Eastman Chemical Q4 sales fall on lower volumes

Overview

• Specialty materials firm's Q4 sales revenue fell 12% yr/yr due to lower volumes and prices

• Adjusted EBIT for Q4 decreased, impacted by lower sales volume and unfavorable price-cost

• Company returned $500 mln to shareholders through dividends and buybacks in 2025

Outlook

• Eastman expects first-quarter adjusted EPS between $1.00 and $1.20

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

• Eastman anticipates foreign currency exchange rates to provide a tailwind

Result Drivers

• COST REDUCTIONS - Eastman exceeded its cost reduction goals, achieving $100 mln in savings versus a target of $75 mln

• METHANOLYSIS FACILITY - Kingsport methanolysis facility met operational goals, contributing $60 mln in incremental earnings

• INVENTORY DESTOCKING - Ongoing customer inventory destocking affected sales volume, particularly in acetate tow

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

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