Huntsman (HUN) stock price is $8.33, down 2.91% on the day, as of Oct 19, 2026. It has a market cap of $1.45Bn, and is classified in the Specialty Chemicals industry (Basic Materials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap1.45 Bn
P/E-8.03
P/S0.25
Div. Yield0.06
Total Debt (Qtr)2.09 Bn
Revenue Growth (1y) (Qtr)14.06
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About
Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemical products. The company operates in the chemical industry, producing a range of performance materials used in various industrial applications. Its core activities include the development, production, and sale of polyurethanes, performance products, and advanced materials. Huntsman maintains manufacturing facilities across North America, Europe, and Asia, supporting its worldwide…
Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemical products. The company operates in the chemical industry, producing a range of performance materials used in various industrial applications. Its core activities include the development, production, and sale of polyurethanes, performance products, and advanced materials. Huntsman maintains manufacturing facilities across North America, Europe, and Asia, supporting its worldwide customer base. The company invests in research and development to create new formulations that meet evolving performance and sustainability requirements.
Huntsman generates revenue primarily through the sale of its chemical products to industrial customers. The company's product portfolio includes methylene diphenyl diisocyanate (MDI) and related polyurethanes, a variety of amines, surfactants, and other performance products, as well as epoxy resins, adhesives, and composite materials under its advanced materials line. Sales are made to manufacturers that incorporate these chemicals into end use goods such as foam, coatings, adhesives, and composite parts. In the Polyurethanes segment, MDI is used in flexible and rigid foams, insulation, and automotive seating, while polyols and TDI serve coatings and elastomer applications. The Performance Products segment supplies amines for oil field chemicals, surfactants for personal care and household products, and specialty intermediates for agrochemical and pharmaceutical industries. The Advanced Materials segment provides epoxy resins for aerospace composites, adhesives for electronic assembly, and composite materials for power transmission and wind energy applications.
The company operates through the following reportable segments: Polyurethanes, Performance Products, and Advanced Materials.
Polyurethanes: This segment produces and sells MDI, TDI, polyols, and related polyurethane chemicals used in flexible and rigid foams, coatings, adhesives, and sealants. The segment benefits from higher sales volumes in the Americas and Europe and from equity earnings from a minority owned joint venture in China that produces PO/MTBE.
Performance Products: This segment manufactures amines, surfactants, and other specialty chemicals that serve industries such as oil and gas, textiles, and personal care. It includes the maleic anhydride facility in Moers, Germany, which was announced for closure in May 2025, and a consolidated joint venture in Saudi Arabia that experienced shipment disruptions in March 2026.
Advanced Materials: This segment provides epoxy resins, adhesives, and composite materials utilized in aerospace, automotive, and electronic applications. Revenue growth in this segment is driven by higher average selling prices due to favorable sales mix and positive foreign currency exchange rate movements, as well as increased sales volumes in aerospace, power, and automotive markets.
Huntsman holds a significant position in the global specialty chemicals market, competing with other large chemical producers through its focus on differentiated products and innovation. The company leverages its integrated production capabilities and global scale to meet customer demand for high performance materials.
The company serves a diverse customer base that includes manufacturers in the automotive, construction, aerospace, and industrial sectors. Its customers range from original equipment manufacturers to formulators and distributors who incorporate Huntsman chemicals into finished goods such as vehicle interiors, building insulation, electronic devices, and renewable energy components.
Sector:Basic MaterialsSector rationaleHuntsman is a manufacturer of specialty chemicals, including MDI, polyurethanes, amines, and epoxy resins, which are sold as intermediate materials to other manufacturers. These products are used as inputs for foams, coatings, and composites, fitting the definition of Specialty Chemicals within the Basic Materials sector.Industries:Specialty ChemicalsSpecialty ChemicalsPrimaryHuntsman describes itself as a manufacturer of differentiated and specialty chemical products, focusing on higher-margin, application-specific formulations. Its Advanced Materials segment provides epoxy resins for aerospace composites and adhesives for electronic assembly, while its Performance Products segment supplies amines for oil field chemicals and surfactants for personal care.Commodity ChemicalsCommodity ChemicalsSecondaryThe company produces bulk chemical inputs such as MDI, TDI, and polyols within its Polyurethanes segment, which are used as base materials for flexible and rigid foams.Paints and CoatingsPaints and CoatingsSecondaryHuntsman manufactures and sells adhesives and sealants, specifically mentioned as part of its Polyurethanes and Advanced Materials segments.Classified using BQ-MICSCIK: 0001307954
Bull & bear
Investment Thesis
▲ Bull case
Huntsman is well-positioned to capitalize on the structural shift in global supply chains as customers seek more secure and localized sources of supply following disruptions in trade flows from traditional suppliers like China and the Middle East. The company has observed that certain European customers of maleic are now purchasing directly from its Pensacola, Florida facility FOB, avoiding the risks and costs associated with shipping from Europe to Asia and back. This shift is not merely a temporary response to current trade flow disruptions but reflects a broader, longer-term trend of supply chain reassessment driven by geopolitical instability and rising logistics costs. By maintaining reliable operations at its U.S. facilities—particularly in Pensacola and Freeport—Huntsman is becoming a preferred supplier for customers prioritizing supply security over marginal cost savings. This dynamic allows Huntsman to command better pricing terms and reduce working capital pressures for its clients, which in turn supports sustainable volume growth and margin expansion in its Performance Products segment. The company’s ability to serve as a stable, on-shore alternative in North America is a hidden catalyst that management underplayed during the call, focusing instead on short-term pricing tactics rather than the strategic advantage of being a trusted, geographically advantaged supplier in a reconfiguring global market.
The Advanced Materials segment is poised for sustained, above-GDP growth driven by secular tailwinds in aerospace and power generation, which Huntsman management acknowledged but did not fully quantify in terms of their contribution to 2026 profitability. While Peter Huntsman noted the recovery in aerospace and power continues as expected, he refrained from detailing the specific order book strength or the margin profile of these businesses, likely to avoid setting expectations too high. However, the implication is clear: these end markets are not only recovering but are experiencing structural investment due to global efforts to decarbonize power infrastructure and modernize defense and commercial aviation fleets. Unlike the more cyclical Polyurethanes business, Advanced Materials benefits from long-term contracts, specialized formulations, and lower sensitivity to raw material volatility—factors that insulate it from the benzene-driven margin swings affecting MDI. The semiconductor-related specialty amines business, though still in qualification, represents another high-growth, high-margin opportunity with potential to deliver $5+ million in EBITDA by year-end, a figure that could meaningfully lift segment profitability if adoption accelerates. Management’s reluctance to highlight these drivers suggests the market may be underestimating the durability and scalability of Advanced Materials’ growth trajectory beyond a simple post-conflict rebound.
Huntsman’s aggressive pricing discipline—staying ahead of benzene and other raw material costs—is creating a self-reinforcing cycle of margin expansion that could persist well beyond Q2, contrary to market skepticism about sustainability. The CFO confirmed that pricing is exceeding raw material increases in both Polyurethanes and Performance Products, a trend not seen since 2022, and management explicitly linked this to improved order patterns and customer willingness to accept price hikes amid supply chain uncertainty. While concerns were raised about demand elasticity kicking in later in the year, the company’s ability to manage pre-buying behavior—limiting it to just two to three days of inventory—demonstrates sophisticated sales and operations planning that prevents channel stuffing and protects against future demand shocks. Furthermore, the company is not merely passing through cost increases but actively expanding margins above raw material costs, as evidenced by the EBITDA guidance jump for Performance Products from $26 million in Q1 to $30–$40 million in Q2. This wide range reflects operational variability in restarting the ethylenamine joint venture, but the upside potential is significant if trucking logistics can be optimized or if alternative routing improves. The market appears to be ignoring the durability of this pricing power, assuming it is purely cost-driven, when in fact it reflects renewed confidence in Huntsman’s product value proposition and supply reliability—a structural improvement that could support mid-cycle profitability sooner than expected.
Huntsman is well-positioned to capitalize on the structural shift in global supply chains as customers seek more secure and localized sources of supply following disruptions in trade flows from traditional suppliers like China and the Middle East. The company has observed that certain European customers of maleic are now purchasing directly from its Pensacola, Florida facility FOB, avoiding the risks and costs associated with shipping from Europe to Asia and back. This shift is not merely a temporary response to current trade flow disruptions but reflects a broader, longer-term trend of supply chain reassessment driven by geopolitical instability and rising logistics costs. By maintaining reliable operations at its U.S. facilities—particularly in Pensacola and Freeport—Huntsman is becoming a preferred supplier for customers prioritizing supply security over marginal cost savings. This dynamic allows Huntsman to command better pricing terms and reduce working capital pressures for its clients, which in turn supports sustainable volume growth and margin expansion in its Performance Products segment. The company’s ability to serve as a stable, on-shore alternative in North America is a hidden catalyst that management underplayed during the call, focusing instead on short-term pricing tactics rather than the strategic advantage of being a trusted, geographically advantaged supplier in a reconfiguring global market.
The Advanced Materials segment is poised for sustained, above-GDP growth driven by secular tailwinds in aerospace and power generation, which Huntsman management acknowledged but did not fully quantify in terms of their contribution to 2026 profitability. While Peter Huntsman noted the recovery in aerospace and power continues as expected, he refrained from detailing the specific order book strength or the margin profile of these businesses, likely to avoid setting expectations too high. However, the implication is clear: these end markets are not only recovering but are experiencing structural investment due to global efforts to decarbonize power infrastructure and modernize defense and commercial aviation fleets. Unlike the more cyclical Polyurethanes business, Advanced Materials benefits from long-term contracts, specialized formulations, and lower sensitivity to raw material volatility—factors that insulate it from the benzene-driven margin swings affecting MDI. The semiconductor-related specialty amines business, though still in qualification, represents another high-growth, high-margin opportunity with potential to deliver $5+ million in EBITDA by year-end, a figure that could meaningfully lift segment profitability if adoption accelerates. Management’s reluctance to highlight these drivers suggests the market may be underestimating the durability and scalability of Advanced Materials’ growth trajectory beyond a simple post-conflict rebound.
Huntsman’s aggressive pricing discipline—staying ahead of benzene and other raw material costs—is creating a self-reinforcing cycle of margin expansion that could persist well beyond Q2, contrary to market skepticism about sustainability. The CFO confirmed that pricing is exceeding raw material increases in both Polyurethanes and Performance Products, a trend not seen since 2022, and management explicitly linked this to improved order patterns and customer willingness to accept price hikes amid supply chain uncertainty. While concerns were raised about demand elasticity kicking in later in the year, the company’s ability to manage pre-buying behavior—limiting it to just two to three days of inventory—demonstrates sophisticated sales and operations planning that prevents channel stuffing and protects against future demand shocks. Furthermore, the company is not merely passing through cost increases but actively expanding margins above raw material costs, as evidenced by the EBITDA guidance jump for Performance Products from $26 million in Q1 to $30–$40 million in Q2. This wide range reflects operational variability in restarting the ethylenamine joint venture, but the upside potential is significant if trucking logistics can be optimized or if alternative routing improves. The market appears to be ignoring the durability of this pricing power, assuming it is purely cost-driven, when in fact it reflects renewed confidence in Huntsman’s product value proposition and supply reliability—a structural improvement that could support mid-cycle profitability sooner than expected.
Huntsman’s current margin expansion in Polyurethanes is highly vulnerable to a demand-driven downturn later in 2026, as management itself conceded that sustainability hinges on uncertain macroeconomic trends, particularly in Europe where inflation remains elevated and consumer spending is shifting toward essentials. The CEO explicitly warned that inflationary pressures in energy-reliant regions like Europe and Asia will likely exert downward pressure on demand later in the year, noting that residential permits in the U.S. dropped 11% in March—a leading indicator that often precedes construction starts by several months. While housing starts have held up, the divergence between starts and permits suggests underlying weakness that could manifest in Q3 and Q4, especially if the anticipated spring buying season fails to translate into sustained activity. Furthermore, the company’s reliance on customers buying ahead of expected price increases—a tactic that pulled forward demand into Q2—creates a significant risk of demand destruction in the second half of the year, as those same customers may delay purchases or reduce orders once they have fulfilled their near-term needs. Management admitted they cannot see how inflation will not eventually pressure demand, yet they offered no concrete strategy to mitigate this beyond hoping for continued strength in aerospace and power, which alone cannot offset broad-based softness in construction and industrial end markets. The market may be pricing in a durable recovery, but the leading indicators point to a potential demand cliff that could erase recent margin gains.
The Performance Products segment’s improvement is heavily dependent on volatile, spot-driven opportunities in maleic and the uncertain restart of the ethylenamine joint venture in Saudi Arabia, both of which represent tactical wins rather than structural strength. Management highlighted the strength in maleic as a key driver for Q2 Performance Products, noting that European customers are buying FOB from Pensacola to avoid shipping delays and costs from Asia. However, this advantage is contingent on continued disruptions in Chinese supply chains and shipping costs—factors that could reverse if geopolitical tensions ease or if alternative routing stabilizes. More critically, the ethylenamine facility, described as one of the lowest-cost assets in the portfolio, is currently operating at only around 50% capacity due to logistical challenges in exporting product via truck after being cut off from sea routes by the Strait of Hormuz disruption. The CFO acknowledged that the impact of this disruption could be as high as $4.5–$5 million in lost EBITDA for the quarter, and the wide Q2 guidance range of $30–$40 million reflects significant uncertainty around whether trucking can be made economical or if alternative solutions will emerge. Until sea access is restored—which Huntsman estimates would take 30–45 days after a Strait resolution—the facility remains a persistent drag on profitability, and there is no guarantee that customer relationships or market share will be fully recoverable even after logistics normalize. The market may be overestimating the segment’s resilience, assuming the current strength in maleic is sustainable, when in fact it is episodic and tied to external shocks beyond Huntsman’s control.
Huntsman’s Advanced Materials segment, while showing resilience, lacks the scale and margin profile to meaningfully offset cyclical weaknesses in Polyurethanes, and its growth is being overstated by management as a long-term solution to near-term volatility. Although Peter Huntsman highlighted aerospace and power as better-than-GDP growth businesses, he provided no specifics on revenue contribution, margin expansion, or order book depth—suggesting the improvement may be modest or still in early stages. The specialty amines initiative for semiconductors, while promising, is still in qualification and unlikely to meaningfully impact earnings before late 2026, with management citing a nine- to twelve-month timeline that implies meaningful contribution may not arrive until 2027. Furthermore, the segment’s historical performance has been lackluster relative to Polyurethanes, and there is no evidence in the transcript of a step-change in pricing power, customer diversification, or cost structure that would justify assigning it a premium valuation multiple. Investors may be misled by the narrative of a “recovery” in Advanced Materials into believing it can drive sustained earnings growth, when in reality its contribution remains incremental and insufficient to counteract the inherent cyclicality and margin pressure in the company’s largest division. Without a clear, quantifiable path to double-digit EBITDA margins in Advanced Materials, the segment cannot serve as a reliable buffer against downturns in Polyurethanes, leaving the company exposed to the same macroeconomic risks it has always faced.
Huntsman’s current margin expansion in Polyurethanes is highly vulnerable to a demand-driven downturn later in 2026, as management itself conceded that sustainability hinges on uncertain macroeconomic trends, particularly in Europe where inflation remains elevated and consumer spending is shifting toward essentials. The CEO explicitly warned that inflationary pressures in energy-reliant regions like Europe and Asia will likely exert downward pressure on demand later in the year, noting that residential permits in the U.S. dropped 11% in March—a leading indicator that often precedes construction starts by several months. While housing starts have held up, the divergence between starts and permits suggests underlying weakness that could manifest in Q3 and Q4, especially if the anticipated spring buying season fails to translate into sustained activity. Furthermore, the company’s reliance on customers buying ahead of expected price increases—a tactic that pulled forward demand into Q2—creates a significant risk of demand destruction in the second half of the year, as those same customers may delay purchases or reduce orders once they have fulfilled their near-term needs. Management admitted they cannot see how inflation will not eventually pressure demand, yet they offered no concrete strategy to mitigate this beyond hoping for continued strength in aerospace and power, which alone cannot offset broad-based softness in construction and industrial end markets. The market may be pricing in a durable recovery, but the leading indicators point to a potential demand cliff that could erase recent margin gains.
The Performance Products segment’s improvement is heavily dependent on volatile, spot-driven opportunities in maleic and the uncertain restart of the ethylenamine joint venture in Saudi Arabia, both of which represent tactical wins rather than structural strength. Management highlighted the strength in maleic as a key driver for Q2 Performance Products, noting that European customers are buying FOB from Pensacola to avoid shipping delays and costs from Asia. However, this advantage is contingent on continued disruptions in Chinese supply chains and shipping costs—factors that could reverse if geopolitical tensions ease or if alternative routing stabilizes. More critically, the ethylenamine facility, described as one of the lowest-cost assets in the portfolio, is currently operating at only around 50% capacity due to logistical challenges in exporting product via truck after being cut off from sea routes by the Strait of Hormuz disruption. The CFO acknowledged that the impact of this disruption could be as high as $4.5–$5 million in lost EBITDA for the quarter, and the wide Q2 guidance range of $30–$40 million reflects significant uncertainty around whether trucking can be made economical or if alternative solutions will emerge. Until sea access is restored—which Huntsman estimates would take 30–45 days after a Strait resolution—the facility remains a persistent drag on profitability, and there is no guarantee that customer relationships or market share will be fully recoverable even after logistics normalize. The market may be overestimating the segment’s resilience, assuming the current strength in maleic is sustainable, when in fact it is episodic and tied to external shocks beyond Huntsman’s control.
Huntsman’s Advanced Materials segment, while showing resilience, lacks the scale and margin profile to meaningfully offset cyclical weaknesses in Polyurethanes, and its growth is being overstated by management as a long-term solution to near-term volatility. Although Peter Huntsman highlighted aerospace and power as better-than-GDP growth businesses, he provided no specifics on revenue contribution, margin expansion, or order book depth—suggesting the improvement may be modest or still in early stages. The specialty amines initiative for semiconductors, while promising, is still in qualification and unlikely to meaningfully impact earnings before late 2026, with management citing a nine- to twelve-month timeline that implies meaningful contribution may not arrive until 2027. Furthermore, the segment’s historical performance has been lackluster relative to Polyurethanes, and there is no evidence in the transcript of a step-change in pricing power, customer diversification, or cost structure that would justify assigning it a premium valuation multiple. Investors may be misled by the narrative of a “recovery” in Advanced Materials into believing it can drive sustained earnings growth, when in reality its contribution remains incremental and insufficient to counteract the inherent cyclicality and margin pressure in the company’s largest division. Without a clear, quantifiable path to double-digit EBITDA margins in Advanced Materials, the segment cannot serve as a reliable buffer against downturns in Polyurethanes, leaving the company exposed to the same macroeconomic risks it has always faced.