Huntsman Converts 45% EBITDA to Cash Flow, Sees Q1 MDI EBITDA of $25–$40M
Huntsman converted 45% of EBITDA into free cash flow in 2025 while cutting $100M in annual costs via 500 job cuts and seven facility closures. Huntsman expects polyurethanes/MDI EBITDA of $25–$40M in Q1 2026, despite a $10M natural gas headwind, with volume and pricing improvements in North America and Europe.
1. Strong Cash Conversion and Liquidity
Huntsman converted roughly 45% of its EBITDA into free cash flow in 2025, reflecting robust cash generation amid market headwinds. The company ended the year with over $400 million in cash, an $800 million revolver and about $300 million in securitized financing to support operations and strategic flexibility.
2. $100M Cost Cuts and Restructuring
Management achieved $100 million of annualized cost savings by eliminating around 500 positions and closing seven facilities, primarily in Europe. These actions aim to streamline the cost base and preserve margins as energy costs and market volatility challenge competitiveness.
3. Polyurethanes/MDI Q1 2026 Outlook
For the first quarter of 2026, Huntsman projects its polyurethanes/MDI segment will generate $25–$40 million of EBITDA, factoring in a $10 million natural gas cost headwind. The company has issued price-increase notices in North America and Europe to offset higher benzene and gas prices.
4. Early Signs of Market Improvement
Huntsman cites initial volume and pricing gains in North America and Europe following price hikes, with China’s domestic markets showing gradual recovery. The company remains cautious on full realization of these gains but notes lean inventories and potential for sudden restocking-driven rebounds.