Huntsman Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Note 21 - Operating Segment Information

Note 21 - Operating Segment Information

6 Months Ended

Jun. 30, 2025

Segment Reporting Disclosure [Text Block]

21. OPERATING SEGMENT INFORMATION

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of diversified organic chemical products. We have three operating segments, which are also our reportable operating segments: Polyurethanes, Performance Products and Advanced Materials. We have organized our business and derived our operating segments around differences in product lines.

The major products of each reportable operating segment are as follows:

Segment		Products
Polyurethanes		MDI, polyols, TPU and other polyurethane-related products
Performance Products		Performance amines, ethyleneamines and maleic anhydride
Advanced Materials		Technologically-advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents, toughening agents, and carbon nanomaterials

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedule includes revenues, significant segment expenses and adjusted EBITDA for each of our reportable operating segments (dollars in millions).

Huntsman Corporation

	*Three months ended June 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	932	$	270		$	264		$	1,466

Significant segment expenses:
Variable direct costs⁽²⁾		700		146			123			969
Adjusted fixed costs⁽³⁾		198		95			100			393
Other segment items⁽⁴⁾		3		(3	)		(4	)		(4	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	31	$	32		$	45			108

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(21	)
Depreciation and amortization—continuing operations										(72	)
Corporate and other costs, net(⁶⁾										(34	)
Net income attributable to noncontrolling interests										13
Other adjustments:
Certain legal and other settlements and related expenses										(1	)
Amortization of pension and postretirement actuarial losses										(7	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(125	)
Loss from continuing operations before income taxes										(139	)

Income tax expense—continuing operations										(7	)
Income from discontinued operations, net of tax										1
Net loss									$	(145	)

	*Three months ended June 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,001		$	299	$	279		$	1,579

Significant segment expenses:
Variable direct costs⁽²⁾		752			166		130			1,048
Adjusted fixed costs⁽³⁾		186			87		100			373
Other segment items⁽⁴⁾		(17	)		—		(3	)		(20	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	80		$	46	$	52			178

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(20	)
Depreciation and amortization—continuing operations										(75	)
Corporate and other costs, net⁽⁶⁾										(47	)
Net income attributable to noncontrolling interests										16
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(1	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										7
Certain legal and other settlements and related expenses										(1	)
Amortization of pension and postretirement actuarial losses										(8	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(5	)
Income from continuing operations before income taxes										44

Income tax expense—continuing operations										(13	)
Income from discontinued operations, net of tax										7
Net income									$	38

	*Six months ended June 30, 2025*
	*Polyurethanes*		*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,844	$	527	$	513		$	2,884

Significant segment expenses:
Variable direct costs⁽²⁾		1,382		283		239			1,904
Adjusted fixed costs⁽³⁾		384		179		201			764
Other segment items⁽⁴⁾		5		3		(8	)		—
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	73	$	62	$	81			216

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations									(40	)
Depreciation and amortization—continuing operations									(141	)
Corporate and other costs, net⁽⁶⁾									(70	)
Net income attributable to noncontrolling interests									29
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net									5
Certain legal and other settlements and related income									32
Amortization of pension and postretirement actuarial losses									(14	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾									(129	)
Loss from continuing operations before income taxes									(112	)

Income tax expense—continuing operations									(22	)
Income from discontinued operations, net of tax									—
Net loss								$	(134	)

	Six months ended June 30, 2024
	Polyurethanes			Performance Products		Advanced Materials			Total
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,927		$	590	$	540		$	3,057

Significant segment expenses:
Variable direct costs⁽²⁾		1,457			326		252			2,035
Adjusted fixed costs⁽³⁾		384			170		198			752
Other segment items(4)		(33	)		6		(5	)		(32	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	119		$	88	$	95			302

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(39	)
Depreciation and amortization—continuing operations										(144	)
Corporate and other costs, net⁽⁶⁾										(90	)
Net income attributable to noncontrolling interests										30
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(21	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										7
Certain legal and other settlements and related expenses										(2	)
Amortization of pension and postretirement actuarial losses										(16	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(19	)
Income from continuing operations before income taxes										8

Income tax benefit—continuing operations										7
Income from discontinued operations, net of tax										—
Net income									$	15

Huntsman International

	*Three months ended June 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	932	$	270		$	264		$	1,466

Significant segment expenses:
Variable direct costs⁽²⁾		700		146			123			969
Adjusted fixed costs⁽³⁾		198		95			100			393
Other segment items⁽⁴⁾		3		(3	)		(4	)		(4	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	31	$	32		$	45			108

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(21	)
Depreciation and amortization—continuing operations										(72	)
Corporate and other costs, net⁽⁶⁾										(34	)
Net income attributable to noncontrolling interests										13
Other adjustments:
Certain legal and other settlements and related expenses										(1	)
Amortization of pension and postretirement actuarial losses										(7	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(125	)
Loss from continuing operations before income taxes										(139	)

Income tax expense—continuing operations										(5	)
Income from discontinued operations, net of tax										1
Net loss									$	(143	)

	*Three months ended June 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,001		$	299	$	279		$	1,579

Significant segment expenses:
Variable direct costs⁽²⁾		752			166		130			1,048
Adjusted fixed costs⁽³⁾		186			87		100			373
Other segment items⁽⁴⁾		(17	)		—		(3	)		(20	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	80		$	46	$	52			178

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(20	)
Depreciation and amortization—continuing operations										(75	)
Corporate and other costs, net⁽⁶⁾										(47	)
Net income attributable to noncontrolling interests										16
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(1	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										7
Certain legal and other settlements and related expenses										(1	)
Amortization of pension and postretirement actuarial losses										(8	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(5	)
Income from continuing operations before income taxes										44

Income tax expense—continuing operations										(13	)
Income from discontinued operations, net of tax										7
Net income									$	38

	*Six months ended June 30, 2025*
	*Polyurethanes*		*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,844	$	527	$	513		$	2,884

Significant segment expenses:
Variable direct costs⁽²⁾		1,382		283		239			1,904
Adjusted fixed costs⁽³⁾		384		179		201			764
Other segment items⁽⁴⁾		5		3		(8	)		—
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	73	$	62	$	81			216

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations									(40	)
Depreciation and amortization—continuing operations									(141	)
Corporate and other costs, net⁽⁶⁾									(68	)
Net income attributable to noncontrolling interests									29
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net									5
Certain legal and other settlements and related income									32
Amortization of pension and postretirement actuarial losses									(14	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾									(129	)
Loss from continuing operations before income taxes									(110	)

Income tax expense—continuing operations									(22	)
Income from discontinued operations, net of tax									—
Net loss								$	(132	)

	*Six months ended June 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,927		$	590	$	540		$	3,057

Significant segment expenses:
Variable direct costs⁽²⁾		1,457			326		252			2,035
Adjusted fixed costs⁽³⁾		384			170		198			752
Other segment items⁽⁴⁾		(33	)		6		(5	)		(32	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	119		$	88	$	95			302

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(39	)
Depreciation and amortization—continuing operations										(144	)
Corporate and other costs, net⁽⁶⁾										(88	)
Net income attributable to noncontrolling interests										30
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(21	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										7
Certain legal and other settlements and related expenses										(2	)
Amortization of pension and postretirement actuarial losses										(16	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(19	)
Income from continuing operations before income taxes										10

Income tax benefit—continuing operations										7
Income from discontinued operations, net of tax										—
Net income									$	17

	*June 30,*		*December 31,*
	*2025*		*2024*
Total assets:
Polyurethanes	$	4,144	$	4,151
Performance Products		1,216		1,214
Advanced Materials		1,122		1,097
Total reportable segments’ total assets		6,482		6,462
Corporate and other		665		652
Total	$	7,147	$	7,114

	*Six months ended*
	*June 30,*
	*2025*		*2024*
Depreciation and amortization:
Polyurethanes	$	79	$	79
Performance Products		32		35
Advanced Materials		25		26
Total reportable segments’ depreciation and amortization		136		140
Corporate and other		5		4
Total	$	141	$	144

	*Six months ended*
	*June 30,*
	*2025*		*2024*
Capital expenditures:
Polyurethanes	$	34	$	38
Performance Products		28		44
Advanced Materials		10		7
Total reportable segments’ capital expenditures		72		89
Corporate and other		1		3
Total	$	73	$	92

(1)	A reconciliation of total reportable segments’ revenues to total consolidated revenues is provided in “Note 12. Revenue Recognition.”
(2)	Variable direct costs primarily include raw materials, utilities and freight-related costs.
(3)	Adjusted fixed costs primarily include personnel and maintenance costs at our manufacturing facilities, selling, general and administrative expenses and research and development expenses, less depreciation and amortization and an adjustment to remove the related effects of restructuring, impairment and plant closing and transition costs.
(4)	Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects, less adjustments to remove the related effects of primarily the following items: business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; certain legal and other settlements and related income (expenses); amortization of pension and postretirement actuarial losses; and restructuring, impairment and plant closing and transition costs.
(5)	We use segment adjusted EBITDA as the measure of each segment’s profit or loss. Segment adjusted EBITDA is the measure that our chief operating decision maker (“CODM”), who has been determined to be our Chief Executive Officer, uses to make decisions about resources to be allocated to the segments and assess their financial performance. Our CODM evaluates segment adjusted EBITDA through the annual budget process as well as through ongoing periodic reviews of forecasts, budget-to-actual variances, changes from prior periods and when comparing the results of each reportable operating segment with one another. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) certain legal and other settlements and related (expenses) income; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment, plant closing and transition costs; (d) income from discontinued operations, net of tax; (e) business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; and (f) fair value adjustments to Venator investment, net and other tax matter adjustments.

(6)	Corporate and other costs, net includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense and gains and losses on the disposition of corporate assets.

(7)	Includes costs associated with transition activities relating primarily to our program to realign our cost structure in Europe and our Corporate program to optimize our global approach to managed services in various information technology functions.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details