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HUN Q3 Earnings Miss Estimates, Sales Beat on Higher Prices
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Key Takeaways
HUN's Q3 adjusted EPS of 4 cents missed estimates, while revenues rose 17.6% to $1.717 billion.
Polyurethanes and Advanced Materials drove growth, with adjusted EBITDA rising 56% and 41%, respectively.
Huntsman's merger with Olin is progressing, with closing expected in Q1 2027.
Huntsman Corporation (HUN - Free Report) reported third-quarter 2026 adjusted earnings of 4 cents per share. This compares with a loss of 3 cents in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of 7 cents per share by 42.9%.
On a reported basis, the company posted a loss of 10 cents per share, narrower than the year-ago loss of 14 cents.
Revenues rose 17.6% year over year to $1.72 billion, surpassing the Zacks Consensus Estimate of $1.6 billion by 7.2%. Higher selling prices, improved sales volumes and cost savings supported results. Adjusted EBITDA increased 40.4% year over year to $132 million.
Huntsman Corporation Price, Consensus and EPS Surprise
Revenues from the Polyurethanes segment increased 21% year over year to $1,152 million from $956 million in the prior-year quarter. The improvement was primarily driven by higher average selling prices and increased sales volumes. Local-currency selling prices and mix improved 19%, while sales volumes rose 2%.
MDI average selling prices increased across the Americas, Europe and Asia, supported by improved supply-demand dynamics and higher raw material costs. Sales volumes increased in the Americas and Europe, reflecting stronger demand conditions in these regions.
Segment adjusted EBITDA rose 56% year over year to $75 million from $48 million. The improvement reflected higher selling prices, increased volumes, stronger equity earnings from the company's minority-owned joint venture in China and savings from its cost-optimization program. Higher raw material costs partly offset these gains.
Huntsman's Performance Products Benefits From Pricing
Performance Products revenues increased 6% year over year to $260 million from $246 million. The increase was primarily attributable to higher average selling prices, while overall sales volumes remained relatively unchanged. Local-currency selling prices and mix improved 7%, offsetting a 1% decline in sales volumes.
Higher selling prices reflected increased raw material and logistics costs, along with a favorable sales mix. These pricing actions supported the segment's performance despite the modest decline in volumes.
Segment adjusted EBITDA increased 7% year over year to $31 million from $29 million. The improvement was primarily driven by higher average selling prices and improved margins, which supported profitability during the quarter.
HUN's Advanced Materials Gains From Stronger Volumes
Advanced Materials revenues climbed 18% year over year to $314 million from $265 million. The improvement reflected higher sales volumes and average selling prices. Sales volumes increased 12%, while local-currency selling prices and mix improved 6%.
Volume growth was primarily driven by stronger demand across the aerospace, automotive and power markets. Higher average selling prices also contributed to the segment's revenue growth, benefiting from a favorable product sales mix.
Segment-adjusted EBITDA surged 41% year over year to $62 million from $44 million. The improvement was primarily attributable to increased sales volumes, reflecting stronger activity across the segment's key end markets.
Free cash flow from continuing operations totaled $82 million compared with $157 million in the year-ago quarter. Net cash provided by operating activities from continuing operations was $115 million, down from $200 million a year earlier.
Capital expenditures declined to $33 million from $43 million. Huntsman ended the third quarter with $359 million in cash, while total debt excluding affiliates stood at $2,043 million. Net debt excluding affiliates was $1,684 million compared with $1,582 million at the end of 2025.
The company had approximately $0.9 billion in combined cash and unused borrowing capacity as of Sept. 30, 2026, providing liquidity to support its operations and financial commitments.
Huntsman's Merger Advances as Management Eyes Recovery
Huntsman expects capital expenditures of approximately $160 million for 2026. Management anticipates improved earnings and cash flow to reduce net debt leverage to approximately four times by year-end, supported by higher volumes, cost reductions and disciplined execution.
The planned merger of equals with Olin Corporation continues to progress. Huntsman's shareholders approved the transaction on Aug. 25, 2026, while regulatory clearance was obtained in several jurisdictions, including the United States in September. Management now expects the transaction to close in the first quarter of 2027, subject to remaining regulatory approvals.
HUN’s Price Performance
HUN’s shares have increased 14% over a year compared with the 18.4% growth recorded by the Zacks Chemicals Diversified industry.
Image Source: Zacks Investment Research
HUN’s Zacks Rank & Key Picks
HUN currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include OR Royalties Inc. (OR - Free Report) , GrowGeneration Corp. (GRWG - Free Report) and NioCorp Developments Ltd. (NB - Free Report) .
OR Royalties is expected to report third-quarter results on Nov. 11. The Zacks Consensus Estimate for earnings is pegged at 27 cents per share. OR carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GrowGeneration is scheduled to report third-quarter results on Nov. 10. The consensus estimate for GRWG’s earnings is pegged at a penny per share. GRWG currently carries a Zacks Rank #2.
NioCorp is slated to report quarterly results on Nov. 16. The Zacks Consensus Estimate for NB’s earnings is pegged at a loss of 3 cents. NB sports a Zacks Rank #2 at present.
View the Zacks #1 Rank List
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HUN Q3 Earnings Miss Estimates, Sales Beat on Higher Prices
Key Takeaways
Huntsman Corporation (HUN - Free Report) reported third-quarter 2026 adjusted earnings of 4 cents per share. This compares with a loss of 3 cents in the year-ago quarter. Earnings missed the Zacks Consensus Estimate of 7 cents per share by 42.9%.
On a reported basis, the company posted a loss of 10 cents per share, narrower than the year-ago loss of 14 cents.
Revenues rose 17.6% year over year to $1.72 billion, surpassing the Zacks Consensus Estimate of $1.6 billion by 7.2%. Higher selling prices, improved sales volumes and cost savings supported results. Adjusted EBITDA increased 40.4% year over year to $132 million.
Huntsman Corporation Price, Consensus and EPS Surprise
Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote
HUN's Polyurethanes Sales Rise on Higher Prices
Revenues from the Polyurethanes segment increased 21% year over year to $1,152 million from $956 million in the prior-year quarter. The improvement was primarily driven by higher average selling prices and increased sales volumes. Local-currency selling prices and mix improved 19%, while sales volumes rose 2%.
MDI average selling prices increased across the Americas, Europe and Asia, supported by improved supply-demand dynamics and higher raw material costs. Sales volumes increased in the Americas and Europe, reflecting stronger demand conditions in these regions.
Segment adjusted EBITDA rose 56% year over year to $75 million from $48 million. The improvement reflected higher selling prices, increased volumes, stronger equity earnings from the company's minority-owned joint venture in China and savings from its cost-optimization program. Higher raw material costs partly offset these gains.
Huntsman's Performance Products Benefits From Pricing
Performance Products revenues increased 6% year over year to $260 million from $246 million. The increase was primarily attributable to higher average selling prices, while overall sales volumes remained relatively unchanged. Local-currency selling prices and mix improved 7%, offsetting a 1% decline in sales volumes.
Higher selling prices reflected increased raw material and logistics costs, along with a favorable sales mix. These pricing actions supported the segment's performance despite the modest decline in volumes.
Segment adjusted EBITDA increased 7% year over year to $31 million from $29 million. The improvement was primarily driven by higher average selling prices and improved margins, which supported profitability during the quarter.
HUN's Advanced Materials Gains From Stronger Volumes
Advanced Materials revenues climbed 18% year over year to $314 million from $265 million. The improvement reflected higher sales volumes and average selling prices. Sales volumes increased 12%, while local-currency selling prices and mix improved 6%.
Volume growth was primarily driven by stronger demand across the aerospace, automotive and power markets. Higher average selling prices also contributed to the segment's revenue growth, benefiting from a favorable product sales mix.
Segment-adjusted EBITDA surged 41% year over year to $62 million from $44 million. The improvement was primarily attributable to increased sales volumes, reflecting stronger activity across the segment's key end markets.
HUN's Cash Flow Declines Despite Improved Earnings
Free cash flow from continuing operations totaled $82 million compared with $157 million in the year-ago quarter. Net cash provided by operating activities from continuing operations was $115 million, down from $200 million a year earlier.
Capital expenditures declined to $33 million from $43 million. Huntsman ended the third quarter with $359 million in cash, while total debt excluding affiliates stood at $2,043 million. Net debt excluding affiliates was $1,684 million compared with $1,582 million at the end of 2025.
The company had approximately $0.9 billion in combined cash and unused borrowing capacity as of Sept. 30, 2026, providing liquidity to support its operations and financial commitments.
Huntsman's Merger Advances as Management Eyes Recovery
Huntsman expects capital expenditures of approximately $160 million for 2026. Management anticipates improved earnings and cash flow to reduce net debt leverage to approximately four times by year-end, supported by higher volumes, cost reductions and disciplined execution.
The planned merger of equals with Olin Corporation continues to progress. Huntsman's shareholders approved the transaction on Aug. 25, 2026, while regulatory clearance was obtained in several jurisdictions, including the United States in September. Management now expects the transaction to close in the first quarter of 2027, subject to remaining regulatory approvals.
HUN’s Price Performance
HUN’s shares have increased 14% over a year compared with the 18.4% growth recorded by the Zacks Chemicals Diversified industry.
Image Source: Zacks Investment Research
HUN’s Zacks Rank & Key Picks
HUN currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include OR Royalties Inc. (OR - Free Report) , GrowGeneration Corp. (GRWG - Free Report) and NioCorp Developments Ltd. (NB - Free Report) .
OR Royalties is expected to report third-quarter results on Nov. 11. The Zacks Consensus Estimate for earnings is pegged at 27 cents per share. OR carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GrowGeneration is scheduled to report third-quarter results on Nov. 10. The consensus estimate for GRWG’s earnings is pegged at a penny per share. GRWG currently carries a Zacks Rank #2.
NioCorp is slated to report quarterly results on Nov. 16. The Zacks Consensus Estimate for NB’s earnings is pegged at a loss of 3 cents. NB sports a Zacks Rank #2 at present.