Eastman(US:EMN)2026-01-29 21:16Financial Performance - Sales revenue for Q4 2025 decreased by 12% to $1,973 million compared to Q4 2024, driven by an 11% lower sales volume/mix and a 2% decrease in selling prices[3]. - Adjusted EBIT for FY 2025 was $930 million, down from $1,298 million in FY 2024, reflecting challenges in sales volume and price-cost dynamics[3]. - Sales revenue for FY 2025 decreased by 7% to $8,752 million, primarily due to a 6% lower sales volume/mix and a 1% decrease in selling prices[15]. - Eastman reported Q4 2025 sales of $1,973 million, a decrease of 12% compared to Q4 2024 sales of $2,245 million[44]. - For the full year 2025, Eastman generated revenue of approximately $8,752 million, down from $9,382 million in 2024, reflecting a 7% decline[44]. - Gross profit for Q4 2025 was $338 million, down from $554 million in Q4 2024, indicating a significant reduction in profitability[44]. - The company’s net earnings for Q4 2025 were $105 million, compared to $331 million in Q4 2024, representing a decline of 68%[44]. - For the full year 2025, GAAP net earnings were $474 million, translating to $4.10 per diluted share, compared to $905 million and $7.67 per share in 2024[73]. - Non-GAAP net earnings for 2025 reached $627 million, with a 13% effective tax rate, compared to $931 million in 2024, resulting in adjusted diluted earnings per share of $5.42[73]. - Net earnings for Q4 2025 were $105 million, a decrease from $331 million in Q4 2024, while total net earnings for the twelve months were $475 million compared to $908 million in the previous year[79]. Cash Flow and Investments - Operating cash flow approached $1 billion in 2025, a decrease from approximately $1.3 billion in 2024, indicating strong cash generation despite a challenging environment[5][26]. - Net cash provided by operating activities in Q4 2025 was $502 million, down from $540 million in Q4 2024, with total cash provided for the year at $970 million compared to $1,287 million in 2024[79]. - The company experienced a net cash used in investing activities of $47 million in Q4 2025, compared to $132 million in Q4 2024, with total cash used for the year at $462 million versus $534 million in 2024[79]. - Cash and cash equivalents at the end of Q4 2025 were $566 million, down from $837 million at the end of Q4 2024[79]. - The company reported a net change in cash and cash equivalents of $77 million in Q4 2025, a decrease from $215 million in Q4 2024, resulting in a total cash change of $(271) million for the year compared to $289 million in 2024[79]. Cost Management and Savings - Cost reduction initiatives exceeded targets, achieving approximately $100 million in savings against a goal of over $75 million[5]. - For 2026, the company plans to increase cost structure reduction actions to a range of $125 million to $150 million, building on previous initiatives[27]. - The company incurred asset impairments and restructuring charges of $54 million in Q4 2025, compared to $10 million in Q4 2024[59]. - The company incurred $96 million in asset impairments and restructuring charges in 2025, impacting net earnings significantly[73]. Segment Performance - Advanced Materials segment sales decreased by 9% in Q4 2025 compared to Q4 2024, with sales of $656 million down from $720 million[46]. - Chemical Intermediates segment experienced a 17% decline in sales in Q4 2025, with revenue of $418 million compared to $503 million in Q4 2024[46]. - The Fibers segment saw a significant 27% drop in sales in Q4 2025, with revenue of $234 million compared to $321 million in Q4 2024[46]. - The Advanced Materials segment's EBIT was $41 million in Q4 2025, a decrease from $107 million in Q4 2024, with a full year EBIT of $319 million compared to $442 million in 2024[57]. - The Additives & Functional Products segment achieved EBIT of $94 million in Q4 2025, down from $128 million in Q4 2024, with a full year EBIT of $512 million, up from $487 million[57]. - The Chemical Intermediates segment reported a loss of $50 million in Q4 2025, compared to a profit of $20 million in Q4 2024, with a full year loss of $60 million versus a profit of $101 million in 2024[57]. - The Fibers segment's EBIT was $47 million in Q4 2025, down from $103 million in Q4 2024, with a full year EBIT of $283 million compared to $454 million in 2024[57]. Future Outlook - The company expects first-quarter 2026 adjusted EPS to be between $1.00 and $1.20, driven by improved volume/mix and reduced shutdown costs[28]. - The company anticipates improved manufacturing utilization and fewer shutdowns in 2026, alongside potential tailwinds from foreign currency exchange rates[27].