Eastman(US:EMN)2025-11-03 21:19Financial Performance - Sales revenue for Q3 2025 was $2,202 million, a decrease of 11% compared to $2,464 million in Q3 2024[4] - Adjusted earnings per diluted share for Q3 2025 were $1.14, down from $2.26 in Q3 2024, reflecting a decline of 49.6%[4] - EBIT decreased to $188 million in Q3 2025 from $329 million in Q3 2024, a decline of 43%[4] - Total sales for Q3 2025 were $2,202 million, a decrease of 10.6% compared to $2,464 million in Q3 2024[36] - Gross profit for Q3 2025 was $433 million, down from $605 million in Q3 2024, representing a decline of 28.4%[36] - Net earnings attributable to Eastman for Q3 2025 were $47 million, a significant drop of 73.9% from $180 million in Q3 2024[36] - Basic earnings per share attributable to Eastman decreased to $0.41 in Q3 2025 from $1.55 in Q3 2024, a decline of 73.5%[36] - Total sales for the first nine months of 2025 were $6,779 million, a decrease of 5.0% compared to $7,137 million in the same period of 2024[36] - For the first nine months of 2025, net earnings attributable to Eastman were $369 million, with diluted earnings per share of $3.18[66] Segment Performance - Sales revenue in the Fibers segment decreased by 24% due to lower sales volume/mix, primarily from customer inventory destocking[14] - The Chemical Intermediates segment saw a 16% decrease in sales revenue, attributed to weak market demand and lower prices[17] - Sales in the Advanced Materials segment for Q3 2025 were $728 million, down 7.5% from $787 million in Q3 2024[39] - The Chemical Intermediates segment experienced a 16% decline in sales, from $593 million in Q3 2024 to $499 million in Q3 2025[41] - The Fibers segment saw a 24% decrease in sales in Q3 2025 compared to Q3 2024, from $336 million to $254 million[41] Cash Flow and Capital Management - Operating cash flow remained strong at $402 million, consistent with $396 million in the prior-year quarter[19] - Eastman returned $146 million to shareholders through dividends and share repurchases in Q3 2025[6] - Net cash provided by operating activities for the first nine months of 2025 was $468 million, down from $747 million in 2024[73] - Cash and cash equivalents at the end of Q3 2025 were $489 million, down from $622 million at the end of Q3 2024[73] - There was a net cash used in investing activities of $415 million for the first nine months of 2025[73] Cost Management and Future Outlook - The company plans to reduce its cost structure by more than $75 million in 2025 and an additional ~$100 million in 2026, net of inflation[6] - Eastman expects adjusted earnings per share for full-year 2025 to be between $5.40 and $5.65, excluding non-core items[21] Non-GAAP Measures and Adjustments - Non-GAAP earnings before interest and taxes for the first nine months of 2025 reached $796 million, excluding non-core items[66] - The total segment EBIT excluding non-core items for the first nine months of 2025 was $938 million, with a margin of 13.9%[57] - In Q3 2025, the total EBIT excluding non-core items was $210 million, with a margin of 9.5%[57] - The company incurred $40 million in environmental and other costs, impacting non-GAAP earnings[69] Asset Management - The company achieved a $200 million reduction in inventory from Q2 2025 levels, demonstrating effective inventory management[6] - The company incurred inventory adjustment charges of $2 million in Q3 2025 related to asset decommissioning in North America[36] - The company faced asset impairments and restructuring charges totaling $42 million in the first nine months of 2025[66] Debt and Financial Position - Total borrowings as of September 30, 2025, were $5,075 million, with net debt at $4,586 million after accounting for cash and cash equivalents[74] - The effective tax rate for the first nine months of 2025 was 34%, compared to 26% in 2024[71]