# Huntsman CORP: Form 10-Q for the period ended Mar 31, 2025

- Company: [Huntsman CORP](/companies/hun.md) (CIK 1307954)
- Form: 10-Q
- Filed: 2025-05-02
- Accepted by EDGAR: May 2, 2025, 12:26 ET
- Period: 2025-03-31
- Accession: 0001437749-25-014251
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1307954/000143774925014251/hun20250331_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1307954/000143774925014251/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-03-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-01-01 to 2025-03-31 | $1.41bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-01-01 to 2025-03-31 | $1.21bn | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2025-01-01 to 2025-03-31 | $201.0m | us-gaap:GrossProfit |
| Research and development | 3 months, 2025-01-01 to 2025-03-31 | $32.0m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months, 2025-01-01 to 2025-03-31 | $166.0m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-01-01 to 2025-03-31 | $42.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months, 2025-01-01 to 2025-03-31 | $15.0m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-01-01 to 2025-03-31 | −$5.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.03 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-01-01 to 2025-03-31 | −$0.03 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-01-01 to 2025-03-31 | 172,400,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months, 2025-01-01 to 2025-03-31 | −$74.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months, 2025-01-01 to 2025-03-31 | $36.0m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months, 2025-01-01 to 2025-03-31 | $44.0m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 3 months, 2025-01-01 to 2025-03-31 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-03-31 | $334.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-03-31 | $2.29bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-03-31 | $7.23bn | us-gaap:Assets |
| Current liabilities | at 2025-03-31 | $1.54bn | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-03-31 | $4.06bn | us-gaap:Liabilities |
| Long-term debt | at 2025-03-31 | $1.67bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-03-31 | $284.0m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-03-31 | $2.95bn | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 34,146 characters.

### Results of Operations

As discussed in “Note 4. Discontinued Operations—Sale of Textile Effects Business” to our condensed consolidated financial statements, the results from continuing operations primarily exclude the results of our Textile Effects Business for all periods presented. For each of our Company and Huntsman International, the following tables set forth the condensed consolidated results of operations (dollars in millions, except per share amounts):

### Huntsman Corporation

|  | Three months ended March 31, 2025 | 2024 | Percent change |
| --- | ---: | ---: | ---: |
| **Revenues** | $1,410 | $1,470 | (4)% |
| **Cost of goods sold** | 1,209 | 1,269 | (5)% |
| **Gross profit** | 201 | 201 | — |
| Operating expenses, net | 196 | 209 | (6)% |
| Restructuring, impairment and plant closing costs | 1 | 11 | (91)% |
| Gain on acquisition of assets, net | (5) | (52) | (90)% |
| Prepaid asset write-off | — | 71 | (100)% |
| Income associated with litigation matter, net | (33) | — | NM |
| **Operating income (loss)** | 42 | (38) | NM |
| Interest expense, net | (19) | (19) | — |
| Equity in income of investment in unconsolidated affiliates | 1 | 19 | (95)% |
| Other income, net | 3 | 2 | 50% |
| **Income (loss) from continuing operations before income taxes** | 27 | (36) | NM |
| Income tax (expense) benefit | (15) | 20 | NM |
| **Income (loss) from continuing operations** | 12 | (16) | NM |
| Loss from discontinued operations, net of tax | (1) | (7) | (86)% |
| **Net income (loss)** | 11 | (23) | NM |
| **Reconciliation of net income (loss) to adjusted EBITDA(1):** |  |  |  |
| Net income attributable to noncontrolling interests | (16) | (14) | 14% |
| Interest expense, net from continuing operations | 19 | 19 | — |
| Income tax expense (benefit) from continuing operations | 15 | (20) | NM |
| Income tax benefit from discontinued operations | — | (1) | (100)% |
| Depreciation and amortization from continuing operations | 69 | 69 | — |
| Other adjustments: |  |  |  |
| Business acquisition and integration (gain) expenses and purchase accounting inventory adjustments, net | (5) | 20 |  |
| EBITDA from discontinued operations(2) | 1 | 8 |  |
| Certain legal and other settlements and related (income) expenses | (33) | 1 |  |
| Amortization of pension and postretirement actuarial losses | 7 | 8 |  |
| Restructuring, impairment and plant closing and transition costs(3) | 4 | 14 |  |
| **Adjusted EBITDA(1)** | $72 | $81 | (11)% |
| Net cash used in operating activities from continuing operations | $(71) | $(63) | 13% |
| Net cash provided by (used in) investing activities | 6 | (30) | NM |
| Net cash provided by financing activities | 60 | 108 | (44)% |
| Capital expenditures from continuing operations | (36) | (42) | (14)% |
| **Amounts attributable to Huntsman Corporation:** |  |  |  |
| Loss from continuing operations | $(4) | $(30) |  |
| Loss from discontinued operations, net of tax | (1) | (7) |  |
| **Net loss** | $(5) | $(37) |  |

35

### Huntsman International

|  | Three months ended March 31, 2025 | 2024 | Percent change |
| --- | ---: | ---: | ---: |
| **Revenues** | $1,410 | $1,470 | (4)% |
| **Cost of goods sold** | 1,209 | 1,269 | (5)% |
| **Gross profit** | 201 | 201 | — |
| Operating expenses, net | 194 | 207 | (6)% |
| Restructuring, impairment and plant closing costs | 1 | 11 | (91)% |
| Gain on acquisition of assets, net | (5) | (52) | (90)% |
| Prepaid asset write-off | — | 71 | (100)% |
| Income associated with litigation matter, net | (33) | — | NM |
| **Operating income (loss)** | 44 | (36) | NM |
| Interest expense, net | (19) | (19) | — |
| Equity in income of investment in unconsolidated affiliates | 1 | 19 | (95)% |
| Other income, net | 3 | 2 | 50% |
| **Income (loss) from continuing operations before income taxes** | 29 | (34) | NM |
| Income tax (expense) benefit | (17) | 20 | NM |
| **Income (loss) from continuing operations** | 12 | (14) | NM |
| Loss from discontinued operations, net of tax | (1) | (7) | (86)% |
| **Net income (loss)** | 11 | (21) | NM |
| **Reconciliation of net income (loss) to adjusted EBITDA(1):** |  |  |  |
| Net income attributable to noncontrolling interests | (16) | (14) | 14% |
| Interest expense, net from continuing operations | 19 | 19 | — |
| Income tax expense (benefit) from continuing operations | 17 | (20) | NM |
| Income tax benefit from discontinued operations | — | (1) | (100)% |
| Depreciation and amortization from continuing operations | 69 | 69 | — |
| Other adjustments: |  |  |  |
| Business acquisition and integration (gain) expenses and purchase accounting inventory adjustments, net | (5) | 20 |  |
| EBITDA from discontinued operations(2) | 1 | 8 |  |
| Certain legal and other settlements and related (income) expenses | (33) | 1 |  |
| Amortization of pension and postretirement actuarial losses | 7 | 8 |  |
| Restructuring, impairment and plant closing and transition costs(3) | 4 | 14 |  |
| **Adjusted EBITDA(1)** | $74 | $83 | (11)% |
| Net cash used in operating activities from continuing operations | $(70) | $(62) | 13% |
| Net cash provided by (used in) investing activities | 1 | (39) | NM |
| Net cash provided by financing activities | 64 | 116 | (45)% |
| Capital expenditures from continuing operations | (36) | (42) | (14)% |
| **Amounts attributable to Huntsman International:** |  |  |  |
| Loss from continuing operations | $(4) | $(28) |  |
| Loss from discontinued operations, net of tax | (1) | (7) |  |
| **Net loss** | $(5) | $(35) |  |

36

### Huntsman Corporation

| Reconciliation of net income (loss) to adjusted net loss(1): | Three months ended March 31, 2025 Gross | Tax and other(4) | Net | Three months ended March 31, 2024 Gross | Tax and other(4) | Net |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Net income (loss) |  |  | $11 |  |  | $(23) |
| Net income attributable to noncontrolling interests |  |  | (16) |  |  | (14) |
| Business acquisition and integration (gain) expenses and purchase accounting inventory adjustments, net | $(5) | $— | (5) | $20 | $(18) | 2 |
| Loss from discontinued operations(2) | 1 | — | 1 | 8 | (1) | 7 |
| Certain legal and other settlements and related (income) expenses | (33) | 7 | (26) | 1 | — | 1 |
| Amortization of pension and postretirement actuarial losses | 7 | (2) | 5 | 8 | (1) | 7 |
| Establishment of significant deferred tax asset valuation allowances | — | 9 | 9 | — | — | — |
| Restructuring, impairment and plant closing and transition costs(3) | 4 | (2) | 2 | 14 | (5) | 9 |
| **Adjusted net loss(1)** |  |  | $(19) |  |  | $(11) |
| Weighted average shares-basic |  |  | 172.4 |  |  | 171.8 |
| Weighted average shares-diluted |  |  | 172.4 |  |  | 171.8 |
| **Basic net loss attributable to Huntsman Corporation per share:** |  |  |  |  |  |  |
| Loss from continuing operations |  |  | $(0.02) |  |  | $(0.18) |
| Loss from discontinued operations |  |  | (0.01) |  |  | (0.04) |
| **Net loss** |  |  | $(0.03) |  |  | $(0.22) |
| **Diluted net loss attributable to Huntsman Corporation per share:** |  |  |  |  |  |  |
| Loss from continuing operations |  |  | $(0.02) |  |  | $(0.18) |
| Loss from discontinued operations |  |  | (0.01) |  |  | (0.04) |
| **Net loss** |  |  | $(0.03) |  |  | $(0.22) |
| **Other non-GAAP measures:** |  |  |  |  |  |  |
| Diluted adjusted net loss per share(1) |  |  | $(0.11) |  |  | $(0.06) |
| Net cash used in operating activities from continuing operations |  |  | $(71) |  |  | $(63) |
| Capital expenditures from continuing operations |  |  | (36) |  |  | (42) |
| Free cash flow from continuing operations(1) |  |  | $(107) |  |  | $(105) |
| Effective tax rate |  |  | 56% |  |  | 56% |
| Impact of non-GAAP adjustments(5) |  |  | (56)% |  |  | 1% |
| Adjusted effective tax rate |  |  | NM |  |  | 57% |

NM—Not meaningful

(1) See “—Non-GAAP Financial Measures.”

(2) Includes the net loss on the sale of our Textile Effects Business. In addition to income tax impacts, this adjusting item is also impacted by depreciation and amortization expense and interest expense.

(3) Includes costs associated with transition activities relating primarily to our program to realign our cost structure in Europe and our Corporate program to optimize our global approach to managed services in various information technology functions.

(4) The income tax impacts, if any, are computed on the pre-tax adjustments using a with and without approach.

(5) For details regarding the tax impacts of our non-GAAP adjustments, please see the reconciliation of our net income (loss) to adjusted net loss noted above.

37

### Non-GAAP Financial Measures

Our condensed consolidated financial statements are prepared in accordance with GAAP, which we supplement with certain non-GAAP financial information. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and the reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures in their entirety and not to rely on any single financial measure. These non-GAAP measures exclude the impact of certain income and expenses that we do not believe are indicative of our core operating results.

#### Adjusted EBITDA

Our management uses adjusted EBITDA to assess financial performance. Adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration (gain) expenses and purchase accounting inventory adjustments, net; (b) EBITDA from discontinued operations; (c) certain legal and other settlements and related (income) expenses; (d) amortization of pension and postretirement actuarial losses; and (e) restructuring, impairment and plant closing and transition costs. We believe that net income of Huntsman Corporation or Huntsman International, as appropriate, is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted EBITDA.

We believe adjusted EBITDA is useful to investors in assessing the businesses’ ongoing financial performance and provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends. However, this measure should not be considered in isolation or viewed as a substitute for net income of Huntsman Corporation or Huntsman International, as appropriate, or other measures of performance determined in accordance with U.S. GAAP. Moreover, adjusted EBITDA as used herein is not necessarily comparable to other similarly titled measures of other companies due to potential inconsistencies in the methods of calculation. Our management believes this measure is useful to compare general operating performance from period to period and to make certain related management decisions. Adjusted EBITDA is also used by securities analysts, lenders and others in their evaluation of different companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be highly dependent on a company’s capital structure, debt levels and credit ratings. Therefore, the impact of interest expense on earnings can vary significantly among companies. In addition, the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the various jurisdictions in which they operate. As a result, effective tax rates and tax expense can vary considerably among companies. Finally, companies employ productive assets of different ages and utilize different methods of acquiring and depreciating such assets. This can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.

Nevertheless, our management recognizes that there are material limitations associated with the use of adjusted EBITDA in the evaluation of our Company as compared to net income of Huntsman Corporation or Huntsman International, as appropriate, which reflects overall financial performance. For example, we have borrowed money in order to finance our operations and interest expense is a necessary element of our costs and ability to generate revenue. Our management compensates for the limitations of using adjusted EBITDA by using this measure to supplement U.S. GAAP results to provide a more complete understanding of the factors and trends affecting the business rather than U.S. GAAP results alone.

#### Adjusted Net Income

Adjusted net income is computed by eliminating the after-tax amounts related to the following from net income attributable to Huntsman Corporation: (a) business acquisition and integration (gain) expenses and purchase accounting inventory adjustments, net; (b) loss from discontinued operations; (c) certain legal and other settlements and related (income) expenses; (d) amortization of pension and postretirement actuarial losses; (e) establishment of significant deferred tax asset valuation allowances; and (f) restructuring, impairment and plant closing and transition costs. Basic adjusted net income per share excludes dilution and is computed by dividing adjusted net income by the weighted average number of shares outstanding during the period. Adjusted diluted net income per share reflects all potential dilutive common shares outstanding during the period and is computed by dividing adjusted net income by the weighted average number of shares outstanding during the period increased by the number of additional shares that would have been outstanding as dilutive securities. Adjusted net income and adjusted net income per share amounts are presented solely as supplemental information.

We believe adjusted net income is useful to investors in assessing the businesses’ ongoing financial performance and provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends.

#### Free Cash Flow

We believe free cash flow is an important indicator of our liquidity as it measures the amount of cash we generate. Management internally uses a free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt.

#### Adjusted Effective Tax Rate

We believe that the effective tax rate of Huntsman Corporation or Huntsman International, as appropriate, is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. We believe our adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items, such as, business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted, that we believe are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends.

Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ.

### Three Months Ended March 31, 2025 Compared with Three Months Ended March 31, 2024

For the three months ended March 31, 2025, loss from continuing operations attributable to Huntsman Corporation was $4 million, an improvement of $26 million from a loss of $30 million in the 2024 period. For the three months ended March 31, 2025, loss from continuing operations attributable to Huntsman International was $4 million, an improvement of $24 million from a loss of $28 million in the 2024 period. The decreases noted above were the result of the following items:

- Revenues for the three months ended March 31, 2025 decreased by $60 million, or 4%, as compared with the 2024 period. The decrease was primarily due to lower sales volumes in our Performance Products segment and lower average selling prices in our Polyurethanes and Advanced Materials segments. See “—Segment Analysis” below.
- Our operating expenses, net and the operating expenses, net of Huntsman International for the three months ended March 31, 2025 both decreased by $13 million, or 6%, as compared with the 2024 period, primarily related to decreases in selling, general and administrative expenses as well as the positive impact of translating foreign currency amounts to the U.S. dollar.
- Restructuring, impairment and plant closing costs for the three months ended March 31, 2025 decreased by $10 million, or 91%, as compared with the 2024 period. For more information on restructuring activities, see “Note 8. Restructuring, Impairment and Plant Closing Costs” to our condensed consolidated financial statements.
- Gain on acquisition of assets, net was approximately $5 million and $52 million, for three months ended March 31, 2025 and 2024, respectively, representing net gains related to the separation and acquisition of assets of SLIC. For further information, see “Note 3. Business Combinations and Acquisitions—Separation and Acquisition of Assets of SLIC Joint Venture” to our condensed consolidated financial statements.
- Prepaid asset write-off was approximately $71 million for the three months ended March 31, 2024. Concurrent with the acquisition of assets of SLIC, we wrote off certain prepaid assets related to operating agreements with SLIC and other joint venture partners. For further information, see “Note 3. Business Combinations and Acquisitions—Separation and Acquisition of Assets of SLIC Joint Venture” to our condensed consolidated financial statements.
- Income associated with litigation matter, net was approximately $33 million for the three months ended March 31, 2025. For further information, see “Note 16. Commitments and Contingencies—Legal Matters” to our condensed consolidated financial statements.
- Equity in income of investment in unconsolidated affiliates for the three months ended March 31, 2025 decreased to $1 million from $19 million in the 2024 period primarily related to a decrease in income at our PO/MTBE joint venture in China, in which we hold at 49% interest.
- Our income tax expense for the three months ended March 31, 2025 was $15 million as compared with income tax benefit of $20 million in the 2024 period. The income tax expense of Huntsman International for the three months ended March 31, 2025 was $17 million as compared with income tax benefit of $20 million in the 2024 period. The increase in income tax expense was primarily due to our mix of income and losses in the tax jurisdictions in which we operate, as impacted by the presence of valuation allowances in certain tax jurisdictions. In particular, we recognize tax expense in jurisdictions with pre-tax income but do not recognize a tax benefit from pre-tax losses in jurisdictions with valuation allowances. In addition, during the first quarter of 2025, we recorded a discrete tax expense of $8 million resulting from income associated with the Praxair litigation and discrete establishments of valuation allowances of approximately $9 million. During the first quarter of 2024, we recorded a discrete tax benefit of $18 million resulting from the write-off of certain prepaid assets related to operating agreements with SLIC and other joint venture partners concurrent with the separation and acquisition of assets of SLIC. For further information, see “Note 19. Income Taxes” to our condensed consolidated financial statements.

### Segment Analysis

*(Dollars in millions)*

| Revenues | Three months ended March 31, 2025 | 2024 | Percent change (unfavorable) favorable |
| --- | ---: | ---: | ---: |
| Polyurethanes | $912 | $926 | (2)% |
| Performance Products | 257 | 291 | (12)% |
| Advanced Materials | 249 | 261 | (5)% |
| **Total reportable segments’ revenues** | 1,418 | 1,478 | (4)% |
| Intersegment eliminations | (8) | (8) | NM |
| **Total** | $1,410 | $1,470 | (4)% |
| **Huntsman Corporation** |  |  |  |
| **Segment adjusted EBITDA(1)** |  |  |  |
| Polyurethanes | $42 | $39 | 8% |
| Performance Products | 30 | 42 | (29)% |
| Advanced Materials | 36 | 43 | (16)% |
| **Total reportable segments’ adjusted EBITDA** | 108 | 124 | (13)% |
| Corporate and other | (36) | (43) | 16% |
| **Total** | $72 | $81 | (11)% |
| **Huntsman International** |  |  |  |
| **Segment adjusted EBITDA(1)** |  |  |  |
| Polyurethanes | $42 | $39 | 8% |
| Performance Products | 30 | 42 | (29)% |
| Advanced Materials | 36 | 43 | (16)% |
| **Total reportable segments’ adjusted EBITDA** | 108 | 124 | (13)% |
| Corporate and other | (34) | (41) | 17% |
| **Total** | $74 | $83 | (11)% |

NM—Not meaningful

(1) For further information, including reconciliation of total reportable segments’ adjusted EBITDA to income (loss) from continuing operations before income taxes of Huntsman Corporation or Huntsman International, as appropriate, see “Note 21. Operating Segment Information” to our condensed consolidated financial statements.

| Period-over-period (decrease) increase | Three months ended March 31, 2025 vs 2024 Average selling price(1) Local currency and mix | Foreign currency translation impact | Sales volumes(2) |
| --- | ---: | ---: | ---: |
| Polyurethanes | (3)% | (2)% | 3% |
| Performance Products | 5% | (1)% | (16)% |
| Advanced Materials | (4)% | (2)% | 1% |

(1) Excludes revenues from tolling arrangements, byproducts and raw materials.

(2) Excludes sales volumes of byproducts and raw materials.

### Polyurethanes

The decrease in revenues in our Polyurethanes segment for the three months ended March 31, 2025 compared to the same period of 2024 was primarily due to lower average selling prices, partially offset by higher sales volumes. Average selling prices decreased primarily due to unfavorable sales mix. Sales volumes increased primarily due to improved demand and share gains in certain markets. The increase in segment adjusted EBITDA was primarily due to lower raw materials costs, lower fixed costs and higher sales volumes, partially offset by unfavorable sales mix, the negative impact of major foreign currency exchange rate movements against the U.S. dollar and lower equity earnings from our minority-owned joint venture in China.

​***Performance Products***

The decrease in revenues in our Performance Products segment for the three months ended March 31, 2025 compared to the same period of 2024 was primarily due to lower sales volumes, partially offset by favorable sales mix. Sales volumes decreased primarily due to lower customer demand and unplanned production outages at our Moers, Germany facility. The decrease in segment adjusted EBITDA was primarily due to lower sales volumes mainly in Europe, partially offset by favorable sales mix.

### Advanced Materials

The decrease in revenues in our Advanced Materials segment for the three months ended March 31, 2025 compared to the same period of 2024 was primarily due to lower average selling prices. Average selling prices decreased primarily due to unfavorable sales mix and the negative impact of major foreign currency exchange rate movements against the U.S. dollar. Sales volumes remained relatively stable. The decrease in segment adjusted EBITDA was primarily due to lower average selling prices.

### Corporate and other

Corporate and other includes unallocated corporate overhead, unallocated foreign currency exchange gains and losses, LIFO inventory valuation reserve adjustments, loss on early extinguishment of debt, unallocated restructuring, impairment and plant closing costs, nonoperating income and expense and gains and losses on the disposition of corporate assets. For the three months ended March 31, 2025, adjusted EBITDA from Corporate and other for Huntsman Corporation was a loss of $36 million as compared to a loss of $43 million for the same period of 2024. For the three months ended March 31, 2025, adjusted EBITDA from Corporate and other for Huntsman International was a loss of $34 million as compared to a loss of $41 million for the same period of 2024. The increase in adjusted EBITDA from Corporate and other resulted primarily from a decrease in corporate overhead costs and an increase in unallocated foreign currency exchange gains, partially offset by an increase in LIFO valuation losses.

### Liquidity and Capital Resources

The following is a discussion of our liquidity and capital resources and generally does not include separate information with respect to Huntsman International in accordance with General Instructions H(1)(a) and (b) of Form 10-Q.

### Cash Flows for the Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024

Net cash used in operating activities from continuing operations for the three months ended March 31, 2025 and 2024 was $71 million and $63 million, respectively. The increase in net cash used in operating activities from continuing operations was primarily attributable to a net cash outflow of $59 million related to changes in operating assets and liabilities for the three months ended March 31, 2025 as compared with the same period of 2024, partially offset by an increase of $51 million in operating income from continuing operations adjusted for noncash activities as noted in our condensed consolidated statements of cash flows.

Net cash provided by (used in) investing activities for the three months ended March 31, 2025 and 2024 was $6 million and $(30) million, respectively. During the three months ended March 31, 2025 and 2024, we paid $36 million and $42 million for capital expenditures, respectively. During the three months ended March 31, 2025, we received a $41 million final liquidating distribution from SLIC. See “Note 3. Business Combinations and Acquisitions—Separation and Acquisition of Assets of SLIC Joint Venture” to our condensed consolidated financial statements. During the three months ended March 31, 2024, we received $12 million for the sale of businesses, net related to the resolution of net working capital from the sale of our Textile Effects Business. See “Note 4. Discontinued Operations—Sale of Textile Effects Business” to our condensed consolidated financial statements.

Net cash provided by financing activities for the three months ended March 31, 2025 and 2024 was $60 million and $108 million, respectively. During the three months ended March 31, 2025 and 2024, we had net borrowings from our 2022 Revolving Credit Facility and our A/R Programs of $427 million and $191 million, respectively. During the three months ended March 31, 2025, we paid approximately $315 million to satisfy and discharge our obligations under our 2025 Senior Notes. See “Note 9. Debt—Direct and Subsidiary Debt—Senior Notes” to our condensed consolidated financial statements. During the three months ended March 31, 2024, HPS paid approximately $28 million against the note payable with SLIC for the acquisition of assets. See “Note 3. Business Combinations and Acquisitions—Separation and Acquisition of Assets of SLIC Joint Venture” to our condensed consolidated financial statements.

​Free cash flow from continuing operations for the three months ended March 31, 2025 and 2024 was a use of cash of $107 million and $105 million, respectively. The slight decrease in free cash flow from continuing operations was primarily attributable to an increase in cash used in operating activities from continuing operations, partially offset by a decrease in cash used for capital expenditures during the three months ended March 31, 2025 as compared with the same period of 2024.

### Changes in Financial Condition

The following information summarizes our working capital (dollars in millions):

|  | March 31, 2025 | December 31, 2024 | (Decrease) increase | Percent change |
| --- | ---: | ---: | ---: | ---: |
| Cash and cash equivalents | $334 | $340 | $(6) | (2)% |
| Accounts and notes receivable, net | 797 | 725 | 72 | 10% |
| Inventories | 1,030 | 917 | 113 | 12% |
| Prepaid expenses | 95 | 114 | (19) | (17)% |
| Other current assets | 30 | 29 | 1 | 3% |
| **Total current assets** | 2,286 | 2,125 | 161 | 8% |
| Accounts payable | 738 | 770 | (32) | (4)% |
| Accrued liabilities | 460 | 416 | 44 | 11% |
| Current portion of debt | 284 | 325 | (41) | (13)% |
| Current operating lease liabilities | 58 | 54 | 4 | 7% |
| **Total current liabilities** | 1,540 | 1,565 | (25) | (2)% |
| **Working capital** | $746 | $560 | $186 | 33% |

​Our working capital increased by $186 million as a result of the net impact of the following significant changes:

- The decrease in cash and cash equivalents of $6 million resulted from the matters identified on our condensed consolidated statements of cash flows. See also “—Cash Flows for the Three Months Ended March 31, 2025 Compared with the Three Months Ended March 31, 2024.”
- Accounts and notes receivable, net increased by $72 million primarily due to higher revenues in March of 2025 compared to December of 2024.
- Inventories increased by $113 million primarily due to higher inventory costs and volumes.
- Prepaid expenses decreased by $19 million primarily due to the amortization of prepaid insurance.
- Accounts payable decreased by $32 million primarily due to a decrease in non-trade payables related to insurance premiums and information technology costs, partially offset by extended vendor payment terms under our supplier finance program.
- Accrued liabilities increased by $44 million primarily due to increases in accrued compensation, accrued taxes and accrued interest, partially offset by a decrease in accrued rebates.
- Current portion of debt decreased by $41 million primarily due to the satisfaction and discharge of our obligations under our 2025 Senior Notes during the first quarter of 2025, partially offset by an increase in our borrowings under our 2025 Revolving Credit Facility and our A/R Programs.

### Liquidity

We depend upon our cash, our 2022 Revolving Credit Facility, our A/R Programs and other debt instruments to provide liquidity for our operations and working capital needs. As of March 31, 2025, we had $1,294 million of combined cash and unused borrowing capacity, consisting of $334 million in cash, $924 million in availability under our 2022 Revolving Credit Facility and $36 million in availability under our A/R Programs. Our liquidity can be significantly impacted by various factors. The following matters are expected to have a significant impact on our liquidity:

### Short-Term Liquidity

- During 2025, we expect to spend between approximately $180 million to $190 million on capital expenditures. Our future expenditures include certain environmental, health and safety upgrades; expansions and upgrades of our existing manufacturing and other facilities; construction of new facilities; certain cost reduction projects, including those described below; and certain information technology expenditures. We expect to fund capital expenditures with cash provided by operations.
- During the remainder of 2025, we expect to make additional contributions to our pension and other postretirement benefit plans of approximately $27 million.
- As of March 31, 2025, we have approximately $547 million remaining under the authorization of our existing share repurchase program. Repurchases may be commenced or suspended from time to time without prior notice.

As of March 31, 2025, we had $284 million classified as current portion of debt, including $273 million outstanding under our 2022 Revolving Credit Facility, debt at our variable interest entities of $9 million and certain other short-term facilities and scheduled amortization payments totaling $2 million. We intend to renew, repay or extend the majority of these short-term facilities in the next twelve months.

As of March 31, 2025, we had approximately $331 million of cash and cash equivalents held by our foreign subsidiaries, including our variable interest entities. With the exception of certain amounts that we expect to repatriate in the foreseeable future, we intend to use cash held in our foreign subsidiaries to fund our local operations. Nevertheless, we could repatriate additional cash as dividends, and the repatriation of cash as a dividend would generally not be subject to U.S. taxation. However, such repatriation may potentially be subject to limited foreign withholding taxes. ​

For more information regarding our debt, see “Note 9. Debt” to our condensed consolidated financial statements.

## Market risk

As filed, 431 characters.

We are exposed to market risks, such as changes in interest rates, foreign exchange rates and commodity prices. From time to time, we enter into transactions, including transactions involving derivative instruments, to manage certain of these exposures. We also hedge our net investment in certain European operations. See “Note 10. Derivative Instruments and Hedging Activities” to our condensed consolidated financial statements.

## Controls and procedures

As filed, 1,357 characters.

Our management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2025. Based on this evaluation, our chief executive officer and chief financial officer have concluded that, as of March 31, 2025, our disclosure controls and procedures were effective, in that they ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is (1) recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms and (2) accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

No changes to our internal control over financial reporting occurred during the quarter ended March 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). However, we can only give reasonable assurance that our internal controls over financial reporting will prevent or detect material misstatements on a timely basis.

## Risk factors

As filed, 147 characters.

For information regarding risk factors, see “Part I. Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024.

Filed May 2, 2025.
Source: SEC EDGAR, the filing index for accession 0001437749-25-014251. Last ingested by Listed: Nov 3, 2026, 14:16 ET. No prices; not investment advice.