Huntsman CORP (HUN) · Nov 2, 2026 · Earnings
Miss — Adjusted EPS $0.04 vs ~$0.07 consensus
Huntsman earnings show stronger volumes, pricing and EBITDA, but adjusted EPS missed consensus and free cash flow deteriorated.
Huntsman is trying to stabilize a cyclical chemicals business through pricing, cost savings and better volumes while preparing to merge with Olin; its second-quarter profile was already improving, with adjusted EBITDA of $120 million and net leverage of 5.4x. The quarter improved operationally, but did not clear the earnings bar. Revenue reached $1.717 billion, about 7% above the published consensus of roughly $1.61 billion, while adjusted EBITDA rose 40% year over year to $132 million. The catch is adjusted diluted EPS of $0.04 versus consensus near $0.07, making the clean earnings verdict a miss despite better underlying operations.
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Financial Highlights) | $1,717M (+17.6%) | $1,460M | ~$1,610M |
| Adjusted diluted EPS (Financial Highlights) | $0.04 | $(0.03) | ~$0.07 |
| Adjusted EBITDA (Financial Highlights) | $132M (+40.4%) | $94M | |
| Free cash flow (Cash Flow statement) | $82M (-47.8%) | $157M |
The improvement is broad across the portfolio, but still partly price-led. Polyurethanes delivered the largest gain, with segment revenue up 21% and adjusted EBITDA up 56%, helped by higher MDI prices, volumes, joint-venture earnings and cost savings. Advanced Materials also benefited from aerospace, automotive and power demand, while Performance Products saw higher prices but essentially flat volumes. 〔0〕
Cash generation remains the weak spot. Third-quarter operating cash flow fell to $115 million from $200 million, and free cash flow dropped to $82 million from $157 million even as capital spending declined. Net debt also increased to $1.684 billion from $1.582 billion at year-end, so the promised year-end leverage improvement depends on continued operating recovery rather than a balance-sheet reset.
The Olin merger is advancing, but this filing mostly narrows timing rather than changing the strategic story. Shareholder approval and U.S. regulatory clearance are now behind the companies, and Huntsman expects closing in the first quarter of 2027 rather than the previously communicated first-half window. The transaction remains subject to approvals in other jurisdictions, so it is a clearer milestone, not yet a completed business transformation. 〔1〕
Bottom line: Huntsman is executing better operationally, but the quarter is mixed rather than a clean beat: revenue and EBITDA improved, while adjusted EPS and cash conversion fell short. The merger timeline is moving forward, but the standalone business still has to convert recovery into cash and lower leverage.
Merger closing targeted for Q1 2027
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