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    Eastman Kodak Co (KODK)

    Q3 2024 Earnings Summary

    Reported on Mar 17, 2025
    Pre-Earnings PriceN/ADate unavailable
    Post-Earnings PriceN/ADate unavailable
    Price ChangeN/A
    • Affirmative ITC Ruling Provides Competitive Advantage: Kodak received a favorable ruling from the International Trade Commission regarding the plates tariff, resulting in tariffs ranging from 91.83% to 353.09% on competing imports. This levels the playing field, allowing Kodak to compete without disadvantage and potentially increase market share in the U.S. plates market.
    • Continued Investment in Advanced Materials & Chemicals (AMC) Leading to Growth Opportunities: Kodak is investing in innovation and expanding its AMC business, including growth in film sales for motion picture and still film, and investments in manufacturing processes such as modernization of plants. Additionally, the company is investing in battery technology, leveraging its core skill in substrate coating, and developing a cGMP clean lab and reagent facility. These initiatives position Kodak for future growth in high-potential markets.
    • Significant Improvement in Net Income: Kodak reported a net income of $18 million for the third quarter of 2024, a substantial increase from $2 million in the prior year quarter. For the nine months ending September 30, 2024, net income was $76 million, up from $70 million in the prior year period. This improvement reflects the company's ongoing focus on executing its long-term plan and driving profitability.
    • Significant Decline in Operational EBITDA: Operational EBITDA for the third quarter of 2024 was $1 million, compared to $12 million in the prior year quarter, a decline of $11 million, indicating a substantial decrease in operational profitability.
    • Decreasing Gross Profit Percentage: The gross profit percentage decreased from 19% in the prior year quarter to 17% in the third quarter of 2024, reflecting declining profitability margins.
    • Reduction in Cash and Cash Equivalents: The company ended the third quarter with $214 million in cash and cash equivalents, a decrease of $41 million from December 31, 2023, which may impact financial flexibility.
    MetricYoY ChangeReason

    Total Revenue

    Down 3%

    Total revenue in Q3 2024 fell to $261 million from $269 million, a smaller decline compared to prior periods. This decrease is mainly driven by persistent challenges in the Print segment, although strategic long‐term investments and a narrowing gap from the deeper 9% decline in Q2 2024 (a $28 million drop) indicate a move toward stabilization.

    Print Segment

    Down 7%

    The Print segment declined to $182 million from $196 million, reflecting ongoing issues with lower volumes and less favorable pricing. This mirrors previous challenges seen in Q2—where Print revenue dropped by $29 million in Q2 2024 and by $37 million in Q2 2023—highlighting that persistent operational pressures remain despite attempts at pricing improvements and cost management.

    Advanced Materials and Chemicals

    Up 11%

    Advanced Materials and Chemicals revenue grew to $71 million from $64 million, continuing its positive trend. The growth builds on earlier improvements such as pricing and product mix enhancements observed in Q2 periods, showing that despite overall market pressures, this segment benefits from volume gains and better margins.

    EMEA Revenue

    Down 12%

    EMEA revenue declined to $80 million from $91 million, a significant contraction that contrasts with the slight improvement seen in Q2 2024 (an increase from $80 million to $86 million). The drop is likely due to regional market challenges—including lower Print volumes and foreign exchange headwinds—that have now intensified in Q3.

    U.S. Revenue

    Up (modest increase)

    U.S. revenue edged up to $120 million from $117 million, reversing prior trends in Q2 2024 when U.S. performance declined. This modest growth suggests that targeted customer strategies, improved product mix, and focused revenue initiatives in the U.S. helped mitigate broader declines seen elsewhere, highlighting regional resilience.

    TopicPrevious MentionsCurrent PeriodTrend

    Advanced Materials & Chemicals (AMC)

    Previously, AMC was highlighted as a core competency with investments in film production, layering, coating, and the construction of a cGMP clean lab and reagent facility (Q4 2023 , Q1 2024 , Q2 2024 ); the focus was on long-term growth and leveraging Kodak’s historic expertise.

    In Q3 2024, AMC remains a key growth initiative—with continued investments in film, chemicals, substrate coating (for EVs), film manufacturing modernization (with a planned shutdown in November 2024), battery technology, and infrastructure upgrades at Eastman Business Park.

    Consistent focus; the company’s emphasis on AMC has broadened in scope to include new elements like battery technology and modernization, reinforcing its strategic importance.

    Innovation and New Product Development

    Across previous periods (Q4 2023 , Q1 2024 , Q2 2024 ), Kodak consistently underscored innovation in digital print technology, traditional print, and AMC-related product launches (e.g. PROSPER Ultra 520, PRINERGY software, new CTP systems) as part of its long-term strategy.

    In Q3 2024, the innovation narrative continues—integrating digital print and traditional prints with fresh product launches, modernization initiatives, and advanced investments in IT systems along with the integration of the AMC strategy.

    Steady continuity with added dimensions; while the core focus remains innovation, there is a notable enhancement through infrastructure investments and modernizing manufacturing processes.

    Operational EBITDA and Gross Profit Margin Performance

    Earlier calls (Q4 2023 , Q1 2024 , Q2 2024 ) discussed mixed signals: improvements in gross margin due to pricing and efficiency actions, yet significant EBITDA declines driven by increased costs, investments in automation, and higher manufacturing expenses.

    In Q3 2024, the figures show a decline in Operational EBITDA (down to $1 million from $12 million previously) and a reduced gross profit margin (17% vs. 19% in the prior year), largely due to higher manufacturing costs, aluminum price hikes, and adjustments in reserves.

    More cautious sentiment; challenges persist with cost pressures outweighing gains, and the negative impact on EBITDA remains a concern despite efforts to improve margins.

    Revenue Decline and Challenges in Sales Growth

    In previous periods (Q4 2023 , Q1 2024 , Q2 2024 ), Kodak attributed revenue declines to intentional “smart revenue” strategies, lower volumes, and market conditions, while emphasizing cost efficiencies and operational adjustments to mitigate the revenue drop.

    In Q3 2024, revenue declined by 3% (a slower decline compared to recent quarters), with challenges such as higher aluminum costs and inventory reserve adjustments being noted; the slowing pace of the decline reflects a more targeted “smart revenue” approach.

    Slight improvement; while the downward pressure on revenues continues, the slower decline suggests a potential stabilization and focus on profitable revenue rather than volume growth.

    ITC Ruling and U.S. Plates Market

    Previously, the Q1 2024 call mentioned Kodak’s petition with the ITC and Commerce Department to counteract unfair trade practices in the plates market ; Q2 and Q4 2023 had no mention.

    In Q3 2024, Kodak emphasized receiving an affirmative ITC ruling on plates tariffs (ranging from 91.83% to 353.09%), which underscores its unique position as the last U.S. plates manufacturer, providing a competitive advantage.

    Emerging/Re-emerging topic; the ITC ruling now plays a prominent role in offering a level playing field, marking a renewed emphasis on protecting its domestic market standing.

    Manufacturing Modernization and Battery Technology

    Earlier discussions in Q1 2024 mentioned investments to modernize film manufacturing and build new facilities (e.g. CGMP clean lab, reagent facility) but did not specifically address battery technology; Q2 2024 and Q4 2023 did not cover these aspects.

    In Q3 2024, manufacturing modernization is in focus with a planned complete shutdown of the film plant in November to upgrade processes, and significant new investments in battery technology leveraging its expertise in substrate coating.

    Emerging with large future impact; the addition of battery technology investments and clear plans for a comprehensive modernization indicates a strategic move with potential long-term benefits.

    Cash Position and Liquidity Management

    Across previous periods (Q4 2023 , Q1 2024 , Q2 2024 ), Kodak consistently reported details on cash balances, operating cash flow improvements, restricted cash adjustments, and compliance with financial covenants—all reflecting its commitment to strong liquidity management.

    In Q3 2024, while cash and cash equivalents decreased to $214 million (a decline attributed to capital expenditures for AMC initiatives and working capital investments), the overall narrative remains centered on careful liquidity management and covenant compliance.

    Consistent focus; liquidity management continues to be a priority, although current investments are tightening cash positions slightly, it reflects deliberate strategic allocation of resources.

    Rising Operating Costs, Restructuring Expenses, and Global Cost Pressures

    Prior calls (Q2 2024 , Q4 2023 ) discussed rising selling, administrative, and manufacturing costs driven by global cost increases, inflation, and strategic investments, while Q1 2024 touched on cost pressures indirectly via automation investments; restructuring expenses were not a major focus.

    In Q3 2024, rising operating costs are again highlighted—with higher manufacturing expenses, increased aluminum costs, and adjustments in benefit and inventory reserves being noted; no new mention of restructuring expenses emerged in Q3.

    Continued concern; global cost pressures remain a significant challenge, with current period details reinforcing the ongoing struggle against rising input costs, even as operational efficiencies are pursued.