Huntsman CORP: Form 10-Q for the period ended Mar 31, 2026
Filed with the SEC on May 1, 2026 and accepted by EDGAR at May 1, 2026, 11:38 ET.
Management's discussion and analysis
As filed, 31,061 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Results of Operations
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, 2026 | 2025 | Percent change | |
|---|---|---|---|
| Revenues | $1,420 | $1,410 | 1% |
| Cost of goods sold | 1,237 | 1,209 | 2% |
| Gross profit | 183 | 201 | (9)% |
| Operating expenses: | |||
| Selling, general and administrative | 163 | 166 | (2)% |
| Research and development | 29 | 32 | (9)% |
| Restructuring, impairment and plant closing costs | 6 | 1 | 500% |
| Income associated with litigation matter, net | — | (33) | (100)% |
| Gain on acquisition of assets, net | — | (5) | (100)% |
| Other operating expense (income), net | 1 | (2) | NM |
| Total operating expenses | 199 | 159 | 25% |
| Operating (loss) income | (16) | 42 | NM |
| Interest expense, net | (21) | (19) | 11% |
| Equity in income of investment in unconsolidated affiliates | 5 | 1 | 400% |
| Other income, net | 3 | 3 | — |
| (Loss) income from continuing operations before income taxes | (29) | 27 | NM |
| Income tax expense | (11) | (15) | (27)% |
| (Loss) income from continuing operations | (40) | 12 | NM |
| Loss from discontinued operations, net of tax | (1) | (1) | — |
| Net (loss) income | (41) | 11 | NM |
| Reconciliation of net (loss) income to adjusted EBITDA(1): | |||
| Net income attributable to noncontrolling interests | (12) | (16) | (25)% |
| Interest expense, net | 21 | 19 | 11% |
| Income tax expense | 11 | 15 | (27)% |
| Depreciation and amortization | 73 | 69 | 6% |
| Other adjustments: | |||
| Business acquisition and integration gain and purchase accounting inventory adjustments, net | — | (5) | |
| EBITDA from discontinued operations | 1 | 1 | |
| Certain legal and other settlements and related expenses (income), net(2) | 4 | (33) | |
| Loss on early extinguishment of debt | 1 | — | |
| Amortization of pension and postretirement actuarial losses | 7 | 7 | |
| Restructuring, impairment and plant closing and transition costs(3) | 8 | 4 | |
| Adjusted EBITDA(1) | $73 | $72 | 1% |
| Net cash used in operating activities from continuing operations | $(53) | $(71) | (25)% |
| Net cash (used in) provided by investing activities | (37) | 6 | NM |
| Net cash provided by financing activities | 30 | 60 | (50)% |
| Capital expenditures | (38) | (36) | 6% |
| Amounts attributable to Huntsman Corporation: | |||
| Loss from continuing operations | $(52) | $(4) | |
| Loss from discontinued operations, net of tax | (1) | (1) | |
| Net loss | $(53) | $(5) |
34
Huntsman International
| Three months ended March 31, 2026 | 2025 | Percent change | |
|---|---|---|---|
| Revenues | $1,420 | $1,410 | 1% |
| Cost of goods sold | 1,237 | 1,209 | 2% |
| Gross profit | 183 | 201 | (9)% |
| Operating expenses: | |||
| Selling, general and administrative | 161 | 164 | (2)% |
| Research and development | 29 | 32 | (9)% |
| Restructuring, impairment and plant closing costs | 6 | 1 | 500% |
| Income associated with litigation matter, net | — | (33) | (100)% |
| Gain on acquisition of assets, net | — | (5) | (100)% |
| Other operating expense (income), net | 1 | (2) | NM |
| Total operating expenses | 197 | 157 | 25% |
| Operating (loss) income | (14) | 44 | NM |
| Interest expense, net | (21) | (19) | 11% |
| Equity in income of investment in unconsolidated affiliates | 5 | 1 | 400% |
| Other income, net | 3 | 3 | — |
| (Loss) income from continuing operations before income taxes | (27) | 29 | NM |
| Income tax expense | (11) | (17) | (35)% |
| (Loss) income from continuing operations | (38) | 12 | NM |
| Loss from discontinued operations, net of tax | (1) | (1) | — |
| Net (loss) income | (39) | 11 | NM |
| Reconciliation of net (loss) income to adjusted EBITDA(1): | |||
| Net income attributable to noncontrolling interests | (12) | (16) | (25)% |
| Interest expense, net | 21 | 19 | 11% |
| Income tax expense | 11 | 17 | (35)% |
| Depreciation and amortization | 73 | 69 | 6% |
| Other adjustments: | |||
| Business acquisition and integration gain and purchase accounting inventory adjustments, net | — | (5) | |
| EBITDA from discontinued operations | 1 | 1 | |
| Certain legal and other settlements and related expenses (income), net(2) | 4 | (33) | |
| Loss on early extinguishment of debt | 1 | — | |
| Amortization of pension and postretirement actuarial losses | 7 | 7 | |
| Restructuring, impairment and plant closing and transition costs(3) | 8 | 4 | |
| Adjusted EBITDA(1) | $75 | $74 | 1% |
| Net cash used in operating activities from continuing operations | $(52) | $(70) | (26)% |
| Net cash (used in) provided by investing activities | (41) | 1 | NM |
| Net cash provided by financing activities | 33 | 64 | (48)% |
| Capital expenditures | (38) | (36) | 6% |
| Amounts attributable to Huntsman International: | |||
| Loss from continuing operations | $(50) | $(4) | |
| Loss from discontinued operations, net of tax | (1) | (1) | |
| Net loss | $(51) | $(5) |
35
Huntsman Corporation
| Reconciliation of net (loss) income to adjusted net loss (1): | Three months ended March 31, 2026 Gross | Tax and other(4) | Net | Three months ended March 31, 2025 Gross | Tax and other(4) | Net |
|---|---|---|---|---|---|---|
| Net (loss) income | $(41) | $11 | ||||
| Net income attributable to noncontrolling interests | (12) | (16) | ||||
| Business acquisition and integration gain and purchase accounting inventory adjustments, net | $— | $— | — | $(5) | $— | (5) |
| Loss from discontinued operations | 1 | — | 1 | 1 | — | 1 |
| Certain legal and other settlements and related expenses (income), net(2) | 4 | — | 4 | (33) | 7 | (26) |
| Loss on early extinguishment of debt | 1 | — | 1 | — | — | — |
| Amortization of pension and postretirement actuarial losses | 7 | (2) | 5 | 7 | (2) | 5 |
| Restructuring, impairment and plant closing and transition costs(3) | 8 | (1) | 7 | 4 | (2) | 2 |
| Establishment of significant deferred tax asset valuation allowances(5) | — | — | — | — | 9 | 9 |
| Adjusted net loss (1) | $(35) | $(19) | ||||
| Weighted average shares-basic | 173.0 | 172.4 | ||||
| Weighted average shares-diluted | 173.0 | 172.4 | ||||
| Basic net loss attributable to Huntsman Corporation per share: | ||||||
| Loss from continuing operations | $(0.30) | $(0.02) | ||||
| Loss from discontinued operations | (0.01) | (0.01) | ||||
| Net loss | $(0.31) | $(0.03) | ||||
| Diluted net loss attributable to Huntsman Corporation per share: | ||||||
| Loss from continuing operations | $(0.30) | $(0.02) | ||||
| Loss from discontinued operations | (0.01) | (0.01) | ||||
| Net loss | $(0.31) | $(0.03) | ||||
| Other non-GAAP measures: | ||||||
| Diluted adjusted net loss per share(1) | $(0.20) | $(0.11) | ||||
| Net cash used in operating activities from continuing operations | $(53) | $(71) | ||||
| Capital expenditures | (38) | (36) | ||||
| Free cash flow(1) | $(91) | $(107) | ||||
| Effective tax rate | (38)% | 56% | ||||
| Impact of non-GAAP adjustments, net(6) | (118)% | (56)% | ||||
| Adjusted effective tax rate | NM | NM |
NM—Not meaningful
(1) See “—Non-GAAP Financial Measures.”
(2) Certain legal and other settlements and related income, net includes approximately $33 million for income associated with a litigation matter during the first quarter of 2025. See “Note 15. Commitments and Contingencies—Legal Matters” to our condensed consolidated financial statements.
(3) Includes costs associated with transition activities relating primarily to our program to realign our cost structure in Europe.
(4) The income tax impacts, if any, are computed on the pre-tax adjustments using a with and without approach.
(5) During the three months ended March 31, 2025, we established significant deferred tax asset valuation allowances of $9 million in Luxembourg. We eliminated the effect of these significant deferred tax asset valuation allowances from our presentation of adjusted net loss to allow investors to better compare our ongoing financial performance from period to period.
(6) For details regarding the tax impacts of our non-GAAP adjustments, please see the reconciliation of our net (loss) income to adjusted net loss noted above.
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 and purchase accounting inventory adjustments, net; (b) EBITDA from discontinued operations; (c) certain legal and other settlements and related expenses (income), net; (d) loss on early extinguishment of debt; (e) amortization of pension and postretirement actuarial losses; and (f) 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 and purchase accounting inventory adjustments, net; (b) loss from discontinued operations; (c) certain legal and other settlements and related expenses (income), net; (d) loss on early extinguishment of debt; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and (g) establishment of significant deferred tax asset valuation allowances. 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 dividend and stock buyback levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.
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, that we believe are not indicative of the businesses’ operational profitability and that may obscure underlying business results and trends.
Three Months Ended March 31, 2026 Compared with Three Months Ended March 31, 2025
For the three months ended March 31, 2026, loss from continuing operations attributable to Huntsman Corporation was $52 million, a decline of $48 million from $4 million in the 2025 period. For the three months ended March 31, 2026, loss from continuing operations attributable to Huntsman International was $50 million, a decline of $46 million from $4 million in the 2025 period. The declines noted above were the result of the following items:
- Revenues for the three months ended March 31, 2026 increased by $10 million, or 1%, as compared with the 2025 period. The increase was primarily due to higher average selling prices in our Advanced Materials segment and higher sales volumes in our Polyurethanes and Advanced Materials segments. See “—Segment Analysis” below.
- Gross profit for the three months ended March 31, 2026 decreased by $18 million, or 9%, as compared with the 2025 period. The decrease resulted from lower gross profits in our Polyurethanes and Performance Products segments. See “—Segment Analysis” below.
- Restructuring, impairment and plant closing costs for the three months ended March 31, 2026 increased by $5 million as compared with the 2025 period. For more information on restructuring activities, see “Note 7. Restructuring, Impairment and Plant Closing Costs” 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 15. 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, 2026 increased to $5 million from $1 million in the 2025 period primarily related to an increase 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, 2026 was $11 million as compared with $15 million in the 2025 period. The income tax expense of Huntsman International for the three months ended March 31, 2026 was $11 million as compared with $17 million in the 2025 period. The decrease in income tax expense was primarily due to lower discrete tax expense in the 2026 period, partially offset by an increase in tax expense 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. For further information, see “Note 18. Income Taxes” to our condensed consolidated financial statements.
Segment Analysis
(Dollars in millions)
| Revenues | Three months ended March 31, 2026 | 2025 | Percent change favorable (unfavorable) |
|---|---|---|---|
| Polyurethanes | $923 | $912 | 1% |
| Performance Products | 228 | 257 | (11)% |
| Advanced Materials | 279 | 249 | 12% |
| Total reportable segments’ revenues | 1,430 | 1,418 | 1% |
| Intersegment eliminations | (10) | (8) | NM |
| Total | $1,420 | $1,410 | 1% |
| Segment adjusted EBITDA(1) | |||
| Polyurethanes | $39 | $42 | (7)% |
| Performance Products | 26 | 30 | (13)% |
| Advanced Materials | 45 | 36 | 25% |
NM—Not meaningful
(1) For more information regarding reconciliations of segment adjusted EBITDA of our reportable operating segments to (loss) income from continuing operations before income taxes of Huntsman Corporation or Huntsman International, as appropriate, see “Note 20. Operating Segment Information” to our condensed consolidated financial statements.
| Period-over-period (decrease) increase | Three months ended March 31, 2026 vs 2025 Average selling price(1) Local currency and mix | Foreign currency translation impact | Sales volumes(2) |
|---|---|---|---|
| Polyurethanes | (6)% | 3% | 4% |
| Performance Products | (4)% | 2% | (9)% |
| Advanced Materials | 4% | 5% | 3% |
| Combined segments | (4)% | 4% | 1% |
(1) (2) Excludes revenues from tolling arrangements, byproducts and raw materials. Excludes sales volumes of byproducts and raw materials.
Polyurethanes
The increase in revenues in our Polyurethanes segment for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to higher sales volumes, partially offset by lower average selling prices. Sales volumes increased primarily in the Americas and Europe regions. MDI average selling prices decreased primarily due to less favorable supply and demand dynamics, partially offset by the positive impact of major foreign currency exchange rate movements against the U.S. dollar. The decrease in segment adjusted EBITDA was primarily due to lower margins, partially offset by higher sales volumes, higher equity earnings from our minority-owned joint venture in China and cost savings achieved from our cost optimization program.
Performance Products
The decrease in revenues in our Performance Products segment for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to lower sales volumes and lower average selling prices. Sales volumes decreased primarily due to the closure of our Moers, Germany maleic anhydride facility announced in May 2025 and lower demand. Average selling prices decreased primarily due to competitive pressures. The decrease in segment adjusted EBITDA was primarily due to lower margins and lower sales volumes, partially due to shipment disruptions throughout March 2026 at our consolidated joint venture in Saudi Arabia.
Advanced Materials
The increase in revenues in our Advanced Materials segment for the three months ended March 31, 2026 compared to the same period of 2025 was primarily due to higher average selling prices and higher sales volumes. Average selling prices increased primarily due to favorable sales mix and the positive impact of major foreign currency exchange rate movements against the U.S. dollar. Sales volumes increased primarily in our aerospace, power and automotive markets. The increase in segment adjusted EBITDA was primarily due to higher sales volumes.
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, 2026 Compared with the Three Months Ended March 31, 2025
Net cash used in operating activities from continuing operations for the three months ended March 31, 2026 and 2025 was $53 million and $71 million, respectively. The decrease in net cash used in operating activities from continuing operations was primarily attributable to a decrease in net cash outflow of $72 million related to changes in operating assets and liabilities for the three months ended March 31, 2026 as compared with the same period of 2025, partially offset by a decrease in net cash inflow of $54 million related to an increase in operating loss from continuing operations adjusted for noncash activities as noted in our condensed consolidated statements of cash flows.
Net cash (used in) provided by investing activities for the three months ended March 31, 2026 and 2025 was $(37) million and $6 million, respectively. During the three months ended March 31, 2026 and 2025, we paid $38 million and $36 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.
Net cash provided by financing activities for the three months ended March 31, 2026 and 2025 was $30 million and $60 million, respectively. During the three months ended March 31, 2026, we had net borrowings from our 2026 Revolving Credit Facility and our A/R Programs of $51 million as compared with net borrowings from our 2022 Revolving Credit Facility and our A/R Programs of $427 million in the 2025 period. During the three months ended March 31, 2025, we paid approximately $315 million to satisfy and discharge our obligations under our 2025 Senior Notes. During the three months ended March 31, 2026 and 2025, we paid $16 million and $44 million for dividends to common stockholders, respectively.
Free cash flow for the three months ended March 31, 2026 and 2025 were uses of cash of $91 million and $107 million, respectively. The improvement in free cash flow was primarily attributable to a decrease in cash used in operating activities from continuing operations, partially offset by a slight increase in cash used for capital expenditures during the three months ended March 31, 2026 as compared with the same period of 2025.
Changes in Financial Condition
The following information summarizes our working capital (dollars in millions):
| March 31, 2026 | December 31, 2025 | (Decrease) increase | Percent change | |
|---|---|---|---|---|
| Cash and cash equivalents | $369 | $429 | $(60) | (14)% |
| Accounts and notes receivable, net | 776 | 677 | 99 | 15% |
| Inventories | 885 | 818 | 67 | 8% |
| Prepaid expenses | 104 | 94 | 10 | 11% |
| Other current assets | 45 | 46 | (1) | (2)% |
| Total current assets | 2,179 | 2,064 | 115 | 6% |
| Accounts payable | 843 | 758 | 85 | 11% |
| Accrued liabilities | 443 | 421 | 22 | 5% |
| Current portion of debt | 376 | 353 | 23 | 7% |
| Current operating lease liabilities | 57 | 57 | — | — |
| Total current liabilities | 1,719 | 1,589 | 130 | 8% |
| Working capital | $460 | $475 | $(15) | (3)% |
Our working capital decreased by $15 million as a result of the net impact of the following significant changes:
- The decrease in cash and cash equivalents of $60 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, 2026 Compared with the Three Months Ended March 31, 2025.”
- Accounts and notes receivable, net increased by $99 million primarily due to higher revenues in the first quarter of 2026 as compared with the fourth quarter of 2025.
- Inventories increased by $67 million primarily due to higher inventory volumes.
- Prepaid expenses increased by $10 million primarily due to an increase in prepaid information technology costs and prepaid taxes, partially offset by amortization of prepaid insurance premiums.
- Accounts payable increased by $85 million primarily due to higher inventory purchases.
- Accrued liabilities increased by $22 million primarily due to increases in accrued compensation, accrued interest and accrued income taxes payable, partially offset by decreases in accrued rebates and accrued restructuring.
- Current portion of debt increased by $23 million primarily due to an increase in our borrowings under our 2026 Revolving Credit Facility as of March 31, 2026 as compared with our borrowings under our prior 2022 Revolving Credit Facility as of December 31, 2025.
Liquidity
We depend upon our cash, our 2026 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, 2026, we had $867 million of combined cash and unused borrowing capacity, consisting of $369 million in cash, $430 million in availability under our 2026 Revolving Credit Facility and $68 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 2026, we expect our spend on capital expenditures to approximate our 2025 spend on capital expenditures. Our future expenditures include certain environmental, health and safety upgrades; expansions and upgrades of our existing manufacturing and other facilities; certain cost reduction projects and certain information technology expenditures. We expect to fund capital expenditures with cash provided by operations.
- During the remainder of 2026, we expect to make additional contributions to our pension and other postretirement benefit plans of approximately $33 million.
- As of March 31, 2026, we have approximately $547 million remaining under the authorization of our existing share repurchase program. We currently do not expect to repurchase any shares of our common stock under this program during 2026.
Long-Term Liquidity
- On February 9, 2026, Huntsman International entered into the $800 million 2026 Revolving Credit Facility replacing the 2022 Revolving Credit Facility. Borrowings bear interest at the rates specified in the credit agreement governing the 2026 Revolving Credit Facility, which vary based on the type of loan, leverage ratio and debt ratings. The 2026 Revolving Credit Facility has a maturity date of February 9, 2031. Huntsman International may increase the 2026 Revolving Credit Facility commitments by up to $400 million, plus additional amounts, subject to the satisfaction of certain conditions.
As of March 31, 2026, we had $376 million classified as current portion of debt, including $367 million outstanding under our 2026 Revolving Credit Facility, debt at our variable interest entities of $5 million and certain other short-term facilities and scheduled payments totaling $4 million. We intend to renew, repay or extend the majority of these short-term facilities in the next twelve months.
As of March 31, 2026, we had approximately $341 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 8. Debt” to our condensed consolidated financial statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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 9. Derivative Instruments and Hedging Activities” to our condensed consolidated financial statements.
Controls and procedures
As filed, 1,356 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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, 2026. Based on this evaluation, our chief executive officer and chief financial officer have concluded that, as of March 31, 2026, 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, 2026 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 control over financial reporting will prevent or detect material misstatements on a timely basis.
Risk factors
As filed, 147 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
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, 2025.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2026-03-31. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2026-01-01 to 2026-03-31 | $1.42bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months2026-01-01 to 2026-03-31 | $1.24bn | us-gaap:CostOfRevenue |
| Gross profit | 3 months2026-01-01 to 2026-03-31 | $183.0m | us-gaap:GrossProfit |
| Research and development | 3 months2026-01-01 to 2026-03-31 | $29.0m | us-gaap:ResearchAndDevelopmentExpense |
| Selling, general and administrative | 3 months2026-01-01 to 2026-03-31 | $163.0m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months2026-01-01 to 2026-03-31 | −$16.0m | us-gaap:OperatingIncomeLoss |
| Income tax | 3 months2026-01-01 to 2026-03-31 | $11.0m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2026-01-01 to 2026-03-31 | −$53.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2026-01-01 to 2026-03-31 | −$0.31 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2026-01-01 to 2026-03-31 | −$0.31 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2026-01-01 to 2026-03-31 | 173,000,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 3 months2026-01-01 to 2026-03-31 | −$53.0m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 3 months2026-01-01 to 2026-03-31 | $38.0m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 3 months2026-01-01 to 2026-03-31 | $16.0m | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | At period end2026-03-31 | $369.0m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2026-03-31 | $2.18bn | us-gaap:AssetsCurrent |
| Total assets | At period end2026-03-31 | $7.13bn | us-gaap:Assets |
| Current liabilities | At period end2026-03-31 | $1.72bn | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2026-03-31 | $4.23bn | us-gaap:Liabilities |
| Long-term debt | At period end2026-03-31 | $1.68bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | At period end2026-03-31 | $376.0m | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | At period end2026-03-31 | $2.68bn | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001437749-26-014346. Last ingested by Listed: Nov 3, 2026, 14:16 ET. Listed shows no prices and gives no investment advice.