EASTMAN CHEMICAL CO

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OVERVIEW

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 extend 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.

Sales, EBIT, and EBIT excluding non-core items were as follows:

Sales revenue increased in third quarter 2026 compared to third quarter 2025 due to higher selling prices and higher sales volume mix. Higher selling prices were primarily driven by higher raw material and distribution costs as well as tight market conditions in the CI segment due to the ongoing conflict in the Middle East.

Sales revenue increased in first nine months 2026 compared to first nine months 2025 due to higher selling prices, higher sales volume mix, and a favorable foreign currency exchange impact.

EBIT excluding non-core items increased in third quarter 2026 compared to third quarter 2025 primarily due to improved asset utilization including lower planned maintenance expense and higher selling prices, net of higher raw material and distribution costs. These impacts were partially offset by higher variable compensation expense.

EBIT excluding non-core items increased in first nine months 2026 compared to first nine months 2025 primarily due to a favorable foreign currency exchange impact and higher selling prices, net of higher raw material, energy, and distribution costs. These impacts were partially offset by lower sales volume mix. The benefit from continued cost reduction initiatives more than offset higher variable compensation expense.

Further discussion of sales revenue and EBIT changes is presented in "Results of Operations" and "Summary by Operating Segment" in this MD&A.

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Net earnings and EPS and adjusted net earnings and EPS were as follows:

Cash provided by operating activities was $377 million in first nine months 2026 compared to $468 million in first nine months 2025.