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EASTMAN KODAK CO (KODK)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $247M (down 1% YoY), gross margin held at 19%, and operational EBITDA was $2M; GAAP net loss was $7M as higher aluminum and manufacturing costs pressured profitability .
  • AM&C continued to be the bright spot: segment revenue reached $74M (+$15M YoY) and operational EBITDA rose to $7M (+$6M YoY), while Print weakened to $165M revenue and -$9M operational EBITDA .
  • Management emphasized U.S.-based manufacturing and progress on the cGMP pharma facility (expected online later in 2025), and moved the PROSPER ULTRA 520 press from controlled introduction to controlled production, a positive operational milestone .
  • Liquidity tightened: cash declined to $158M (from $201M at year-end) and operating cash flow was -$38M, driven by investments in AM&C growth initiatives and higher commodity/manufacturing costs .
  • No formal quantitative guidance was provided; catalysts to watch include KRIP pension plan termination (reversion proceeds expected 7–11 months after settlement and prioritized for debt reduction) and tariff developments impacting the plates business and input costs .

What Went Well and What Went Wrong

What Went Well

  • AM&C momentum: Q1 segment revenue $74M (+$15M YoY) and operational EBITDA $7M (+$6M YoY), reflecting demand and investments in coating/chemicals capabilities .
  • Strategic manufacturing: “We also manufacture all our film products and the world's fastest inkjet presses in the United States…we are the last remaining U.S. manufacturer of lithographic printing plates” .
  • Product execution: “We are moving from controlled introduction to controlled production of our PROSPER ULTRA 520 press,” with installations underway—supporting future print revenue mix improvement .

What Went Wrong

  • Cost headwinds: “Operational EBITDA…decreased…primarily driven by higher aluminum and manufacturing costs,” with similar impacts to gross profit .
  • Print weakness: Q1 Print revenue fell to $165M (Q4 2024: $187M; Q3 2024: $182M) and operational EBITDA deteriorated to -$9M (Q4 2024: $1M; Q3 2024: -$9M) .
  • Cash burn: Quarter-end cash dropped to $158M and operating cash flow was -$38M; working capital built as inventory increased $15M and receivables rose $8M .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$261 $266 $247
Gross Profit ($USD Millions)$45 $51 $46
Gross Margin (%)17% 19% 19%
Net Income ($USD Millions)$18 $26 $(7)
Diluted EPS ($USD)$0.15 $0.23*$(0.12)
Operational EBITDA ($USD Millions)$1 $9 $2
Cash and Equivalents ($USD Millions)$214 $201 $158

*Values with asterisk retrieved from S&P Global.

Segment revenue and operational EBITDA (Eastman Business Park excluded; totals differ from consolidated):

Segment MetricQ3 2024Q4 2024Q1 2025
Print Revenue ($M)$182 $187 $165
AM&C Revenue ($M)$71 $68 $74
Brand Revenue ($M)$5 $7 $4
Total Segment Revenue ($M)$258 $262 $243
Print Op EBITDA ($M)$(9) $1 $(9)
AM&C Op EBITDA ($M)$6 $2 $7
Brand Op EBITDA ($M)$4 $6 $4
Total Op EBITDA ($M)$1 $9 $2

Key Q1 2025 KPIs:

KPIQ1 2025
Operating Cash Flow ($USD Millions)$(38)
Investing Cash Flow ($USD Millions)$(7)
Financing Cash Flow ($USD Millions)$(2)
Inventory Change ($USD Millions)+$15
Accounts Receivable Change ($USD Millions)+$8
Accounts Payable Change ($USD Millions)+$6
Restricted Cash Change ($USD Millions)$(2)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
KRIP pension plan termination/reversion proceeds2025–2026Not previously specifiedTermination effective 3/31/2025; reversion proceeds expected 7–11 months after settlement; significant portion to reduce long-term debt New disclosure
Term loan interest paymentsNext 6 quartersN/AOption to PIK next six quarterly interest payments following amendment New flexibility
PROSPER ULTRA 520 commercialization2025Controlled introductionMoving to controlled production; installs in progress Advanced commercialization
Quantitative revenue/margin/EPS guidance2025NoneNone provided; focus on long-term plan execution Maintained “no formal guidance” stance

Earnings Call Themes & Trends

TopicQ3 2024 (Prev-2)Q4 2024 (Prev-1)Q1 2025 (Current)Trend
Tariffs / plates marketAffirmative ITC determination; level playing field for U.S. plates Tariff outcome a “big win” for U.S. manufacturing Tariffs remain dynamic; short-term pain for long-term gain; compliance emphasized Continued focus; execution complexity rising
AM&C cGMP pharma facilityNearing completion at Eastman Business Park Production to begin in 2025 Expected online later this year; expanding into FDA-regulated reagents Execution nearing start-up
Film demandLegacy film growing; investing to increase capacity Sensitizing line expansion; Oscars highlight motion picture film “Demand continues to grow,” capacity expanded Strengthening
Continuous inkjet pressesGaining momentum; several ULTRA 520 commitments PROSPER 7000 Turbo upgrades; moving 520 towards production ULTRA 520 installs underway; move to controlled production Scaling commercialization
Cost/commodity inflationAluminum cost increases; litigation costs weighed on EBITDA Higher aluminum; inventory reserve hit in EPS business Higher aluminum/manufacturing costs pressured GP/Op EBITDA Persistent headwind
Pension (KRIP)—Termination approved; reversion to reduce debt Timeline and PIK option reiterated; covenants compliant Deleveraging path forming
U.S.-based manufacturing—Emphasized across businesses Reiterated commitment across film, inkjet, plates Core to strategy

Management Commentary

  • “Our Advanced Materials & Chemicals unit continues to leverage our strengths in layering, coating and chemicals to drive growth now and develop new businesses for the future…[cGMP] facility…will expand our current pharma business into manufacturing FDA-regulated diagnostic test reagents.” — Jim Continenza, CEO .
  • “The decline in revenue has slowed…reflects our ongoing focus on generating smart revenue in our Print business…as well as volume growth in our AM&C business.” — David Bullwinkle, CFO .
  • “We are the last remaining U.S. manufacturer of lithographic printing plates…Our commitment to manufacturing in-country gives our customers the highest quality and a more reliable supply.” — Jim Continenza, CEO .
  • “We are moving from controlled introduction to controlled production of our PROSPER ULTRA 520 press…install sales…currently being installed in customer sites.” — Jim Continenza, CEO .
  • “We estimate it will take 7 to 11 more months to receive any pension reversion proceeds…[and] a significant portion…to be used to reduce long-term debt.” — David Bullwinkle, CFO .

Q&A Highlights

  • No formal Q&A was held; management invited follow-ups via Investor Relations .
  • Clarifications provided in prepared remarks on KRIP timeline, term loan PIK option, cash flow drivers and working capital movements .

Estimates Context

  • S&P Global consensus for Q1 2025 EPS and revenue was unavailable at the time of review; therefore, a beat/miss analysis versus Wall Street estimates could not be performed. Values retrieved from S&P Global.

Key Takeaways for Investors

  • AM&C is the structural growth engine offsetting Print cyclicality; watch cGMP ramp and segment operational EBITDA mix—Q1 AM&C Op EBITDA $7M vs Print $(9)M .
  • Cost inflation (aluminum, manufacturing) remains the near-term profitability swing factor; pricing and volume gains only partially offset in Q1 .
  • Liquidity tightened with cash to $158M and operating cash flow -$38M; monitor working capital normalization and capex pacing through 2025 .
  • Deleveraging avenue via KRIP reversion proceeds (7–11 months post-settlement) and term loan PIK flexibility may ease cash interest burden and support growth investments .
  • Commercialization progress for ULTRA 520 and continued film demand provide revenue mix tailwinds; execution and installation cadence are key .
  • Tariff environment introduces both protections (plates market) and complexity; management committed to compliance while optimizing customer service .
  • With no formal guidance, focus on sequential trends: Print stabilization, AM&C growth, gross margin resilience, and cash discipline—these will drive the narrative in 2025 .