Huntsman Corporation Q1 FY2026 earnings call

Peter Huntsman mentioned that the company's number one commercial priority was to increase prices to offset rising costs and has been successful. Operations in the first and second quarters were excellent. Stronger - than - expected demand into the second quarter was due to seasonality, customers buying ahead of price increases, and trade flow disruptions. Advanced materials performance was as expected, with aerospace and power businesses continuing to recover. In MDI, Huntsman's operations were good, with facilities sold out in China and the US, and some green shoots in Europe. Performance products had factors like customers buying MLAIC FOB Florida and an ethylene amines joint venture as a headwind. The UK aniline plant was affected by high gas prices and poor energy policies.

Guidance from each division in Q2 reflected what was seen to date, but visibility further into the quarter was less clear. Expected Europe to be positive from an EBITDA perspective. Mentioned that in polyurethanes, need for demand and raw material stability for better EBITDA margins. Also, the ethylene amines joint venture impact could vary based on how successful product is moved out.

Inflationary pressures, especially in areas reliant on imported energy like much of Asia and Europe could cause downward pressure later in the year. Disruptions in trade flows impacting supply. Uncertainty around the duration and impact of the conflict in the Middle East on supply chains and costs. Volatility in the refining chain and PO economics affecting certain businesses.

Q: Patrick Cunningham asked about supply side rationalization for MDI and polyurethanes and structural energy cost pressure.

A: Peter said no great structural change in MDI seen, continued pressure in Europe, and varied issues with Chinese exports and raw materials for customers and competitors.

Q: Kevin McCarthy asked about operating rates in MDI and equity earnings trajectory of POMTBE joint venture.

A: Industry operating in low to mid 80s, Huntsman in high 80s, sold out in China and US, Europe seeing green shoots; POMTBE joint venture was doing better but PO economics had volatility.

Q: Frank Mitch asked about polyurethane and MDI pricing initiatives and price mix.

A: Staying ahead of benzene curve, Q2 expected positive price mix, but sustainability was a question.

Q: Hasan Ahmed asked about MDI supply, operating rates, and Europe's polyurethane volumes and EBITDA.

A: Industry operating in low to mid 80s, Huntsman in mid to upper 80s; Europe's CWP, technical insulation, and ACE businesses had green shoots and expected positive EBITDA.

Q: Michael Sislin asked about polyurethanes EBITDA margins and pricing implications.

A: Need demand and raw material stability, Europe had pent - up demand.

Q: David Begleiter asked about performance products and UK aniline plant.

A: MLAIC strength would impact performance products later, UK aniline plant was affected by high gas and poor energy policies.

Q: Vincent Andrews asked about polyurethanes spreads and profitability.

A: Too early to comment on Q3, staying ahead of benzene price, but demand - driven.

Q: Matthew Blair asked about construction activity and customer pre - buying.

A: Construction activity stable, pre - buying more in MDI, managed carefully.

Q: Jeff Sikasas asked about Chinese MDI in Europe and ethylene amines joint venture impact.

A: Chinese MDI in Europe was stable; ethylene amines joint venture impact could be up to $4 - $5 million, with variability.

Q: Mike Harrison asked about mid - cycle margins for polyurethanes and specialty amines capacity.

A: Mid - cycle margins for polyurethanes should be mid - teen; specialty amines capacity was coming online, expected normalized run rate by end of 2026.

Q: Josh Spector asked about benzene MDI math in Q2 and Q3.

A: Exiting Q2 able to stay ahead of raw materials going into Q3, working on more price increases.

Q: Lawrence Alexander asked about customer pre - buying and market conditions.

A: Pre - buying in construction and insulation, not seeing panic buying but higher capacity utilization.

Q: Arun Viswanathan asked about an outage and utilization rates, and PO supply.

A: Not sure on competitor outage impact, industry operating in high 80s; PO supply was intact.

Q: John Roberts asked about Saudi Amines JV and Strait of Hormuz resumption.

A: Assumed 30 - 45 days to resume full production and export by sea if Strait of Hormuz agreement imminent.