The Urethane Blog
August 6, 2026
Wanhua’s US subsidiary reaches MDI/TDI lawsuit settlement for $7.75 million
2026-08-06 08:50:21Source:ChemNet中文
Wanhua’s US Subsidiary Files Settlement Application, Marking the Third Settlement in the Case
On July 31, 2026, a judicial document submitted to the U.S. District Court for the Western District of Pennsylvania disclosed that Wanhua Chemical America Co., LTD. has reached a settlement agreement with the plaintiffs in the diisocyanate (MDI/TDI) antitrust class action, with a settlement amount of US$7.75 million, equivalent to approximately RMB 52.3 million.
The timeline indicates that the parties finalized a principled settlement framework on June 3, 2026, and simultaneously signed confidentiality agreements as the basis for the settlement; the full settlement text was formally signed on July 9; and on July 31, documents were formally submitted to the court to apply for judicial approval of the settlement plan. This is also the third settlement agreement reached in this diisocyanate antitrust case, which has lasted for many years.
First Two Settlements Concluded, Court Grants Preliminary Approval
Prior to the settlement by Wanhua’s US subsidiary, two corporate settlements had already been completed in this case.
On May 4, 2026, BASF took the lead in reaching the first settlement in this case, paying a settlement amount of US$3 million to the plaintiffs, breaking the ice in the case. Following closely, on May 8, Covestro‘s US subsidiary, Covestro LLC, also reached a settlement with the plaintiffs, with a settlement amount of US$7 million.
On July 23, 2026, both settlement agreements from BASF and Covestro’s US subsidiary received preliminary approval from the U.S. District Court for the Western District of Pennsylvania. The court scheduled the final approval hearing for December 7, 2026; the two settlement agreements can only officially take effect and be implemented after the hearing is completed.
Origin of the Case: Downstream Buyers Sued Chemical Companies in 2018 for Alleged Price Fixing Conspiracy
The entire lawsuit originated in June 2018, when downstream buyers of MDI and TDI initiated a class action, listing several global chemical manufacturers such as BASF, Dow Chemical, and Huntsman as defendants. The plaintiffs alleged that multiple companies artificially tightened supply by actively limiting production and colluded to raise market prices for MDI and TDI; they utilized the market structure of highly concentrated supply and scarcity of substitute products to implement price collusion.
The MDI and TDI involved are core raw materials for polyurethanes and are widely used in fields such as home furnishings, construction materials, automobiles, and insulation materials. Regarding the plaintiffs’ allegations, all implicated companies denied them. The companies argued that the lawsuit was initiated following relevant investigation reports by the U.S. Department of Justice, and that the Department of Justice’s investigation ultimately did not bring any charges.
In March 2020, District Judge Donetta Ambrose denied the defendants’ motion to dismiss the case, ruling that the clues submitted by the plaintiffs were supported by evidence and the case should proceed to trial. The judge cited multiple clues, including records of simultaneous price increases in industry products, planned plant shutdowns, supply disruptions, and communications between companies before price adjustments, as well as materials related to industry conferences. In the same ruling, the judge denied motions by BASF, Covestro, Mitsui Chemicals, MCNS, and Wanhua Chemical to dismiss the case on the grounds of lack of jurisdiction, and the case continued to proceed through the litigation process.
Major Ruling on Jurisdiction: Lawsuits Against Overseas Parent Companies Terminated, US Subsidiaries Continue to Defend
In 2022, the presiding judge in this case was changed, and a specialized factual investigation on jurisdiction was launched. Covestro and Wanhua Chemical’s parent companies again submitted motions to dismiss, arguing that the U.S. courts did not have judicial jurisdiction over the overseas parent companies.
In January 2026, Judge W. Scott Hardy made a key ruling, approving the two companies’ motions to dismiss. The ruling clarified that U.S. courts cannot exercise personal jurisdiction over China’s Wanhua Chemical and Germany’s Covestro, the two overseas parent companies. The plaintiffs’ claims against the two parent company entities were completely terminated, and they cannot sue the parent companies on this ground again. The ruling emphasized that the independent status of legal entities should be respected, and a simple equity relationship between a parent and subsidiary is insufficient to bring an overseas parent company under U.S. judicial jurisdiction.
This ruling only targets overseas parent companies; Covestro’s US subsidiary, Covestro LLC, remains a defendant in this case, and its status in the lawsuit is unaffected by this jurisdiction ruling; the entity reaching the settlement this time is also Wanhua Chemical’s US subsidiary, not the Wanhua Chemical parent company entity.
Future Outlook: Awaiting Court Approval for Settlement, Remaining Defendants to Continue Litigation
As of now, the US$7.75 million settlement by Wanhua’s US subsidiary is still pending court approval, and whether it takes effect depends on the results of judicial review. The settlements by BASF and Covestro’s US subsidiary await final confirmation following the hearing on December 7.
Following these three settlements, the remaining defendants, such as Dow Chemical and Huntsman, have not yet reached settlements, and the plaintiffs will continue to advance antitrust claim procedures against the remaining defendants. The progress of the settlements in this case will also serve as a reference sample for global MDI/TDI industry trade and for overseas companies responding to U.S. antitrust class actions.
August 4, 2026
Huntsman Corporation (HUN) Q2 2026 Earnings Call Transcript
Jul 31, 2026, 1:03 PM ETHuntsman Corporation (HUN) Stock
Q2: 2026-07-30 Earnings Summary
EPS of $0.00 misses by $0.06
| Revenue of $1.66B (14.06% Y/Y) beats by $56.62M
Huntsman Corporation (HUN) Q2 2026 Earnings Call July 31, 2026 10:00 AM EDT
Company Participants
Ivan Marcuse – Vice President of Investor Relations & Corporate Development
Peter Huntsman – Chairman, President & CEO
Philip Lister – Executive VP & CFO
Peter Huntsman
Chairman, President & CEO
Ivan, thank you very much, and thank you, everybody, for taking the time to join us this morning. It’s been 3 months since the last time we were able to report on market conditions and what we were doing as a company to enhance shareholder value. Needless to say, it has been a rather busy few months on a number of fronts. I’d like to comment on a few things, but I plan to be brief as your questions and comments are the reason for this call.
I stated during our last quarter’s call that while I was heartened to see the prices and margins were improving across most of our product lines, I emphasize the need for “stable and long-term demand trends to continue”. While we improved our margins from the first quarter, I remain concerned as to the growth rates and consumer confidence that we are seeing.
Since our last call, North American housing stats have softened and Chinese consumer confidence continues to languish. Europe continues its ill-fated energy policy and all that free wind is now costing European consumers and industry near-record amounts. As ongoing conflicts in the Middle East seemingly move weekly from a ceased fire to all-out war, moving energy prices, stock markets and consumer sentiment with each action, we continue to keep a wary eye on inflation and consumer spending, especially on durable goods. It seems much of this turbulence will continue through the third quarter.
While this is playing havoc on costs and order patterns, it is also demonstrating the value of reliable supply lines contractual assurance of supply and the value of pricing and consistent quality. We will continue to push for greater margins as we believe that this industry still has a lot of room for improvement.
In the — on the 16th of June, we announced a merger of equals with Olin Corporation. Since that time, we’ve had the opportunity to visit one-on-one with the majority of our largest shareholders. If I had to summarize my feelings towards this transaction, it would be in the answer that I shared when I was asked if I could do anything different than what had been done. My response was that I wish I had met Ken Lane a year earlier and that we were here today earning materially more than we otherwise would be earning. Regardless of market conditions, whether they improve or continue to languish, our company and shareholders will be better off with this proposed merger. If this transaction was a year behind us, we would be today, well on our way to achieving an additional $300 million in synergies.
We would be earning more through newfound commercial opportunities that are not even part of our $300 million in synergies. We would have a stronger balance sheet that would be improving quarter-by-quarter. In short, should today’s market conditions continue through next year, we will be better off than we are today. Should markets improve, we will be the benefactors of not only the forthcoming synergies, but also higher combined volumes and greater integration.
Either way, this positions us to improve regardless of market conditions. I have been impressed with the strong collaboration and interaction between the Huntsman and Olin teams that are advancing our closing at a rapid pace. Our teams will be ready on day one of closing to commence with achieving our outlined synergies. Between now and closing, we will continue to focus on creating as much shareholder value as possible. Following the completion of this transaction, we’ll be able to achieve far more.
Frank Mitsch
Fermium Research, LLC
I was wondering if you could update us on the state of the MDI business from a demand and a supply standpoint, particularly on the supply side, given what’s been going on with the Iranian conflict. How do you see that — how did you see that impact 2Q? What are your expectations for 3Q and beyond?
Peter Huntsman
Chairman, President & CEO
Well, I think on 2Q, we had the ability to be able to put prices up. Much of that was to recover the increase of raw materials that we were seeing at the time, but we were also able to get ahead as our results indicate that we’ve nearly doubled our EBITDA since second quarter of last year. Look, on a supply basis, we obviously have a large global MDI plant that is on the wrong side of the Strait of Hormuz, I would say. And that is probably representing somewhere around 4% of industry average.
So from a supply point of view, Frank, I think that it’s pretty well balanced. My disappointment, if I have one, is that we’re not seeing greater demand and greater improvement in the macroeconomic situation. I don’t want to be overly dire on this. I’m just saying that yes, on the supply side, I think it’s pretty well balanced. On the demand side, I’d like to see a little bit more. Right now, depending on where you are around the world, you’re probably seeing anywhere from 0% to 2% very low single-digit sort of growth that is taking place. So an improved economy, improved housing demand, particularly in North America would be very helpful, return consumer confidence in Asia would be very good to see. And frankly, improved sentiment — consumer sentiment and lower energy inflation in Europe, I think would all be benefactors this time.
Hassan Ahmed
Alembic Global Advisors
First question on polyurethanes. Obviously, a lot of stuff moving around. I mean we’ve seen some TDI outages. I would imagine that may result in some incremental demand on the MDI side of it, then we’ve obviously seen some outages in MDI itself. So just in terms of effective utilization rates, where do you see the industry and should it be relatively snug over the next quarter or 2? And part and parcel with that, I know you guys have taken some pricing actions in Europe in particular. But obviously, nat gas prices, they continue to rise. So I mean, will you guys be EBITDA positive over there after the price actions? And will the industry over there be EBITDA positive as well.
Peter Huntsman
Chairman, President & CEO
Well, if I had — Hassan, thanks very much. Good question. If I had to look at the market today in the snapshot, I would say that, yes, Europe with the pricing actions and with the cost structure that we have, Europe should be positive as we look into the third quarter. Now again, over the last couple of weeks here, and I’m talking the last 2 or 3 weeks, I’ve seen gas in Europe go from about $13, $14 per MMBtu rise above $20 per MMBtu. Now should it continue to do that, should electricity continue to rise at these rates. I don’t believe that will be the case. But if they were to continue, that obviously is going to pose some headwinds. That’s my biggest concern around Europe right now on a macro basis or energy costs and overall consumer demand. It’s tough to get prices up when you see demand going down and — or languishing and people are obviously fighting over a shrinking pie.
So as I think about Europe, I continue to be optimistic that we will be EBITDA positive in the third quarter there. As you look at it on a macro basis, I would imagine without looking at industry data because there’s not a whole lot that’s published, we’re probably operating in a capacity utilization rate somewhere in the mid-80s on a global basis.
Some areas, I think in the U.S., it’s tighter than that. I think in Europe, it might be a little looser than that. Asia is probably right on top of that. There have been a number of outages that are around. And again, if demand were rising at traditional levels of 4% to 6% per annum sort of growth rate, I think you’d see much tighter markets than today.
Matthew DeYoe
BofA Securities, Research Division
Good morning, everyone. Can you talk through the potential impacts of the antidumping duties on U.S. MDI and whether you think that lends to a higher floor over time for that business, what that floor could ultimately look like?
Peter Huntsman
Chairman, President & CEO
I think that — well, what the floor ultimately looks like. I don’t want to — I wouldn’t speculate on that, not that I’m trying to avoid an answer as much as I just simply don’t know, but it ought to be better than where we were a year ago. But let’s also be honest, I believe that you’re going to need demand to pick up.
You’re going to need housing to get back to a more normalized run rate to see any real material benefit come from this. And let’s remember, there’s a lot of MDI that’s exported from the United States. It goes into Canada that goes into Mexico. It goes into Latin America and so forth.
There are still imports from around the world that are going into those regions. And for every ton that goes into those regions and pushes U.S.-produced MDI back from those regions back into the United States market. I mean, we can say that, that export-oriented MDI is not coming to the U.S., but it kind of is in a roundabout way, right? And so I think that a lot of people were expecting as soon as this was implemented and put into place, you’re going to see a benefit the next quarter.
Now this is something that will play out over a multi-quarter basis. And you’ll see the greatest benefit of this come about when demand returns and housing returns to a more normalized basis.
Matthew DeYoe
BofA Securities, Research Division
Appreciate the answer, Peter. And I’ve been jumping around a little bit, so I apologize if I missed it, but polyol pricing was pretty strong in the quarter. You had an outage, obviously, one of the large competitors, which tightened a fair amount of the market. What was the benefit there? What does that look like in 3Q, 4Q? How is that market managing all that because we also heard some customers on the coating side talking about these shortages domestically as well.
Peter Huntsman
Chairman, President & CEO
I wouldn’t say that it was — I heard a lot more horror stories than I think actually happened to the industry. Look, our impact and benefit would be in the low $2 million to $3 million sort of a range — so yes, I’m not sure that it was as big of a deal as some maybe put it out in the media.
David Begleiter
Deutsche Bank AG, Research Division
Peter, U.S. MDI supply disruptions in Q2 helped you guys as these disruptions come back online in Q3. Is there a way to quantify the impact to you guys quarter-over-quarter?
Peter Huntsman
Chairman, President & CEO
Yes. I’m — we — I wish I could say that we had 100% operating rates during the quarter as well. we had some minor issues, I believe that were reported. But I think across the industry going from second quarter into third quarter, there’s quite a bit of inventory going into second quarter. That was built up for a housing season that really didn’t take off as much as probably some anticipated. Bottom line, I don’t see a whole lot of impact with those restarts going into the third quarter. It looks like it’s pretty flat from a demand — or from a supply/demand basis.
Matthew Blair
TPH Research
Thanks and good morning, Peter. Would you say that spray foam is holding up relatively well despite the tough construction environment. I think the prepared remarks mentioned some new wins in select markets. Could you elaborate a little bit more on that?
Peter Huntsman
Chairman, President & CEO
Yes. I think that the spray foam, we’ve got excellent leadership in spray foam that’s done a phenomenal job and looking and making their supply chain more efficient, their cost better. And most importantly, their marketing and their sales have been very effective in a lethargic construction environment. We’re seeing low double-digit growth continue to consistently take place. in spray foam energy efficiency. I think that I’m a bit disappointed as to where we were 2 years ago in that business. But I look at where we are today and they’re hitting on all cylinders. They’re doing a great job. So it’s been a great business for us.
Abigail Eberts
Wells Fargo Securities, LLC, Research Division
Again, trying to focus on the positives and polyurethanes. Can you speak to the underlying trends driving the growth in the industrial side of the market that you’re seeing?
Peter Huntsman
Chairman, President & CEO
Yes, Abigail, thank you very much. As we think about the industrial growth for us, that’s mostly our elastomers business, smaller volumes but much better margins there. And as we see that on a second quarter versus the prior year. In our lastomers business, we’re up double digits in Asia, Europe and in the Americas. So again, that’s going to be a lot of your coatings, a lot of your specialty coatings, adhesives and so forth. Think about when you put coatings on the back of a pickup truck and you’re looking at industrial coatings. So these are fast-growing markets. We’ve got great innovation in these areas and a strong customer base.
Arun Viswanathan
RBC Capital Markets, Research Division
Yes, I just wanted to go back to the supply/demand in MDI and we are seeing still some continued — would you characterize the market still in slightly oversupplied situations? And is that mainly rectified through demand improvement? I think you referenced that earlier, but — are there any supply actions that you think would be required at this point?
Peter Huntsman
Chairman, President & CEO
No, I think — I believe that it’s pretty well balanced. There’s not a lot of new capacity that’s come on. Industry — look, the industry continues to grow, but it’s just growing at a much slower pace than it has in years past. And what it means is North American housing durable goods. It needs Asia domestic economy to come back and European consumerism to return.
Arun Viswanathan
RBC Capital Markets, Research Division
And then I guess when you look out into downstream spray foam and maybe some of the system houses capacity that you have, would you also characterize that as balanced? And does that — and are tight and does that lead to potentially some some greater pricing opportunities downstream, but is it the case that you’re just not able to take advantage of that because of weak demand as well.
Peter Huntsman
Chairman, President & CEO
Yes. I think those areas continue to be well balanced. Look, it’s always a — as you go further downstream, there’s always plenty of competition. And you’re always in a race to make sure that as products are commoditized as you’ve got a healthy supply chain of new products, new ideas, new innovation. And I think that we do a good job in that area. But it’s a good balance, I think, between — as things go commodity and as you have new opportunities and new innovation going in.
Michael Harrison
Seaport Research Partners
Wanted to ask about polyurethanes pricing in the Americas. Can you give us a sense of what portion of your contracts turn over every quarter — and are there any actions that you can take to maybe work around the contract structure, things like surcharges? Or is there some kind of an opener that would allow you to renegotiate the terms.
Peter Huntsman
Chairman, President & CEO
Yes. About 40% of our contracts are formula, meaning that they’re going to be on a longer than a quarter-to-quarter basis. Now those open up on anywhere from every 6 months, every 12 months where you can renegotiate what you’re charging somebody. But those are designed to be able to take in and absorb benzene and natural gas prices and so forth. So as you think about that, about every 6 to 12 months, most of these contracts will have a pit stop where you can pull over and renegotiate, if you will, which I’m not a big fan of either of those, I’d rather have it where we can move prices instantaneous with market conditions. But — we are where we are in polyurethanes that’s largely dictated by competition.
But yes, we are aggressively moving on surcharges on everything and everywhere that we can. And at the same time, we also want to make sure that as you think about your customer relationships that you’re taking care of your customers because if you’re taking advantage of them today, the table turn pretty quickly in this industry. So yes, we do honor our contracts. We do honor our pricing formulas that we entered into. It doesn’t mean I’m always happy with those, but it is what it is.
Michael Harrison
Seaport Research Partners
And then I was hoping you could also provide some more color on how the situation in the Middle East is impacting your PO MTBE business in China. It looks like there was a nice benefit in the second quarter. And I’m just curious, would you expect the third quarter benefit to be greater than what you saw in Q2?
Peter Huntsman
Chairman, President & CEO
I think you’re probably going to be flat Q2 to Q3. A lot of the gasoline supplies oxygenated levels and values and so forth. To some degree, those are going to be government dictate. And so it’s not as free-flowing. I would say, as you would see in the Americas or even in Europe. But I’d say, from Q2 to Q3, it’s going to be flat.
July 30, 2026
Lifeline Rhine – the river that shaped Ludwigshafen
BASF
2,914,511 followers
July 30, 2026
Anyone looking at the Rhine these days will see wide gravel banks in many places, exposed riverbanks and unusually low water levels. Hot and dry summers are increasingly causing water levels to fall. For shipping and for the companies located along the river, this is a challenge.
For centuries, the Rhine has been one of Europe’s lifelines. It connects the Alps with the North Sea, flows through several countries and has shaped business, culture and history like few other rivers. Industrial centers, ports and cities line its banks. Millions of people live and work in its catchment area. For many, the Rhine is a source of livelihood, a transport route and a place of recreation all at once.
For BASF, too, the Rhine is far more than a body of water outside the plant gates. Since the company was founded, the river has accompanied our development. Raw materials reach the site via the Rhine, products leave the site via the river, and water plays an important role in many production processes. BASF without the Rhine? Hard to imagine.
A river writes history
The Rhine’s central importance for business and trade did not only become apparent with industrialization.
The Romans already used the river as a transport and trade route. Later, one of Europe’s most important economic regions developed along its banks. Free navigation on the Rhine, established in 1868 with the Mannheim Act, created important conditions for the economic development of the entire region. At the same time, major hydraulic engineering projects helped make the river more usable and more predictable.
When BASF was founded in 1865, Europe was in the midst of industrial transformation. The Rhine quickly became a decisive locational advantage. It enabled raw materials to be delivered and finished products to be transported in all directions. From Basel via Ludwigshafen to Rotterdam, a closely interconnected economic area emerged that remains one of the world’s most important industrial regions today.
One of the most extraordinary episodes in the history of the Rhine occurred in the winter of 1929. At that time, an extreme cold wave swept across Central Europe. Temperatures fell well below freezing within just a few days. Eventually, the Rhine froze over – not only near Ludwigshafen, but along almost its entire length. What caused considerable problems for industry and largely brought shipping traffic to a standstill became a spectacular event for the people living nearby. Between Ludwigshafen and Mannheim, footpaths formed across the ice. BASF employees walked across the frozen Rhine. It was a winter of the century that has not been repeated in this form to this day.
History shows how closely life on the Rhine has always been linked to the forces of nature. Sometimes it was ice that blocked the river. Today, it is more often dry periods and low water. Yet the significance of the Rhine has remained unchanged.
A lifeline that must be protected
Anyone who uses the Rhine also bears responsibility for protecting it.
This is especially true for large industrial sites. After all, water is indispensable for many production processes – whether as a raw material, for cooling or for cleaning processes. At the same time, the Rhine is a habitat for numerous animal and plant species and a source of drinking water for millions of people.
That is why water protection has been an important part of environmental management at BASF for decades.
The central question is how discharges into water bodies can be avoided as far as possible and how impacts can be continuously reduced. Monitoring requires a high level of technical and personnel resources. Cooling water and wastewater are continuously checked before they leave the site. In addition, numerous samples are taken every day and analyzed in detail.
This monitoring does not end at the plant gates.
Just a few kilometers downstream from the site is the Rhine Water Quality Monitoring Station in Worms. Since 1995, water samples have been taken there continuously and measurement data collected. The station monitors the water quality of the Rhine around the clock and is one of the most important facilities of its kind in Germany. It analyses biological, physical and chemical parameters and can assign possible impacts to specific sections of the river.
Within the site, too, there is a sophisticated system for monitoring wastewater. If unusual values occur at a measuring station, a kind of detective work begins. Specialists trace the cause through the site’s extensive sewer system, take additional samples and work closely with the production plants. The aim is to identify and remedy possible disruptions as early as possible.
Particular attention is also paid to the temperature of the Rhine water. Especially in hot summers, warming of the river can affect the ecosystem. That is why there are clear legal requirements and extensive technical measures to limit the thermal load on the Rhine. Recooling plants help dissipate a large proportion of the heat generated and reduce the impact on the water body.
Protecting the Rhine is therefore not a single measure, but an ongoing task. A task that requires attention, investment and technical expertise every single day.
From its own tanker to modern Rhine logistics
For BASF, however, the Rhine was never only a source of water, but always also a transport route.
The company recognized the special importance of shipping early on. At the end of the 19th century, BASF even began building up its own fleet of tankers. The first ship, the “BASF 1”, entered service in 1898 and transported sulphuric acid. Further special-purpose vessels followed. Names such as “Justus von Liebig”, “Rudolf Knietsch” and “Fritz Haber” still recall this era today. The ships transported sulphuric and nitric acid as well as ammonia, among other things, and for decades handled a large share of the company’s supplies.
Working on the ships was demanding. Skippers and crews had to keep an eye on the weather, water levels and the constantly changing conditions on the Rhine. Particularly on the Upper Rhine, shifting gravel banks could make navigation difficult. Anyone wanting to bring a ship safely to its destination needed experience and precise local knowledge.
The importance of the waterway has by no means diminished. Large quantities of raw materials and products are still transported on the Rhine. Every day, ships dock at the ports of the Ludwigshafen site and help ensure that material flows function reliably.
Inland shipping offers a decisive advantage: it can transport large quantities of goods with comparatively low energy consumption. For an integrated Verbund site such as Ludwigshafen, it therefore remains an important part of logistics.
When water levels fall
While the frozen Rhine of 1929 is now a historical exception, other challenges are increasingly coming to the fore. Hot summers and longer dry periods are leading more frequently to phases of low water. When water levels fall, ships can carry less cargo. Some sections become more difficult to navigate, and logistics chains come under pressure.
For an industrial site that has been closely connected with the Rhine for more than 160 years, this raises a central question: how can supply be secured even under changing climatic conditions?
BASF has not only recently started addressing this challenge. Experience from previous periods of low water has shown that adjustments are necessary. These include forward-looking logistics planning, additional transport options and technical solutions on the waterway itself.
Modern low-water vessels play a particularly important role here. They are specially designed to transport the largest possible quantities even when water levels are low. Thanks to their design, they require less draught than conventional ships and can therefore still be used economically when other vessels have to significantly reduce their cargo.
They are an example of how traditional strengths can be combined with new solutions. The Rhine remains a central transport route – but the way it is used continues to evolve.
The Rhine remains indispensable
For centuries, the Rhine has connected people, cities and economic regions. For BASF, it has always been far more than a river outside the plant gates.
It is a transport route, a source of water, a locational factor and part of the company’s history all at once. Without the Rhine, the development of the Ludwigshafen site would have been hard to imagine.
At the same time, this special proximity brings responsibility. Protecting the Rhine, monitoring water quality and investing in modern environmental and cooling technology are expressions of this responsibility.
Periods of low water will continue to accompany the Rhine in the future. Modern logistics concepts and special low-water vessels help ensure the company can remain capable of acting even under changed conditions.
The Rhine is and remains a lifeline. For Europe. For the region. And for BASF.
More information about the Rhine and BASF: Lifeline Rhine
July 30, 2026
Stepan Company (SCL) Q2 2026 Earnings Call Transcript
Jul 29, 2026, 4:53 PM ETStepan Company (SCL) Stock
Q2: 2026-07-29 Earnings Summary
EPS of $1.18 beats by $0.57
| Revenue of $684.11M (15.04% Y/Y) beats by $48.26M
Stepan Company (SCL) Q2 2026 Earnings Call July 29, 2026 9:00 AM EDT
Company Participants
Ruben Velasquez – VP & Chief Financial Officer
Luis Rojo – President, CEO & Director
Luis Rojo
President, CEO & Director
Thank you, Ruben. Good morning, and thank you all for joining us today to discuss our second quarter 2026 results. I will share the highlights of the quarter and an update on our key strategic priorities and Ruben will take you through the financial details.
Before reviewing the quarter, I want to recognize our teams around the world for their commitment to safety. Safety remains our top priority and the foundation on everything we do at Stepan. That focus was evident again this quarter, as we now have delivered the strongest safety performance on record in the last 12 months. Congratulations, team.
The second quarter was a strong quarter of execution for Stepan. Broad-based volume growth and margin recovery together with the initial benefits from Project Catalyst actions drove significant improvement in earnings.
I want to highlight a few elements of our second quarter performance. Adjusted EBITDA was $74 million, up 45% versus the prior year, with all 3 levers contributing to the results. First, volume growth. Organic volume grew 6%, with growth across all our end markets. We’re growing share in many of our strategic end markets.
Second, margin recovery. The pricing actions we are implementing, together with the discipline and execution of our contractual pass-through mechanisms, contributed to margin recovery during the quarter and helped offset higher raw material costs. Third, productivity and cost out. Project Catalyst remains on track, with savings ramping up in line with our plan. We are on track to deliver our savings commitments for the year.
Looking at the consolidated results, net sales were $684 million, up 15% versus the prior year, reflecting higher selling prices, higher volume, favorable product and customer mix, and favorable currency translation. Adjusted earnings per diluted share were $1.18, more than double the prior year.
Finally, we remain focused on cash generation and balance sheet deleveraging. We finished Q2 with a net leverage ratio of 2.5x. We continue to advance the previously announced agreement to sell a parcel of nonproductive land adjacent to our plant in Joliet, Illinois, subject to customary closing conditions.
We were pleased with the breadth of the growth during the quarter. We also believe a portion of the incremental demand we experienced in the quarter reflects some customer pre-buying in response to the geopolitical and raw material uncertainty. We are considering that potential timing effect as we plan for the second half of 2026.
Ruben Velasquez
VP & Chief Financial Officer
Thank you, Luis. As shared in our second quarter 2026 earnings release, reported net income was $22.9 million or $1 per diluted share, up 102% versus $11.3 million or $0.50 per diluted share in the prior year. Reported results include a $5.1 million pretax restructuring charge or $4 million aftertax, largely related to the previously announced closure of our Fieldsboro, New Jersey site and the decommissioning of select assets at our Millsdale, Illinois and Stalybridge, United Kingdom facilities. The cash impact associated with restructuring was approximately $6 million during the quarter.
The plan to reduce our global salaried workforce, announced today, is part of the previously announced Project Catalyst efficiency initiative. The majority of the expenses associated with these workforce actions is expected to be recognized during the second half of 2026. The company anticipates full-year restructuring charges in the range of $75 million to $80 million, which is in line with prior communications.
Moving to Polymers on Slide 8. Net sales were $178 million, a 9% increase versus the prior year. Selling prices were up 3%, primarily due to pricing actions and the pass-through of higher raw material costs. Sales volume increased 5% in the quarter.
North American volume was up strong double digits, driven by rigid polyols and phthalic anhydride, including significant growth in our spray foam product line. This was partially offset by lower volumes in Europe and Asia. Foreign currency translation positively impacted net sales by 1%.
Polymer adjusted EBITDA was $31 million, up 22% versus the prior year, primarily due to sales volume growth and margin recovery. North America EBITDA was up $5 million on strong volume growth and margin recovery. Europe improved modestly as margin recovery helped offset construction demand that remained soft. Asia was slightly lower on softer demand in China.
Michael Harrison
Seaport Research Partners
Then I was hoping maybe you could give a little bit more color on the opportunity in the Polymers business for spray foam. I see in the slide deck here that the volumes were up 3x year-on-year. I understand you started from a relatively small number. But where do you think that business can go in the next year or 2 as you presumably pick up some market share and kind of build out your position in that relatively new space?
Luis Rojo
President, CEO & Director
Mike, great question. And we are pleased with our initiative on spray foam. We are committed to this market. This is a white space for us because, I mean, as you know, we were focused on the lamination piece. And this market, historically, has been very strong and has been growing high single digits. So that’s why we really want to participate in it. I’m not going to give you an exact forecast.
I will say that I’m pleased with the 3x. Of course, it’s a very low base, as you mentioned. But the important piece here is to have a good portion of the market and grow with the market in the future. We all believe in the next 5 to 10 years, spray foam will continue growing as a market as it did in the last decade, and we want to participate out of that market growth.
https://seekingalpha.com/article/4927176-stepan-company-scl-q2-2026-earnings-call-transcript
July 28, 2026
Matrix Adhesives Group Acquires IPS Adhesives to Expand its Technology, Branded Portfolio, and Market Reach
By: Matrix Adhesives Group via Business Wire
July 27, 2026 at 08:00 AM EDT
Matrix Adhesives Group (“Matrix” or the “Company”), a TruArc Partners (“TruArc”) portfolio company and provider of advanced adhesive and sealant solutions for renovation and construction, industrial, commercial, and specialty applications, today announced that it has acquired IPS Adhesives (“IPSA”), a provider of high-performance adhesives serving building and construction, transportation, industrial, and marine industries, from the parent company of IPS Corporation (“IPS”). Terms of the transaction were not disclosed.
In partnering with IPSA, Matrix reinforces its position as a scaled specialty adhesives platform by expanding its branded product offering, technologies portfolio, and global reach. As part of the acquisition, IPSA will add six established brands and broaden Matrix’s exposure to specification-driven applications across industrial durables, marine, building and construction, and sign and display markets. The transaction also expands Matrix’s international presence through IPSA’s established European footprint, distributor network, and customer relationships.
“This strategic partnership enhances our ability to deliver differentiated, value-added solutions to our customers,” said DJ Johnson, CEO of Matrix Adhesives Group. “We are pleased to welcome the IPS Adhesives team to the Matrix family of ‘passionate people creating bonds’, and truly appreciate TruArc’s strong commitment to our shared growth ambitions.”
Previously owned by IPS, an innovator in specialty chemical solutions for plumbing and construction applications, IPSA is a provider of high-performance adhesives with expertise in Methyl Methacrylate (MMA) technology and other advanced technologies. MMA adhesives are increasingly specified in demanding applications due to their fast cure times, minimal surface preparation requirements, and ability to bond dissimilar materials. The addition of IPSA further expands Matrix’s technical capabilities and positions the Company to pursue growth opportunities driven by demand for advanced adhesive solutions. Scott McDowell, President of IPSA, will remain on board as a key member of the Matrix leadership team.
“Joining Matrix represents an exciting milestone for the IPS Adhesives team,” said Scott McDowell, President of IPS Adhesives. “Our associates have worked tirelessly to create a company that is widely recognized for its broad suite of products, trusted brands, and passion for solving our customers’ toughest bonding challenges. Becoming part of the Matrix family will allow us to preserve our strong market position in MMA solutions, while gaining the scale, resources, and global platform to support our growth plans. I couldn’t be more excited about what this partnership means for our customers, our team, and our future.”
IPSA represents Matrix’s first acquisition following TruArc’s strategic investment in March 2026.
TruArc Operating Partner Rich Rowe commented; “We are very pleased to welcome the IPSA team into the Matrix family as we believe this acquisition strengthens the Company’s capability to deliver differentiated solutions to customers in its core markets in North America and abroad.”
“This acquisition represents an important milestone in Matrix’s growth strategy and provides Matrix with the ability to further expand its portfolio of branded products, advanced adhesive technologies, and global market reach,” said John Pless, Co-Managing Partner at TruArc. “We look forward to supporting the Matrix team as they integrate IPS Adhesives’ highly complementary capabilities and continue building a high-quality specialty adhesives platform.”
Chemlink Partners served as financial advisor to Matrix. Davis Polk & Wardwell LLP served as legal counsel to Matrix. BMO Capital Markets Corp. served as financial advisor to IPS. Latham & Watkins LLP served as legal counsel to IPS.
About Matrix Adhesives Group
Matrix Adhesives Group is an adhesive and sealant solutions development partner. The company specializes in formulating, filling, blending, and contract packaging for consumer and industrial markets. For more information, please visit www.matrixadhesives.com.
About IPS Adhesives
IPS Adhesives is a provider of adhesives serving the surfacing, structural, and assembly industries. With a combined 65 years of expertise in research and development, its products are recognized by OEMs and fabricators globally for their quality, strength, and reliability. IPS Adhesives has three state-of-the-art manufacturing facilities on two continents and a broad network of distributors serving countries worldwide. For more information, please visit: www.ipsadhesives.com.
About TruArc Partners
TruArc Partners is a private equity firm focused on middle-market investments. TruArc focuses on companies in attractive sub-sectors across specialty manufacturing and business services. The TruArc investment team collaborates with its operating partners and portfolio management teams to create value through a transformational growth strategy led by organic or acquisition-driven growth. To learn more about TruArc visit www.truarcpartners.com.
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