Eastman Chemical Company (EMN) Q1 2026 earnings summary

Executive summary

• Sequential specialty sales volume/mix improved by over 10%, driven by demand recovery, cost discipline, and price increases to offset inflation, despite global disruptions and Middle East conflict.

• Revenue for Q1 2026 was $2.18 billion, down 5% year-over-year due to lower volumes and prices, partially offset by favorable currency effects.

• Net earnings attributable to shareholders were $107 million ($0.93 per diluted share), with adjusted net earnings of $125 million ($1.09 per diluted share).

• Methanolysis facility ramp-up contributed ~$30 million in incremental earnings, supporting circular platform growth.

• Maintained operational resilience and momentum toward financial priorities, including cost savings and cash flow targets.

Financial highlights

• Adjusted EBIT was $200 million, down from $311 million in Q1 2025, with a sequential margin improvement to 9.2%.

• Adjusted EPS was $1.09, down from $1.91 year-over-year but up from $0.75 sequentially.

• Operating cash flow was negative $137 million, an improvement from negative $167 million in Q1 2025.

• Capital expenditures were $103 million in Q1 2026, with full-year guidance at ~$400 million.

• No shares were repurchased in Q1 2026; $98 million in dividends were declared.

Outlook and guidance

• Full-year 2026 earnings expected to improve versus 2025, with 2Q26 adjusted EPS projected at $1.70–$1.90.

• Targeting $125M–$150M in cost savings for 2026, with capital expenditures of ~$400M.

• Operating cash flow expected to approach 2025 levels, though inflationary pressures persist.

• Specialty price increases and innovation-driven growth, especially from Kingsport methanolysis, expected to drive results.

• Headwinds include weak consumer discretionary demand, lower auto OEM production, and Middle East conflict risks.