Huntsman (HUN.N): MDI Strength Continues to Drive Upside to 2Q

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Huntsman (HUN.N): MDI Strength Continues to Drive Upside to 2Q

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22 Jun 2026 20:54:02 ET │ 11 pages

Huntsman (HUN.N)

MDI Strength Continues to Drive Upside to 2Q

CITI’S TAKE

We are renewing our estimates ahead of 2Q earnings to reflect: 1) Modestly

Rating Suspended higher PU earnings driven by stronger MDI prices across NA and Europe,

Price (22 Jun 26 16:00) US$11.50 and modest seasonal volume growth. 2) We also note the NA MDI supply

landscape has tightened, following Covestro’s Baytown FM announced in Target price -

early June, due to CO supply issues, along with HUN Geismar planned from -

maintenance during May-June. Given these outages, we expect MDI Expected share price return -

pricing commentary to remain favorable through 3Q. That said, we note Expected dividend yield -

continued soft residential construction demand environment and higher Expected total return -

benzene costs partially offsetting pricing gains. 3) AM should see more Market Cap US$2,017M

favorable tailwind driven by aerospace/power-led recovery. Assuming

lower energy prices as ME conflict uncertainty eases, we see strong aero

demand backdrop continuing in the near-term. HUN announced a MoE

with OLN, with HUN owning 45.5% of the combined company, the deal is Patrick CunninghamAC

expected to close by 1H27, pending regulatory and shareholder approvals. +1-212-816-6684

patrick.cunningham@citi.com

Model Updates — We renew our 2Q EBITDA estimate at $131mm driven by higher MDI Alexander Yi

pricing and modest seasonal volume growth, along with continued strength in aero +1-212-816-4220

and power markets in AM. More importantly, with MDI supply landscape tighter, we alexander.yi@citi.com

expect 3Q to see similarly strong PU margins driven by NA pricing actions. As such,