Eastman Chemical Company (EMN)

Eastman reported third-quarter 2026 sales revenue of $2,385 million on 29 October, up from $2,202 million a year earlier 1. Earnings per diluted share were $2.19, against $0.60 1.

Sales rose 8 percent, with 7 percent from higher selling prices and 1 percent from higher volume and product mix 1. The company said prices rose mainly because of higher raw material and distribution costs and tight markets in Chemical Intermediates tied to the conflict in the Middle East 1.

Operating cash flow was $290 million in the quarter, down from $402 million 1. For full-year 2026 the company projects adjusted earnings per share of $6.00 to $6.20 and operating cash flow of about $850 million 1.

The company said a $375 million Department of Energy award for its circular platform was reinstated 1. The quarterly report dates the reinstatement to October 2026 2.

On 2 November the company offered $300 million of 5.500% notes due 2030, with proceeds meant for general corporate purposes 5.

Eastman began business in 1920 to make chemicals for Eastman Kodak Company's photographic business and became a public company on 31 December 1993 3.

Beginning in 2004 it refocused on specialty products, selling its resins, inks and monomers lines in 2004 and its polyethylene business in 2006 3. It also sold its PET assets from 2007 to 2010 3.

Growth then came from buying Solutia in 2012 and Taminco in 2014, and from developing its own technologies 3.

On 1 December 2023 it completed the sale of its Texas City operations, apart from plasticizers, for total consideration of $498 million and a gain of $323 million 3.

In 2024 it began operating what it calls the world's largest polyester molecular recycling facility, and operating rates improved strongly in 2025 3.

Sales were $8,752 million in 2025, down 7 percent from $9,382 million in 2024 3. The company attributed the fall to lower volume, mainly acetate tow customer destocking and weak consumer discretionary markets 3.

Fibers was hit hardest, with sales down 20 percent to $1,050 million 3. Net earnings attributable to Eastman were $474 million, or $4.10 per diluted share, against $905 million, or $7.67 3.

Advanced Materials sales fell 6 percent, as building and construction weakness cut interlayer volume 3. Excluding non-core and unusual items, earnings per diluted share were $5.42, against $7.89 a year earlier 3.

Operating cash flow was $970 million in 2025, against $1.3 billion in 2024 3.

In the first nine months of 2026 sales were $7,075 million, up 4 percent from $6,779 million, mostly on higher selling prices 2.

The business in brief

Eastman calls itself a global specialty materials company, with 36 manufacturing facilities and equity interests in four manufacturing joint ventures in 12 countries 3. It reports four segments: Advanced Materials, Additives and Functional Products, Chemical Intermediates and Fibers 3.

Advanced Materials

Advanced Materials makes polymers, films and plastics, including Tritan copolyesters for food contact and Saflex interlayers for acoustic car and building glass 3. It also holds a leading position in window films 3. Annual sales were $2,880 million, against $3,050 million the year before 3.

In the third quarter its sales were $762 million, up 5 percent from $728 million, as higher selling prices in specialty plastics followed higher raw material costs 2. Named rivals include Sekisui Chemical, Kuraray, XPEL and 3M 3.

Additives and Functional Products

This segment makes high-value additives that give a customer's product critical functionality while costing a small share of that product 3. Examples are coatings additives, amines for water treatment and agriculture, and heat-transfer fluids 3.

Third-quarter sales were $784 million, up 9 percent from $716 million 2. The company said higher prices came from cost-pass-through contracts adjusting to higher raw material and distribution costs 1.

Chemical Intermediates

Chemical Intermediates sells the intermediates left over after Eastman's own specialty needs are met, such as oxo alcohols and acetic acid derivatives 3. Its report names LyondellBassell, BASF and Dow among rivals 3.

The company is converting existing assets with licensed metathesis technology to turn ethylene into propylene 3. Third-quarter sales were $580 million, up 16 percent from $499 million 2.

Fibers

Fibers makes acetate tow, used mainly in cigarette filters, and Naia yarn and fiber for apparel 3. Its 10 largest customers made up about 65 percent of its 2025 sales 3. Named rivals include Celanese, Cerdia and Daicel 3.

Third-quarter Fibers sales were $255 million, against $254 million 2. Lower acetate tow contract pricing offset higher volume from textiles and acetyl chemicals 1.

Plants and people

The headquarters and largest plant are in Kingsport, Tennessee 3. Major business offices are in Shanghai, Rotterdam, Singapore and Zug 3.

Mark Costa has been chief executive since January 2014 and board chair since July 2014 3. William McLain is executive vice president and chief financial officer 3.

Rivals and current problems

The chief executive said input costs kept rising and that sales volume fell on softer demand in automotive and consumer durables 1. The company has a $500 million plan of selling price increases for 2026 against its pre-conflict expectations 1.

The DOE ended an award tied to the Longview, Texas recycling project on 29 May 2025 3. The award was reinstated in October 2026 2.

On 16 October 2026 the board adopted amended and restated bylaws 4. They change how stockholders nominate directors and call special meetings 4.

The umbrella, in words

Main brands named in the annual report include Tritan, Saflex, LLumar, Naia, Texanol, Therminol and Skydrol 3. The report's exhibit index lists a subsidiaries exhibit, Exhibit 21 3.

Eastman owns 60 percent of Solutia Therminol Co., Ltd. Suzhou and 80 percent of Eastman Fibers Korea Limited 3. It owns 51 percent of both Eastman Specialties Wuhan Youji Chemical Co., Ltd. and Qilu Eastman Specialty Chemical, Ltd. 3. It also has joint ventures with 50 percent or less ownership at Kingsport, Hefei, Ruian and Shenzhen 3.

The proxy statement lists The Vanguard Group as holding 14,323,259 shares, 12.52 percent of the class, and BlackRock, Inc. 13,598,433 shares, 11.9 percent, as of 2 March 2026 6.

The company expects adjusted earnings per share of $6.00 to $6.20 and operating cash flow of about $850 million for 2026 1. It expects cost savings of $125 million to $150 million, net of inflation 1.

Chief executive Mark Costa said the company expects higher planned shutdown costs in the fourth quarter, partly offset by continued cost actions 1. He also said it is taking additional price actions across the company 1.

The company expects more acetate tow volume in Fibers as customers meet annual contract commitments 1. It says the circular platform is on track to drive significant revenue growth in 2026 and 2027 1.

The new 5.500% notes are due on 25 February 2030, with delivery expected on or about 12 November 2026 5. Under the new bylaws, a stockholder nomination must come not earlier than 120 days and not later than 90 days before the first anniversary of the prior year's annual meeting 4.