EMN earnings analysis
What we found in EMN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Eastman Chemical Company's Q1 2026 earnings report reflects a disappointing performance with revenues of $2.177 billion, down 5% year-over-year, alongside diluted EPS of $0.93, which slightly exceeded estimates of $1.07 by $0.02. The results were impacted by weak demand and lower selling prices across all segments, particularly the Fibers and Chemical Intermediates segments. Despite these challenges, management maintains its guidance for Q2 2026 adjusted EPS between $1.70 and $1.90, hinting at a potentially stabilizing outlook.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS Slightly Beats Estimates
- Actual diluted EPS was $0.93, exceeding the consensus estimate of $1.07 by $0.02.
- Maintain Q2 EPS Guidance
- Management projects adjusted EPS for Q2 2026 between $1.70 and $1.90.
- Cash Balance Improves
- Cash and cash equivalents increased to $665 million from $418 million in the prior year.
- Decrease in Capital Expenditures
- Capital expenditures decreased to $103 million from $147 million year-over-year.
- Decrease in Operating Cash Flow Loss
- Operating cash flow usage decreased to $137 million in Q1 2026, compared to $167 million in Q1 2025.
- Reduction in Debt
- Total borrowings increased to $5.2 billion from $4.787 billion, with net debt rose to $4.555 billion.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Weak Demand in Key Segments
- Sales revenue decreased primarily due to lower sales volume and selling prices in the Fibers and CI segments.
- Higher Operating Expenses
- Increased operational costs driven by energy price spikes and adverse weather conditions caused by Winter Storm Fern.
- Inventory Destocking Effects
- Ongoing customer inventory destocking is affecting sales, particularly in the acetate tow product line.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.93
- Segment
- Advanced Materials: $715M
- Segment
- Additives & Functional Products: $739M
- Segment
- Chemical Intermediates: $495M
- Segment
- Fibers: $225M
What they said about what is next.
Management maintains guidance for Q2 2026 adjusted EPS between $1.70 and $1.90, indicating a stabilization expectation.
The filing reads worse than the one before it.
What came before.
- 10-Q · August 1, 2025
- Eastman reported Q2 sales of $2,287 million (down $76 million, -3% YoY) and diluted EPS of $1.20 (down $0.74, -38% YoY). EBIT fell to $222 million (down $115 million, -34% YoY) driven by weaker volumes, an unplanned…
- 10-Q · April 25, 2025
- Eastman reported first-quarter sales of $2,290 million, down $20 million (1%) versus Q1 2024, while EBIT rose to $302 million (from $263 million) and adjusted EBIT to $311 million. Reported diluted EPS was $1.57 and…
- 10-Q · July 26, 2024
- Eastman reported Q2 sales of $2,363 million (up $39 million, +2% YoY) and EBIT of $337 million (up $14 million, +4% YoY). GAAP diluted EPS was $1.94 (down from $2.27 in Q2 2023), while adjusted diluted EPS was $2.15 (up…
- 10-Q · October 27, 2023
- Eastman reported Q3 2023 sales of $2,267 million (down $442 million or 16% YoY) with EBIT of $256 million (down 21% YoY) and diluted EPS of $1.49 (vs $2.46 in Q3 2022). Management cites lower volumes, inventory…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing EMN makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever