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Jun 30
Eastman Chemical Q2 2025 Earnings Report
Eastman Chemical reported resilient earnings in its specialty businesses for the second quarter of 2025, despite significant macroeconomic challenges and tariff impacts.
Key Takeaways
Eastman Chemical Company announced its second-quarter 2025 financial results, reporting sales revenue of $2,287 million and diluted EPS of $1.20. The company faced significant challenges including a tough macroeconomic backdrop, increased tariffs, and an unplanned outage in Chemical Intermediates, which impacted EBIT by approximately $20 million. Despite these headwinds, specialty businesses showed resilience, and the company continued to make progress with its circular platform.
Sales revenue for Q2 2025 was $2,287 million, a decrease from $2,363 million in Q2 2024.
Diluted earnings per share (EPS) for Q2 2025 were $1.20, down from $1.94 in the prior year.
Adjusted EBIT was $275 million, compared to $353 million in Q2 2024, reflecting challenging market conditions and an unplanned outage.
Cash provided by operating activities was $233 million, a decrease from $367 million in Q2 2024, with the company returning $145 million to stockholders.
Eastman Chemical
Eastman Chemical
Forward Guidance
Eastman expects the global macroeconomic environment to remain challenging in the second half of 2025, with intensifying customer caution due to tariffs and weak demand. The company is focusing on cost control, working capital management, and advancing its circular economy platform. Third-quarter adjusted EPS is projected to be around $1.25, and full-year operating cash flow is expected to be approximately $1 billion.
Positive Outlook
- Expected increase in Chemical Intermediates earnings after the Q2 unplanned outage.
- Continued ramp-up of cost-reduction initiatives.
- Increased revenue from the Kingsport methanolysis facility.
- Focus on generating cash and reducing inventory by greater than $200 million.
- Company is in a solid financial position despite industry challenges.
Challenges Ahead
- Global macroeconomic environment remains challenging.
- Customer caution is intensifying due to changing tariff landscape and weak underlying demand.
- Expected decline in volume due to trade dispute impacts and normal seasonality.
- Inventory reduction will result in a $75 million to $100 million asset utilization headwind to earnings in the back half of the year.
- Approximately $50 million of the asset utilization headwind is expected in the third quarter.