GET DAILY SIGNALSHuntsman (HUN) Delivers +18% Revenue Growth in Third Quarter
Key Takeaways
- Huntsman reported third quarter 2026 revenue of $1,717 million, up 18% year over year and above the consensus estimate of about $1,613 million.
- Adjusted diluted earnings per share (EPS) came in at $0.04, below the roughly $0.06-to-$0.07 analyst consensus, while the GAAP diluted loss narrowed to $0.10 per share from $0.14 a year earlier.
- Adjusted EBITDA rose 40% to $132 million, driven by gains in the Polyurethanes and Advanced Materials segments.
- Free cash flow was $82 million, down from $157 million in the prior-year quarter, while liquidity held near $0.9 billion.
- The pending merger of equals with Olin Corporation remains a central focus after shareholder approval in August 2026.
Earnings Context and Why It Matters
Huntsman’s third quarter results provide a useful checkpoint on the company’s cyclical recovery and its shift toward the planned merger with Olin Corporation. After a choppy first quarter influenced by Middle East tensions and higher feedstock costs, the firm has focused on pricing actions, cost cuts, and stronger demand in aerospace and power markets. For investors, the report helps clarify whether underlying operating profitability, as seen in adjusted EBITDA, is stabilizing even as headline numbers face pressure from elevated tax rates and restructuring items. The outcome also informs views on deleveraging, free cash flow trends, and the earnings potential of the combined entity once the merger closes.
Reported Results
For the third quarter ended September 30, 2026, HUN posted revenue of $1,717 million, an 18% increase from $1,460 million in the prior-year period and above the consensus estimate of about $1,613 million. Net loss attributable to Huntsman narrowed to $18 million from $25 million a year earlier, with a GAAP diluted loss per share of $0.10 versus $0.14 previously.
On an adjusted basis, the company reported net income of $7 million, or $0.04 per diluted share, up from an adjusted net loss of $5 million, or $0.03 per share, in the year-ago quarter. That adjusted figure fell short of analyst expectations of roughly $0.06 to $0.07 per share. Adjusted EBITDA climbed to $132 million from $94 million, reflecting stronger margins and volumes. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Segment performance was broadly positive. Polyurethanes revenue rose 21% and its adjusted EBITDA increased 56%, helped by higher MDI selling prices and volumes. Advanced Materials revenue rose 18%, with adjusted EBITDA up 41% on aerospace, automotive, and power demand. Performance Products revenue increased 6%, with adjusted EBITDA up 7%. Free cash flow was $82 million, down from $157 million a year earlier, while the company ended the quarter with roughly $0.9 billion in combined cash and unused borrowing capacity.
Market Reaction and Investor Sentiment
The market’s response to Huntsman’s report has been mixed, reflecting the contrast between a solid top-line beat and an adjusted earnings miss. Investors have welcomed the sharp year-over-year improvement in revenue and adjusted EBITDA as evidence that pricing and demand are recovering, particularly in Polyurethanes and Advanced Materials. At the same time, the shortfall on adjusted EPS, a high effective tax rate, and lighter free cash flow relative to last year have tempered enthusiasm. Broader sentiment also continues to hinge on progress toward the Olin merger, which shareholders approved in August 2026 and which is expected to reshape the company’s cost structure and market position.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching whether the pricing momentum in Polyurethanes and the volume strength in Advanced Materials can be sustained into 2027. Raw material costs, European energy prices, and inflation remain the most direct risks to margins, and any renewed volatility in those inputs could quickly reverse recent gains. From what I see, the merger with Olin Corporation is the dominant upcoming catalyst. The timing of completion, expected synergies, and the combined company’s capital allocation priorities will likely matter more to long-term shareholders than any single quarterly figure.
Balance sheet progress is another key monitor. Management has signaled an aim to reduce net debt leverage to roughly four times by year-end, supported by improving results and cash generation. Free cash flow recovery, capital expenditure discipline, and the trajectory of the adjusted tax rate will also be important indicators of how much earnings power ultimately converts into shareholder value.
Exploring Tickeron’s AI Tools
In preparing this analysis, I turned to Tickeron’s AI Screener to compare Huntsman’s performance against peers. It’s a useful tool for filtering based on fundamentals and patterns, allowing me to quickly surface comparable names in the chemicals space and review recent technical signals alongside the earnings data. The platform’s customizable filters help streamline the process of identifying relative strength or weakness without manual effort across hundreds of tickers.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HUN in downward trend: price may decline as a result of having broken its higher Bollinger Band on October 30, 2026
HUN broke above its upper Bollinger Band on October 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 42 similar instances where the stock broke above the upper band. In 34 of the 42 cases the stock fell afterwards. This puts the odds of success at 81%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HUN declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 75%.
The Aroon Indicator for HUN entered a downward trend on October 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 22, 2026. You may want to consider a long position or call options on HUN as a result. In 59 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 65%.
The Moving Average Convergence Divergence (MACD) for HUN just turned positive on October 15, 2026. Looking at past instances where HUN's MACD turned positive, the stock continued to rise in 34 of 49 cases over the following month. The odds of a continued upward trend are 69%.
HUN moved above its 50-day moving average on October 30, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +3.64% 3-day Advance, the price is estimated to grow further. Considering data from situations where HUN advanced for three days, in 163 of 257 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 18 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.628) is normal, around the industry mean (1.207). P/E Ratio (-9.181) is within average values for comparable stocks, (3.806). Projected Growth (PEG Ratio) (0.080) is also within normal values, averaging (3.769). Dividend Yield (0.036) settles around the average of (0.183) among similar stocks. P/S Ratio (0.269) is also within normal values, averaging (0.578).
The Tickeron PE Growth Rating for this company is 23 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. HUN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HUN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
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General Information
a manufacturer of chemicals for the plastics, automotive and construction industries
Industry ChemicalsMajorDiversified
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