Huntsman entered this earnings season with a reputation as a cheap stock on P/S and came out of the print with the market marking it down hard. The share price dropped about 19% to US$9.76 in the first full session after results, even as Q2 showed revenue of US$1,663m and the quarterly loss narrowed to US$4m on a net income basis.

The gap that matters for you is simple. The stock trades on low sales multiples while the business still sits in loss-making territory. This earnings release sharpened that tension rather than resolving it.

Is Huntsman a rare mispriced bargain on 0.3x P/S, or is the low multiple simply reflecting real balance sheet and cash flow strain? See how the numbers line up in our valuation analysis for Huntsman

Q2 2026 Earnings Summary

• Revenue (Q2 2026 vs Q2 2025): US$1,663m vs. US$1,458m (up 14.0%)
• Net Loss (Q2 2026 vs Q2 2025): US$4m loss vs. US$159m loss (loss narrowed 97.5%)
• Basic EPS (Q2 2026 vs Q2 2025): US$0.02 loss per share vs. US$0.92 loss per share (loss per share reduced 97.5%)
• Net Loss, Trailing 12 Months to Q2 2026 vs Trailing 12 Months to Q2 2025: US$168m loss vs. US$310m loss (loss reduced 45.8%)

Tired of scrolling through dense earnings reports and raw figures trying to piece Huntsman together on your own? Get a clear, visual breakdown of Huntsman that puts its valuation front and center in the company report for Huntsman.

Evaluating Huntsman’s Margin Resilience Story

Bulls argue Huntsman can turn a cyclical chemicals base into a more resilient, higher quality earnings stream through cost actions, portfolio reshaping and mix shift into specialties. Q2 gives some proof points. Revenue reached US$1,663m and the quarterly loss narrowed to US$4m. Management highlighted near doubling of EBITDA in parts of the polyurethanes portfolio and said European MDI operations should be EBITDA positive into Q3 if energy costs cooperate. That lines up with the claim that pricing discipline and cost cuts are starting to stick.

The narrative also leans heavily on higher margin downstream growth. In this area, Advanced Materials volumes were up 8% year over year, helped by aerospace, EV related auto and power grid demand, while elastomers and industrial coatings delivered double digit growth. These are the exact areas bulls want to see gaining weight in the mix, even though the group overall remains loss making.

Compare Huntsman’s push into higher margin specialties with how the street is reacting to the stock price reset. Assess whether analysts expect this operational progress to translate into upside, or still see more risk being priced in through the consensus price target analysis for Huntsman.

Huntsman Bears Focus On Cyclicality And Execution Risk

The bearish narrative around Huntsman is that a cyclical, regulation heavy chemicals portfolio, stretched balance sheet and contested merger leave too much earnings and execution risk. Q2 does not fully disprove that view. The company is still loss making on a net income basis at US$4m for the quarter and US$168m over the past 12 months. That keeps pressure on cash generation, particularly with net debt at about US$1.7b and net leverage above 5x.

Bears also worry that Europe and overcapacity in products like MDI will drag returns. Management only expects European MDI EBITDA to be positive if energy costs stay contained, which is not a closed risk. Finally, the Olin merger that is meant to reset the cost base is drawing legal scrutiny and mixed market reaction. The share price fell about 19% after results, which shows investors are still pricing in those uncertainties rather than treating Q2 as a clear turning point.

After a 19.1% share price drop, stretched leverage and an uncovered dividend, it is fair to ask whether these are just surface issues or signs of deeper strain. Review our independent risk analysis for Huntsman which shows 3 important warning signs

Stay Ahead With Huntsman Insights

If Huntsman’s low P/S ratio and recent share price drop have your attention, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and watch for your preferred entry range. After you take a position, keep a clear view of Huntsman alongside your other holdings in the Portfolio Command Center, which filters noise and focuses on key developments. For a broader view, use the Community to see how other investors are thinking about Huntsman and similar stocks. This combination can help you spot potential catalysts or emerging risks early so you can decide how to respond before the wider market reacts.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.