Adjusted EBITDA increased to $132 million from $94 million, while adjusted net income attributable to Huntsman improved to $7 million from an adjusted net loss of $5 million.

On a reported basis, Huntsman recorded a net loss attributable to the company of $18 million, compared with a $25 million loss in the third quarter of 2025. The diluted loss per share narrowed to $0.10 from $0.14.

Adjusted diluted earnings per share improved to $0.04 from an adjusted loss of $0.03 per share.

The company attributed the improvement primarily to increased volumes, stronger margins and savings from its cost optimization program.

Polyurethanes Sales Increase as MDI Prices Rise

Huntsman's Polyurethanes segment reported revenue of $1.15 billion, up 21% from $956 million in the prior-year quarter.

Segment adjusted EBITDA increased 56% to $75 million from $48 million.

The improvement reflected higher average selling prices, increased sales volumes, higher equity earnings from Huntsman's minority-owned joint venture in China and cost savings.

Average selling prices for methylene diphenyl diisocyanate (MDI) increased across the Americas, Europe and Asia.

Huntsman attributed the pricing gains to improved supply-demand conditions and higher raw-material costs.

MDI sales volumes increased in the Americas and Europe.

Higher raw-material expenses partially offset the benefits from pricing, volumes and operating improvements.

MDI is used in polyurethane chemistry, including systems serving coatings, adhesives, sealants and other industrial applications. The company's pricing and volume trends provide an indication of conditions in the broader polyurethane supply chain.

Advanced Materials Benefits From Aerospace and Automotive Demand

Advanced Materials reported third-quarter revenue of $314 million, an 18% increase from $265 million a year earlier.

Adjusted EBITDA increased 41% to $62 million from $44 million.

The company attributed the revenue increase to higher sales volumes and higher average selling prices.

Volume growth was concentrated in aerospace, automotive and power applications, while favorable product mix supported average selling prices.

Huntsman's Advanced Materials business supplies epoxy and other specialty chemical technologies used across industrial applications, including coatings and composite materials.

The improvement provides a useful indication of demand in several performance-materials markets.

Performance Products Reports Higher Prices

The Performance Products segment reported revenue of $260 million, up 6% from $246 million.

Adjusted EBITDA increased to $31 million from $29 million.

Huntsman said the revenue improvement primarily reflected higher average selling prices, while sales volumes remained relatively unchanged.

Price increases were driven by higher raw-material and logistics costs and favorable sales mix.

The improvement in adjusted EBITDA reflected stronger selling prices and margins.

Together, the segment results show that Huntsman's growth was supported by a combination of pricing and higher demand, with different factors affecting each business.

Olin Merger Remains on Track for First Quarter

Huntsman also confirmed continued progress toward its proposed merger with Olin Corp.

The companies announced the all-stock merger of equals in June 2026.

Shareholders of both companies approved the transaction August 25, and the U.S. Hart-Scott-Rodino antitrust waiting period expired in September.

Huntsman said the merger has received regulatory clearance in multiple jurisdictions, with remaining approvals still being pursued.

The company expects the transaction to close in the first quarter of 2027, subject to those approvals and other customary closing conditions.

The timing is consistent with Olin's October 29 merger update, which narrowed the companies' previously stated first-half 2027 target.

The proposed combination would bring together Olin's chlor-alkali and epoxy operations with Huntsman's polyurethane, advanced-materials and performance-chemical businesses.

Once completed, the combined company is expected to operate as OlinHuntsman Corp. and trade on the New York Stock Exchange under the ticker OHN.

The transaction has not closed, and the companies continue to operate independently.

PCI has also reported on the Australian Competition and Consumer Commission's review of the proposed merger.

Cash Flow and Financial Outlook

Huntsman reported $115 million in net cash provided by operating activities from continuing operations during the third quarter, compared with $200 million a year earlier.

Free cash flow declined to $82 million from $157 million.

Capital expenditures totaled $33 million, compared with $43 million in the prior-year quarter.

The company expects capital expenditures of approximately $160 million for full-year 2026.

As of September 30, Huntsman reported approximately $900 million in combined cash and unused borrowing capacity.

Management said it expects improved results and cash generation to reduce net debt leverage to approximately four times by year-end, compared with higher leverage earlier in 2026.

Huntsman's results reflect improving operating performance despite continued macroeconomic uncertainty, with changes in selling prices, product mix and end-market demand affecting its businesses differently.

Huntsman's results provide coatings manufacturers with updated information on polyurethane, epoxy and specialty chemical demand and pricing. Follow related developments in PCI's paint and coating resins and polymers coverage.