Research Alert: Huntsman Corporation Posts Q1 Volume Gain Offset By Margin Pressures

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

HUN reported Q1 2026 revenues of $1.42B (+0.7% Y/Y), beating consensus by 2.2%, though adjusted loss per share of ($0.20) missed prior year's ($0.11) despite beating consensus by $0.01. Geopolitical volatility in March drove sharp feedstock cost increases, compressing margins across segments despite 4% Polyurethanes volume growth and 12% Advanced Materials revenue growth. We think volume improvements are modest positives, but margin deterioration and rising input costs raise questions about returning to historical EBIT margin levels of 7%-11% given persistent pricing pressures. Management expects Q2 profitability improvement from increased volumes and pricing initiatives responding to feedstock spikes. However, we view execution risk as elevated given unpredictable market conditions and competitive pressures limiting pricing power. HUN's financial position remains strained with net debt rising to $1.687B and negative free cash flow of $91M, though modestly improved from prior year's $107M use.