Huntsman Reports $141 Million Loss in Q4 2024 Amidst Challenging Market Conditions

On February 17, Huntsman Corporation (NYSE: HUN) announced its financial results for the fourth quarter of 2024, reporting revenues of $1.452 billion and a net loss attributable to Huntsman of $141 million. The adjusted net loss stood at $43 million, with an adjusted EBITDA of $71 million.

Chairman, President, and CEO Peter R. Huntsman stated that the fourth-quarter performance met expectations, as the company's core markets remain in a downturn. Despite a 5% year-over-year increase in quarterly sales and a 6% increase for the entire year, this growth has not translated into the profit margins needed. As Huntsman approaches 2025, the construction and automotive markets—accounting for roughly two-thirds of the company's portfolio—continue to be sluggish.

Economic challenges in China persist, yet moderate growth in the automotive sector is anticipated, with overall profitability remaining relatively stable. In Europe, high energy costs, excessive regulatory burdens, and overcapacity are severely impacting industry conditions. Huntsman is not waiting for market improvements and plans to actively reduce costs, including laying off employees in the polyurethane sector. Additionally, the company will evaluate strategic options for its maleic anhydride business in Europe and close downstream polyurethane plants. Huntsman aims to protect its balance sheet, focus on cash flow, and create a leaner company that can leverage significant operational advantages when demand improves.

Notably, in early February, Huntsman raised prices for its MDI products and MDI-based polyurethane systems in Europe, Africa, the Middle East, and India due to pressures from raw materials, energy, and logistics costs.

In terms of business segments, the polyurethane division saw revenue growth in Q4 2024, primarily due to increased sales driven by demand in the insulation and composite wood board markets. Conversely, the functional products segment experienced a decline in revenue year-over-year, mainly due to decreased sales; however, higher average selling prices partially offset this. The advanced materials segment also reported an increase in revenue, albeit with a decline in average selling prices, attributed to unfavorable sales mix.

Huntsman's performance for the first three quarters of 2024 shows a concerning trend. In Q3, the company recorded revenues of $1.540 billion and a net loss of $33 million, compared to a net profit of $0 million in the same quarter of 2023. In Q2, revenues reached $1.574 billion, with a net profit of $22 million, while Q1 saw revenues of $1.470 billion and a net loss of $37 million. Overall, Huntsman only achieved profitability in Q2 2024, with the remaining quarters resulting in losses.

Since the beginning of 2025, the competitive landscape has intensified, with major petrochemical giants like Dow, Arkema, and Mitsubishi Chemical announcing plant closures and layoffs affecting products such as nylon, aramid, and coatings. These actions reflect the severe challenges facing the chemical industry and the strategies companies are adopting to cope.