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Huntsman Corp (HUN)
NYSE:HUN
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Huntsman
(NYSE:HUN)
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Rating:57Neutral
Price Target:
$14.00
▲(10.67% Upside)
Action:ReiteratedDate:02/19/26
The score is held back primarily by weak financial performance (current losses and margin compression, with weaker free cash flow versus 2024). This is partially offset by improving technicals (price above key moving averages, positive MACD) and a cautiously constructive earnings outlook supported by material cost savings and solid liquidity; the high dividend yield helps, but negative earnings limit valuation comfort.
Positive Factors
Strong free cash flow conversion
High cash conversion (45% of EBITDA in 2025) is a durable strength: it supports dividend coverage, funds reinvestment or deleveraging without relying on equity markets, and provides operational flexibility if end-market demand softens. This reduces structural liquidity risk.
Material, delivered cost savings program
A delivered $100M annualized cost base reduction (plus additional 2026 savings) materially improves structural margin capacity. Persistent lower fixed costs and footprint rationalization increase resilience to demand cycles and raise medium-term profitability potential.
Improved liquidity and capital structure flexibility
Substantially upgraded liquidity (new $800M revolver, expanded securitization, >$400M cash) and covenant headroom create durable financial flexibility. This supports operational continuity, opportunistic M&A options, and buffer against cyclical downturns without urgent refinancing risk.
Negative Factors
Earnings down-cycle and margin compression
Sustained revenue declines and negative net margins indicate a structural earnings down-cycle. Margin compression reduces internal funding for capex/dividends and increases reliance on capital markets or asset sales to restore returns, creating multi-quarter recovery risk.
Structural Europe weakness and overcapacity
Persistent high energy costs and regional overcapacity in Europe are structural headwinds that depress margins and require ongoing asset rationalization. Until policy/energy shifts occur or demand recovers, European segment profitability may remain impaired, limiting group recovery.
Raw-material and energy cost volatility
Exposure to volatile feedstock and energy prices (natural gas, benzene) directly compresses polyurethane margins. This input-cost sensitivity is a durable operating risk for commodity-backed chemical segments and can erode recovery unless pass-through pricing or hedges consistently offset shocks.
Huntsman (HUN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.20B
Dividend Yield8.44%
Average Volume (3M)6.18M
Price to Earnings (P/E)―
Beta (1Y)1.13
Revenue Growth-3.46%
EPS Growth-191.77%
CountryUS
Employees6,300
SectorBasic Materials
Sector Strength58
IndustryChemicals
Share Statistics
EPS (TTM)-0.37
Shares Outstanding174,009,350
10 Day Avg. Volume6,456,878
30 Day Avg. Volume6,184,644
Financial Highlights & Ratios
PEG Ratio-0.14
Price to Book (P/B)0.63
Price to Sales (P/S)0.30
P/FCF Ratio14.91
Enterprise Value/Market Cap2.05
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit6.00
Enterprise Value/Ebitda24.34
Forecast
1Y Price Target
$12.11Price Target Upside-4.27% Downside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)-0.43
Revenue Forecast (FY)$5.80B
Huntsman Business Overview & Revenue Model
Company DescriptionHuntsman Corporation manufactures and sells differentiated organic chemical products worldwide. The company operates through four segments: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyols, thermoplastic polyurethane, propylene oxide, and methyl tertiary-butyl ether products. The Performance Products segment manufactures amines and maleic anhydrides, including ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment offers epoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents and toughening agents, and carbon nanotubes additives; and base liquid and solid resins. The Textile Effects segment provides textile chemicals and dyes. The company's products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, medical, packaging, coatings and construction, power generation, refining, synthetic fiber, textile chemicals, and dye industries. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.
How the Company Makes MoneyHuntsman generates revenue primarily through the sale of its chemical products across several key segments. The largest segment, Polyurethanes, includes products used in insulation, cushioning, and coatings, contributing significantly to the company's earnings. The Performance Products segment focuses on specialty chemicals that enhance the performance of materials, while the Advanced Materials segment provides innovative solutions for high-performance applications. Revenue is also bolstered by strategic partnerships with other businesses and manufacturers, enabling Huntsman to leverage its product offerings and expand its market reach. Additionally, the company benefits from a global distribution network that allows it to serve a diverse clientele across various regions, further enhancing its revenue streams.
Huntsman Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call balanced positive operational and financial progress against persistent market and regional headwinds. Highlights include meaningful cost savings ($100M annualized, $45M in‑year), strong free cash flow conversion (45% of EBITDA), improved liquidity (an $800M revolver plus securitization and >$400M cash), and early signs of demand/pricing improvement in parts of Europe and North America. Lowlights center on continued weakness and structural challenges in Europe, downward polyurethane pricing and margin pressure in 2025, natural gas cost headwinds (~$10M impact in Q1), and uncertainty around Asia/China demand and incremental MDI capacity. Overall, the company appears operationally stronger and better capitalized than a year ago but remains exposed to macro and regional demand risks, making the tone cautious but constructive.Q4-2025 Updates
Positive Updates
Strong Free Cash Conversion
Converted 45% of EBITDA to free cash flow in 2025, a higher conversion rate than many peers and a key achievement supporting liquidity and dividend coverage.
Material Cost Savings Program Delivered
Achieved an annualized run rate of $100 million of cost savings by year-end 2025 (via ~500 headcount reductions, ~10% of workforce, and seven site closures); expecting about $45 million of in‑year savings to flow through in 2026 with additional savings to follow in 2027.
Improved Liquidity and Banking Package
Secured an $800 million revolver, extended securitization capacity (~$300 million), and closed 2025 with over $400 million of cash; overall liquidity posture provides roughly $1 billion of capacity while borrowings across programs were approximately $500 million at year‑end.
Working Capital Progress
Reduced cash conversion cycle by ~10% in 2025 and management targets further reductions in 2026, aiming for working capital to be an inflow absent significant macro deterioration.
Early Demand Green Shoots and Pricing Actions
Management is seeing early signs of improving volumes and pricing in Europe and anticipates gradual recovery in North American housing and Chinese domestic markets; price increase notifications were issued for MDI in North America and Europe to offset rising benzene and natural gas costs.
Advanced Materials Momentum
Advanced Materials expected to be stable with growth driven by aerospace (penetration in wide‑body applications) and power segments; management expects aerospace growth to outpace aircraft build rates for wide bodies.
Inventory / Supply Positioned for Upside
Company inventories are described as very low and supply chains generally lean, which could amplify upside if demand rebounds (management notes risk of rapid tightness leading to shortages during rebounds).
Disciplined Capital and M&A Stance
Management is open to value‑creating M&A, JVs or asset combinations but emphasizes balance‑sheet discipline (no sale process today) and preference for creative, non‑levering options (e.g., JVs) until the industry improves or monetization proceeds are available.
Negative Updates
European Market Weakness and Structural Challenges
Europe remained a significant drag in 2025 due to high energy costs, a disparate cost curve and structural overcapacity in some small facilities; management had to close/sell underperforming European assets (including a German maleic anhydride facility that could not be sold) and most of the 500 headcount reductions and seven site closures occurred in Europe.
Polyurethanes Pricing and EBITDA Pressure
Polyurethanes pricing trended lower sequentially through 2025 across regions (Asia less so); Q1 2026 polyurethane EBITDA guidance range is $25–$40 million versus prior year Q1 of $42 million, reflecting continued margin pressure and material uncertainty.
Natural Gas Cost Headwind
Rising natural gas (and benzene) costs created a roughly $10 million headwind to polyurethane earnings in Q1 2026, increasing near‑term margin volatility.
China Demand Uncertainty and Trade Disruption
Post‑Liberation Day market disruption and a slowed Chinese domestic market in 2025 weighed on global confidence; tariffs and trade shifts have changed regional flows (notably a reported ~80% drop in Chinese-origin MDI imports to the U.S.), creating uncertain regional dynamics.
Potential Incremental MDI Capacity Risk
Industry commentary and competitor expansions could add low‑to‑mid single digit MDI capacity in North America (some external estimates are higher), presenting potential pricing headwinds if supply is brought to market aggressively.
Ongoing European Policy and Energy Risk
High energy costs and slow policy shifts in Europe constrain competitiveness; management highlighted the need for structural policy changes (e.g., energy policy) but sees little near‑term rapid relief, keeping European profitability impaired absent broader changes.
Operational Consolidation Consequences
Restructuring actions (500 headcount reductions, seven facility closures) indicate meaningful near‑term implementation costs and lost capacity/earnings potential in the short term while the company repositions for longer‑term efficiency.
Inventory Tightness Creates Demand Risk
Very low inventories across the supply chain are a double‑edged sword: while they can magnify upside in a rebound, they also leave customers and the company exposed to volatility and potential supply interruptions if demand surges or planned turnarounds occur.
Company Guidance
Management guided to a cautiously constructive 2026 outlook: they expect a gradual recovery in North American homebuilding and durable goods, early volume/price improvements in Europe and better Chinese domestic demand; financially they’ve already achieved an annualized $100M cost‑savings run‑rate (from ~500 headcount reductions, ~10% of workforce, and seven facility closures) and expect about $45M of in‑year savings in 2026 (ex‑inflation), converted 45% of EBITDA to free cash flow in 2025, and plan further working‑capital improvements after a ~10% reduction in the cash‑conversion cycle in 2025; Q1 polyurethanes EBITDA was guided at $25–$40M (vs. $42M last year’s Q1) with a cited ~$10M near‑term natural‑gas/benzene headwind, liquidity includes an $800M revolver plus ~ $300M securitization and >$400M year‑end cash with ~ $500M drawn (≈$1B total capacity) and covenant headroom (management said LTM adjusted EBITDA would need to fall well below ~$100M to be a concern); industry MDI capacity additions were described as low‑to‑mid single digits in North America (global ~+2%), and the company reiterated a goal to generate enough cash to cover the dividend.Huntsman Financial Statement Overview
Summary
Overall fundamentals are pressured by a clear earnings down-cycle (losses and compressed margins). Offsetting this, the balance sheet appears serviceable with manageable leverage and cash flow remains positive, though free cash flow has weakened versus 2024.Income Statement
Profitability has weakened materially. Revenue is down in TTM (Trailing-Twelve-Months) versus 2024, and margins have compressed, with operating profit and net income turning more negative (TTM net margin ~-5% vs. ~-3% in 2024). This is a clear step down from 2021–2022 when the company generated strong profits and healthier margins. The main positive is that gross margin remains positive, but the earnings profile is currently pressured and less stable.34
Negative
Balance Sheet
Leverage looks manageable on the latest snapshot, with lower debt relative to equity in TTM (Trailing-Twelve-Months) than in prior years, which helps financial flexibility. However, returns to shareholders are currently negative due to losses, and the large swing in equity levels across periods increases uncertainty around comparability. Overall, the balance sheet appears serviceable, but profitability needs to recover to fully support it.63
Positive
Cash Flow
Cash generation is holding up better than earnings: operating cash flow is positive in TTM (Trailing-Twelve-Months) and free cash flow is also positive. That said, free cash flow fell sharply versus 2024 (down ~41%), and cash conversion is not especially strong, suggesting working-capital and/or cycle-driven volatility. The company is not in a cash-loss situation, but the trajectory has weakened from the much stronger 2021–2022 period.52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.68B | 6.04B | 6.11B | 8.02B | 7.67B |
| Gross Profit | 751.00M | 866.00M | 906.00M | 1.55B | 1.58B |
| EBITDA | 248.00M | 329.00M | 442.00M | 1.04B | 1.59B |
| Net Income | -275.00M | -189.00M | 101.00M | 460.00M | 1.04B |
Balance Sheet | |||||
| Total Assets | 7.01B | 7.11B | 7.25B | 8.22B | 9.39B |
| Cash, Cash Equivalents and Short-Term Investments | 429.00M | 340.00M | 540.00M | 654.00M | 1.04B |
| Total Debt | 2.73B | 2.24B | 2.07B | 2.12B | 1.95B |
| Total Liabilities | 4.06B | 3.95B | 3.77B | 4.38B | 4.83B |
| Stockholders Equity | 2.75B | 2.96B | 3.25B | 3.62B | 4.38B |
Cash Flow | |||||
| Free Cash Flow | 116.00M | 79.00M | -21.00M | 642.00M | 626.00M |
| Operating Cash Flow | 289.00M | 263.00M | 209.00M | 914.00M | 952.00M |
| Investing Cash Flow | -132.00M | -126.00M | 305.00M | -279.00M | -524.00M |
| Financing Cash Flow | -76.00M | -326.00M | -620.00M | -994.00M | -977.00M |
Huntsman Technical Analysis
Positive
12.65
Price Trends
11.68
Positive
10.28
Positive
10.34
Positive
Market Momentum
0.22
Positive
51.97
Neutral
24.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUN, the sentiment is Positive. The current price of 12.65 is below the 20-day moving average (MA) of 12.82, above the 50-day MA of 11.68, and above the 200-day MA of 10.34, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 24.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HUN.
Huntsman Risk Analysis
Huntsman disclosed 21 risk factors in its most recent earnings report. Huntsman reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Huntsman Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $479.14M | 9.89 | 6.20% | 3.81% | -5.05% | 35.01% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $5.47B | -4.72 | -24.70% | 0.29% | -7.34% | -382.79% | |
57 Neutral | $2.20B | -7.95 | -9.63% | 8.44% | -3.46% | -191.77% | |
52 Neutral | $22.05B | -8.33 | -15.79% | 9.17% | -5.25% | -208.14% | |
51 Neutral | $1.19B | -2.52 | -29.57% | 8.27% | -7.81% | -334.15% | |
47 Neutral | $1.44B | -1.70 | ― | ― | -10.68% | 36.31% |
* Basic Materials Sector Average
HUN
Huntsman
12.65
-2.34
-15.60%
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Huntsman Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Huntsman Secures New $800 Million Revolving Credit Facility
Positive
Feb 13, 2026
On February 9, 2026, Huntsman International LLC entered into a new $800 million senior secured revolving credit facility with Citibank and a syndicate of lenders, secured by substantially all U.S. personal property assets of HI and certain domestic subsidiaries, and carrying variable interest rates tied to benchmark indices plus leverage-based margins. The agreement, which matures on February 9, 2031 and allows for up to $400 million in additional commitments subject to leverage tests, introduces customary financial and restrictive covenants and replaces HI’s prior May 20, 2022 credit facility, signaling an effort to optimize its capital structure, enhance liquidity flexibility and reinforce balance sheet management for ongoing operations and strategic needs.
The most recent analyst rating on (HUN) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Huntsman stock, see the HUN Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
Huntsman Amends Receivables Facility to Enhance Liquidity
Positive
Jan 5, 2026
On December 29, 2025, Huntsman International LLC entered into a thirteenth amendment to its U.S. receivables loan agreement and related transaction documents, revising its accounts receivable securitization program. The amendment replaces PNC Bank with The Toronto-Dominion Bank as administrative and collateral agent, increases lender commitments to $180 million, and extends the program’s maturity to December 29, 2028, changes that strengthen and prolong Huntsman’s receivables-based funding capacity and may enhance liquidity and financial flexibility for the company and its stakeholders.
The most recent analyst rating on (HUN) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Huntsman stock, see the HUN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.