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Mar 31

Eastman Chemical Q1 2025 Earnings Report

Eastman Chemical posted solid earnings growth in Q1 2025 despite a slight dip in total revenue.

Key Takeaways

Eastman Chemical delivered higher net income and EPS in Q1 2025, driven by margin expansion in key segments, even as total revenue declined slightly year-over-year.

Net income rose to $182 million from $165 million in Q1 2024.

Adjusted EPS grew to $1.91 from $1.61 the previous year.

Revenue slightly decreased to $2.29 billion from $2.31 billion in Q1 2024.

Additives & Functional Products and Advanced Materials segments showed strong earnings contributions.

Total Revenue
$2.29B
Previous year: $2.31B
-0.9%
EPS
$1.91
Previous year: $1.61
+18.6%
Adjusted EBIT
$311M
Previous year: $274M
+13.5%
Gross Profit
$567M
Previous year: $530M
+7.0%
Cash and Equivalents
$418M
Previous year: $499M
-16.2%
Free Cash Flow
-$314M
Previous year: -$201M
+56.2%
Total Assets
$15B
Previous year: $14.7B
+1.5%

Eastman Chemical

Eastman Chemical

Eastman Chemical Revenue by Segment

Eastman Chemical Revenue by Geographic Location

Forward Guidance

The company expects continued margin improvement and stable segment performance, with potential headwinds from global economic uncertainty.

Positive Outlook

  • Margin improvement in Additives & Functional Products segment.
  • Strong adjusted EBIT margin in Advanced Materials.
  • Improved adjusted tax rate at 16%.
  • Growth in North America revenue year-over-year.
  • Effective cost control measures lowering SG&A expenses.

Challenges Ahead

  • Decline in Fibers segment revenue and earnings.
  • Slight overall revenue decline year-over-year.
  • Inventory build-up impacting cash flows.
  • Global FX pressures affected sales slightly.
  • Weak performance in EMEA and Asia-Pacific regions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income