Abstract

Huntsman will release its second-quarter 2026 results on July 30, 2026 Post Market; this preview summarizes consensus expectations for revenue, margins, net income and adjusted EPS, with an emphasis on trajectory versus last year and segment dynamics.

Market Forecast

Consensus for the current quarter points to revenue of 1.61 billion US dollars, EBIT near 47.47 million US dollars, and adjusted EPS of 0.05, implying year-over-year changes of 7.44%, 1,028.80%, and 144.48%, respectively. The company’s margin mix is expected to stabilize from a low base, with incremental improvement in net income and adjusted EPS versus the prior year; where available, year-over-year comparisons suggest a recovery in operating leverage. Huntsman’s main businesses remain Polyurethanes, Advanced Materials, and Performance Products, with performance expected to track gradual volume recovery and firming spreads in downstream industrial and construction end-markets. Within the portfolio, Polyurethanes is positioned as the biggest swing factor by revenue scale, while Advanced Materials is seen as the most promising near-term mix improver given incremental pricing/volume tailwinds off a small base.

Last Quarter Review

In the previous quarter, Huntsman generated revenue of 1.42 billion US dollars, a gross profit margin of 12.89%, GAAP net loss attributable to shareholders of 53.00 million US dollars, a net profit margin of -3.73%, and adjusted EPS of -0.20, with revenue up 0.71% year over year. Management highlighted sequential improvement in volumes across several downstream markets and ongoing cost-control actions; segment performance continues to reflect a low-demand environment with early signs of recovery. By business, revenue was approximately 923.00 million US dollars in Polyurethanes, 279.00 million US dollars in Advanced Materials, and 228.00 million US dollars in Performance Products, with netting adjustments of -10.00 million US dollars; year-over-year changes by segment were mixed.

Current Quarter Outlook

Main business trajectory: Polyurethanes

Polyurethanes is the largest revenue driver and the primary determinant of quarterly variability. This quarter’s setup hinges on MDI demand and pricing spreads against benzene/propane feedstocks, alongside utilization in automotive, construction, and appliance channels. With consensus revenue growth projected at 7.44% for the group and a modest EBIT rebound, even incremental volume normalization in MDI could translate into disproportionate operating leverage, although pricing power remains sensitive to regional supply conditions and downstream inventory behavior.

On cost, input inflation appears to have eased versus last year’s peak, while energy costs have normalized in Europe, supporting gross margin stabilization versus last quarter’s 12.89%. However, a strong US dollar can weigh on export realizations and reported revenue, and maintenance schedules at key MDI units could constrain throughput. Net-net, modest price improvement coupled with a healthier product mix is expected to lift segment contribution from the trough, but visibility on sustained pricing remains limited.

Most promising business: Advanced Materials

Advanced Materials, though smaller in dollar terms, offers higher incremental margins tied to specialty epoxies and composites. The business is positioned to benefit from recovering aerospace and industrial applications, plus selective price/mix improvements after prior destocking. Even small absolute gains can have an outsized effect on consolidated margins because Advanced Materials mixes at a higher gross margin than Polyurethanes.

Execution focus includes managing specialty resin pricing, optimizing plant utilization, and capturing demand in electronics and protective coatings. If volumes continue to recover into the back half, Advanced Materials can serve as a stabilizer to the overall portfolio and help support the forecast rebound in EBIT to 47.47 million US dollars and adjusted EPS to 0.05. Risks include elongated qualification cycles in aerospace and any resurgence of cost inflation in key raw materials like epichlorohydrin and BPA.

Stock-price swing factors this quarter

The share reaction will likely be driven by the magnitude of margin recovery versus the prior quarter and color on second-half order intake trends. Commentary on MDI pricing momentum and the cadence of European demand will be scrutinized, given their direct translation into gross profit. Guidance around cost-out savings, plant utilization, and working-capital release could influence cash generation expectations and valuation multiples; any signal of sustained positive free cash flow would likely be received positively.

Analyst Opinions

Across recent institutional commentary, the balance of views skews cautiously positive, with the majority expecting sequential improvement off a depressed base and a gradual return to profitability; a minority remain wary of sustainable pricing in MDI and European demand softness. Several well-followed sell-side desks highlight early-cycle recovery dynamics and cost discipline as supports for margin expansion, with upside if downstream restocking accelerates. The bullish camp emphasizes that consensus EPS of 0.05 and revenue of 1.61 billion US dollars already embed conservative assumptions, implying potential for a beat if volumes trend better than plan, while caution centers on the sensitivity to spreads and FX headwinds.