Huntsman's Q3 Earnings Surpass Estimates, Revenues Miss

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Huntsman Corporation’s HUN third-quarter 2024 adjusted earnings per share fell to 10 cents from 15 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of 9 cents.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Revenues were $1,540 million, up around 2.2% year over year. The top line missed the Zacks Consensus Estimate of $1,550.7 million.

Huntsman Corporation Price, Consensus and EPS Surprise

Huntsman Corporation price-consensus-eps-surprise-chart | Huntsman Corporation Quote

HUN’s Segment Highlights

Polyurethanes: Revenues from the segment rose 4% year over year to $1,003 million. It beat our estimate of $908.5 million. The revenue increase was primarily due to increasing sales volumes, which were partly offset by reduced MDI average selling prices. Sales volumes increased predominantly owing to increased demand and market share gains in specific markets. 

MDI average selling prices fell mainly due to weaker supply and demand dynamics. The decline in segment adjusted EBITDA was largely caused by lower MDI average selling prices and reduced equity earnings from HUN’s minority-owned joint venture in China, which were partially offset by lower fixed costs and higher sales volumes.

Performance Products: Revenues moved up 1% to $280 million. It lagged our estimate of $308.2 million. The increase was primarily driven by rising sales volumes, which were partly offset by reduced average selling prices. Sales volumes rose primarily owing to increased demand in the fuels and lubricants, coatings and adhesives markets. The primary reason for the fall in average selling prices was competitive pressure. The drop in segment adjusted EBITDA was mainly caused by lower average selling prices and an unfavorable sales mix, which were slightly offset by increased sales volumes and lower fixed costs.

Advanced Materials: Revenues from the unit declined 3% to $261 million. It fell short of our estimate of $335.3 million. The decline was mostly due to decreased average selling prices, which were slightly compensated by higher sales volumes. Average selling prices fell essentially due to an unfavorable sales mix. Sales volumes increased in the aerospace and coatings markets as markets recovered, which was, however, slightly offset by weaker demand in the industrial market. The decline in segment adjusted EBITDA was mainly due by higher fixed costs.

HUN’s Financials

Free cash flow from continuing operations was $93 million compared with $117 million in the prior-year quarter. The company had approximately $1.7 billion in combined cash and unused borrowing capacity as of Sept. 30, 2024.

The company spent $41 million on capital expenditures from continuing operations compared with $50 million in the prior-year quarter. 

The net cash generated by operating activities from continuing operations was $134 million.

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