Tear Sheet: Hexion Inc.

This report does not constitute a rating action. During the first half of the year, aggregate revenues grew about 5% year over year due to favorable pricing and product mix effects, despite continued softness in the North American housing and construction markets (Hexion?s primary exposure), affordability challenges, and tariff-related uncertainties. Despite a cautious demand environment, the company?s S&P Global Ratings-adjusted EBITDA in the first half of 2025 grew about 25% year over year and EBITDA margins increased more than 200 basis points (bps), mostly because of Hexion's business transformation program called HexionNEXT, which aims to improve operating efficiency through different avenues such as commercial execution, raw material procurement, and cost discipline. In our base case, we expect S&P Global Ratings-adjusted

...November 7, 2025 This report does not constitute a rating action. Despite macroeconomic challenges, we expect Hexion Inc.'s earnings will improve in 2025. During the first half of the year, aggregate revenues grew about 5% year over year due to favorable pricing and product mix effects, despite continued softness in the North American housing and construction markets (Hexion's primary exposure), affordability challenges, and tariff-related uncertainties. Despite a cautious demand environment, the company's S&P Global Ratings-adjusted EBITDA in the first half of 2025 grew about 25% year over year and EBITDA margins increased more than 200 basis points (bps), mostly because of Hexion's business transformation program called HexionNEXT, which aims to improve operating efficiency through different avenues such as commercial execution, raw material procurement, and cost discipline. In our base case, we expect S&P Global Ratings-adjusted EBITDA margins in 2025 and 2026 will improve to the high-teens...

Full Report