EASTMAN CHEMICAL CO

Table of Contents

OVERVIEW

Eastman's products and operations are managed and reported in four operating segments: Advanced Materials ("AM"), Additives & Functional Products ("AFP"), Chemical Intermediates ("CI"), and Fibers. Eastman uses an innovation-driven growth model which consists of leveraging world class scalable technology platforms, delivering differentiated application development capabilities, and relentlessly engaging the market. The Company's world class technology platforms, scale advantage, and sustainability macrotrends form the foundation of the Company's research and development ("R&D") and innovation initiatives. Molecular recycling technologies continue to be an area of investment focus for the Company and extends the level of differentiation afforded by our world class technology platforms. Eastman began operating one of the world's largest molecular recycling facilities in 2024. Differentiated application development converts market complexity into opportunities for growth and accelerates innovation by enabling a deeper understanding of the value of Eastman's products and how they perform within customers' and end-user products. Key areas of application development include thermoplastic conversion, functional films, coatings formulations, textiles, and personal and home care formulations. The Company engages the market by working directly with customers and downstream users, targeting attractive niche markets, and leveraging disruptive macro trends. Management believes that these elements of the Company's innovation-driven growth model, combined with disciplined portfolio management and balanced capital deployment, will result in consistent, sustainable earnings growth and strong cash flow from operations.

Sales, EBIT, and EBIT excluding non-core items were as follows:

Sales revenue decreased in second quarter and first six months 2025 compared to second quarter and first six months 2024 due to lower sales volume primarily driven by continued weakness across key end markets as well as the negative impact of an unplanned outage in the CI segment, partially offset by higher sales volume in the AFP segment.

EBIT excluding non-core items decreased in second quarter and first six months 2025 compared to second quarter and first six months 2024 primarily due to lower sales volume, lower selling prices, net of higher raw material and energy costs, and higher maintenance costs. These factors were partially offset by lower variable compensation costs across the segments.

Further discussion of sales revenue and EBIT changes is presented in "Results of Operations" and "Summary by Operating Segment" in this MD&A.

Table of Contents

Net earnings and EPS and adjusted net earnings and EPS were as follows:

Cash provided by operating activities was $66 million in first six months 2025 and $351 million in first six months 2024.