Eastman Chemical misses Q4 revenue estimates

Overview

• Specialty materials firm's Q4 revenue fell, missing analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company returned $500 mln to shareholders via dividends and share repurchases

Outlook

• Eastman expects 1Q26 adjusted EPS between $1.00 and $1.20

• Company plans cost structure reductions of $125 mln to $150 mln in 2026

• Eastman anticipates similar operating cash flow in 2026 as in 2025

Result Drivers

• COST REDUCTIONS - Eastman exceeded its cost reduction goals, achieving $100 mln in savings, which helped offset lower sales volume and price impacts

• KINGSPORT FACILITY - The Kingsport methanolysis facility met operational goals, producing over 2.5 times more and delivering $60 mln in incremental earnings

• COMMERCIAL EXCELLENCE - Despite a weak economic environment, Eastman defended product value, maintaining prices and market share

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Eastman Chemical Co is $72.00, about 4.3% above its January 28 closing price of $69.03

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw72CFm8a

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