EASTMAN CHEMICAL CO
For the period ended Mar 31, 2026. Filed May 1, 2026.
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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.
Mar 31, 2026 · Filed May 1, 2026
EMN$64.41-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-04.
0000915389-25-000183
2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresOverviewCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0000915389-26-000099
2. Management's Discussion and Analysis of Financial Condition and Results of OperationsNon-GAAP Financial MeasuresOverviewThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 41 current paragraphs.
31 unchanged; 7 reworded; 3 added; 6 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
•Cost of sales impact from restructuring activities, and
Current report
Sales revenue decreased in first quarter 2026 compared to first quarter 2025 due to lower sales volume and lower selling prices partially offset by favorable foreign currency exchange impact. Lower sale volume was primarily driven by customer inventory destocking in the acetate tow product line as well as continued weakness across consumer discretionary end markets. Lower selling prices were due to lower raw material prices and continued weak commodity market conditions in the CI segment.
Current report
EBIT excluding non-core items decreased in first quarter 2026 compared to first quarter 2025 primarily due to lower selling prices, lower sales volume, lower asset utilization, and increased energy costs across our businesses resulting from Winter Storm Fern. These factors were partially offset by the benefit of continued cost reduction initiatives and recognition of an expected refund of U.S. tariffs paid in 2025 and 2026 under the International Emergency Economic Powers Act ("IEEPA").
Removed paragraphs (6)
Previous report
•Increase in the provision for income taxes resulting from tax law changes.
Previous report
Sales revenue decreased in third quarter and first nine months 2025 compared to third quarter and first nine months 2024 due to lower sales volume primarily driven by continued weakness across key end markets.
Previous report
EBIT excluding non-core items decreased in third quarter and first nine months 2025 compared to third quarter and first nine months 2024 primarily due to lower sales volume, and lower selling prices and higher raw material and energy costs, partially offset by lower manufacturing costs and lower variable compensation costs across the segments.
Reworded paragraphs (7)
Previous wording
•Non-core transactions, costs, and losses or gains relate to, among other things, cost reductions, growth and profitability improvement initiatives, changes in businesses and assets, and other events outside of the Company's core business operations, and have included asset impairments, restructuring, and other charges and gains, costs of and related to acquisitions, gains and losses from and costs related to dispositions, closures, or shutdowns of businesses or assets, financing transaction costs, environmental and other costs related to previously divested businesses or non-operational sites and product lines, and mark-to-market losses or gains for pension and other postretirement benefit plans.
Current wording
Non-core, unusual, or non-recurring items include transactions, costs, and losses or gains relating to, among other things, cost reduction initiatives, growth and profitability improvement initiatives, changes in businesses and assets, and other events outside of the Company's core business operations, and have included asset impairments, restructuring, and other charges and gains; costs of and related to acquisitions; gains and losses from and costs related to dispositions, closures, or shutdowns of businesses or assets; financing transaction costs; environmental and other costs related to previously divested businesses, non-operational sites and product lines, and discontinued programs; mark-to-market losses or gains for pension and other postretirement benefit plans; the impact from significant tax law changes; and unusual or non-recurring income tax reserves or adjustments.
Previous wording
•Asset impairments, restructuring, and other charges, net; and
Current wording
•Asset impairments, restructuring, and other charges, net.
Previous wording
The following unusual items are excluded by management in its evaluation of certain earnings results in this Quarterly Report:
Current wording
The following unusual item is excluded by management in its evaluation of certain earnings results in this Quarterly Report:
Previous wording
•In third quarter and first nine months 2025, the Company recognized an unusual increase to the provision for income taxes resulting from the enactment of the One Big Beautiful Bill Act (the "Act"). Management considers this expense unusual because of the infrequent nature of the underlying change in tax law and the transition to the recently enacted Act and resulting impacts on earnings.
Current wording
•Income tax related item resulting from enactment of the One Big Beautiful Bill Act ("OBBBA").
Previous wording
Non-GAAP Financial Measures - Non-Core Items Excluded from Earnings and Adjustments to Provision for Income Taxes
Current wording
Non-GAAP Financial Measures - Non-Core and Unusual Items Excluded from Earnings and Adjustments to Provision for Income Taxes
Previous wording
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.
Current wording
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 the world's largest polyester molecular recycling facility 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 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.
Previous wording
Cash provided by operating activities was $468 million in first nine months 2025 and $747 million in first nine months 2024.
Current wording
Cash used in operating activities was $137 million in first three months 2026 compared to $167 million in first three months 2025.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
•Environmental and other costs from previously divested or non-operational sites and product lines.