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

9 Months Ended

Sep. 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 September 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	956	$	246		$	265		$	1,467

Significant segment expenses:
Variable direct costs⁽²⁾		710		141			123			974
Adjusted fixed costs⁽³⁾		196		81			102			379
Other segment items⁽⁴⁾		2		(5	)		(4	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	48	$	29		$	44			121

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(20	)
Depreciation and amortization—continuing operations										(73	)
Corporate and other costs, net⁽⁶⁾										(27	)
Net income attributable to noncontrolling interests										14
Other adjustments:
Loss on sale of business/assets										(2	)
Amortization of pension and postretirement actuarial losses										(8	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(12	)
Loss from continuing operations before income taxes										(7	)

Income tax expense—continuing operations										(3	)
Loss from discontinued operations, net of tax										(1	)
Net loss									$	(11	)

	*Three months ended September 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,003		$	280	$	261		$	1,544

Significant segment expenses:
Variable direct costs⁽²⁾		756			155		124			1,035
Adjusted fixed costs⁽³⁾		174			81		94			349
Other segment items⁽⁴⁾		(3	)		2		(4	)		(5	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	76		$	42	$	47			165

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(21	)
Depreciation and amortization—continuing operations										(70	)
Corporate and other costs, net⁽⁶⁾										(34	)
Net income attributable to noncontrolling interests										16
Other adjustments:
Fair value adjustments to Venator investment, net and other tax matter adjustments										5
Certain legal and other settlements and related expenses, net										(11	)
Loss on sale of business/assets										(1	)
Amortization of pension and postretirement actuarial losses										(9	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(6	)
Income from continuing operations before income taxes										34

Income tax expense—continuing operations										(39	)
Loss from discontinued operations, net of tax										(12	)
Net loss									$	(17	)

	*Nine months ended September 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	2,800	$	773		$	778		$	4,351

Significant segment expenses:
Variable direct costs⁽²⁾		2,092		424			362			2,878
Adjusted fixed costs⁽³⁾		580		260			303			1,143
Other segment items⁽⁴⁾		7		(2	)		(12	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	121	$	91		$	125			337

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(60	)
Depreciation and amortization—continuing operations										(214	)
Corporate and other costs, net⁽⁶⁾										(97	)
Net income attributable to noncontrolling interests										43
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net										5
Certain legal and other settlements and related income, net										32
Loss on sale of business/assets										(2	)
Amortization of pension and postretirement actuarial losses										(22	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(141	)
Loss from continuing operations before income taxes										(119	)

Income tax expense—continuing operations										(25	)
Loss from discontinued operations, net of tax										(1	)
Net loss									$	(145	)

	*Nine months ended September 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	2,930		$	870	$	801		$	4,601

Significant segment expenses:
Variable direct costs⁽²⁾		2,213			481		376			3,070
Adjusted fixed costs⁽³⁾		558			251		292			1,101
Other segment items⁽⁴⁾		(36	)		8		(9	)		(37	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	195		$	130	$	142			467

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(60	)
Depreciation and amortization—continuing operations										(214	)
Corporate and other costs, net⁽⁶⁾										(124	)
Net income attributable to noncontrolling interests										46
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										12
Certain legal and other settlements and related expenses, net										(13	)
Loss on sale of business/assets										(1	)
Amortization of pension and postretirement actuarial losses										(25	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(25	)
Income from continuing operations before income taxes										42

Income tax expense—continuing operations										(32	)
Loss from discontinued operations, net of tax										(12	)
Net loss									$	(2	)

Huntsman International

	*Three months ended September 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	956	$	246		$	265		$	1,467

Significant segment expenses:
Variable direct costs⁽²⁾		710		141			123			974
Adjusted fixed costs⁽³⁾		196		81			102			379
Other segment items⁽⁴⁾		2		(5	)		(4	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	48	$	29		$	44			121

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(20	)
Depreciation and amortization—continuing operations										(73	)
Corporate and other costs, net⁽⁶⁾										(26	)
Net income attributable to noncontrolling interests										14
Other adjustments:
Loss on sale of business/assets										(2	)
Amortization of pension and postretirement actuarial losses										(8	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(12	)
Loss from continuing operations before income taxes										(6	)

Income tax expense—continuing operations										(4	)
Loss from discontinued operations, net of tax										(1	)
Net loss									$	(11	)

	*Three months ended September 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	1,003		$	280	$	261		$	1,544

Significant segment expenses:
Variable direct costs⁽²⁾		756			155		124			1,035
Adjusted fixed costs⁽³⁾		174			81		94			349
Other segment items⁽⁴⁾		(3	)		2		(4	)		(5	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	76		$	42	$	47			165

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(21	)
Depreciation and amortization—continuing operations										(70	)
Corporate and other costs, net⁽⁶⁾										(33	)
Net income attributable to noncontrolling interests										16
Other adjustments:
Fair value adjustments to Venator investment, net and other tax matter adjustments										5
Certain legal and other settlements and related expenses, net										(11	)
Loss on sale of business/assets										(1	)
Amortization of pension and postretirement actuarial losses										(9	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(6	)
Income from continuing operations before income taxes										35

Income tax expense—continuing operations										(39	)
Loss from discontinued operations, net of tax										(12	)
Net loss									$	(16	)

	*Nine months ended September 30, 2025*
	*Polyurethanes*		*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	2,800	$	773		$	778		$	4,351

Significant segment expenses:
Variable direct costs⁽²⁾		2,092		424			362			2,878
Adjusted fixed costs⁽³⁾		580		260			303			1,143
Other segment items⁽⁴⁾		7		(2	)		(12	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	121	$	91		$	125			337

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(60	)
Depreciation and amortization—continuing operations										(214	)
Corporate and other costs, net⁽⁶⁾										(94	)
Net income attributable to noncontrolling interests										43
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net										5
Certain legal and other settlements and related income, net										32
Loss on sale of business/assets										(2	)
Amortization of pension and postretirement actuarial losses										(22	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(141	)
Loss from continuing operations before income taxes										(116	)

Income tax expense—continuing operations										(26	)
Loss from discontinued operations, net of tax										(1	)
Net loss									$	(143	)

	*Nine months ended September 30, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	2,930		$	870	$	801		$	4,601

Significant segment expenses:
Variable direct costs⁽²⁾		2,213			481		376			3,070
Adjusted fixed costs⁽³⁾		558			251		292			1,101
Other segment items⁽⁴⁾		(36	)		8		(9	)		(37	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	195		$	130	$	142			467

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(60	)
Depreciation and amortization—continuing operations										(214	)
Corporate and other costs, net⁽⁶⁾										(121	)
Net income attributable to noncontrolling interests										46
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										12
Certain legal and other settlements and related expenses, net										(13	)
Loss on sale of business/assets										(1	)
Amortization of pension and postretirement actuarial losses										(25	)
Restructuring, impairment and plant closing and transition costs⁽⁷⁾										(25	)
Income from continuing operations before income taxes										45

Income tax expense—continuing operations										(32	)
Loss from discontinued operations, net of tax										(12	)
Net income									$	1

	*September 30,*		*December 31,*
	*2025*		*2024*
Total assets:
Polyurethanes	$	4,038	$	4,151
Performance Products		1,186		1,214
Advanced Materials		1,109		1,097
Total reportable segments’ total assets		6,333		6,462
Corporate and other		749		652
Total	$	7,082	$	7,114

	*Nine months ended*
	*September 30,*
	*2025*		*2024*
Depreciation and amortization:
Polyurethanes	$	121	$	118
Performance Products		47		50
Advanced Materials		38		39
Total reportable segments’ depreciation and amortization		206		207
Corporate and other		8		7
Total	$	214	$	214

	*Nine months ended*
	*September 30,*
	*2025*		*2024*
Capital expenditures:
Polyurethanes	$	52	$	53
Performance Products		44		64
Advanced Materials		18		13
Total reportable segments’ capital expenditures		114		130
Corporate and other		2		3
Total	$	116	$	133

(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), net; amortization of pension and postretirement actuarial losses; loss on sale of business/assets; 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) loss on sale of business/assets; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment, plant closing and transition costs; (d) loss from discontinued operations, net of tax; (e) business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; (f) certain legal and other settlements and related (expenses) income, net; and (g) 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