EASTMAN CHEMICAL CO
For the period ended Jun 30, 2026. Filed Jul 31, 2026.
View on SEC.govAbout this filing
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, 2026 · Filed Jul 31, 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
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2026 · 2025 · $ · % · 2026 · 2025 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $817 | $777 | $40 | 5% | $1,532 | $1,496 | $36 | 2% | ||||
| Volume / product mix effect | 28 | 4% | 27 | 2% | ||||||||
| Price effect | (1) | —% | (23) | (2)% | ||||||||
| Exchange rate effect | 13 | 1% | 32 | 2% | ||||||||
| Earnings before interest and taxes | $109 | $121 | $(12) | (10)% | $169 | $237 | $(68) | (29)% | ||||
| 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 | 109 | 121 | (12) | (10)% | 178 | 237 | (59) | (25)% | ||||
Sales revenue increased in second quarter 2026 compared to second quarter 2025 due to higher sales volume mix and a favorable foreign currency exchange impact. Higher sales volume mix was driven by growth across the segment.
Sales revenue increased in first six months 2026 compared to first six months 2025 due to a favorable foreign currency exchange impact and higher sales volume mix partially offset by lower selling prices.
EBIT decreased in second quarter 2026 compared to second quarter 2025 primarily due to $7 million higher sales volume mix and a favorable foreign currency exchange impact being more than offset by higher manufacturing costs, as a result of lower asset utilization, and higher SG&A expenses.
EBIT in first six months 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 six months 2026 compared to first six months 2025 due to lower selling prices and higher manufacturing costs, as a result of lower asset utilization, partially offset by a favorable foreign currency exchange impact.
Table of Contents
Additives & Functional Products Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2026 · 2025 · $ · % · 2026 · 2025 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $807 | $769 | $38 | 5% | $1,546 | $1,502 | $44 | 3% | ||||
| Volume / product mix effect | (1) | —% | (10) | —% | ||||||||
| Price effect | 28 | 4% | 18 | 1% | ||||||||
| Exchange rate effect | 11 | 1% | 36 | 2% | ||||||||
| Earnings before interest and taxes | $151 | $153 | $(2) | (1)% | $293 | $290 | $3 | 1% | ||||
| Asset impairments, restructuring, and other charges, net | — | — | — | — | 4 | (4) | ||||||
| Earnings before interest and taxes excluding non-core item | 151 | 153 | (2) | (1)% | 293 | 294 | (1) | —% | ||||
Sales revenue increased in second quarter 2026 compared to second quarter 2025 primarily due to higher selling prices driven by cost-pass-through contracts.
Sales revenue increased in first six months 2026 compared to first six months 2025 due to a favorable foreign currency exchange impact and higher selling prices. Higher selling prices were driven by cost-pass-through contracts.
EBIT in first six 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. 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 relatively unchanged in second quarter and first six months 2026 compared to second quarter and first six months 2025 as higher manufacturing costs were mostly offset by higher sales volume mix and a favorable foreign currency exchange impact.
Table of Contents
Chemical Intermediates Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2026 · 2025 · $ · % · 2026 · 2025 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $643 | $463 | $180 | 39% | $1,138 | $1,008 | $130 | 13% | ||||
| Volume / product mix effect | 112 | 24% | 97 | 10% | ||||||||
| Price effect | 65 | 14% | 22 | 2% | ||||||||
| Exchange rate effect | 3 | 1% | 11 | 1% | ||||||||
| Earnings (loss) before interest and taxes | $58 | $(30) | $88 | 293% | $40 | $(11) | $51 | 464% | ||||
Sales revenue increased in second quarter and first six months 2026 compared to second quarter and first six months 2025 due to higher sales volume mix and higher selling prices, particularly for olefin and derivative products. These increases were driven by additional product availability compared to the prior year period and supply disruptions.
EBIT increased in second quarter 2026 compared to second quarter 2025 primarily due to $83 million of higher selling prices and lower raw material and energy costs.
EBIT increased in first six months 2026 compared to first six months 2025 primarily due to $24 million higher selling prices and lower raw material and energy costs and higher sales volume mix.
Fibers Segment
| Second Quarter · First Six Months | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Change · Change | ||||||||||||
| 2026 · 2025 · $ · % · 2026 · 2025 · $ · % | ||||||||||||
| (Dollars in millions) | ||||||||||||
| Sales | $243 | $274 | $(31) | (11)% | $468 | $562 | $(94) | (17)% | ||||
| Volume / product mix effect | (27) | (10)% | (81) | (14)% | ||||||||
| Price effect | (6) | (2)% | (15) | (3)% | ||||||||
| Exchange rate effect | 2 | 1% | 2 | —% | ||||||||
| Earnings before interest and taxes | $36 | $81 | $(45) | (56)% | $81 | $169 | $(88) | (52)% | ||||
Sales revenue decreased in second quarter and first six months 2026 compared to second quarter and first six months 2025 due to lower sales volume mix driven by continued customer buying patterns to continue with inventory destocking in the acetate tow product line and continued weakness in the textiles end market relative to tariff-driven volume strength last year.
EBIT decreased in second quarter 2026 compared to second quarter 2025 primarily due to $36 million lower sales volume mix and lower selling prices and higher raw material and energy costs.
EBIT decreased in first six months 2026 compared to first six months 2025 primarily due to $68 million lower sales volume mix and unfavorable asset utilization and lower selling prices and higher raw material and energy costs.
Table of Contents
Other
| Second Quarter | First Six Months | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| (Dollars in millions) | ||||
| Sales | $3 | $4 | $6 | $9 |
| Loss before interest and taxes | ||||
| Growth initiatives and businesses not allocated to operating segments | $(41) | $(47) | $(78) | $(98) |
| Pension and other postretirement benefits income (expense), net not allocated to operating segments | 7 | 1 | 14 | 2 |
| Asset impairments, restructuring, and other charges, net | (1) | (13) | (4) | (18) |
| Other income (charges), net not allocated to operating segments | (8) | (44) | (16) | (47) |
| Loss before interest and taxes | $(43) | $(103) | $(84) | $(161) |
| Asset impairments, restructuring, and other charges, net | 1 | 13 | 4 | 18 |
| Environmental and other costs | 8 | 40 | 8 | 40 |
| Loss before interest and taxes excluding non-core items | (34) | (50) | (72) | (103) |
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 second quarter and first six months 2026 and second quarter and first six months 2025 included environmental and other costs from previously divested or non-operational sites and product lines, and severance charges related to corporate cost reduction initiatives, and in second quarter and first six months 2026 also included associated gains and losses. For more information regarding non-GAAP items, 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.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.