Huntsman Corporation Q2 FY2025 earnings call

• Macro conditions: Volatility from tariff and trade disputes is dissipating, but inventories are low and consumer confidence is muted. • Balance sheet focus: Prudent on capital spending, focused on cost structure and cash generation. • Cash flow: Aggressive inventory and working capital focus led to positive cash flow in Q2, with inventory impact less in Q3. • Asset portfolio: Reviewing asset portfolio and engaging with shareholders. • Seasonality and influences: Anticipate usual seasonality, potential higher tariffs on MDI, interest rate cuts, cost reductions, and focus on prices over volume.

Advanced Materials saw a rebound back to more normalized earnings, offsetting the disappointing sluggishness of construction activity and tariff uncertainty in polyurethanes. Polyurethanes faced challenges due to construction activity and tariff uncertainty, with utilization rates in the low to mid-80s in the industry, and Huntsman's utilization rates in North America in the mid-80s, Europe around 80%.

• No reason to panic or be overly optimistic about near term. • Focus on managing balance sheet effectively while pushing for better P&L outcomes. • Anticipate potential impacts of tariffs, interest rate cuts, and cost reductions on business. • Expect seasonality and possible influences of higher tariffs and interest rate cuts in the coming quarters.

• Volatility from trade policies and raw material price fluctuations. • Overcapacity concerns in China and competitive environment in Europe affecting earnings. • Uncertainty in supply chains and market conditions leading to potential operational challenges.

Q: Balance sheet and revolver borrowings?

A: No new debt issuance in second half, revolver matures in 2027, securitization facilities and longer-term bonds, cash flow covered dividend last 12 months, focus on cash-generating activities in second half.