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Note 20 - Operating Segment Information
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Segment Reporting [Text Block]

20. OPERATING SEGMENT INFORMATION 

​

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of diversified organic chemical products. We have three operating segments, which are also our reportable operating segments: Polyurethanes, Performance Products and Advanced Materials. We have organized our business and derived our operating segments around differences in product lines. 

 

The major products of each reportable operating segment are as follows:

​

Segment

    

Products

Polyurethanes

​

MDI, polyols, TPU and other polyurethane-related products

Performance Products

​

Performance amines, ethyleneamines and maleic anhydride

Advanced Materials

​

Technologically-advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents, toughening agents, and carbon nanomaterials

 

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedules include revenues, significant segment expenses and adjusted EBITDA for each of our reportable operating segments (dollars in millions). 

 

Huntsman Corporation

 

  

Three months ended June 30, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $1,079  $283  $313  $1,675 
                 

Significant segment expenses:

                

Variable direct costs(2)

  810   158   143   1,111 

Adjusted fixed costs(3)

  203   88   108   399 

Other segment items(4)

  —   —   (2)  (2)

Total reportable segments’ adjusted EBITDA(5)

 $66  $37  $64   167 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:

                

Interest expense, net

              (23)

Depreciation and amortization

              (77)

Corporate and other costs, net(6)

              (47)

Net income attributable to noncontrolling interests

              13 

Other adjustments:

                

Certain legal and other settlements and related expenses, net

              (7)

Gain on sale of business/assets, net(7)

              22 

Expenses associated with the proposed merger

              (5)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(8)

              (10)

Income from continuing operations before income taxes

              26 
                 

Income tax expense—continuing operations

              (17)

Loss from discontinued operations, net of tax

              (2)

Net income

             $7 

 

  

Three months ended June 30, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $932  $270  $264  $1,466 
                 

Significant segment expenses:

                

Variable direct costs(2)

  700   146   123   969 

Adjusted fixed costs(3)

  198   95   100   393 

Other segment items(4)

  3   (3)  (4)  (4)

Total reportable segments’ adjusted EBITDA(5)

 $31  $32  $45   108 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (21)

Depreciation and amortization

              (72)

Corporate and other costs, net(6)

              (34)

Net income attributable to noncontrolling interests

              13 

Other adjustments:

                

Certain legal and other settlements and related expenses, net

              (1)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(8)

              (125)

Loss from continuing operations before income taxes

              (139)
                 

Income tax expense—continuing operations

              (7)

Income from discontinued operations, net of tax

              1 

Net loss

             $(145)

 

  

Six months ended June 30, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $2,002  $511  $592  $3,105 
                 

Significant segment expenses:

                

Variable direct costs(2)

  1,508   284   274   2,066 

Adjusted fixed costs(3)

  388   165   216   769 

Other segment items(4)

  1   (1)  (7)  (7)

Total reportable segments’ adjusted EBITDA(5)

 $105  $63  $109   277 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (44)

Depreciation and amortization

              (150)

Corporate and other costs, net(6)

              (84)

Net income attributable to noncontrolling interests

              25 

Other adjustments:

                

Certain legal and other settlements and related income, net

              (11)

Gain on sale of business/assets, net(7)

              22 

Expenses associated with the proposed merger

              (5)

Loss on early extinguishment of debt

              (1)

Amortization of pension and postretirement actuarial losses

              (14)

Restructuring, impairment and plant closing and transition costs(8)

              (18)

Loss from continuing operations before income taxes

              (3)
                 

Income tax expense—continuing operations

              (28)

Loss from discontinued operations, net of tax

              (3)

Net loss

             $(34)

 

  

Six months ended June 30, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $1,844  $527  $513  $2,884 
                 

Significant segment expenses:

                

Variable direct costs(2)

  1,382   283   239   1,904 

Adjusted fixed costs(3)

  384   179   201   764 

Other segment items(4)

  5   3   (8)  — 

Total reportable segments’ adjusted EBITDA(5)

 $73  $62  $81   216 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (40)

Depreciation and amortization

              (141)

Corporate and other costs, net(6)

              (70)

Net income attributable to noncontrolling interests

              29 

Other adjustments:

                

Business acquisition and integration gain and purchase accounting inventory adjustments, net

              5 

Certain legal and other settlements and related income, net(9)

              32 

Amortization of pension and postretirement actuarial losses

              (14)

Restructuring, impairment and plant closing and transition costs(8)

              (129)

Loss from continuing operations before income taxes

              (112)
                 

Income tax expense—continuing operations

              (22)

Income from discontinued operations, net of tax

              — 

Net loss

             $(134)

 

Huntsman International

 

  

Three months ended June 30, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $1,079  $283  $313  $1,675 
                 

Significant segment expenses:

                

Variable direct costs(2)

  810   158   143   1,111 

Adjusted fixed costs(3)

  203   88   108   399 

Other segment items(4)

  —   —   (2)  (2)

Total reportable segments’ adjusted EBITDA(5)

 $66  $37  $64   167 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:

                

Interest expense, net

              (23)

Depreciation and amortization

              (77)

Corporate and other costs, net(6)

              (47)

Net income attributable to noncontrolling interests

              13 

Other adjustments:

                

Certain legal and other settlements and related expenses, net

              (7)

Gain on sale of business/assets, net(7)

              22 

Expenses associated with the proposed merger

              (5)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(8)

              (10)

Income from continuing operations before income taxes

              26 
                 

Income tax expense—continuing operations

              (17)

Loss from discontinued operations, net of tax

              (2)

Net income

             $7 

 

  

Three months ended June 30, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $932  $270  $264  $1,466 
                 

Significant segment expenses:

                

Variable direct costs(2)

  700   146   123   969 

Adjusted fixed costs(3)

  198   95   100   393 

Other segment items(4)

  3   (3)  (4)  (4)

Total reportable segments’ adjusted EBITDA(5)

 $31  $32  $45   108 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (21)

Depreciation and amortization

              (72)

Corporate and other costs, net(6)

              (34)

Net income attributable to noncontrolling interests

              13 

Other adjustments:

                

Certain legal and other settlements and related income, net

              (1)

Amortization of pension and postretirement actuarial losses

              (7)

Restructuring, impairment and plant closing and transition costs(8)

              (125)

Loss from continuing operations before income taxes

              (139)
                 

Income tax expense—continuing operations

              (5)

Income from discontinued operations, net of tax

              1 

Net loss

             $(143)

 

  

Six months ended June 30, 2026

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $2,002  $511  $592  $3,105 
                 

Significant segment expenses:

                

Variable direct costs(2)

  1,508   284   274   2,066 

Adjusted fixed costs(3)

  388   165   216   769 

Other segment items(4)

  1   (1)  (7)  (7)

Total reportable segments’ adjusted EBITDA(5)

 $105  $63  $109   277 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (44)

Depreciation and amortization

              (150)

Corporate and other costs, net(6)

              (82)

Net income attributable to noncontrolling interests

              25 

Other adjustments:

                

Certain legal and other settlements and related income, net

              (11)

Gain on sale of business/assets, net(7)

              22 

Expenses associated with the proposed merger

              (5)

Loss on early extinguishment of debt

              (1)

Amortization of pension and postretirement actuarial losses

              (14)

Restructuring, impairment and plant closing and transition costs(8)

              (18)

Loss from continuing operations before income taxes

              (1)
                 

Income tax expense—continuing operations

              (28)

Loss from discontinued operations, net of tax

              (3)

Net loss

             $(32)

 

  

Six months ended June 30, 2025

 
  

Polyurethanes

  

Performance Products

  

Advanced Materials

  

Total

 

Revenues:

                

Reportable segments’ revenues(1)

 $1,844  $527  $513  $2,884 
                 

Significant segment expenses:

                

Variable direct costs(2)

  1,382   283   239   1,904 

Adjusted fixed costs(3)

  384   179   201   764 

Other segment items(4)

  5   3   (8)  — 

Total reportable segments’ adjusted EBITDA(5)

 $73  $62  $81   216 
                 

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:

                

Interest expense, net

              (40)

Depreciation and amortization

              (141)

Corporate and other costs, net(6)

              (68)

Net income attributable to noncontrolling interests

              29 

Other adjustments:

                

Business acquisition and integration gain and purchase accounting inventory adjustments, net

              5 

Certain legal and other settlements and related income, net(9)

              32 

Amortization of pension and postretirement actuarial losses

              (14)

Restructuring, impairment and plant closing and transition costs(8)

              (129)

Loss from continuing operations before income taxes

              (110)
                 

Income tax expense—continuing operations

              (22)

Income from discontinued operations, net of tax

              — 

Net loss

             $(132)

 

  

June 30,

  

December 31,

 
  

2026

  

2025

 

Total assets:

        

Polyurethanes

 $4,204  $4,045 

Performance Products

  1,201   1,185 

Advanced Materials

  1,143   1,095 

Total reportable segments’ total assets

  6,548   6,325 

Corporate and other

  642   690 

Total

 $7,190  $7,015 

  

  Six months ended
  June 30,
  

2026

  

2025

 

Depreciation and amortization:

        

Polyurethanes

 $87  $79 

Performance Products

  33   32 

Advanced Materials

  25   25 

Total reportable segments’ depreciation and amortization

  145   136 

Corporate and other

  5   5 

Total

 $150  $141 

 

  Six months ended
  June 30,
  

2026

  

2025

 

Capital expenditures:

        

Polyurethanes

 $40  $34 

Performance Products

  13   28 

Advanced Materials

  13   10 

Total reportable segments’ capital expenditures

  66   72 

Corporate and other

  2   1 

Total

 $68  $73 

 

(1)

A reconciliation of total reportable segments’ revenues to total consolidated revenues is provided in “Note 11. Revenue Recognition.”

(2)

Variable direct costs primarily include raw materials, utilities and freight-related costs.

(3)

Adjusted fixed costs primarily include personnel and maintenance costs at our manufacturing facilities, selling, general and administrative expenses and research and development expenses, less depreciation and amortization and an adjustment to remove the related effects of restructuring, impairment and plant closing and transition costs.

(4)

Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects, less adjustments to remove the related effects of primarily the following items: certain legal and other settlements and related (expenses) income, net; gain on sale of business/assets, net; amortization of pension and postretirement actuarial losses; restructuring, impairment and plant closing and transition costs; and business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net.

(5)

We use segment adjusted EBITDA as the measure of each segment’s profit or loss. Segment adjusted EBITDA is the measure that our chief operating decision maker (“CODM”), who has been determined to be our Chief Executive Officer, uses to make decisions about resources to be allocated to the segments and assess their financial performance. Our CODM evaluates segment adjusted EBITDA through the annual budget process as well as through ongoing periodic reviews of forecasts, budget-to-actual variances, changes from prior periods and when comparing the results of each reportable operating segment with one another. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) certain legal and other settlements and related (expenses) income, net; (b) gain on sale of business/assets, net; (c) expenses associated with the proposed merger; (d) amortization of pension and postretirement actuarial losses; (e) restructuring, impairment, plant closing and transition costs; (f) loss from discontinued operations, net of tax; (g) loss on early extinguishment of debt; and (h) business acquisition and integration gain and purchase accounting inventory adjustments, net. 

(6)

Corporate and other costs, net includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense and gains and losses on the disposition of corporate assets.

(7)Gain on sale of business/assets, net includes $22 million related to the gain on sale of our Gomet business. See “Note 1. General—Recent Developments—Sale of Huntsman Gomet Business.”
(8)Includes costs associated with transition activities relating primarily to our program to realign our cost structure in Europe. 
(9)Certain legal and other settlements and related income, net includes approximately $33 million for income associated with a litigation matter during the first quarter of 2025. See “Note 15. Commitments and Contingencies—Legal Matters.”