Huntsman Lifts Chemical Prices Ahead of Olin Deal
Buyers of polyurethanes and performance chemicals should expect firmer pricing as Huntsman folds Olin into its operations.
Updated on Nov. 3, 2026 in Corporate Finance
Huntsman Corporation reported third quarter 2026 revenues of $1,717 million, posting a net loss attributable to the company of $18 million while adjusted net income came in at $7 million. The Woodlands, Texas-based chemicals maker also expects its merger with Olin Corporation to close in the first quarter of 2027, a deal that has already cleared shareholder and U.S. regulatory hurdles.
Why it matters
Huntsman's results show how chemical producers are managing volatile pricing: higher average selling prices and volumes lifted the Polyurethanes and Performance Products segments, but a 108% effective tax rate and free cash flow falling to $82 million from $157 million underline pressure on cash generation. The pending Olin combination signals consolidation among Texas-based chemical makers as companies seek scale and balance-sheet strength.
Huntsman posted $1,717 million in third quarter revenues and adjusted EBITDA of $132 million, with free cash flow of $82 million down from $157 million a year earlier. Combined cash and unused borrowing capacity stood at about $0.9 billion as of September 30, 2026.
The players
Huntsman Corporation
The Woodlands, Texas-based chemicals manufacturer operating polyurethanes and performance products segments serving industrial customers.
Olin Corporation
A chemicals manufacturer whose planned merger with Huntsman would combine two chemical producers into a larger single company.
The details
Polyurethanes segment revenue rose on higher average selling prices and higher sales volumes, while Performance Products revenue increased mainly on higher average selling prices. Management attributed the year-over-year improvement to higher volumes, stronger margins, and cost savings. Huntsman also expects to bring net debt leverage down to approximately 4 times by year-end 2026 and expects 2026 capital expenditures of about $160 million.
Timeline
August 25, 2026: Huntsman shareholders approved the merger with Olin Corporation.
September 2026: U.S. regulatory clearance was granted for the Olin merger.
November 2, 2026: Third quarter 2026 results were announced.
November 3, 2026: Huntsman held an earnings conference call to discuss results.
Market Landscape
The Huntsman-Olin combination sits within a wave of Texas chemical-sector consolidation, with both companies pairing a merger of equals with a need for scale in commodity-linked markets. Shareholder approval and U.S. clearance in 2026 put the deal on track for a first quarter 2027 close.
Operators in chemical supply chains should watch pricing and volume trends in polyurethanes and performance products, since higher average selling prices are currently lifting producer margins. Finance teams at suppliers and customers should factor in the likely integration of two large chemical producers when reviewing contract terms over the next several quarters.
The takeaway
The key operating signal is that Huntsman's cash generation weakened even as revenue and margins improved, so operators should track free cash flow alongside earnings. Businesses that buy from or sell to chemical producers should monitor how the Olin integration affects supply terms once the deal closes in the first quarter of 2027.
What happens next
Huntsman expects the Olin merger to close in the first quarter of 2027, a milestone that will determine the combined company's structure and leverage profile.
Further reading
For broader context on how large deals reshape balance sheets, see Corporate Finance coverage in Texas.
Source note: This article includes information reported by Herald-Review.
