A chemical maker whose polyurethane foams, amines, and epoxy adhesives end up in everything from home insulation and car interiors to aircraft and electrical gear. The company traces back to a plastic-packaging venture begun in 1970 by Jon Huntsman Sr., who built his fortune by inventing the Styrofoam egg carton and, later, the clamshell container that held the McDonald's Big Mac.
Adjusted EBITDA rose 62% to $120M as restructuring charges fell sharply and Polyurethanes profit more than doubled.
Huntsman's core earnings rebounded sharply in Q2 2026 as the heavy restructuring charges that drove last year's loss faded. rose 14% to $1,663 million and climbed 62% to $120 million, led by a doubling of Polyurethanes profit and a 42% increase in Advanced Materials. The pending merger with Olin now dominates the outlook, introducing deal certainty risk that outweighs the quarter's operational recovery.
Key takeaways
rose 62% to $120 million, driven by a 113% increase in Polyurethanes profit and a 42% increase in Advanced Materials profit, as higher selling prices and sales volumes lifted results across all segments.
Restructuring, , and plant closing costs fell to $9 million from $124 million a year ago, removing the primary drag that drove the $120 million operating loss in Q2 2025.
A $22 million gain on the sale of the Gomet business further supported the , contributing to a swing from a $145 million net loss a year ago to a narrower loss.
Section summaries
Management's Discussion and Analysis
Q2 revenue rose 14% to $1,663M on higher prices and volumes; adjusted EBITDA grew 62% to $120M driven by Polyurethanes and Advanced Materials.
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Consolidated Q2 revenues increased 14% to $1,663 million, driven by higher average selling prices and sales volumes across all segments.
rose 35% to $245 million, with up 62% to $120 million, led by Polyurethanes (up 113%) and Advanced Materials (up 42%).
rose 35% to $245 million, with improving 0.8 points sequentially to 12.9%, though still down 1.4 points as competitive pricing pressure persisted.
was a $91 million use in the quarter, bringing the first-half total to a $181 million use, as consumption more than offset the earnings recovery.
All material risk factors disclosed in the filing relate to the pending merger with Olin, including a fixed 0.5476 that exposes Huntsman stockholders to Olin share price declines and a $121 million termination fee if the deal fails to close.
What changed
Polyurethanes more than doubled , confirming the Q1 2026 watch item that the 40% full-year 2025 decline had found a floor now that the Rotterdam turnaround is complete and lower raw material costs are flowing through.
of 12.9% improved 0.8 points sequentially from Q1 2026, suggesting the 12.1% Q4 2025 trough flagged in prior filings is being built upon as cost savings accumulate, though it remains 1.4 points below the prior-year quarter.
Performance Products trajectory was not broken out separately in the filing's narrative, leaving unresolved the prior watch item on whether the 's profit decline is stabilizing or reflecting a structural margin reset.
remained deeply negative at a $181 million use year to date, failing to reverse the trend flagged in Q1 2026 and making the company's ability to approach breakeven for the full year increasingly dependent on a sharp second-half reversal.
The risk factor section shifted entirely to merger-related risks, replacing the operational concerns about profit recovery and restructuring savings that dominated prior filings, signaling that the Olin transaction now represents the dominant source of uncertainty for investors.
What to watch
Polyurethanes in Q3 2026, to confirm whether the 113% increase in Q2 represents a sustainable recovery or was amplified by easy comparisons against the Q2 2025 trough when the Rotterdam turnaround depressed results.
generation in the second half of 2026, given the $181 million use in the first half, to assess whether the company can still approach breakeven for the full year as guided by management's $170 million capital expenditure plan.
Progress toward closing the Olin merger, including regulatory approval conditions and any required divestitures, given that the fixed 0.5476 and $121 million termination fee create binary outcomes for Huntsman stockholders.
trajectory in Q3 2026, to see if the sequential improvement from 12.1% in Q4 2025 to 12.9% in Q2 2026 can be extended as lower raw material costs continue to flow through against persistent competitive pricing pressure.
Restructuring, and plant closing costs fell sharply to $9 million from $124 million a year ago, while a $22 million gain on the sale of the Gomet business was recorded.
from continuing operations swung to a use of $113 million for the first half of 2026, compared with $21 million provided a year earlier, largely due to changes.
was a use of $181 million year-to-date; the company expects about $170 million in full-year and has $857 million in combined cash and available borrowing capacity.
Texas Emissions Enforcement In July 2021, the Attorney General of the State of Texas filed a civil action against us related to alleged unauthorized emissions events and reporting discrepancies between 2016 and 2019 in violation of the Texas Clean Air Act, Texas Commission on En…
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Texas Emissions Enforcement
In July 2021, the Attorney General of the State of Texas filed a civil action against us related to alleged unauthorized emissions events and reporting discrepancies between 2016 and 2019 in violation of the Texas Clean Air Act, Texas Commission on Environmental Quality regulations and facility permit terms at our former manufacturing facility in Port Neches, Texas, such facility being sold to Indorama Ventures Holdings L.P. in January 2020. The parties subsequently entered into an agreement to resolve the State’s claims, pursuant to which the State of Texas was awarded $1,350,000 in civil penalties and $150,000 in attorneys’ fees. On April 1, 2026, we paid these amounts and resolved the matter with Indorama indemnifying us for the full amount paid.
All material risks in this 10-Q relate to the pending merger with Olin, including deal certainty, valuation, integration, and retention.
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The fixed 0.5476 exposes Huntsman stockholders to Olin share price declines before closing, with no adjustment for market fluctuations.
Failure to close the merger could trigger a $121 million payable to Olin and up to $30 million in expense reimbursement.
The merger agreement restricts Huntsman from soliciting alternative proposals, potentially discouraging higher bids and requiring a stockholder vote even if the board changes its recommendation.
Regulatory approvals may impose conditions such as divestitures that could diminish the combined company's anticipated benefits and synergies.
Uncertainty around the merger risks losing key management and employees, which could disrupt operations and reduce the combined company's future performance.
If the merger does not qualify as a , U.S. stockholders would recognize taxable gain or loss on the exchange of their shares.