y, while construction end markets remain weak. Huntsman also

highlighted ongoing raw material volatility, including higher benzene and European natural gas

costs following the resumption of Middle East hostilities, although announced price increases

and continued realization of cost savings should help offset these pressures. Management

reiterated that y/y growth in aerospace and power markets remains intact.

Summary of Ratings

Bloomberg U.S. High Yield 2% Issuer Capped Credit Index

Old New

U.S. HY Chemicals Underweight Underweight

OLN 5 02/01/30 Market Weight Market Weight

OLN 5 5/8 08/01/29 Market Weight Market Weight

OLN 6 5/8 04/01/33 Market Weight Market Weight

Source: Barclays Research

31 July 2026 4