Trump announces trade deal with EU following months of negotiations
Huntsman Corporation (NYSE:HUN), currently trading at $11.39 near its 52-week low and carrying a market capitalization of $1.98 billion, and its subsidiary, Huntsman International LLC, have entered into a Second Amendment to their 2022 Revolving Credit Agreement, as disclosed in an 8-K filing with the SEC on May 27, 2025. The amendment, effective May 23, 2025, alters the financial covenant regarding the leverage ratio of Huntsman International and its subsidiaries.
The amendment increases the maximum permitted ratio of Consolidated Net Debt to Consolidated EBITDA through December 31, 2026, or earlier if Huntsman International chooses after showing compliance with a specified leverage ratio. With a current total debt to capital ratio of 0.52 and a current ratio of 1.48, the company maintains moderate financial flexibility. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.
Furthermore, the amendment restricts Huntsman International’s ability to make certain restricted payments, particularly in providing Huntsman Corporation with funds to redeem its equity interests, with specified exceptions during the Covenant Relief Period.
The details of the Second Amendment are outlined in the attached Exhibit 10.1 of the 8-K filing. This information is based on a press release statement.
In other recent news, Huntsman Corporation reported its first-quarter 2025 earnings, revealing a slight miss in its earnings per share (EPS) compared to analysts’ expectations. The company posted an EPS of -$0.11, slightly below the forecast of -$0.10, while revenue fell short at $1.41 billion against the expected $1.5 billion. Huntsman is doubling its cost savings target to $100 million in response to market challenges. The company also reported an increase in inventory levels by $100 million sequentially, highlighting operational challenges amid volatile market conditions. Despite these hurdles, Huntsman is strategically positioning itself by consolidating operations and optimizing its manufacturing footprint, particularly in Europe. The company refrained from providing full-year guidance due to ongoing market volatility but anticipates a better performance in the second half of 2025. Analysts from firms like Vertical Research Partners and Citi inquired about the impact of trade policies and inventory management strategies during the earnings call. Huntsman executives addressed these concerns, emphasizing efforts to optimize operations and adapt to the evolving market landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.