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…
Earnings analysis · 10-Q
EMN earnings analysis
Filed May 1, 2026 · Our reading of the company's report
The latest report
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…
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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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.93
What stood out
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EPS Slightly Beats Estimates
Actual diluted EPS was $0.93, exceeding the consensus estimate of $1.07 by $0.02.
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Maintain Q2 EPS Guidance
Management projects adjusted EPS for Q2 2026 between $1.70 and $1.90.
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Cash Balance Improves
Cash and cash equivalents increased to $665 million from $418 million in the prior year.
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Decrease in Capital Expenditures
Capital expenditures decreased to $103 million from $147 million year-over-year.
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Decrease in Operating Cash Flow Loss
Operating cash flow usage decreased to $137 million in Q1 2026, compared to $167 million in Q1 2025.
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Reduction in Debt
Total borrowings increased to $5.2 billion from $4.787 billion, with net debt rose to $4.555 billion.
What to watch
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Weak Demand in Key Segments
Sales revenue decreased primarily due to lower sales volume and selling prices in the Fibers and CI segments.
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Higher Operating Expenses
Increased operational costs driven by energy price spikes and adverse weather conditions caused by Winter Storm Fern.
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Inventory Destocking Effects
Ongoing customer inventory destocking is affecting sales, particularly in the acetate tow product line.
Management's outlook
Management maintains guidance for Q2 2026 adjusted EPS between $1.70 and $1.90, indicating a stabilization expectation.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.