Eastman Chemical Company (NYSE:EMN) is among the 9 Undervalued Chemical Stocks to Buy According to Hedge Funds. Analysts See Signs of Commodity Bottoming After Eastman Chemical Company (EMN) Q4 Results Eastman Chemical Company (NYSE:EMN) is one of the best chemical stocks.  TheFly reported today, on February 18, that Evercore ISI raised its price target on EMN by $5. Similarly, earlier on February 4, RBC Capital increased its price target on EMN from $70 to $79 and maintained a Sector Perform rating. Th ...

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.Below are the ratings of the most accurate analysts for three high-yielding stocks in the materials sector.International Paper Co (NYSE:IP)Eastman Chemical Co (NYSE:EMN)Dow Inc (NYSE:DOW)Photo via Shutterstock ...

Core Viewpoint - Euro Manganese Inc. is advancing the Chvaletice Manganese Project and has announced the proposed appointment of Mr. James Connolly as a Non-Executive Director to strengthen its Board of Directors [1][2][17]. Board Appointment - Mr. James Connolly is set to join the Board, bringing over 25 years of experience in mining operations, project development, and technical leadership from major global mining companies [4][5]. - The appointment is subject to obtaining an Australian Director Identification Number (DIN) [2]. - Chairman Mr. Rick Anthon emphasized that Connolly's expertise is directly relevant to the Chvaletice Project's progress [3][7]. Transition of Dr. David Dreisinger - Dr. David Dreisinger will transition from his role as a Director to a consulting role, continuing to provide technical leadership and support for the Chvaletice Project [8][9]. - Dr. Dreisinger has been instrumental in the project's development and will ensure continuity of valuable project knowledge [10]. Project Overview - The Chvaletice Manganese Project aims to reprocess historic mine tailings to produce high-purity electrolytic manganese metal (HPEMM) and high-purity manganese sulphate monohydrate (HPMSM) [12]. - This initiative is positioned to establish a low-carbon supply chain within the European Union, addressing the rising demand for sustainable battery materials [13].

Financial Performance - In 2025, Eastman reported sales revenue of $8.8 billion, EBIT of $776 million, and net earnings of $474 million, with diluted earnings per share at $4.10[19] - Sales revenue decreased by 7% in 2025 to $8,752 million from $9,382 million in 2024, primarily due to lower sales volume and price effects[211] - Gross profit fell by 19% in 2025 to $1,844 million compared to $2,290 million in 2024, with gross profit excluding non-core items decreasing by 20%[212] - Net earnings attributable to Eastman were $474 million in 2025, down from $905 million in 2024, with diluted EPS decreasing from $7.67 to $4.10[208] - The company generated $970 million in cash from operating activities in 2025, a decrease from $1.3 billion in 2024[208] - EBIT excluding non-core items decreased to $930 million in 2025 from $1,298 million in 2024, reflecting lower sales volume and higher costs[206] - The company reported a total of $154 million in non-core items impacting EBIT for 2025, compared to $20 million in 2024[193] - Adjusted net earnings attributable to Eastman, excluding non-core and unusual items, were $627 million in 2025 compared to $931 million in 2024[208] Sustainability Initiatives - The company aims to reduce absolute scope 1 and scope 2 GHG emissions by 30% by 2035, with a target of net-zero operations by 2050[25] - Eastman has developed several innovative products, including Naia™ and Aventa™, which are biodegradable and compostable biopolymers[23] - Eastman’s sustainability initiatives include strategic collaborations to promote molecular recycling and mass balance accounting[25] - Eastman is leveraging molecular recycling technologies to convert waste plastics into specialty plastics, enhancing sustainability and product offerings in the AM segment[35] - The company is developing biodegradable cellulose-ester micropowders for personal care applications, addressing environmental challenges in the industry[41] - Eastman’s innovation initiatives are supported by world-class technology platforms and a focus on molecular recycling technologies[205] Market and Customer Insights - Approximately 55% of 2025 sales revenue was generated from outside the United States and Canada[19] - The Fibers segment's top 10 customers account for approximately 65% of its 2025 sales revenue, indicating a strong reliance on strategic long-term relationships[50] - The top 100 customers accounted for approximately 60% of the Company's 2025 sales revenue, with no single customer accounting for 10% or more of consolidated sales revenue[79] - The Company expects international markets to continue to represent a significant portion of its sales, with more than half of sales for 2025 coming from outside North America[96] Operational Efficiency and Innovation - Eastman operates the world's largest polyester molecular recycling facility, achieving approximately 2.5 times greater output than in 2024[33] - The company maintains a disciplined approach to capital allocation, prioritizing dividends, growth opportunities, and share repurchases[28] - Eastman’s innovation-driven growth model focuses on leveraging scalable technology platforms and engaging directly with customers to enhance product offerings[21] - The Company recognizes earnings from its acetate tow joint venture in China through equity investment, reported in "Other (income) charges, net"[54] - Eastman is investing in the conversion of existing assets to improve feedstock mix and balance ethylene and propylene production, enhancing operational efficiency[44] - The Company has implemented multifaceted sourcing, warehousing, and delivery strategies to mitigate supply chain disruptions and build resilient supply positions[94] Risk Management and Compliance - The Company is subject to significant governmental laws and regulations that require substantial expenditures for compliance, impacting its competitive position[80] - The Company faces risks related to global economic conditions, including fluctuating commodity prices and volatile exchange rates, which could adversely impact financial results[90] - The Company may incur significant costs to comply with health, safety, and environmental regulations, which could adversely affect its financial results[115] - The Company is subject to various legal proceedings that could materially impact its business and financial results[107] - The Company faces risks associated with cybersecurity incidents that could lead to financial and reputational damage[102] - The Company has established cybersecurity policies and incident response plans that are continually refined to adapt to regulatory changes and emerging risks[126] Employee and Corporate Governance - Eastman emphasizes employee well-being through various resources, including fitness classes and financial counseling, to attract and retain talent[74] - The Company employs a risk-based governance approach for artificial intelligence use, overseen by a Responsible AI Council[71] - Eastman’s compensation philosophy includes annual assessments of pay equity, considering factors such as gender, race, and performance[78] Financial Position and Investments - Eastman had $351 million in indefinite-lived intangible assets at December 31, 2025, with no impairments identified during the fourth quarter tests[166] - As of December 31, 2025, Eastman had $3.7 billion in goodwill, with fair values significantly exceeding carrying values for most reporting units tested, except for performance films[165] - The Company holds a 51% share in Eastman Specialties Wuhan Youji Chemical Co., Ltd. and Qilu Eastman Specialty Chemical, Ltd., and an 80% share in Eastman Fibers Korea Limited[148] - The Company accrued environmental costs expected to be paid out within approximately 30 years, reflecting liabilities related to contaminated sites[83] - The estimated future environmental expenditures for undiscounted remediation costs ranged from $285 million to $509 million, with a best estimate of $285 million as of December 31, 2025[169]

Core Viewpoint - RBC Capital has raised the price target for Eastman Chemical (EMN) to $79 from $70 while maintaining a Sector Perform rating after the company's Q4 results. The firm believes that while investors are optimistic about a potential bottoming of commodities, Eastman Chemical may experience a delayed recovery due to the intermediate nature of most of its products [1]. Summary by Category - **Price Target Adjustment** - RBC Capital increased the price target for Eastman Chemical to $79 from $70 [1]. - **Rating** - The firm continues to hold a Sector Perform rating on Eastman Chemical shares [1]. - **Market Sentiment** - Investors are showing increased bullishness regarding the potential bottoming of commodities [1]. - **Recovery Outlook** - RBC suggests that Eastman Chemical could face a delayed recovery due to the intermediate nature of its products [1].

Core Viewpoint - Eastman Chemical Company (EMN) has underperformed in the market, with shares declining approximately 29% over the past year due to a challenging macroeconomic environment affecting the chemicals sector [1] Company Performance - The company has faced persistent oversupply and weak pricing, which are significant factors contributing to its poor stock performance [1]

Company Performance - Eastman Chemical Company (EMN) has experienced a significant decline in share value, losing approximately 29% over the past year [1] - The company, like many in the chemicals sector, is facing challenges due to a difficult macroeconomic environment characterized by persistent oversupply and weak pricing [1] Industry Context - The chemicals sector is currently under pressure, with many companies experiencing similar issues related to oversupply and pricing challenges [1]

Core Insights - Eastman Chemical is focusing on operational actions to stabilize performance in challenged businesses, with end-market demand and customer ordering behavior being the primary swing factors [4] Group 1: Fibers Segment - The Fibers segment is a top priority for the company after a challenging year, with management pursuing additional cost reductions of $125 million to $150 million to restore profitability [3][7] - Approximately 40% of the EBIT decline in the Fibers segment was attributed to factors outside of acetate tow volume, including a $30 million decline in textiles due to tariffs and $20 million from reduced internal demand for cellulosics [3][7] - Customer destocking is expected to continue, with management indicating that the first quarter is starting "a little bit light" but anticipates volume ramp-up later in the year [2][11] Group 2: Chemical Intermediates - The E2P (ethylene-to-propylene) project is seen as a structural improvement for Chemical Intermediates, expected to enhance earnings by approximately $50 million to $100 million depending on spreads, with a payback period of under two years [6][8] - Current profitability in Chemical Intermediates is influenced by weak demand and global trade dynamics, with North American markets being more profitable than exports [9][10] Group 3: Circular Economy Initiatives - The Kingsport debottlenecking project is expected to increase capacity by approximately 130%, supporting rPET volume growth with strategic customers like Pepsi [5][16][17] - A second methanolysis plant project has been paused due to the loss of a Department of Energy grant, shifting the circular strategy towards a lower-capex path [5][15] Group 4: Advanced Materials - In Advanced Materials, year-over-year earnings drivers include volume growth, cost reductions, and improved utilization, although there are headwinds from higher energy costs and modest pricing declines [13][14] - Management has effectively managed pricing relative to costs over the past four years, but is now sharing some raw material benefits with customers, leading to modest pricing declines [14] Group 5: Additional Insights - The company is discontinuing certain European crop protection products due to regulatory bans and is experiencing growth in high-purity solvents for semiconductor applications, with growth rates of 20% to 30% [18] - Management noted limited facility impacts from winter storms so far, but potential headwinds from natural gas prices are being partially mitigated through hedging [18]

Financial Data and Key Metrics Changes - The company reported a decline in earnings before interest and taxes (EBIT) driven by tariff pressures and reduced demand, with a $30 million decline attributed to tariff-driven issues in the textile business and a $20 million headwind from reduced demand across cellulosics [7][8] - The company aims for a significant cost reduction goal in the range of $125 million to $150 million, building on $100 million achieved last year [10][11] Business Line Data and Key Metrics Changes - In the fibers segment, the company has stabilized volume relative to last year, although a modest price decline was necessary to achieve this stability [9][10] - The chemical intermediates segment is undergoing a project to convert bulk ethylene into propylene, which is expected to improve earnings by $50 million to $100 million [16][17] Market Data and Key Metrics Changes - The North American market for chemical intermediates is more profitable than the export market, with tariffs providing some protection against Chinese competition [18][19] - The company noted that demand in the North American market is expected to recover, particularly in building construction and durable goods [19][20] Company Strategy and Development Direction - The company is focusing on innovation and cost reduction to drive growth, particularly in advanced materials and fibers [34][36] - There is an emphasis on maintaining margins while pursuing volume growth in non-core applications, with a cautious approach to market share in high-value products [37][38] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting that consumer demand remains weak and uncertainty persists [49][50] - The company is optimistic about potential upside if consumer confidence improves, particularly with anticipated government actions to stimulate the economy [51][52] Other Important Information - The company has faced challenges with mechanical recycling quality, which has confirmed the value proposition of its chemical recycling processes [60][61] - Regulatory changes in Europe have led to the discontinuation of certain crop protection products, impacting profitability [54] Q&A Session Summary Question: Actions on fibers and impact on earnings - Management highlighted that fibers are a top priority, with actions taken to stabilize the business after previous declines, including managing pricing and customer contracts [7][9] Question: Reducing earnings volatility in Chemical Intermediates - The E2P project is a key initiative to convert ethylene to propylene, expected to significantly improve earnings [16][17] Question: EPS bridge from Q1 last year to Q1 this year - Management noted that Q1 is a tough comparison due to strong performance last year, but they expect volume recovery and improved performance moving forward [21][26] Question: Inventory levels at customers - Management indicated that customers have learned from past overbuilding and are currently managing inventory levels more cautiously [66][70]

Financial Data and Key Metrics Changes - The company reported a decline in earnings before interest and taxes (EBIT) driven by tariff pressures and consumer demand challenges, with a $30 million decline attributed to tariff-driven issues in the textile business [7][10] - Overall, the company is targeting a cost reduction goal of $125 million to $150 million, building on $100 million achieved last year [10][11] Business Line Data and Key Metrics Changes - The fibers segment is a top priority, with a focus on stabilizing the business after previous declines, particularly in tow, which is the largest driver of volume drop [7][10] - The company expects stable tow volumes year-on-year, with some growth in textiles anticipated [84] Market Data and Key Metrics Changes - The North American market for chemical intermediates is more profitable than the export market, with tariffs providing some protection against Chinese competition [18] - Demand recovery is expected in the North American market, particularly in building construction and durable goods, which will enhance earnings stability [19] Company Strategy and Development Direction - The company is implementing the E2P project to convert bulk ethylene into propylene, which is expected to improve earnings by $50 million to $100 million [16][17] - There is a strong emphasis on innovation and targeting new markets to drive volume growth, particularly in advanced materials and fibers [36][37] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macroeconomic environment, noting that consumer demand remains weak and uncertain [49][50] - The company is focused on controlling internal factors such as cost reductions and volume growth while being aware of external economic challenges [52] Other Important Information - The company has faced regulatory challenges in Europe, leading to the discontinuation of certain crop protection products, which will impact earnings [54] - There is a noted decline in the quality of mechanically recycled PET, reinforcing the company's commitment to chemical recycling as a superior alternative [60][61] Q&A Session Summary Question: Actions taken regarding fibers and impact on earnings - Management highlighted that fibers are a priority, with actions taken to stabilize the business after previous declines, particularly in tow, which has seen a significant volume drop due to tariffs and consumer pressures [7][10] Question: Reducing earnings volatility in Chemical Intermediates - The E2P project is a key initiative aimed at converting ethylene to propylene, which is expected to significantly improve earnings in the segment [16][17] Question: EPS bridge from Q1 last year to Q1 this year - Management noted that Q1 is a tough comparison due to strong performance last year, but they expect a recovery in volumes and improved performance as the year progresses [21][26] Question: Inventory levels at customers - Management indicated that customers have learned from past overbuilding and are currently managing inventory levels more cautiously, which is expected to support demand recovery [66][70]