EASTMAN CHEMICAL CO
For the period ended Sep 30, 2025. Filed Nov 4, 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.
Sep 30, 2025 · Filed Nov 4, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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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
| Third Quarter · First Nine Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $728 | $787 | $(59) | (7)% | $2,224 | $2,330 | $(106) | (5)% | ||||
| Volume / product mix effect | (58) | (7)% | (77) | (4)% | ||||||||
| Price effect | (7) | (1)% | (27) | (1)% | ||||||||
| Exchange rate effect | 6 | 1% | (2) | —% | ||||||||
| Earnings before interest and taxes | $41 | $100 | $(59) | (59)% | $278 | $335 | $(57) | (17)% | ||||
| Cost of sales impact from restructuring activities | 2 | 4 | (2) | 2 | 4 | (2) | ||||||
| Asset impairments, restructuring, and other charges, net | 10 | 18 | (8) | 10 | 18 | (8) | ||||||
| Earnings before interest and taxes excluding non-core items | 53 | 122 | (69) | (57)% | 290 | 357 | (67) | (19)% | ||||
Sales revenue decreased in third quarter and first nine months 2025 compared to third quarter and first nine months 2024 primarily due to lower sales volume resulting from continued weakness in demand in the building and construction and consumer durables end markets. Third quarter 2025 demand in specialty plastics was negatively impacted by customer caution resulting from uncertainty surrounding global trade policy.
EBIT in third quarter and first nine months 2025 included inventory adjustments, and asset impairments, restructuring, and other charges, net related to the decommissioning of certain assets at performance films facilities in North America. EBIT in third quarter and first nine months 2024 included inventory adjustments, and asset impairments, restructuring, and other charges, net related to the planned closure of a solvent-based resins production line. 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.
EBIT decreased in third quarter and first nine months 2025 compared to third quarter and first nine months 2024 due to $83 million and $94 million, respectively, lower sales volume and higher manufacturing costs primarily due to lower capacity utilization and reduction of inventory. These unfavorable costs were partially offset by lower SG&A expenses.
Table of Contents
Additives & Functional Products Segment
| Third Quarter · First Nine Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $716 | $744 | $(28) | (4)% | $2,218 | $2,166 | $52 | 2% | ||||
| Volume / product mix effect | (59) | (8)% | (28) | (1)% | ||||||||
| Price effect | 20 | 3% | 75 | 3% | ||||||||
| Exchange rate effect | 11 | 1% | 5 | —% | ||||||||
| Earnings before interest and taxes | $128 | $127 | $1 | 1% | $418 | $359 | $59 | 16% | ||||
| Cost of sales impact from restructuring activities | — | 3 | (3) | — | 3 | (3) | ||||||
| Asset impairments, restructuring, and other charges, net | — | — | — | 4 | — | 4 | ||||||
| Earnings before interest and taxes excluding non-core items | 128 | 130 | (2) | (2)% | 422 | 362 | 60 | 17% | ||||
Sales revenue decreased in third quarter 2025 compared to third quarter 2024 primarily due to lower sales volume across the segment, partially offset by higher selling prices driven by cost-pass-through contracts.
Sales revenue increased in first nine months 2025 compared to first nine months 2024 primarily due to higher selling prices driven by cost-pass-through contracts, partially offset by lower sales volume in coatings additives product line and heat transfer fluid project fulfillments.
EBIT in first nine months 2025 included asset impairments, restructuring, and other charges, net related to the closure of a heat-transfer fluids production line at a specialty fluids and energy facility in North America. EBIT in third quarter and first nine months 2024 included inventory adjustments related to the planned closure of a solvent-based resins production line. 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 these non-core items, EBIT decreased in third quarter 2025 compared to third quarter 2024 due to $26 million unfavorable sales volume, mostly offset by lower manufacturing costs and lower SG&A expenses.
Excluding these non-core items, EBIT increased in first nine months 2025 compared to first nine months 2024 due to $15 million higher selling prices, net of higher raw material and energy costs, lower manufacturing costs, and lower SG&A expenses.
Table of Contents
Chemical Intermediates Segment
| Third Quarter · First Nine Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $499 | $593 | $(94) | (16)% | $1,507 | $1,631 | $(124) | (8)% | ||||
| Volume / product mix effect | (50) | (8)% | (67) | (4)% | ||||||||
| Price effect | (47) | (8)% | (57) | (4)% | ||||||||
| Exchange rate effect | 3 | —% | — | —% | ||||||||
| Earnings before interest and taxes | $1 | $43 | $(42) | (98)% | $(10) | $81 | $(91) | (112)% | ||||
Sales revenue decreased in third quarter 2025 compared to third quarter 2024 due to lower sales volume attributed to continued weak market demand in the industrial and building and construction end markets and lower selling prices attributed to unfavorable commodity market conditions.
Sales revenue decreased in first nine months 2025 compared to first nine months 2024 due to lower sales volume and lower selling prices primarily in the industrial end market as well as an unplanned outage during second quarter 2025 resulting in a lack of available volume.
EBIT decreased in third quarter 2025 compared to third quarter 2024 due to $47 million lower selling prices and higher raw material and energy costs, partially offset by lower SG&A expenses.
EBIT decreased in first nine months 2025 compared to first nine months 2024 primarily due to $63 million lower selling prices and higher raw material and energy costs and $33 million lower sales volume. Higher manufacturing costs were offset by lower SG&A expenses.
Fibers Segment
| Third Quarter · First Nine Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2025 · 2024 · $ · % · 2025 · 2024 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $254 | $336 | $(82) | (24)% | $816 | $997 | $(181) | (18)% | ||||
| Volume / product mix effect | (82) | (24)% | (175) | (18)% | ||||||||
| Price effect | — | —% | (4) | —% | ||||||||
| Exchange rate effect | — | —% | (2) | —% | ||||||||
| Earnings before interest and taxes | $67 | $112 | $(45) | (40)% | $236 | $351 | $(115) | (33)% | ||||
Sales revenue decreased in third quarter and first nine months 2025 compared to third quarter and first nine 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 impacts of tariff risk on demand within the value chain.
EBIT decreased in third quarter and first nine months 2025 compared to third quarter and first nine months 2024 primarily due to $36 million and $92 million, respectively, lower sales volume. Higher raw material and energy costs and lower selling prices were partially offset by lower SG&A expenses.
Table of Contents
Other
| Third Quarter | First Nine Months | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| (Dollars in millions) | ||||
| Sales | $5 | $4 | $14 | $13 |
| Loss before interest and taxes | ||||
| Growth initiatives and businesses not allocated to operating segments | $(41) | $(43) | $(139) | $(155) |
| Pension and other postretirement benefits income (expense), net not allocated to operating segments | 2 | 2 | 4 | 6 |
| Asset impairments, restructuring, and other charges, net | (10) | (12) | (28) | (23) |
| Other income (charges), net not allocated to operating segments | — | — | (47) | (25) |
| Loss before interest and taxes | $(49) | $(53) | $(210) | $(197) |
| Asset impairments, restructuring, and other charges, net | 10 | 12 | 28 | 23 |
| Environmental and other costs | — | — | 40 | 16 |
| Loss before interest and taxes excluding non-core items | (39) | (41) | (142) | (158) |
Sales and costs related to growth initiatives, including the cellulosic 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.
Loss before interest and taxes in third quarter and first nine months 2025 and third quarter and first nine months 2024 included severance charges related to corporate cost reduction initiatives. In addition, first nine months 2025 and first nine months 2024 included environmental and other costs from previously divested or non-operational sites and product lines. First nine months 2025 and third quarter and first nine months 2024 included profitability improvement initiatives. 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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