Abstract
Huntsman will report its fourth-quarter results on February 17, 2026, Post Market; our preview consolidates the company’s latest guidance and market estimates to frame expected revenue, profitability, and earnings trajectory alongside segment-level dynamics and analyst sentiment.
Market Forecast
Consensus for the upcoming quarter points to revenue of $1.34 billion, with a year-over-year decline of about 7.07%, while forecasts indicate negative EBIT and a modestly negative adjusted EPS. Gross margin and net margin are anticipated to remain pressured in line with the prior quarter’s levels, keeping adjusted EPS below breakeven on softer volumes and price mix. The company’s polyurethane-led portfolio is projected to see muted demand in construction and industrial end-markets, with a continued focus on cost discipline and mix improvement. The segment with the most favorable medium-term setup is Advanced Materials, supported by more resilient specialty demand and pricing; the unit generated $265.00 million last quarter and is expected to stabilize better than base chemicals.
Last Quarter Review
In the prior quarter, Huntsman posted revenue of $1.46 billion, a gross profit margin of 13.97%, a GAAP net loss attributable to shareholders of $25.00 million with a net margin of -1.71%, and adjusted EPS of -$0.03, with revenue declining year over year by approximately 5.20%. Operating execution centered on cost controls partially offset weaker volumes in upstream polyurethanes and ongoing pricing headwinds in cyclical markets. Main business performance reflected $956.00 million from Polyurethanes, $265.00 million from Advanced Materials, and $246.00 million from Performance Products; Advanced Materials exhibited the most resilient top line on a relative basis.
Current Quarter Outlook (with major analytical insights)
Main business: Polyurethanes
Polyurethanes is Huntsman’s largest revenue contributor and the segment most sensitive to cyclical swings in construction, appliances, automotive, and insulation. The near-term forecast implies continued softness in MDI pricing and muted downstream demand in building and construction across the US and Europe, limiting margin recovery. While feedstock costs have moderated versus peaks, limited pricing power and lower operating rates constrain gross margin expansion; management’s emphasis on product mix and customer targeting helps, but EBIT is still projected negative for the quarter. Seasonal demand patterns typically soften through year-end, and channel inventories in some geographies remain elevated, extending the time to normalization. Execution on cost initiatives should cushion the downside, but the net effect likely leaves segment margins under pressure quarter over quarter.
Most promising business: Advanced Materials
Advanced Materials shows comparatively resilient demand characteristics, tied to electronics, aerospace, coatings, and composite applications that benefit from longer-cycle programs and higher value-add. The $265.00 million revenue base last quarter provides a steadier platform for margins relative to bulk intermediates, and mix enhancement has been a strategic focus. For the current quarter, the unit is expected to deliver a smaller revenue contraction than Group average and better margin stability, supported by specialty resins and coatings systems. Post-inventory correction trends in electronics and selected aerospace build-rates offer gradual tailwinds into 2026, though near-term growth is moderated by cautious customer ordering and lingering macro uncertainty. The segment’s pricing discipline and innovation pipeline should help defend gross margin despite weaker volumes elsewhere.
Most influential factor for stock price this quarter: Earnings power vs. destocking cadence
The critical swing factor for Huntsman’s shares this quarter is whether volume stabilization and mix improvement can offset ongoing price/margin compression, especially within Polyurethanes. If destocking has largely run its course in key channels and orders normalize sequentially, the company could deliver an in-line revenue print around $1.34 billion and contain losses near the consensus adjusted EPS. Conversely, prolonged destocking or further price erosion in MDI would likely exacerbate negative EBIT and deepen net losses, reinforcing cautious guidance and pressuring valuation. Investors will pay close attention to commentary on operating rates, contract pricing resets into early 2026, and the cadence of cost savings to gauge the trajectory toward breakeven EPS.
Analyst Opinions
Across the latest set of institutional previews, the majority lean cautious to bearish, emphasizing macro headwinds in construction-linked demand and the risk of continued pricing pressure in Polyurethanes; bullish views are fewer and typically hinge on cost-out execution and eventual cyclical recovery. Analysts highlighting the cautious case point to the guidance-implied negative EBIT and the expectation for another quarter of negative adjusted EPS as signs that earnings power remains constrained until volumes and pricing stabilize. Commentary also underscores the better relative outlook for Advanced Materials, but not enough to offset group-level cyclicality near term. On balance, the consensus skews toward a guarded stance, anticipating a revenue decline of roughly 7% year over year and limited margin relief, with near-term catalysts depending on clearer evidence of demand normalization and sustained progress on cost reductions.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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