Huntsman Corporation, a key player in the global chemicals market, has unveiled its 2024 annual report, revealing a mixed bag of financial performance across its three primary segments: Polyurethanes, Performance Products, and Advanced Materials. As the company navigates the complexities of market fluctuations, it faces challenges such as declining average selling prices and competitive pressures.

1. Financial Overview

Revenue Trends

In 2024, Huntsman reported a total revenue of $6.03 billion, a decrease from $6.11 billion in 2023. This decline is largely attributed to reduced average selling prices within the Performance Products and Advanced Materials segments.

Revenue by Geography

The geographic breakdown of revenue indicates growth in certain regions, notably India, which saw a 16.46% increase. However, notable declines were recorded in Germany (-11.82%) and the United States (-0.75%).

Revenue by Geography in 2024

Segment Performance

Polyurethanes: This segment showed resilience with a revenue increase to $5.29 billion, marking a 1.17% rise from the previous year. The growth was driven by higher sales volumes, especially in insulation and composite wood panels.

Performance Products: Revenue in this segment fell slightly to $369 million, a decline of 0.54%. The decrease was primarily due to competitive pressures that led to lower average selling prices.

Advanced Materials: This segment reported revenues of $362 million, a modest increase of 1.97%. However, this was overshadowed by a decrease in average selling prices.

Revenue by Segments in 2024

Profitability Metrics

Huntsman faced a challenging year, marked by a net loss from continuing operations amounting to $162 million, compared to a loss of $17 million in 2023. The increase in net losses reflects the impact of lower average selling prices and increased costs.

Cash Flow and Liquidity

The company's cash flow from operating activities showed improvement, with a net cash inflow of $285 million in 2024, compared to $251 million in 2023. Importantly, free cash flow surged to $101 million, a significant increase from $21 million in the previous year, indicating improved capital efficiency.

Cash Flow Statement of Huntsman Corp

	Feb 2024	Feb 2025
Net Change in Cash	-114M	-200M
Effect of Exchange Rate Changes	-8M	-11M
Net Cash from Operating Activities	209M	263M
Operating Profit	153M	-127M
Adjustment to Operating Profit	56M	390M
Net Cash from Investing Activities	305M	-126M
Business & Interest in Affiliates	-544M	-46M
Productive Assets	230M	173M
Other Investing Activities	-9M	1M
Net Cash from Financing Activities	-620M	-326M
Debt	-62M	-51M
Dividends	205M	260M
Equity Issuance/Repurchase	-344M	-4M
Other Financing Activities	-9M	-11M

2. Balance Sheet Insights

As of December 31, 2024, Huntsman reported total assets of $6.39 billion, down from $6.63 billion in 2023. Total liabilities increased to $3.95 billion, while total equity stood at $3.16 billion, reflecting a decrease in retained earnings due to the reported losses.

Balance Sheet of Huntsman Corp

	Feb 2024	Feb 2025
Total Assets	6.63B	6.39B
Total Current Assets	2.31B	2.12B
Cash and Equivalents	540M	340M
Net Inventories	867M	917M
Accounts Receivable	6M	7M
Notes and Loans Receivable	741M	711M
Prepaid Expenses	0	114M
Other Current Assets	160M	36M
Total Non-current Assets	4.32B	4.26B
Intangible Assets	1.03B	977M
Long-term Investments	438M	346M
Non-current Deferred Tax Assets	112M	69M
Net PP&E	2.37B	2.49B
Lease Assets	366M	382M
Total Liabilities and Equity	7.24B	7.11B
Total Liabilities	3.77B	3.95B
Total Current Liabilities	1.17B	1.56B
Accounts Payable and Accrued Liabilities	1.11B	1.18B
Current Debt	58M	379M
Total Non-current Liabilities	2.59B	2.38B
Long-term Debt	1.67B	1.51B
Non-current Deferred Tax Liabilities	243M	204M
Other Non-current Liabilities	679M	672M
Total Equity and Non-controlling Interests	3.47B	3.16B
Total Equity	3.25B	2.95B
Non-controlling Interests	227M	204M

Shareholder Returns

Despite the challenging financial landscape, Huntsman announced a 5% increase in its common dividend, showcasing its commitment to returning value to shareholders. This dividend reflects the company’s confidence in its long-term prospects despite short-term headwinds.

3. Legal Proceedings

Huntsman is currently embroiled in a civil suit filed by the Attorney General of Texas regarding alleged environmental violations. The lawsuit seeks civil penalties for unauthorized emissions at a former manufacturing facility, which could lead to significant financial implications. However, the company believes it is indemnified against potential liabilities arising from this case.

4. Looking Ahead

As Huntsman Corporation moves into 2025, it is poised to leverage its strengths in innovative chemical solutions while addressing the challenges posed by market volatility and legal uncertainties. The management remains focused on enhancing operational efficiencies and maintaining strong customer relationships across its diverse product portfolio.

Conclusion

The 2024 annual report illustrates Huntsman Corporation's resilience in a fluctuating market. With strategic initiatives aimed at growth and cost management, the company is positioned to overcome current challenges and seize future opportunities.

Income Statement of Huntsman Corp

	Feb 2024	Feb 2025
Net Income	101M	-189M
Net Income to Non-controlling Interest	52M	62M
Profit	153M	-127M
Net Income Discontinued	118M	-27M
Net Income Continuing	35M	-100M
Income Tax Expense	64M	61M
Pretax Income	99M	-39M
Non-operating Income	15M	-14M
Operating Income	84M	-25M
Revenue	6.11B	6.03B
Costs and Expenses	6.02B	6.06B
Cost of Revenue	5.20B	5.17B
Operating Expenses	822M	891M
Research & Development	115M	121M
Selling, General & Administrative	689M	671M
Other Operating Expenses	18M	99M

Original filing: sec.gov