Eastman Chemical Company, a global specialty materials company, has released its financial results for the first quarter of 2025. The company reported strong performance despite a challenging macroeconomic environment, driven by innovation and operational efficiency.
Financial Highlights
For the first quarter of 2025, Eastman Chemical Company reported:
• Adjusted earnings per share (EPS) of $1.91, up 19% year-over-year.
• Sales revenue of $2.29 billion, a slight decrease from $2.31 billion in Q1 2024.
• Adjusted EBIT of $311 million, an increase from $274 million in the same period last year.
• Net cash used in operating activities was $167 million, compared to $16 million in Q1 2024.
Business and Operational Highlights
Key operational achievements for the quarter include:
• Best-ever uptime and production quantities at the Kingsport methanolysis facility.
• Sales revenue in the Additives & Functional Products segment increased by 4% due to higher selling prices and sales volume/mix.
• Sales revenue in the Fibers segment decreased by 13% due to customer inventory destocking and the impact of a discontinued product.
Strategic Initiatives and Corporate Developments
Eastman Chemical Company has focused on cost discipline and cash generation to navigate the economic impacts of tariffs. The company returned $96 million to stockholders through dividends and plans to prioritize capital expenditures, dividend payments, and share repurchases for 2025.
Management’s Perspective
Mark Costa, Board Chair and CEO, commented, “Leveraging our innovation-driven growth model, we delivered a strong quarter in line with expectations. Despite a highly volatile and uncertain macroeconomic environment, our teams drove sequential volume/mix improvements across most segments. Our first-quarter results, coupled with our bias for action, give me great confidence in our ability to deliver strong cash flow and resilient earnings going forward.”
Future Outlook
Looking ahead, Eastman Chemical Company expects to generate strong operating cash flow of approximately $1.2 billion for the full year 2025. The company has increased its cost reduction target to approximately $75 million net of inflation and reduced capital expenditures to around $550 million. For the second quarter of 2025, adjusted EPS is expected to be in the range of $1.70 to $1.90.
