Huntsman (HUN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were $1.57 billion, down 1% year-over-year, with net income attributable to Huntsman at $22 million and adjusted EBITDA at $131 million, reflecting lower selling prices but 9% higher sales volumes.

• Diluted EPS was $0.13, adjusted diluted EPS $0.14; net income rose from $19 million in Q2 2023.

• Operating cash flow from continuing operations was $55 million, up from $40 million in Q2 2023; free cash flow turned positive at $5 million.

• The company completed the acquisition of SLIC joint venture assets and finalized the sale of its Textile Effects business.

• Cost initiatives and cash discipline continue to support margin recovery and liquidity.

Financial highlights

• Revenues decreased 1% year-over-year to $1.57 billion; adjusted EBITDA fell 16% to $131 million.

• Net income attributable to Huntsman increased to $22 million; adjusted EBITDA margin for Q2 2024 was about 8%.

• Free cash flow conversion improved to 26% from 4% year-over-year; net cash provided by operating activities was $55 million.

• Net debt at June 30, 2024 was $1.58 billion, with liquidity of $1.3 billion.

• Dividend per share increased to $0.25, a 5% rise year-over-year.

Outlook and guidance

• 3Q24 adjusted EBITDA expected between $115 million and $145 million; Polyurethanes $75–$90 million, Performance Products $35–$45 million, Advanced Materials $48–$53 million.

• Full-year 2024 capital expenditures projected at $180–$200 million, with additional $15 million in pension/postretirement contributions.

• Adjusted effective tax rate for 2024 expected at 30%–34%; long-term rate 22%–24%.

• Management expects no substantial change in global economic activity through Q3 2024.

• Focus remains on cost control, cash flow, and driving higher sales volumes and utilization rates.