Huntsman Corporation Faces Mounting Challenges as Chemical Sector Weakens

Huntsman Corporation finds itself navigating turbulent waters amid a deteriorating chemical industry landscape. The company’s latest quarterly performance fell dramatically short of expectations, with contracting margins and a gloomy sector outlook creating significant headwinds for the specialty chemical producer. Despite these substantial setbacks, some analysts detect potential catalysts for recovery, leaving investors to ponder whether the current difficulties represent the cyclical bottom or signal more trouble ahead.

Q2 2025 Performance: A Significant Earnings Miss

The second quarter of 2025 proved particularly difficult for Huntsman. The company reported a loss of $0.20 per share, substantially worse than the anticipated $0.12 per share loss and representing a negative earnings surprise of 67 percent. This performance marked a stark reversal from the same period last year, swinging from a $22 million profit to a net loss of $158 million.

Key financial metrics underscored the challenging quarter:
* Revenue declined 7.4 percent to $1.46 billion
* Net margin entered negative territory at -10.8 percent
* Adjusted EBITDA collapsed from $131 million to $74 million

Analyst Sentiment Turns Cautious Amid Sector Weakness

Market experts have grown increasingly cautious regarding Huntsman’s near-term prospects. Investment firm Jefferies recently reduced its price target to $14 while maintaining its “buy” recommendation, citing temporary seasonal softness in the chemical industry. KeyBanc Capital Markets adopted a more reserved stance with a “sector weight” rating, pointing to persistent demand issues in critical end markets including automotive and aerospace.

The broader analytical community reflects this tempered outlook, with nine covering firms establishing an average price target of $10.78—representing a substantial 16 percent downward revision from previous estimates.

Should investors sell immediately? Or is it worth buying Huntsman?

Strategic Restructuring Underway

Confronted with these market challenges, Huntsman’s management has implemented decisive cost-cutting measures. The company initiated a comprehensive restructuring program in late 2024 that will impact nearly ten percent of its global workforce. European operations have been particularly affected, including the closure of the maleic anhydride production facility in Moers, Germany.

Amid the disappointing earnings figures, one positive development emerged: the company demonstrated meaningful cash flow improvement. Operating cash flow from continuing operations reached $92 million, while free cash flow surged dramatically from $5 million to $55 million.

Technical Indicators and Market Activity

From a technical perspective, Huntsman shares show initial signs of being oversold with a relative strength index reading of 29.6, potentially indicating conditions ripe for a near-term bounce. However, the stock continues to trade well below its 200-day moving average of €13.49.

Institutional investors remain engaged with the name. Asset manager Amundi invested $3.4 million during the first quarter, while several hedge funds adjusted their positions. Shareholders should note that the stock will trade ex-dividend on Monday, September 15, with the $0.25 per share distribution expected to temporarily reduce the share price by approximately 2.3 percent.

Recovery Timeline Remains Uncertain

The critical question for investors remains when Huntsman might achieve a meaningful operational turnaround. Jefferies analysts maintain that the company’s MDI business possesses long-term potential and should return to mid-cycle margins faster than other segments. However, most projections suggest continued turbulence through 2026, with a substantive chemical industry recovery unlikely to gain full momentum before 2027.