Huntsman Targets More Than $300 Million in Annual Savings From Olin Merger
Key Facts
Huntsman said on November 2, 2026, that it expects to complete its merger of equals with Olin in the first quarter of 2027, setting a target of more than $300 million a year in cost savings and integration benefits by the end of the third year after closing. The company said it expects to achieve more than 90% of that target within the first 24 months after the deal closes. The announcement came alongside quarterly results showing revenue growth and higher adjusted operating profit, while the company continued to report a net loss. Completion of the merger depends on securing the required regulatory approvals and meeting customary closing conditions. Shareholders of both companies approved the deal in August, and the waiting period under U.S. antitrust law expired, while Huntsman said it continues to work to obtain the remaining approvals.
Huntsman's revenue was $1.717 billion in the third quarter, up 18% from $1.460 billion in the same period a year earlier. Net loss attributable to the company was $18 million, compared with a loss of $25 million a year earlier. On an adjusted basis, the company reported net income of $7 million, after an adjusted loss of $5 million in the third quarter of 2025. Adjusted EBITDA rose to $132 million from $94 million. Management attributed the year-over-year improvement to higher sales volumes, stronger margins and cost savings, while the gap remained between improving operating indicators and achieving net profit.
Some of the revenue growth came from the polyurethane business, where selling prices and volumes rose, and the company said both factors also supported an improvement in the segment's adjusted earnings. Higher earnings from Huntsman's joint venture in China and cost savings also contributed, while higher raw-material costs exerted pressure in the opposite direction. In the Advanced Materials segment, the company attributed revenue growth to higher volumes and average selling prices. Volume growth was concentrated in the aerospace, automotive and energy markets, according to its disclosure. Management said it expects Advanced Materials to continue to see growth opportunities above GDP growth in 2027.
Operating cash flow from continuing operations improved to $115 million in the third quarter, but free cash flow was $82 million, compared with $157 million in the corresponding period of 2025. As of September 30, 2026, the company said cash and available borrowing capacity totaled about $0.9 billion. Huntsman expected its results and cash flows to help reduce net debt to EBITDA to about four times by the end of 2026. Chief Executive Peter Huntsman said 2027 would be "a better year than 2026," pointing to opportunities to cut costs, build the businesses and continue integration. The outlook for improvement was thus tied to several drivers, not merger savings alone.
Estimated annual savings are divided among about $75 million from procurement and raw-material integration, about $75 million from operational improvements and about $150 million from selling, general and administrative expenses. The plan includes removing duplicate corporate costs and improving supply chains. In addition to the core target, the companies expect further raw-material benefits of more than $100 million starting in January 2031. These benefits are tied to the expiration of existing third-party supply agreements for Huntsman's Geismar, Louisiana, site and a shift to internal supply of chlorine and caustic soda. This portion of the savings places the integration benefit on a longer timeline than the initial period after closing.
The deal is an all-stock transaction; Huntsman shareholders will receive 0.5476 Olin shares for each Huntsman share they own. After completion, Olin shareholders are expected to own 54.5% of the combined company, compared with 45.5% for Huntsman shareholders. The combined entity is expected to generate about $12.5 billion in annual revenue, based on 2025 figures on a pro forma basis. Shareholder approval of the proposals needed to complete the deal was secured on August 25, 2026. In the vote, about 97% of votes cast at Olin, representing 81% of outstanding shares, and about 99% at Huntsman, representing 75% of its outstanding shares, supported the deal.
Huntsman said regulatory clearance had been secured in several jurisdictions, including the United States in September 2026, but it was still working to complete approvals from the remaining authorities before the expected closing in the first quarter of 2027. On financing, Olin amended its credit facility on October 27 to arrange a $2.5 billion secured facility for the combined entity upon completion of the deal, subject to the conditions being met. The proposed facility includes a term loan with commitments of $750 million and a $1.75 billion revolving credit line. The financing is expected to replace existing facilities at both companies, according to the disclosure. Huntsman shares closed at $9.95 and Olin shares at $18.15 on November 2, 2026.