Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 30, 2026 · Beat 3 of last 6 quarters
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Huntsman's Advanced Materials growth is increasingly tied to power grid buildout and AI-related infrastructure, with management highlighting power as a faster-growing application. The Olin merger, if completed, would create a more integrated supplier of chlorine and derivatives, potentially strengthening supply chains for downstream customers. However, weak global demand and energy volatility remain headwinds to the broader chemicals buildout.
Huntsman reported Q2 revenue of $1,663M and adjusted EBITDA of $111M, nearly doubling year-over-year. The company improved net leverage to 5.4x from 6.1x in Q1. Advanced Materials volumes grew 8% and Polyurethanes grew 4%. Management highlighted the pending merger of equals with Olin, which they expect to close rapidly, and noted that MDI pricing actions helped recover raw material costs, though demand remains weak globally.
Management guided to a stable third quarter, with July order patterns consistent with Q2 averages and no significant sequential improvement required to hit the midpoint of guidance. They expect Europe to be EBITDA positive in Q3, though rising natural gas prices (from ~$13-14 to above $20/MMBtu) pose a key risk. The Olin merger remains on track, with teams ready to execute on $300M of identified synergies plus an additional $100M+ from internal chlorine supply replacement, and management reiterated confidence in achieving these savings on a bottom-up basis. Demand remains tepid globally, with MDI industry utilization in the mid-80s and growth of only 0-2%, but management sees upside from housing recovery, improved consumer confidence, and continued innovation-driven growth in Advanced Materials and downstream derivatives.
“I wish I had met Ken Lane a year earlier and that we were here today earning materially more than we otherwise would be earning.”
on Olin merger
“Show me the difference. Of what 2 companies together, 1 and 1 adds up to 3. Show me this, and I will reward you with the commensurate results.”
on Investor skepticism on synergies
“I would rather have that challenge than the challenge that we are able to make a lot of product that nobody wants.”
on MiraLAAN scaling
Update on MDI supply/demand, particularly given the Iranian conflict and impact on Q2 and Q3?
Peter noted that MDI supply is well balanced, with a large global plant on the wrong side of the Strait of Hormuz representing ~4% of industry capacity. Demand growth is only 0-2% globally, and he would like to see more improvement in housing and consumer confidence. He expects Europe to be EBITDA positive in Q3, but rising gas prices are a concern.
Can you size the pull-forward in Advanced Materials and how it unwinds in Q3?
Philip and Peter clarified that the pull-forward was low single-digit millions, primarily in aerospace, and is de minimis. Raw material cost movements pass through quickly, but pricing and demand will be the bigger drivers in Q3.
What are the potential impacts of antidumping duties on U.S. MDI, and does that lend to a higher floor?
Peter said the floor should be better than a year ago, but the benefit will play out over multiple quarters and requires demand recovery. He noted that export-oriented MDI can indirectly re-enter the U.S. market, so the impact is not immediate.