½ðÄê»á

Three months ended

March 31,

In millions, except per share amounts

2025

2024

Revenues

$ÌýÌýÌýÌý 1,410

$ÌýÌýÌýÌý 1,470

Net loss attributable to ½ðÄê»á Corporation

$Ìý Ìý Ìý Ìý Ìý Ìý(5)

$Ìý Ìý Ìý Ìý Ìý(37)

Adjusted net loss⁽¹⁾

$Ìý Ìý Ìý Ìý Ìý(19)

$Ìý Ìý Ìý Ìý Ìý(11)

Diluted loss per share

$ÌýÌýÌýÌýÌý (0.03)

$ÌýÌýÌýÌýÌý (0.22)

Adjusted diluted loss per share⁽¹⁾

$ÌýÌýÌýÌýÌý (0.11)

$ÌýÌýÌýÌýÌý (0.06)

Adjusted EBITDA⁽¹⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 72

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 81

Net cash used in operating activities from continuing operations

$Ìý Ìý Ìý Ìý Ìý(71)

$ÌýÌýÌýÌýÌýÌýÌý (63)

Free cash flow from continuing operations⁽²⁾

$ÌýÌýÌýÌýÌýÌý (107)

$Ìý Ìý Ìý (105)

See end of press release for footnote explanations and reconciliations of non-GAAP measures.

Table 1 – Results of Operations

Three months ended

March 31,

In millions, except per share amounts

2025

2024

Revenues

$ÌýÌýÌýÌý 1,410

$ÌýÌýÌýÌý 1,470

Cost of goods sold

1,209

1,269

Gross profit

201

201

Operating expenses, net

196

209

Restructuring, impairment and plant closing costs

1

11

Gain on acquisition of assets, net

(5)

(52)

Prepaid asset write-off

-

71

Income associated with litigation matter, net

(33)

-

Operating income (loss)

42

(38)

Interest expense, net

(19)

(19)

Equity in income of investment in unconsolidated affiliates

1

19

Other income, net

3

2

Income (loss) from continuing operations before income taxes

27

(36)

Income tax (expense) benefit

(15)

20

Income (loss) from continuing operations

12

(16)

Loss from discontinued operations, net of tax

(1)

(7)

Net income (loss)

11

(23)

Net income attributable to noncontrolling interests

(16)

(14)

Net loss attributable to ½ðÄê»á Corporation

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý (5)

$ÌýÌýÌýÌýÌýÌýÌý (37)

Adjusted EBITDA⁽¹⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 72

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 81

Adjusted net loss ⁽¹⁾

$Ìý Ìý Ìý Ìý Ìý(19)

$Ìý Ìý Ìý Ìý Ìý(11)

Basic loss per share

$ÌýÌýÌýÌýÌý (0.03)

$ÌýÌýÌýÌýÌý (0.22)

Diluted loss per share

$ÌýÌýÌýÌýÌý (0.03)

$ÌýÌýÌýÌýÌý (0.22)

Adjusted diluted loss per share⁽¹⁾

$ÌýÌýÌýÌýÌý (0.11)

$ÌýÌýÌýÌýÌý (0.06)

Common share information:

Basic weighted average shares

172

172

Diluted weighted average shares

172

172

Diluted shares for adjusted diluted loss per share

172

172

See end of press release for footnote explanations.

Table 2 – Results of Operations by Segment

Three months ended

March 31,

(Worse) /

In millions

2025

2024

better

Segment revenues:

Polyurethanes

$ÌýÌýÌýÌýÌýÌýÌý 912

$ÌýÌýÌýÌýÌýÌýÌý 926

(2Ìý%)

Performance Products

257

291

(12Ìý%)

Advanced Materials

249

261

(5Ìý%)

Total reportable segments' revenues

1,418

1,478

(4Ìý%)

Intersegment eliminations

(8)

(8)

n/m

Total revenues

$ÌýÌýÌýÌý 1,410

$ÌýÌýÌýÌý 1,470

(4Ìý%)

Segment adjusted EBITDA⁽¹⁾:

Polyurethanes

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 42

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 39

8Ìý%

Performance Products

30

42

(29Ìý%)

Advanced Materials

36

43

(16Ìý%)

Total reportable segments' adjusted EBITDA⁽¹⁾

108

124

(13Ìý%)

Corporate, LIFO and other

(36)

(43)

16Ìý%

Total adjusted EBITDA⁽¹⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 72

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 81

(11Ìý%)

n/m = not meaningful

See end of press release for footnote explanations.

Three months ended

March 31, 2025 vs. 2024

Average selling price^(a)

Local

Exchange

Sales

currency & mix

rate

volume^(b)

Total

Polyurethanes

(3Ìý%)

(2Ìý%)

3Ìý%

(2Ìý%)

Performance Products

5Ìý%

(1Ìý%)

(16Ìý%)

(12Ìý%)

Advanced Materials

(4Ìý%)

(2Ìý%)

1Ìý%

(5Ìý%)

(a) Excludes sales from tolling arrangements, by-products and raw materials.

(b) Excludes sales from by-products and raw materials.

Table 4 – Reconciliation of U.S. GAAP to Non-GAAP Measures

ÌýIncome taxÌý

ÌýNet incomeÌý

ÌýDiluted lossÌý

ÌýEBITDAÌý

and other expense

Ìý(loss)Ìý

Ìýper shareÌý

Three months ended

Three months ended

Three months ended

Three months ended

March 31,

March 31,

March 31,

March 31,

In millions, except per share amounts

2025

2024

2025

2024

2025

2024

2025

2024

Net income (loss)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 11

$ÌýÌýÌýÌýÌýÌýÌýÌý (23)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 11

$ÌýÌýÌýÌýÌýÌýÌýÌý (23)

$ÌýÌýÌýÌýÌýÌý 0.06

$ÌýÌýÌýÌýÌý (0.13)

Net income attributable to noncontrolling interests

(16)

(14)

(16)

(14)

(0.09)

(0.08)

Net loss attributable to ½ðÄê»á Corporation

(5)

(37)

(5)

(37)

(0.03)

(0.22)

Interest expense, net from continuing operations

19

19

Income tax expense (benefit) from continuing operations

15

(20)

$ÌýÌýÌýÌýÌýÌýÌýÌý (15)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 20

Income tax benefit from discontinued operations

-

(1)

Depreciation and amortization from continuing operations

69

69

Business acquisition and integration (gain) expenses and purchase
accounting inventory adjustments

(5)

20

-

(18)

(5)

2

(0.03)

0.01

EBITDA / Loss from discontinued operations

1

8

ÌýN/AÌý

ÌýN/AÌý

1

7

0.01

0.04

Establishment of significant deferred tax asset valuation allowance

-

-

9

-

9

-

0.05

-

Certain legal and other settlements and related (income) expenses

(33)

1

7

-

(26)

1

(0.15)

0.01

Amortization of pension and postretirement actuarial losses

7

8

(2)

(1)

5

7

0.03

0.04

Restructuring, impairment and plant closing and transition costs

4

14

(2)

(5)

2

9

0.01

0.05

Adjusted⁽¹⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 72

$ÌýÌýÌýÌýÌýÌýÌýÌýÌý 81

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (3)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (4)

(19)

(11)

$ÌýÌýÌýÌýÌý (0.11)

$ÌýÌýÌýÌýÌý (0.06)

Adjusted income tax expense⁽¹⁾

3

4

Net income attributable to noncontrolling interests

16

14

Adjusted pre-tax income ⁽¹⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý -

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 7

Adjusted effective tax rate⁽³⁾

N/M

57Ìý%

Effective tax rate

56Ìý%

56Ìý%

N/M = not meaningful

N/A = not applicable

See end of press release for footnote explanations.

Table 5 – Selected Balance Sheet Items

March 31,

December 31,

In millions

2025

2024

Cash

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 334

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 340

Accounts and notes receivable, net

797

725

Inventories

1,030

917

Prepaid expenses

95

114

Other current assets

30

29

Property, plant and equipment, net

2,494

2,493

Other noncurrent assets

2,452

2,496

Total assets

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 7,232

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 7,114

Accounts payable

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 738

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 770

Other current liabilities

518

470

Current portion of debt

284

325

Long-term debt

1,670

1,510

Other noncurrent liabilities

851

876

½ðÄê»á Corporation stockholders' equity

2,951

2,959

Noncontrolling interests in subsidiaries

220

204

Total liabilities and equity

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 7,232

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 7,114

Table 6 – Outstanding Debt

March 31,

December 31,

In millions

2025

2024

Debt:

Revolving credit facility

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 273

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý -

Senior notes

1,486

1,799

Accounts receivable programs

163

-

Variable interest entities

14

16

Other debt

18

20

Total debt - excluding affiliates

1,954

1,835

Total cash

334

340

Net debt - excluding affiliates⁽⁴⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,620

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 1,495

See end of press release for footnote explanations.

Table 7 – Summarized Statement of Cash Flows

Three months ended

March 31,

In millions

2025

2024

Total cash at beginning of period

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 340

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 540

Net cash used in operating activities from continuing operations

(71)

(63)

Net cash used in operating activities from discontinued operations

(3)

(2)

Net cash provided by (used in) investing activities

6

(30)

Net cash provided by financing activities

60

108

Effect of exchange rate changes on cash

2

(1)

Total cash at end of period

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 334

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý 552

Free cash flow from continuing operations⁽²⁾:

Net cash used in operating activities from continuing operations

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (71)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (63)

Capital expenditures

(36)

(42)

Free cash flow from continuing operations⁽²⁾

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (107)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (105)

Supplemental cash flow information:

Cash paid for interest

$Ìý Ìý Ìý Ìý Ìý Ìý Ìý Ìý(8)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (12)

Cash paid for income taxes

(12)

(15)

Cash paid for restructuring and integration

(3)

(17)

Cash paid for pensions

(8)

(10)

Depreciation and amortization from continuing operations

69

69

Change in primary working capital:

Accounts and notes receivable

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (65)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (87)

Inventories

(101)

(38)

Accounts payable

(32)

30

Total change in primary working capital

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (198)

$ÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌýÌý (95)

See end of press release for footnote explanations.

(1)

We use adjusted EBITDA to measure the operating performance of our business and for planning and evaluating the performance of our business segments.Ìý We provide adjusted net income (loss) because we feel it provides meaningful insight for the investment community into the performance of our business.Ìý We believe that net income (loss) is the performance measure calculated and presented in accordance with generally accepted accounting principles in the U.S. ("GAAP") that is most directly comparable to adjusted EBITDA and adjusted net income (loss).Ìý Additional information with respect to our use of each of these financial measures follows:

Adjusted EBITDA, adjusted net income (loss) and adjusted diluted income (loss) per share, as used herein, are not necessarily comparable to other similarly titled measures of other companies.

Adjusted EBITDA is computed by eliminating the following from net income (loss):Ìý (a) net income attributable to noncontrolling interests; (b) interest expense, net; (c) income taxes; (d) depreciation and amortization; (e) amortization of pension and postretirement actuarial losses; (f) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted EBITDA in Table 4 above.Ìý

Adjusted net income (loss) and adjusted diluted income (loss) per share are computed by eliminating the after tax impact of the following items from net income (loss): (a) net income attributable to noncontrolling interests; (b) amortization of pension and postretirement actuarial losses; (c) restructuring, impairment and plant closing and transition costs; and further adjusted for certain other items set forth in the reconciliation of net income (loss) to adjusted net income (loss) in Table 4 above.Ìý The income tax impacts, if any, of each adjusting item represent a ratable allocation of the total difference between the unadjusted tax expense and the total adjusted tax expense, computed without consideration of any adjusting items using a with and without approach.

We may disclose forward-looking adjusted EBITDA because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, net, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted EBITDA represents the forecast net income on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our adjusted EBITDA to differ.

(2)

Management internally uses free cash flow measure: (a) to evaluate our liquidity, (b) evaluate strategic investments, (c) plan stock buyback and dividend levels and (d) evaluate our ability to incur and service debt. Free cash flow is defined as net cash provided by operating activities less capital expenditures. Free cash flow is not a defined term under U.S. GAAP, and it should not be inferred that the entire free cash flow amount is available for discretionary expenditures.

(3)

We believe the adjusted effective tax rate provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the businesses' operational profitability and that may obscure underlying business results and trends. In our view, effective tax rate is the performance measure calculated and presented in accordance with U.S. GAAP that is most directly comparable to adjusted effective tax rate. The reconciliation of historical adjusted effective tax rate and effective tax rate is set forth in Table 4 above. Please see the reconciliation of our net income to adjusted net income in Table 4 for details regarding the tax impacts of our non-GAAP adjustments.

Our forward-looking adjusted effective tax rate is calculated based on our forecast effective tax rate, and the range of our forward-looking adjusted effective tax rate equals the range of our forecast effective tax rate. We disclose forward-looking adjusted effective tax rate because we cannot adequately forecast certain items and events that may or may not impact us in the near future, such as business acquisition and integration expenses and purchase accounting inventory adjustments, certain legal and other settlements and related expenses, gains on sale of businesses/assets and certain tax only items, including tax law changes not yet enacted. Each of such adjustment has not yet occurred, is out of our control and/or cannot be reasonably predicted. In our view, our forward-looking adjusted effective tax rate represents the forecast effective tax rate on our underlying business operations but does not reflect any adjustments related to the items noted above that may occur and can cause our effective tax rate to differ.

(4)

Net debt is a measure we use to monitor how much debt we have after taking into account our total cash. We use it as an indicator of our overall financial position, and calculate it by taking our total debt, including the current portion, and subtracting total cash.