Huntsman Faces Crucial Test Amid Restructuring and Downgrade

As Huntsman Corporation approaches the release of its Q4 2025 financial results, the chemical producer is navigating a period of significant operational and financial strain. A recent credit rating downgrade and unexpected production issues have placed the company's aggressive cost-cutting strategy under the microscope. Investors are questioning whether these measures can effectively reverse the current downward trajectory.

The detailed quarterly figures are scheduled for publication on February 17, after the US market closes. This will be followed by a management conference call at 4:00 PM CET on February 18, where executives are expected to provide further details on cost-saving initiatives and the full-year outlook for 2026.

The company's performance has been hampered by an unplanned outage at a production line in Rotterdam, which is pressuring earnings. Furthermore, persistent weak demand from the construction and consumer goods sectors, suffering under high US inflation and interest rates, continues to create headwinds. Huntsman is now guiding toward the lower end of its EBITDA forecast for the past quarter.

Credit Rating Action and Strategic Response

In late January, S&P Global Ratings responded to these challenges by downgrading Huntsman's credit rating to "BB" and assigning a negative outlook. Analysts at the agency do not anticipate a moderate recovery in adjusted EBITDA to the range of $375 to $425 million until 2026.

Should investors sell immediately? Or is it worth buying Huntsman?

In a decisive countermove, the company's board has implemented a substantial $100 million savings program. This initiative involves the closure of seven manufacturing sites and the elimination of more than 600 positions. An additional $40 million in savings is targeted for the current year. In a move to preserve capital, the quarterly dividend was slashed by 65%, a reduction expected to lower the cash requirement for 2026 to approximately $60 million.

Future Growth Levers and Market Sentiment

Despite the near-term difficulties, Huntsman is pivoting toward future growth markets, notably electric mobility. The development of new structural adhesives for electric vehicles is a key focus, aimed at securing access to an automotive segment that could surpass $13 billion in value by 2035.

Market observers have noted a recent surge in speculative interest. Two days ago, trading activity revealed unusually high volume in call options on Huntsman stock, suggesting some investors are betting on a potential rebound.

The upcoming earnings release and guidance will be critical in assessing the efficacy of Huntsman's hard-line restructuring path and its capacity to stabilize operations in a demanding market environment.