Huntsman Corporation Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Note 27 - Operating Segment Information

Note 27 - Operating Segment Information

12 Months Ended

Dec. 31, 2025

Segment Reporting Disclosure [Text Block]

27. 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 schedules include revenues, significant segment expenses and adjusted EBITDA for each of our reportable operating segments (dollars in millions).

Huntsman Corporation

	*Year ended December 31, 2025*
	*Polyurethanes*		*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,697	$	997	$	1,021		$	5,715

Significant segment expenses:
Variable direct costs⁽²⁾		2,772		552		478			3,802
Adjusted fixed costs⁽³⁾		772		336		398			1,506
Other segment items⁽⁴⁾		7		2		(16	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	146	$	107	$	161			414

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations									(79	)
Depreciation and amortization—continuing operations									(287	)
Corporate and other costs, net⁽⁶⁾									(139	)
Net income attributable to noncontrolling interests									57
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net									4
Certain legal and other settlements and related income, net⁽⁷⁾									30
Loss on sale of business/assets									(5	)
Amortization of pension and postretirement actuarial losses									(34	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾									(153	)
Loss from continuing operations before income taxes									(192	)

Income tax expense—continuing operations									(26	)
Loss from discontinued operations, net of tax									(9	)
Net loss								$	(227	)

	*Year ended December 31, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,900		$	1,109	$	1,055		$	6,064

Significant segment expenses:
Variable direct costs⁽²⁾		2,943			618		499			4,060
Adjusted fixed costs⁽³⁾		744			328		390			1,462
Other segment items⁽⁴⁾		(32	)		10		(13	)		(35	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	245		$	153	$	179			577

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(79	)
Depreciation and amortization—continuing operations										(289	)
Corporate and other costs, net⁽⁶⁾										(163	)
Net income attributable to noncontrolling interests										62
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⁽⁷⁾										(13	)
Loss on sale of business/assets										(1	)
Loss on dissolution of subsidiaries⁽⁸⁾										(39	)
Amortization of pension and postretirement actuarial losses										(39	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(46	)
Loss from continuing operations before income taxes										(39	)

Income tax expense—continuing operations										(61	)
Loss from discontinued operations, net of tax										(27	)
Net loss									$	(127	)

	*Year ended December 31, 2023*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,865		$	1,178	$	1,092		$	6,135

Significant segment expenses:
Variable direct costs⁽²⁾		2,904			647		546			4,097
Adjusted fixed costs⁽³⁾		787			329		370			1,486
Other segment items⁽⁴⁾		(74	)		1		(10	)		(83	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	248		$	201	$	186			635

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(65	)
Depreciation and amortization—continuing operations										(278	)
Corporate and other costs, net⁽⁶⁾										(163	)
Net income attributable to noncontrolling interests										52
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(4	)
Fair value adjustments to Venator investment, net										(5	)
Certain legal and other settlements and related expenses, net										(6	)
Certain nonrecurring information technology project implementation costs										(5	)
Amortization of pension and postretirement actuarial losses										(37	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(25	)
Income from continuing operations before income taxes										99

Income tax expense—continuing operations										(64	)
Income from discontinued operations, net of tax										118
Net income									$	153

Huntsman International

	*Year ended December 31, 2025*
	*Polyurethanes*		*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,697	$	997	$	1,021		$	5,715

Significant segment expenses:
Variable direct costs⁽²⁾		2,772		552		478			3,802
Adjusted fixed costs⁽³⁾		772		336		398			1,506
Other segment items⁽⁴⁾		7		2		(16	)		(7	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	146	$	107	$	161			414

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations									(79	)
Depreciation and amortization—continuing operations									(287	)
Corporate and other costs, net⁽⁶⁾									(136	)
Net income attributable to noncontrolling interests									57
Other adjustments:
Business acquisition and integration gain and purchase accounting inventory adjustments, net									4
Certain legal and other settlements and related income, net⁽⁷⁾									30
Loss on sale of business/assets									(5	)
Amortization of pension and postretirement actuarial losses									(34	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾									(153	)
Loss from continuing operations before income taxes									(189	)

Income tax expense—continuing operations									(27	)
Loss from discontinued operations, net of tax									(9	)
Net loss								$	(225	)

	*Year ended December 31, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,900		$	1,109	$	1,055		$	6,064

Significant segment expenses:
Variable direct costs⁽²⁾		2,943			618		499			4,060
Adjusted fixed costs⁽³⁾		744			328		390			1,462
Other segment items⁽⁴⁾		(32	)		10		(13	)		(35	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	245		$	153	$	179			577

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(79	)
Depreciation and amortization—continuing operations										(289	)
Corporate and other costs, net⁽⁶⁾										(160	)
Net income attributable to noncontrolling interests										62
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⁽⁷⁾										(13	)
Loss on sale of business/assets										(1	)
Loss on dissolution of subsidiaries⁽⁸⁾										(39	)
Amortization of pension and postretirement actuarial losses										(39	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(46	)
Loss from continuing operations before income taxes										(36	)

Income tax expense—continuing operations										(62	)
Loss from discontinued operations, net of tax										(27	)
Net loss									$	(125	)

	*Year ended December 31, 2023*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,865		$	1,178	$	1,092		$	6,135

Significant segment expenses:
Variable direct costs⁽²⁾		2,904			647		546			4,097
Adjusted fixed costs⁽³⁾		787			329		370			1,486
Other segment items⁽⁴⁾		(74	)		1		(10	)		(83	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	248		$	201	$	186			635

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(65	)
Depreciation and amortization—continuing operations										(278	)
Corporate and other costs, net⁽⁶⁾										(160	)
Net income attributable to noncontrolling interests										52
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(4	)
Fair value adjustments to Venator investment, net										(5	)
Certain legal and other settlements and related expenses, net										(6	)
Certain nonrecurring information technology project implementation costs										(5	)
Amortization of pension and postretirement actuarial losses										(37	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(25	)
Income from continuing operations before income taxes										102

Income tax expense—continuing operations										(65	)
Income from discontinued operations, net of tax										118
Net income									$	155

	*December 31,*
	*2025*		*2024*
Total assets:
Polyurethanes	$	4,045	$	4,151
Performance Products		1,185		1,214
Advanced Materials		1,095		1,097
Total reportable segments’ total assets		6,325		6,462
Corporate and other		690		652
Total	$	7,015	$	7,114

	*Year ended December 31,*
	*2025*		*2024*		*2023*
Depreciation and amortization:
Polyurethanes	$	164	$	161	$	141
Performance Products		62		67		72
Advanced Materials		51		52		53
Total reportable segments’ depreciation and amortization		277		280		266
Corporate and other		10		9		12
Total	$	287	$	289	$	278

	*Year ended December 31,*
	*2025*		*2024*		*2023*
Capital expenditures:
Polyurethanes	$	82	$	78	$	98
Performance Products		59		85		100
Advanced Materials		27		17		25
Total reportable segments’ capital expenditures		168		180		223
Corporate and other		5		4		7
Total	$	173	$	184	$	230

	*December 31,*
	*2025*		*2024*
Goodwill:
Polyurethanes	$	338	$	328
Performance Products		2		15
Advanced Materials		290		290
Total	$	630	$	633

(1)	A reconciliation of total reportable segments’ revenues to total consolidated revenues is provided in “Note 18. 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) business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; (b) certain legal and other settlements and related income (expenses), net; (c) loss on sale of business/assets; (d) amortization of pension and postretirement actuarial losses; (e) restructuring, impairment, plant closing and transition costs; (f) (loss) income from discontinued operations, net of tax; (g) fair value adjustments to Venator investment, net and other tax matter adjustments; (h) loss on dissolution of subsidiaries; and (i) certain nonrecurring information technology project implementation costs.
(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)	Certain legal and other settlements and related income (expenses), net includes approximately $33 million for income associated with a litigation matter during the year ended December 31, 2025 (see “Note 21. Commitments and Contingencies—Legal Matters” to our consolidated financial statements) and approximately $(10) million related to the settlement of a claim in connection with a commercial dispute during the year ended December 31, 2024.
(8)	Loss on dissolution of subsidiaries for the year ended December 31, 2024 relates to the elimination and non-cash recognition of cumulative translation adjustments from accumulated other comprehensive loss due to the liquidation of certain subsidiaries.
(9)	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.

	*Year ended December 31,*
	*2025*		*2024*		*2023*
Revenues by geographic area⁽¹⁾:
United States	$	1,977	$	2,124	$	2,140
China		1,073		1,082		1,084
Germany		352		373		423
Canada		220		216		211
India		213		191		164
Italy		183		207		216
United Kingdom		141		156		155
Other nations		1,524		1,687		1,718
Total	$	5,683	$	6,036	$	6,111

	*December 31,*
	*2025*		*2024*
Long-lived assets⁽²⁾:
United States	$	1,152	$	1,188
China		373		399
The Netherlands		358		315
Hungary		165		118
Saudi Arabia		97		102
Switzerland		87		67
United Kingdom		61		60
Singapore		53		59
Germany		50		82
Other nations		90		103
Total	$	2,486	$	2,493

(1)	Geographic information for revenues is based upon countries into which product is sold.

(2)	Long-lived assets consist of property, plant and equipment, net.

- 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.

+ References

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+ Details