Financial Performance - Sales for Q1 2025 were $2,290 million, a slight decrease of 0.9% from $2,310 million in Q1 2024[15] - Gross profit increased to $567 million in Q1 2025, up 6.6% from $532 million in Q1 2024[15] - Net earnings attributable to Eastman rose to $182 million in Q1 2025, compared to $165 million in Q1 2024, reflecting a growth of 10.3%[15] - Basic earnings per share attributable to Eastman increased to $1.58 in Q1 2025, up from $1.40 in Q1 2024, representing a 12.9% increase[15] - The company reported a consolidated EBT of $214 million for Q1 2025, up from $214 million in Q1 2024, indicating consistent earnings before tax[15] - Net earnings for Q1 2025 were $182 million, an increase from $165 million in Q1 2024, representing an increase of 10.3%[91] - Basic earnings per share (EPS) for Q1 2025 were $1.58, compared to $1.40 in Q1 2024, reflecting a growth of 12.9%[91] Assets and Liabilities - Total assets decreased to $14,971 million as of March 31, 2025, down from $15,213 million at the end of 2024[17] - Total liabilities decreased to $9,027 million as of March 31, 2025, down from $9,361 million at the end of 2024[17] - Cash and cash equivalents decreased significantly to $418 million from $837 million at the end of 2024[17] - Total current liabilities decreased from $2,708 million as of December 31, 2024, to $2,269 million as of March 31, 2025, a reduction of 16.3%[17] - Total borrowings amounted to $5,021 million as of March 31, 2025, slightly up from $5,017 million as of December 31, 2024[38] Cash Flow - Net cash used in operating activities was $167 million in Q1 2025, compared to a net cash used of $16 million in Q1 2024[20] - The company reported a net cash used in investing activities of $131 million in Q1 2025, compared to $179 million in Q1 2024[20] Inventory and Expenses - Total inventories increased to $2,116 million as of March 31, 2025, compared to $1,988 million as of December 31, 2024, reflecting a 6.4% increase[34] - Research and development expenses rose to $67 million in Q1 2025, up from $59 million in Q1 2024, indicating a focus on innovation[15] - Capital expenditures for Q1 2025 were $139 million, compared to $147 million in Q1 2024, showing a decrease of 5.4%[107] Environmental Matters - The company’s net environmental reserve for environmental contingencies totaled $282 million as of March 31, 2025, compared to $284 million at December 31, 2024[74] - Estimated future environmental expenditures for undiscounted remediation costs range from $250 million to $503 million as of March 31, 2025[75] - Environmental remediation liabilities decreased from $252 million at December 31, 2024, to $250 million at March 31, 2025[76] - The company does not anticipate that environmental matters will have a material adverse effect on its future financial position or cash flows[73] Shareholder Returns - Cash dividends declared for the first quarter of 2025 were $96 million, reflecting a dividend of $0.83 per share[83] - Cash dividends declared were $0.83 per share for Q1 2025, compared to $0.81 per share in Q1 2024, reflecting a 2.5% increase[92] Derivatives and Hedging - The company entered into fixed-to-fixed cross-currency swaps totaling $300 million in the first quarter of 2025 to hedge against foreign currency fluctuations[52] - The total net derivative assets decreased from $35 million on December 31, 2024, to a net liability of $15 million as of March 31, 2025[61] - The company recognized a net gain of $3 million from foreign exchange derivatives in Q1 2025, compared to a net loss of $5 million in Q1 2024[67] Stock Options and Compensation - Share-based compensation expense recognized in Q1 2025 was $23 million, up from $21 million in Q1 2024, marking a 9.5% increase[99] - Approximately 408 thousand stock options were granted in Q1 2025, compared to 389 thousand in Q1 2024, indicating an increase in stock option grants[100] - The fair value of stock options granted in Q1 2025 was $26.99, up from $21.16 in Q1 2024, reflecting a 27.0% increase[101]

Financial Performance - 1Q25 revenue was $2,290 million, a decrease of 1% compared to 1Q24[7] - Adjusted EBIT for 1Q25 was $311 million, compared to $274 million in 1Q24[7] - Adjusted EBIT margin improved by 170 basis points year-over-year[6, 7] - Adjusted EPS grew by 19% in 1Q25, reaching $1.91[6, 7] Segment Results - Advanced Materials revenue was $719 million, a decrease of 4% compared to 1Q24, with an adjusted EBIT margin of 16.1%, a 220 basis points increase[14, 19] - Additives & Functional Products revenue increased by 4% to $733 million, with an adjusted EBIT margin of 19.2%[21] - Fibers revenue decreased by 13% to $288 million, with an adjusted EBIT margin of 30.6%[28] - Chemical Intermediates revenue increased by 4% to $545 million, with an adjusted EBIT margin of 3.5%[35] Circular Economy and Future Outlook - The Kingsport methanolysis facility is performing strongly, expected to contribute around $75 million in EBITDA for FY25 compared to FY24[9, 12] - Capital expenditures for FY25 are reduced to approximately $550 million from the previous $700 million–$800 million[48, 50, 54] - The company expects approximately $1.2 billion of operating cash flow for FY25[48, 50]

Financial Data and Key Metrics Changes - The company has adjusted its revenue guidance for the renew segment from $75 to $100 million to a new range of $50 to $75 million due to economic uncertainties and trade tensions impacting consumer durable markets [11][12][27] - The EBITDA contribution from manufacturing cost savings is on track to achieve the targeted $50 million for the year, with $25 million already realized in the first quarter [10][27] Business Line Data and Key Metrics Changes - The fibers business is experiencing destocking challenges, with first-quarter volume down 12%, but contract rates remain stable at around 90% [19][130] - The advanced materials segment is expected to face varying impacts from tariffs, with some products having local manufacturing capabilities mitigating risks [42][140] Market Data and Key Metrics Changes - The consumer durable market is under pressure due to tariff-related uncertainties, affecting product launches and overall market engagement [11][12][13] - The agricultural sector is expected to benefit from tariffs as they provide relief from low-priced imports, allowing for potential market share recovery [142] Company Strategy and Development Direction - The company is focusing on optimizing capital expenditures, reducing from $750 million to $550 million, to prepare for potential economic downturns while still investing in maintenance and growth [89][90] - Strategic initiatives are being pursued to enhance local manufacturing capabilities and reduce reliance on imports, particularly in the performance films and specialty plastics segments [39][140] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining cash flow generation despite uncertainties in earnings due to trade disputes and economic conditions [107][109] - The company is preparing for multiple scenarios regarding trade resolutions, indicating a cautious but proactive approach to managing inventory and customer relationships [72][82] Other Important Information - The company has received funding from the Department of Energy (DOE) and maintains a positive relationship with them, indicating confidence in ongoing support for projects related to US manufacturing and recycling infrastructure [51][56] - The impact of tariffs is primarily seen as a volume hit rather than a direct cost increase, with customers holding back orders due to uncertainty [118][120] Q&A Session Summary Question: What has been the sales and EBITDA contribution in the first quarter? - Management indicated that operational performance at the Kingsport facility has been strong, with an 85% yield on DMT feedstock and significant earnings generated in the corporate area [8][9] Question: How long do you anticipate destocking to persist in the fibers business? - Management noted that destocking is driven by customer behavior rather than market growth rates, and while it may continue, the fundamentals remain stable [18][25] Question: How much risk is there regarding China sales if tariffs remain? - Management highlighted that while there is some risk, many segments have limited exposure to China, and they are exploring ways to mitigate impacts through local production [36][38] Question: Why is cash flow more forecastable than earnings? - Management explained that cash flow generation is based on a broader set of operational solutions and working capital management, providing more certainty compared to earnings estimates [106][108] Question: What is the estimated tariff impact for the second quarter? - The estimated impact is around $30 million, primarily due to reduced sales volumes as customers hold back orders in anticipation of trade resolutions [112][118]

Eastman Chemical Company (EMN) reported first-quarter 2025 earnings of $1.57 per share, reflecting a rise of 12.9% from the year-ago quarter's figure of $1.39.EMN posted adjusted earnings of $1.91 per share, up 18.6% from the year-ago quarter figure of $1.61. It surpassed the Zacks Consensus Estimate of $1.89.The company’s revenues in the first quarter were $2,290 million, which missed the Zacks Consensus Estimate of $2,308.6 million. Sales decreased around 1% from $2,310 million reported in the prior-year ...

Core Insights - Eastman Chemical (EMN) reported revenue of $2.29 billion for Q1 2025, a year-over-year decline of 0.9% and a surprise of -0.81% compared to the Zacks Consensus Estimate of $2.31 billion [1] - The company's EPS for the same period was $1.91, up from $1.61 a year ago, exceeding the consensus estimate of $1.89 by +1.06% [1] Revenue Performance - Net Sales in Chemical Intermediates reached $545 million, exceeding the average estimate of $526.41 million, with a year-over-year increase of +4.2% [4] - Net Sales in Fibers were $288 million, below the average estimate of $323.18 million, reflecting a year-over-year decline of -13% [4] - Net Sales in Advanced Materials totaled $719 million, compared to the average estimate of $764.65 million, marking a year-over-year decrease of -3.9% [4] - Net Sales in Additives & Functional Products were $733 million, surpassing the average estimate of $706.46 million, with a year-over-year increase of +4.1% [4] - Net Sales in Other products amounted to $5 million, slightly above the average estimate of $4.50 million, representing a year-over-year increase of +25% [4] Adjusted EBIT Performance - Adjusted EBIT for Additives & Functional Products was $141 million, exceeding the average estimate of $127.78 million [4] - Adjusted EBIT for Advanced Materials reached $116 million, slightly above the average estimate of $114.17 million [4] - Adjusted EBIT for Chemical Intermediates was $19 million, below the average estimate of $22.78 million [4] - Adjusted EBIT for Other products was -$53 million, in line with the average estimate of -$53.70 million [4] - Adjusted EBIT for Fibers was $88 million, below the average estimate of $98.13 million [4] Stock Performance - Eastman Chemical's shares have returned -12% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Group 1: Earnings Performance - Eastman Chemical reported quarterly earnings of $1.91 per share, exceeding the Zacks Consensus Estimate of $1.89 per share, and up from $1.61 per share a year ago, representing an earnings surprise of 1.06% [1] - The company posted revenues of $2.29 billion for the quarter, missing the Zacks Consensus Estimate by 0.81%, and down from $2.31 billion year-over-year [2] - Over the last four quarters, Eastman Chemical has surpassed consensus EPS estimates four times but has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Eastman Chemical shares have declined approximately 13.7% since the beginning of the year, compared to a decline of 8.6% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the next quarter is $2.19 on revenues of $2.38 billion, and for the current fiscal year, it is $8.36 on revenues of $9.53 billion [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Chemical - Diversified sector is currently in the bottom 10% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Exhibit 99.01 Eastman Announces First-Quarter 2025 Financial Results KINGSPORT, Tenn., April 24, 2025 – Eastman Chemical Company (NYSE:EMN) announced its first- quarter 2025 financial results. | (In | millions, | except | per | share | amounts; unaudited) 1Q2025 1Q2024 | | --- | --- | --- | --- | --- | --- | | Sales | revenue | | | | $2,290 $2,310 | | Earnings | before | | interest | and | taxes ("EBIT") 302 263 | | Adjusted | EBIT* | | | | 311 274 | | Earnings | per | diluted | | share | 1.57 1.39 | | Adju ...

Eastman Chemical Company’s (EMN) Eastman Turbo Oil 2330 (ETO 2330) has been added to the relevant Qualified Products List after receiving MIL-PRF-7808 Grade 3 specification approval from the U.S. Air Force. This confirmed that the product meets military-grade performance and safety standards for aircraft turbo oils.The new ETO 2330 has been designed for applications requiring reliable performance under demanding conditions, delivering superior lubrication and thermal stability. ETO 2330 also exhibits best-i ...

Eastman Chemical (EMN) shares rallied 12.1% in the last trading session to close at $81.48. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.1% loss over the past four weeks.EMN's rally follows a spike in material stocks after President Trump declared a 90-day pause of reciprocal tariffs for most nations.This specialty chemicals maker is expected to post quarterly earnings of $1.89 per share in its upcoming ...

Core Viewpoint - Euro Manganese's Chvaletice Project has been designated as a Strategic Project under the EU's Critical Raw Materials Act, enhancing its significance in the European raw materials supply chain [1][4]. Strategic Project Designation - Strategic Projects under the EU CRMA gain access to guidance and potential funding from various sources, including the European Investment Bank and the European Bank for Reconstruction and Development, as well as private financial institutions [3][8]. - The designation ensures that permitting processes adhere to deadlines set in the CRMA, thereby reducing scheduling risks associated with permitting [3][8]. Importance of the CRMA - The CRMA, effective from May 2024, identifies over 30 raw materials, categorizing high-purity manganese (battery grade) as a strategic raw material and manganese as a critical raw material [4]. - The designation aims to enhance the security of the EU's supply of strategic raw materials and to diversify supplies from third countries [4]. Recent Approvals and Milestones - In March 2024, the Czech Ministry of Environment approved the Environmental and Social Impact Assessment for the Chvaletice Project [5]. - The Determination of Mining Lease permit was secured in January 2025, marking a significant step towards full permitting [5]. - The Czech government declared the Chvaletice Manganese Deposit as strategic in March 2025 [5]. Company Objectives - Euro Manganese aims to play a crucial role in establishing a sustainable and climate-friendly battery value chain in Europe, leveraging its Strategic Project status to facilitate access to government-backed funding and collaboration with EU institutions [6][9]. - The Chvaletice Project represents a unique waste-to-value recycling opportunity, involving the reprocessing of old tailings from a decommissioned mine, positioning the company as a key supplier of critical raw materials for battery supply chains [10].