EASTMAN CHEMICAL (EMN) Company Report

Q4 earnings: Advanced Materials & Additives expected in line, Chemical Intermediates below breakeven, fibers destocking deeper; EPS anticipated below $0.75 versus prior $0.75–1.00 range.
Inventory management: decisive destocking actions in Q3 amid customer destocking and lengthy specialty plastics supply chains; inventories should be at optimal levels by end-2025.
Cash and liquidity: on track to approach $1 billion in cash for full-year 2025, with Q3 inventory reductions converting to cash in 2026.
CapEx and cash-flow guidance: 2025 CapEx of $550 million, 2026 base CapEx run‐rate of $400–500 million, targeting flat-to-growing free cash flow and a $400 million dividend run-rate.
Circular recycling investment: Kingsport methanolysis facility targeting 130 percent throughput via debottlenecks; second-plant expansion paused pending DOE review to optimize capital efficiency.

3 days ago

Transcript

Eastman Chemical updates 2025 outlook at Citi Basic Materials Conference

EMN

Guidance Update

Demand Weakening

New Projects/Investments

Q4 earnings are now expected below $0.75/share (vs. prior $0.75–$1 range) due primarily to weaker Chemical Intermediates demand, a prolonged turnaround and continued fibers destocking.
Overall demand is lighter than anticipated but has been largely offset by strong cost control and high utilization; Specialties segments are in line with prior guidance while CI is now forecast to be below break-even.
Inventory actions taken in Q3 position the company to generate approaching $1 billion of cash in 2025, with 2026 free cash flow set to be flat to growing on a $400 million CapEx run rate and $100 million of self-help cost savings.
The Kingsport methanolysis facility is targeting a 130% debottleneck, with the proposed Longview expansion paused pending DOE discussions; further low-CapEx expansions are being evaluated to meet customer demand and enhance circular-recycling capacity.

3 days ago

Transcript

Eastman Chemical updates Q4 outlook and 2026 initiatives at Citi 2025 Basic Materials Conference

EMN

Guidance Update

Demand Weakening

New Projects/Investments

CFO Willie McLain expects Q4 EPS to come in below the prior guidance of $0.75–$1.00, primarily driven by weaker demand and extended turnaround in the Chemical Intermediates and Fibers segments.
Demand in Advanced Materials and Additives & Functional Products is lighter than anticipated but is being offset by strong cost control and plant utilization; Chemical Intermediates is now forecasted slightly below break-even for Q4.
Inventory reduction actions in specialty plastics and fibers, combined with ongoing cost‐structure improvements, are on track to generate ~$1 billion of cash in 2025; the company realized $75 million of savings in 2025 and targets an additional $100 million in 2026.
The Kingsport methanolysis plant is operating robustly and is being optimized toward 130% capacity, underpinning growth in circular packaging applications and informing plans for future low-capex recycling expansions.

3 days ago

Transcript

Eastman Chemical outlines Q4 2025 headwinds and 2026 recovery

EMN

Guidance Update

Demand Weakening

Expects Q4 2025 to be weaker than Q3 due to normal seasonality and inventory destocking; forecasts a rebound in Q1 2026 driven by asset utilization tailwinds, seasonal demand recovery, methanolysis plant ramp-up, and cost actions.
Targets $75 million of net cost savings in 2025 and has raised the 2026 net savings goal to $100 million (over $300 million gross) through productivity improvements, footprint optimization, and AI deployment.
Anticipates a meaningful increase in revenue and EBITDA from the circular polyester methanolysis plant, alongside innovation growth in advanced materials (HUD, EV interlayers, Aventa) and tariff-driven benefits in specialty polyesters.
Maintains partnership with Pepsi for Renew™ recycled PET, able to supply baseload demand from Kingsport and deliver average recycled content of 50–75 percent per product.

Nov 4, 2025, 1:00 PM

Transcript

Eastman Chemical reports Q3 2025 results

EMN

Earnings

Guidance Update

Share Buyback

Eastman posted 3Q25 revenue of $2.20 B (–11% YoY) and adjusted EBIT of $210 M (–43% YoY).
Executed inventory actions with approximately $200 M reduction from Q2 levels and remain on track for >$75 M in 2025 cost savings.
Returned $146 M to shareholders through dividends and share repurchases, and expect FY25 operating cash flow approaching $1 B.
Advanced Circular Economy platform, anticipating $60–65 M incremental EBITDA from the Kingsport methanolysis facility in FY25.
Maintained FY25 guidance of adjusted EPS $5.40–$5.65, capex ~$550 M, and Corporate Other adjusted LBIT of ~$180 M.

Nov 4, 2025, 1:00 PM

Presentation

Eastman outlines Q3 2025 results and 2026 outlook

EMN

Guidance Update

New Projects/Investments

Demand Weakening

Eastman sees full-year volumes down ~4% in advanced materials and ~2% in AFP, and for 2026 anticipates low-single-digit growth in stable markets with stable volumes elsewhere, supported by a $50–75 million utilization tailwind.
Targets $100 million of incremental net cost savings in 2026 on top of >$75 million in 2025 (over $300 million gross actions), including a 7% headcount reduction and AI-driven productivity measures.
Circular polyester methanolysis (“Renew”) plant at Kingsport is hitting 90% yields, with a feasible 30% capacity expansion and expected revenue/EBITDA lift from ARPET specialty polymers as customer commitments finalize.
Faces a ~$30 million tariff-related headwind in fibers (textiles and tow) this year, but views these as cyclical destocking issues set to reverse; chemical intermediates endure oversupply from China but gain tariff protection and may benefit from housing-driven demand recovery.

Nov 4, 2025, 1:00 PM

Transcript

Eastman Chemical reviews Q3 2025 results and outlines cost and innovation strategy

EMN

Earnings

Guidance Update

Demand Weakening

Back‐half distortions from seasonality, tariff‐driven inventory pull-forward and a $100 million asset‐utilization headwind leave full-year volumes down ~4% in Advanced Materials and ~2% in AFP; planning next-year base on stable to modest growth.
Targeting $100 million in net cost reductions for 2026 (on top of $75 million in 2025) and a utilization tailwind of $50 million–$75 million, depending on volume recovery.
Innovation ramp includes the circular polyester methanolysis plant, which is expected to meaningfully boost EBITDA, alongside growth in Aventa, Naia textiles and semiconductor solvents.
At Kingsport, rPET capacity is running at 90% yields, with a 30% expansion feasible via modest capital during planned shutdowns, and strong customer commitments underpinning a second-plant decision in early 2026.
Facing a prolonged manufacturing recession, consumer‐durables demand remains 5%–15% below 2019 levels amid housing weakness; CI and fibers markets contend with global excess capacity and tariff-supported North America margins.

Nov 4, 2025, 1:00 PM

Transcript

Eastman Chemical reports Q3 2025 results

EMN

Earnings

Dividends

Share Buyback

Q3 sales revenue was $2,202 million, down 11% year-over-year from $2,464 million.
GAAP EBIT declined to $188 million (adjusted EBIT of $210 million), compared to $329 million (adjusted $366 million) in Q3 2024.
Operating cash flow remained strong at $402 million, driven by working capital initiatives including a $204 million inventory reduction.
Returned $146 million to shareholders in the quarter through dividends and share repurchases.
Company anticipates a “greater than normal seasonal decline in volume” in Q4 amid consumer caution and inventory destocking.

Nov 3, 2025, 9:19 PM

8-K

Eastman Chemical announces Q3 2025 results

EMN

Earnings

Guidance Update

Dividends

Sales revenue decreased 11% year-over-year to $2.20 B while EBIT fell to $188 M and EPS was $0.40 vs. $1.53 year-ago.
Operating cash flow was $402 M, aided by approximately $200 M of inventory reduction, and the company returned $146 M to shareholders via dividends and share repurchases.
Maintained cost-reduction targets, on track to lower structural costs by > $75 M in 2025 and ~ $100 M in 2026.
Forecasting full-year adjusted EPS of $5.40–5.65 and operating cash flow approaching $1 B.

Nov 3, 2025, 9:15 PM

Press Release

Eastman Chemical updates guidance and growth outlook at Laguna conference

EMN

Guidance Update

Demand Weakening

New Projects/Investments

Eastman expects Q3 EPS below $1.25 and sees Q4 slightly lower sequentially, driven by low utilization and seasonal demand declines.
Consumer and trade uncertainties have cut order-book visibility to ~2 weeks (vs. ~6 normal), with automotive steady, durables lagging and building/construction flat at low levels.
The company is executing $75–100 M of net cost actions, targeting $1 B operating cash flow in 2025 and reducing Days Inventory Outstanding from ~105 to ~90 days.
For 2026, management forecasts $50–100 M benefit from inventory normalization, $75–100 M of structural cost savings, stable-to-growing margins in Advanced Materials/Additives & Functional Products and improved Chemical Intermediates spreads.
The Kingsport methanolysis plant remains on track for $75 M incremental EBITDA in 2025, with potential >30% debottleneck capacity uplift and plans for a second facility, pending DOE grant reimbursement (~$30–35 M).

Sep 10, 2025, 7:20 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for EASTMAN CHEMICAL.

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