Eastman Chemical | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 2.513 B

Revenue: As of FY2026 Q2, the actual value is USD 2.513 B, beating the estimate of USD 2.4 B.

EPS: As of FY2026 Q2, the actual value is USD 1.59, missing the estimate of USD 1.8386.

EBIT: As of FY2026 Q2, the actual value is USD 311 M.

Overall Financial Performance (Second Quarter 2026 vs. Second Quarter 2025)

• Gross Profit: Eastman Chemical Company reported a gross profit of $560 million in the second quarter of 2026, an increase from $506 million in the prior year period.
• Net Earnings: Net earnings attributable to Eastman Chemical Company were $183 million in the second quarter of 2026, compared to $140 million in the second quarter of 2025.
• Operating Costs and Expenses:
  • Selling, general and administrative expenses were $185 million, up from $157 million.
  • Research and development expenses were $65 million, down from $67 million.
  • Asset impairments, restructuring, and other charges, net, decreased to $1 million from $13 million.
• Other Financial Items:
  • Other components of post-employment (benefit) cost, net, was - $16 million, compared to - $2 million.
  • Other (income) charges, net, decreased to $14 million from $49 million.
  • Net interest expense was $55 million, up from $53 million.
  • The provision for income taxes increased to $72 million from $29 million.

Overall Financial Performance (First Six Months 2026 vs. First Six Months 2025)

• Gross Profit: Gross profit was $991 million, a decrease from $1,073 million.
• Net Earnings: Net earnings attributable to Eastman Chemical Company were $290 million, compared to $322 million in the prior year period.

Segment Revenue (Second Quarter 2026 vs. Second Quarter 2025)

• Advanced Materials: Sales revenue increased by 5% to $817 million from $777 million.
• Additives & Functional Products: Sales revenue increased by 5% to $807 million from $769 million.
• Chemical Intermediates: Sales revenue increased by 39% to $643 million from $463 million.
• Fibers: Sales revenue decreased by -11% to $243 million from $274 million.

Segment Adjusted EBIT and Margin (Second Quarter 2026 vs. Second Quarter 2025)

• Advanced Materials: Adjusted EBIT was $109 million, down from $121 million, with an adjusted EBIT margin of 13.3%, compared to 15.6%.
• Additives & Functional Products: Adjusted EBIT was $151 million, slightly down from $153 million, with an adjusted EBIT margin of 18.7%, compared to 19.9%.
• Chemical Intermediates: Adjusted EBIT increased significantly to $58 million from - $30 million, with an adjusted EBIT margin of 9.0%, compared to -6.5%.
• Fibers: Adjusted EBIT decreased to $36 million from $81 million, with an adjusted EBIT margin of 14.8%, compared to 29.6%.

Cash Flow

• Net Cash Provided by Operating Activities: Net cash provided by operating activities in the second quarter of 2026 was $224 million, a decrease from $233 million in the second quarter of 2025. For the first six months of 2026, it was $87 million, up from $66 million in the prior year period.
• Dividends: Eastman Chemical Company returned $96 million to stockholders through dividends during the second quarter of 2026.
• Net Cash Used in Investing Activities: Net cash used in investing activities was - $99 million, compared to - $147 million in the second quarter of 2025.
• Capital Expenditures: Additions to properties and equipment (capital expenditures) were - $100 million in the second quarter of 2026, down from - $150 million in the second quarter of 2025.
• Net Cash Used in Financing Activities: Net cash used in financing activities was - $100 million, compared to - $90 million in the second quarter of 2025.
• Cash and Cash Equivalents: Cash and cash equivalents at the end of the second quarter of 2026 were $691 million, significantly higher than $423 million at the end of the second quarter of 2025.
• Net Debt: Net debt as of June 30, 2026, was $4,526 million, compared to $4,221 million on December 31, 2025.

2026 Outlook

Eastman Chemical Company expects to significantly improve earnings in full-year 2026 compared to 2025, driven by innovation-driven growth and $125 million to $150 million in cost reduction savings. The company anticipates operating cash flow to approach $900 million and plans disciplined capital expenditures of approximately $400 million for the year. For the third quarter of 2026, higher EBIT is projected in Advanced Materials and Fibers, with a modest decline in Additives & Functional Products and Chemical Intermediates.