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
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 2025 Annual Report on Form 10-K.
Advanced Materials Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2026 · 2025 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $715 | $719 | $(4) | (1)% | ||
| Volume / product mix effect | (2) | —% | ||||
| Price effect | (22) | (4)% | ||||
| Exchange rate effect | 20 | 3% | ||||
| Earnings before interest and taxes | $60 | $116 | $(56) | (48)% | ||
| Cost of sales impact from restructuring activities | 3 | — | 3 | |||
| Asset impairments, restructuring, and other charges, net | 6 | — | 6 | |||
| Earnings before interest and taxes excluding non-core items | 69 | 116 | (47) | (41)% | ||
Sales revenue decreased slightly in first quarter 2026 compared to first quarter 2025 due to lower selling prices which were mostly offset by a favorable foreign currency exchange impact. Lower selling prices were attributed to lower raw material prices.
EBIT in first quarter 2026 included inventory adjustments and asset impairments, restructuring, and other charges, net related to the closure of a production line at a German performance films facility. 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 first quarter 2026 compared to first quarter 2025 primarily due to unfavorable sales volume mix and unfavorable capacity utilization of $45 million and lower selling prices of $12 million, net of lower raw material costs. These impacts were partially offset by a favorable foreign currency exchange impact of $7 million. Additionally the negative impacts of Winter Storm Fern on energy as well as tariffs in distribution were offset by the recognition of IEEPA tariff refunds in first quarter 2026.
Table of Contents
Additives & Functional Products Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2026 · 2025 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $739 | $733 | $6 | 1% | ||
| Volume / product mix effect | (9) | (1)% | ||||
| Price effect | (11) | (2)% | ||||
| Exchange rate effect | 26 | 4% | ||||
| Earnings before interest and taxes | $142 | $137 | $5 | 4% | ||
| Asset impairments, restructuring, and other charges, net | — | 4 | (4) | |||
| Earnings before interest and taxes excluding non-core items | 142 | 141 | 1 | 1% | ||
Sales revenue increased in first quarter 2026 compared to first quarter 2025 due to a favorable foreign currency exchange impact which was partially offset by lower selling prices and unfavorable sales volume mix. Lower selling prices were primarily driven by lower cost-pass-through contracts, while unfavorable sales volume mix was primarily due to weakness across the building and construction end market and certain discontinued products.
EBIT in first quarter 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. 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 was favorable in first quarter 2026 compared to first quarter 2025 as favorable cost reduction initiatives and foreign currency exchange impacts were mostly offset by lower selling prices from cost-pass-through contracts.
Chemical Intermediates Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2026 · 2025 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $495 | $545 | $(50) | (9)% | ||
| Volume / product mix effect | (15) | (3)% | ||||
| Price effect | (42) | (7)% | ||||
| Exchange rate effect | 7 | 1% | ||||
| Earnings (loss) before interest and taxes | $(18) | $19 | $(37) | (195)% | ||
Sales revenue decreased in first quarter 2026 compared to first quarter 2025 due to lower selling prices and lower sales volume which was partially offset by a favorable foreign currency exchange impact. Lower selling prices and lower sales volume were driven by continued weak commodity market conditions.
EBIT decreased in first quarter 2026 compared to first quarter 2025 due to $44 million of lower selling prices and the negative impacts of Winter Storm Fern on energy prices. These impacts were partially offset by lower raw material prices.
Table of Contents
Fibers Segment
| First Quarter | ||||||
|---|---|---|---|---|---|---|
| Change | ||||||
| 2026 · 2025 · $ · % | ||||||
| (Dollars in millions) | ||||||
| Sales | $225 | $288 | $(63) | (22)% | ||
| Volume / product mix effect | (54) | (19)% | ||||
| Price effect | (9) | (3)% | ||||
| Exchange rate effect | — | —% | ||||
| Earnings before interest and taxes | $45 | $88 | $(43) | (49)% | ||
Sales revenue decreased in first quarter 2026 compared to first quarter 2025 due to lower sales volume driven by continued customer inventory destocking in the acetate tow product line and the impact of the conflict in the Middle East. Lower selling prices were due to modestly lower contract pricing.
EBIT decreased in first quarter 2026 compared to first quarter 2025 primarily due to $38 million lower sales volume.
Other
| First Quarter | ||
|---|---|---|
| 2026 | 2025 | |
| (Dollars in millions) | ||
| Sales | $3 | $5 |
| Loss before interest and taxes | ||
| Growth initiatives and businesses not allocated to operating segments | $(37) | $(51) |
| Pension and other postretirement benefits income (expense), net not allocated to operating segments | 7 | 1 |
| Asset impairments, restructuring, and other charges, net | (3) | (5) |
| Other income (charges), net not allocated to operating segments | (8) | (3) |
| Loss before interest and taxes | $(41) | $(58) |
| Asset impairments, restructuring, and other charges, net | 3 | 5 |
| Loss before interest and taxes excluding non-core items | (38) | (53) |
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".
Loss before interest and taxes in first quarter 2026 and first quarter 2025 included severance charges related to corporate cost reduction initiatives. Excluding this non-core item, loss before interest and taxes decreased primarily due to targeted reductions in corporate R&D projects. 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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