Eastman Chemical Company reported third‑quarter 2025 financial results, showing sales revenue of $2,202 million, down 11% from $2,464 million in the same period last year.
EBIT fell to $188 million from $329 million year‑over‑year, a 43% decline, while adjusted EBIT dropped to $210 million from $366 million. Diluted earnings per share were $0.40 versus $1.53 in Q3 2024, and adjusted EPS was $1.14 versus $2.26.
Net cash provided by operating activities rose modestly to $402 million from $396 million, driven by a $204 million inventory reduction that improved cash flow.
Eastman outlined a plan to cut costs by more than $75 million in 2025, with an additional $100 million in structural cost reductions in 2026. The company projects full‑year 2025 adjusted EPS between $5.40 and $5.65, with operating cash flow approaching $1 billion.
The company noted a greater than normal seasonal decline in volume for the remainder of the year, but expects price‑cost stability and a modest revenue increase from its Kingsport methanolysis facility. Segment‑level results show revenue declines of 7% in Advanced Materials, 4% in Additives & Functional Products, 16% in Chemical Intermediates, and 24% in Fibers.
Management highlighted that the revenue decline was driven by weaker demand in consumer discretionary, building and construction, and auto refinish markets, as well as customers unwinding inventory prepositioned to mitigate tariff risks. EBIT contraction was attributed to lower spreads and reduced asset utilization following inventory reduction actions.
The full‑year 2025 guidance of $5.40‑$5.65 per share is below the prior consensus estimate of $5.77, reflecting the company’s cautious outlook amid macroeconomic headwinds.
Eastman’s focus on cost‑cutting initiatives and inventory reduction underscores its strategy to strengthen cash generation and operational resilience in a challenging environment.
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