Eastman(US:EMN)2025-11-04 20:53Financial Performance - Sales for Q3 2025 were $2,202 million, a decrease of 10.6% compared to $2,464 million in Q3 2024[15] - Gross profit for Q3 2025 was $433 million, down 28.4% from $605 million in Q3 2024[15] - Net earnings attributable to Eastman for Q3 2025 were $47 million, a significant decline of 73.9% compared to $180 million in Q3 2024[15] - Basic earnings per share attributable to Eastman for Q3 2025 were $0.41, down from $1.55 in Q3 2024[15] - The company reported a comprehensive income attributable to Eastman of $69 million for Q3 2025, compared to $204 million in Q3 2024[15] - Net earnings for the third quarter of 2025 were $47 million, compared to $180 million in the same quarter of 2024, representing a decrease of approximately 74.2%[90] - Basic EPS for Q3 2025 was $0.41, down from $1.55 in Q3 2024, while diluted EPS decreased from $1.53 to $0.40[99] - Total income and expense recognized from fair value and cash flow hedges for the third quarter of 2025 was $2,202 million, compared to $1,769 million in 2024, reflecting an increase of 24.4%[73] Assets and Liabilities - Total assets as of September 30, 2025, were $14,979 million, a decrease from $15,213 million as of December 31, 2024[17] - Total liabilities as of September 30, 2025, were $9,136 million, slightly down from $9,361 million as of December 31, 2024[17] - Total borrowings as of September 30, 2025, amounted to $5,075 million, an increase from $5,017 million on December 31, 2024[44] - The company’s long-term borrowings were $4,785 million as of September 30, 2025, compared to $4,567 million on December 31, 2024[44] - Total stockholders' equity as of September 30, 2025, was $5,843 million, a decrease from $5,728 million as of September 30, 2024[92] Cash Flow and Operating Activities - Net cash provided by operating activities for the first nine months of 2025 was $468 million, compared to $747 million in the same period of 2024[20] - Cash and cash equivalents at the end of Q3 2025 were $489 million, down from $837 million at the beginning of the period[20] - The company sold $696 million in accounts receivable under its factoring program in the third quarter of 2025, compared to $703 million in the same period of 2024[34] Research and Development - Research and development expenses for Q3 2025 were $63 million, a slight decrease from $65 million in Q3 2024[15] Tax and Regulatory Matters - The provision for income taxes for the third quarter of 2025 was $87 million, with a tax rate of 65%, compared to $99 million and a 35% tax rate in the third quarter of 2024[41] - The company had $353 million in unrecognized tax benefits as of September 30, 2025, up from $321 million on December 31, 2024[42] Environmental and Remediation Liabilities - Estimated future environmental expenditures for undiscounted remediation costs ranged from $289 million to $499 million as of September 30, 2025, compared to $252 million to $495 million at December 31, 2024[84] - The Company's net environmental reserve for environmental contingencies totaled $322 million as of September 30, 2025, an increase from $284 million at December 31, 2024[83] - Environmental remediation liabilities increased to $289 million as of September 30, 2025, from $252 million at December 31, 2024, reflecting changes in estimates recognized in earnings[85] Shareholder Returns - Cash dividends declared in Q3 2025 were $0.83 per share, totaling $95 million, compared to $0.81 per share and $94 million in Q3 2024[90] - The company reported a share repurchase of $50 million in Q3 2025, compared to $100 million in Q3 2024[90] - The balance of retained earnings as of September 30, 2025, was $10,095 million, down from $9,780 million as of September 30, 2024[92] Other Comprehensive Income - Other comprehensive income (loss) for Q3 2025 included a loss of $22 million, while Q3 2024 reported a loss of $24 million[90] - The net unrealized loss in AOCI increased to $131 million as of September 30, 2025, from a net unrealized gain of $154 million at December 31, 2024, primarily due to changes in euro to U.S. dollar exchange rates[76] Segment Performance - The Advanced Materials segment reported sales of $728 million in Q3 2025, down from $787 million in Q3 2024, a decrease of 7.5%[121] - The Additives & Functional Products segment sales were $716 million in Q3 2025, compared to $744 million in Q3 2024, a decline of 3.8%[121] - The Chemical Intermediates segment generated sales of $499 million in Q3 2025, down from $593 million in Q3 2024, a decrease of 15.9%[121] Expenses - Selling, general and administrative expenses for Q3 2025 were $145 million, compared to $170 million in Q3 2024, a reduction of 14.7%[116] - Share-based compensation expense for Q3 2025 was $13 million, compared to $14 million in Q3 2024[90]