Huntsman CORP

Huntsman's capital structure shows a debt-to-equity ratio of 0.77, indicating moderate leverage. The company's liquidity position is characterized by a current ratio of 1.27, suggesting it can cover short-term obligations but with limited buffer. Free cash flow is negative at -$91 million, and operating cash flow is also negative at -$53 million, signaling cash flow constraints. The company's cash and equivalents of $369 million are insufficient to cover total debt of $2.06 billion, resulting in a net cash deficit. Profitability metrics are weak, with a return on equity of -1.98% and a return on assets of -0.74%. These figures fall below the industry median for Diversified Chemicals, which typically sees ROE and ROA in the positive range. Operating income was -$16 million in Q1 2026, and net income was -$53 million, indicating a significant decline in profitability compared to prior periods. Geographically, Huntsman's revenue is concentrated in North America, with a smaller portion derived from Asia and Europe. The Polyurethanes segment is the largest contributor to revenue, followed by Performance Products and Advanced Materials. However, the company has not disclosed specific revenue percentages for each segment, making it difficult to assess the degree of concentration risk. The company's growth trajectory is mixed. Revenue in Q1 2026 was $1.42 billion, but the outlook for the current fiscal year is uncertain due to weak operating performance. Capital expenditures were $38 million, suggesting limited investment in growth. The company's adjusted EBITDA is a key metric for performance tracking, but the lack of recent growth in this metric indicates a challenging operating environment. Risk factors include liquidity constraints and the potential for dilution, although the risk of dilution is currently assessed as low. The company's debt load and negative cash flows increase the risk of financial distress. Additionally, the company's exposure to global markets and the chemical industry's cyclical nature pose operational risks. The risk assessment indicates a medium liquidity risk, with a key flag noting that net cash is negative after subtracting total debt. Recent events include the backfilling of accounts payable data in the latest filing, which may improve transparency. The company has also provided detailed definitions for adjusted EBITDA and other non-GAAP measures, which are used to assess segment performance. These adjustments include the exclusion of restructuring costs, legal settlements, and other non-recurring items, which may affect the comparability of financial results across periods.