EASTMAN CHEMICAL CO
For the period ended Jun 30, 2025. Filed Aug 1, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 1, 2025
Contents
Summary by Operating Segment
Table of Contents
SUMMARY BY OPERATING SEGMENT
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. For additional financial and product information for each operating segment, see Part I, Item 1, "Business - Business Segments" and Part II, Item 8, Note 20, "Segment and Regional Sales Information", in the Company's 2024 Annual Report on Form 10-K.
Advanced Materials Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $777 | $795 | $(18) | (2)% | $1,496 | $1,543 | $(47) | (3)% | ||||
| Volume / product mix effect | (12) | (2)% | (5) | —% | ||||||||
| Price effect | (7) | —% | (34) | (2)% | ||||||||
| Exchange rate effect | 1 | —% | (8) | (1)% | ||||||||
| Earnings before interest and taxes | $121 | $131 | $(10) | (8)% | $237 | $235 | $2 | 1% | ||||
Sales revenue decreased in second quarter 2025 compared to second quarter 2024 due to ongoing weak primary demand in key end markets including the building and construction and automotive end markets, partially offset by growth in the specialty plastics product line.
Sales revenue decreased in first six months 2025 compared to first six months 2024 primarily due to lower selling prices across all product lines.
EBIT decreased in second quarter 2025 compared to second quarter 2024 primarily due to $8 million unfavorable sales volume mix.
EBIT slightly increased in first six months 2025 compared to first six months 2024 as $16 million lower SG&A expenses were mostly offset by a $7 million unfavorable shift in foreign currency rates and $6 million higher R&D expenses.
Additives & Functional Products Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $769 | $718 | $51 | 7% | $1,502 | $1,422 | $80 | 6% | ||||
| Volume / product mix effect | 16 | 2% | 29 | 2% | ||||||||
| Price effect | 30 | 4% | 56 | 4% | ||||||||
| Exchange rate effect | 5 | 1% | (5) | —% | ||||||||
| Earnings before interest and taxes | $153 | $123 | $30 | 24% | $290 | $232 | $58 | 25% | ||||
| Asset impairments, restructuring, and other charges, net | — | — | — | 4 | — | 4 | ||||||
| Earnings before interest and taxes excluding non-core item | 153 | 123 | 30 | 24% | 294 | 232 | 62 | 27% | ||||
Table of Contents
Sales revenue increased in second quarter and first six months 2025 compared to second quarter and first six months 2024 primarily due to higher selling prices and favorable product mix. Higher selling prices were driven by cost-pass-through contracts and higher sales volume and favorable product mix was attributable to the care additives product line and heat transfer fluid project fulfillments.
EBIT increased in second quarter 2025 compared to second quarter 2024 primarily due to $19 million favorable sales volume mix, $8 million higher selling prices, net of higher raw material and energy costs, and $7 million lower SG&A expenses.
EBIT in first six months 2025 included asset impairments, restructuring, and other charges, net of $4 million related to the closure of a heat-transfer fluids production line at a specialty fluids and energy facility in North America. For more information see Note 11, "Asset Impairments, Restructuring, and Other Charges, Net", to the unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
Excluding this non-core item, EBIT increased in first six months 2025 compared to first six months 2024 primarily due to $30 million favorable sales volume mix, $21 million higher selling prices, net of higher raw material and energy costs, and $9 million lower SG&A expenses.
Chemical Intermediates Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $463 | $515 | $(52) | (10)% | $1,008 | $1,038 | $(30) | (3)% | ||||
| Volume / product mix effect | (26) | (5)% | (18) | (2)% | ||||||||
| Price effect | (27) | (5)% | (10) | (1)% | ||||||||
| Exchange rate effect | 1 | —% | (2) | —% | ||||||||
| Earnings before interest and taxes | $(30) | $22 | $(52) | (236)% | $(11) | $38 | $(49) | (129)% | ||||
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 and lower selling prices primarily due to the industrial end market as well as an unplanned outage resulting in a lack of available volume.
EBIT decreased in second quarter 2025 compared to second quarter 2024 due to $31 million lower selling prices and higher raw material and energy costs, net of lower distribution costs, and $27 million lower sales volume and higher manufacturing costs, including an approximately $20 million impact from an unplanned outage.
EBIT decreased in first six months 2025 compared to first six months 2024 due to $37 million lower sales volume and higher manufacturing costs, including an approximately $20 million impact from an unplanned outage, and $16 million lower selling prices and higher raw material and energy costs, net of lower distribution costs.
Table of Contents
Fibers Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $274 | $330 | $(56) | (17)% | $562 | $661 | $(99) | (15)% | ||||
| Volume / product mix effect | (54) | (16)% | (93) | (14)% | ||||||||
| Price effect | (2) | (1)% | (4) | (1)% | ||||||||
| Exchange rate effect | — | —% | (2) | —% | ||||||||
| Earnings before interest and taxes | $81 | $122 | $(41) | (34)% | $169 | $239 | $(70) | (29)% | ||||
Sales revenue decreased in second quarter and first six months 2025 compared to second quarter and first six months 2024 primarily due to lower sales volume in the acetate tow product line attributed to destocking and industry capacity share adjustments, and lower textiles sales into China due to the global trade dispute.
EBIT decreased in second quarter 2025 compared to second quarter 2024 primarily due to $30 million lower sales volume and $8 million lower selling prices and higher raw material and energy costs.
EBIT decreased in first six months 2025 compared to first six months 2024 due to $55 million lower sales volume and $15 million lower selling prices and higher raw material and energy costs.
Other
| Second Quarter | First Six Months | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| (Dollars in millions) | ||||
| Sales | $4 | $5 | $9 | $9 |
| Loss before interest and taxes | ||||
| Growth initiatives and businesses not allocated to operating segments | $(47) | $(44) | $(98) | $(112) |
| Pension and other postretirement benefits income (expense), net not allocated to operating segments | 1 | 2 | 2 | 4 |
| Asset impairments, restructuring, and other charges, net | (13) | — | (18) | (11) |
| Other income (charges), net not allocated to operating segments | (44) | (19) | (47) | (25) |
| Loss before interest and taxes | $(103) | $(61) | $(161) | $(144) |
| Asset impairments, restructuring, and other charges, net | 13 | — | 18 | 11 |
| Environmental and other costs | 40 | 16 | 40 | 16 |
| Loss before interest and taxes excluding non-core items | (50) | (45) | (103) | (117) |
Sales and costs related to growth initiatives, including the cellulosics biopolymer and circular economy platforms, R&D costs, certain components of pension and other postretirement benefits, and other expenses and income not identifiable to an operating segment are included in "Other". First quarter 2024 also included pre-production costs for the Kingsport methanolysis facility.
EBIT in second quarter and first six months 2025 and 2024 included environmental and other costs from previously divested or non-operational sites and product lines. Second quarter and first six months 2025 also included profitability improvement initiatives. First six months 2024 included severance primarily in accordance with foreign regulatory requirements as a result of cost reduction initiatives in fourth quarter 2023. For more information, see "Non-GAAP Financial Measures" in this MD&A. For more information regarding asset impairments, restructuring, and other charges, net, see Note 11, "Asset Impairments, Restructuring, and Other Charges, Net", to the unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report.
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