Bank of America Global Materials Conference Agustin Izquierdo Chief Financial Officer February 26th, 2026 Cautionary statement The statements in this presentation relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management of LyondellBasell which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. When used in this presentation, the words "believe," "could," "int ...

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 - 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]

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]

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 various factors, including tariff pressures and reduced demand across segments, leading to a $30 million decline in the textile business and a $20 million headwind from reduced demand in cellulosics [5][6] - The company aims for a significant cost reduction goal in the range of $125 million to $150 million, building on the $100 million achieved last year [9][10] - The company expects a year-over-year decline in earnings per share (EPS) for Q1, with a forecasted range of $5.50 to $6.00, indicating a meaningful improvement in earnings is possible despite macroeconomic uncertainties [44][46] Business Line Data and Key Metrics Changes - The fibers segment is a top priority, with actions taken to stabilize the business after a significant drop in volume, particularly in tow, which is the largest driver of the decline [5][6] - 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 [14][16] - Advanced materials are expected to benefit from volume growth driven by circular economy initiatives, with growth rates projected at 20-30% [76] 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 [17][18] - The company noted that inventory levels at customers are lower than in previous years, indicating a more cautious approach to inventory management following lessons learned from past overbuilding [66][68] Company Strategy and Development Direction - The company is focusing on innovation and volume growth in advanced materials and fibers, targeting applications outside of core specialty businesses to drive asset utilization [34][35] - The company is committed to maintaining margins while sharing some raw material cost advantages with customers in a weak market environment [36][37] - The strategic transition towards circular economy solutions, particularly in packaging and rPET, is a key focus area for future growth [31][59] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the recovery in volumes, particularly in advanced materials, while acknowledging the ongoing challenges in the macroeconomic environment [25][29] - The company is taking proactive measures to manage costs and improve operational efficiency, with a focus on stabilizing the fibers business and enhancing the chemical intermediates segment [14][19] - Management highlighted the uncertainty in the macroeconomic landscape but remains focused on controlling internal factors to drive performance [44][50] Other Important Information - The company has faced regulatory challenges in Europe, leading to the discontinuation of certain crop protection products, which will impact earnings [53] - The decline in the quality of mechanically recycled PET (rPET) has been noted, reinforcing the company's value proposition for chemical recycling solutions [59] Q&A Session Summary Question: Actions taken regarding fibers and impact on earnings - Management discussed the stabilization of the fibers business and the impact of tariffs and consumer pressure on earnings, noting a $30 million decline in the textile business due to tariff-driven issues [5][6] Question: Reducing earnings volatility in chemical intermediates - The E2P project to convert ethylene to propylene is expected to significantly improve earnings and reduce volatility in the chemical intermediates segment [14][16] Question: EPS bridge from Q1 last year to this year - Management explained the challenges of comparing Q1 to the previous year due to a strong growth scenario last year, with expectations for modest recovery in volumes [20][25] Question: Inventory levels at customers - Management indicated that inventory levels are lower than in previous years, with customers being more cautious in their purchasing strategies [66][68] Question: High-purity solvents in semiconductor markets - The high-purity solvents business is growing at 20-30% and contributes positively to earnings, although it is not a large product line [76]

Core Insights - Eastman Chemical Company (EMN) reported fourth-quarter 2025 earnings of 92 cents per share, a decline of approximately 67% from $2.82 in the same quarter last year [1] - Adjusted earnings were 75 cents per share, down from $1.87 year-over-year, and below the Zacks Consensus Estimate of 76 cents [1][10] - Revenues for the fourth quarter were $1,973 million, a decrease of around 12% year-over-year, missing the Zacks Consensus Estimate of $2,037.2 million [2] Financial Performance - The company achieved approximately $100 million in cost savings, surpassing its target of over $75 million for 2025 [3] - Cash and cash equivalents at the end of the quarter were $566 million, down about 32% year-over-year, while net debt increased to $4,221 million, up roughly 1% [8] - Operating cash flow was $502 million for the quarter, a decline of around 7% year-over-year, with nearly $1 billion generated from operating activities in 2025 [8] Segment Performance - Advanced Materials segment sales fell 9% year-over-year to $656 million, missing estimates [4] - Additives & Functional Products segment sales were $662 million, down 5% from the previous year, also missing estimates [5] - Chemical Intermediaries segment sales decreased 17% year-over-year to $418 million, below estimates due to weak market demand [6] - Fibers segment reported sales of $234 million, down 27% year-over-year, but exceeded estimates [7] Guidance and Outlook - For Q1 2026, EMN expects adjusted EPS to be in the range of $1.00-$1.20, driven by volume growth and reduced customer caution [10][14] - The company aims to enhance cost reduction actions to a range of $125-$150 million, building on previous efforts [11] - EMN anticipates improved earnings year-over-year in 2026, supported by innovation, better manufacturing utilization, and favorable currency exchange rates [12] Market Performance - EMN's shares have declined by 30.7% over the past year, compared to a 21.8% decline in the Zacks Chemicals Diversified industry [15]