<div id="readability-page-1"><div>Eastman Chemical Company, a global specialty materials company, has released its 2025 Form 10-K report, detailing its financial and operational performance over the past year. The report highlights significant changes in sales, profitability, and strategic initiatives, as well as the challenges and risks the company faces in the current market environment. Financial Highlights <ul><li>Sales: $8,752 million, a decrease of 7% compared to 2024 due to lower sales volume and unfavorable product mix across all regions and operating segments.</li><li>Gross Profit: $1,844 million, a decrease of 19% compared to 2024, driven by lower sales volume, higher raw material and energy costs, and lower selling prices.</li><li>Earnings before interest and taxes (EBIT): $776 million, a decrease of 39% compared to 2024, primarily due to lower sales volume, lower selling prices, and higher raw material and energy costs.</li><li>Net earnings attributable to Eastman: $474 million, down from $905 million in 2024, reflecting lower sales and higher costs.</li><li>Diluted EPS: $4.10, a decrease from $7.67 in 2024, reflecting the decline in net earnings.</li></ul> Business Highlights <ul><li>Revenue Segments: Eastman operates through four main segments: Advanced Materials, Additives &amp; Functional Products, Chemical Intermediates, and Fibers. Advanced Materials and Chemical Intermediates saw declines in sales due to lower volumes and pricing pressures, while Additives &amp; Functional Products experienced a slight increase in sales driven by higher selling prices.</li><li>Geographical Performance: Sales revenue decreased across all regions, with the most significant declines in Europe, Middle East, and Africa (10% decrease) and Asia Pacific (10% decrease). The United States and Canada saw a 3% decrease, while Latin America experienced a 4% decrease. These declines were attributed to lower sales volumes and unfavorable product mix.</li><li>Sales Units: The company faced lower sales volumes in several product lines, particularly in the Advanced Materials segment, where performance films and advanced interlayers product lines were impacted by weak consumer discretionary spending and building and construction market weakness.</li><li>New Production Launches: Eastman began operating the world's largest polyester molecular recycling facility in 2024, highlighting its focus on sustainability and innovation in molecular recycling technologies.</li><li>Future Outlook: Eastman plans to continue leveraging its innovation-driven growth model, focusing on scalable technology platforms and differentiated application development capabilities. The company expects to maintain its investment in molecular recycling technologies and other growth initiatives to drive sustainable earnings growth and strong cash flow from operations.</li></ul> Strategic Initiatives <ul><li>Innovation-Driven Growth Model: Eastman is focusing on leveraging its innovation-driven growth model, which includes investments in molecular recycling technologies and the operation of the world's largest polyester molecular recycling facility.</li><li>Capital Management: Eastman has been actively managing its capital through a combination of debt repayment and share repurchases. In 2025, the company repurchased 1,420,768 shares for $100 million under the 2021 authorization. The company also repaid $100 million of its five-year term loan, reducing the outstanding balance to $150 million. Additionally, Eastman declared a cash dividend of $0.84 per share for the first quarter of 2026.</li><li>Future Outlook: Looking ahead, Eastman plans to maintain a solid investment-grade credit rating and expects 2026 capital spending to be approximately $400 million, focusing on maintenance and ongoing projects. The company aims to continue its strategic initiatives in molecular recycling and other growth areas while managing its financial profile to support long-term strategy and financial flexibility.</li></ul> Challenges and Risks <ul><li>Volatility in Raw Material and Energy Prices: Eastman faces significant challenges due to the volatility in raw material and energy prices, which can affect production costs and product pricing. The company employs pricing and hedging strategies to mitigate these effects, but there is no guarantee these will fully offset the impact of price fluctuations.</li><li>Operational Risks: The company faces operational risks related to its global operations, including raw material availability and demand for its products. These factors can influence capacity utilization and cash flows, impacting the company's ability to meet its financial obligations and strategic goals.</li><li>Market Risks: Eastman is exposed to various market risks, including foreign currency exchange rate fluctuations, commodity price changes, and interest rate volatility. The company manages these risks through derivative instruments and strategic initiatives, but external factors such as macroeconomic conditions and regulatory changes could still pose significant challenges.</li><li>Sales Revenue Decline: Eastman has experienced a decrease in sales revenue due to lower sales volume and unfavorable product mix across all regions and operating segments. This decline is attributed to factors such as customer inventory destocking, industry capacity share adjustments, and weak consumer discretionary spending in key markets like automotive and building and construction.</li></ul>SEC Filing: EASTMAN CHEMICAL CO [ EMN ] - 10-K - Feb. 13, 2026</div></div>

Eastman Chemical Company has released its 2025 Form 10-K report, revealing a 7% decline in sales to $8,752 million and a 19% drop in gross profit to $1,844 million. Net earnings fell to $474 million, down from $905 million in 2024. The report highlights challenges such as volatility in raw material prices and operational risks. Eastman plans to focus on innovation and sustainability, including investments in molecular recycling technologies, while managing capital through debt repayment and share repurchases. The company anticipates capital spending of approximately $400 million in 2026.

EASTMAN CHEMICAL CO SEC 10-K Report