Eastman announces 2025 financial results

KINGSPORT — Eastman Chemical Co. shared its financial results for the fourth quarter and 2025, noting decreases in sales revenue and net earnings. Eastman's sales revenue decreased by 12% compared to 2024's fourth quarter, according to a release shared by the company. This change was attributed to lower sales volume/mix and lower selling prices. For the year-to-year comparison, Eastman's sales revenue from 2025 to 2024 decreased by 7% for similar reasons. The company saw a $285 million decrease in net earnings before interest and taxes (EBIT), from $349 million in 2024's fourth quarter to $64 million in 2025's fourth quarter — attributing this change to lower sales volume/mix and "unfavorable price-cost" partially offset by the cost reduction initiatives and lower variable compensation expense. "Despite a challenging operating environment for the chemical industry and continued weakness in consumer discretionary end markets, our team delivered a year that demonstrates the strength of our portfolio's ability to generate cash," Mark Costa, Eastman board chair and CEO, said in the release. "In 2025, we generated operating cash flow approaching $1 billion, a clear validation of our disciplined approach to cost and working capital management. Our commercial teams showed excellence in defending the value of our products, and we accelerated our structural cost reductions throughout the year to protect margins and preserve competitiveness." Costa said in the release Eastman continues to prioritize stockholder returns, raising the dividend for the 16th consecutive year and returning $500 million through dividends and share repurchases. The Kingsport methanolysis facility reached its operational goals, producing more than 2.5 times the recycled content versus 2024 and delivering approximately $60 million in incremental earnings. In the release, Costa said Eastman plans to increase its cost structure reduction actions to $125 to $150 million this year, building on previous changes. Operating cash flow for 2026 is expected to be similar to 2025. "Looking ahead, we enter 2026 with a diverse portfolio, strong cash-generation capability, and a winning team that is well positioned to drive earnings growth, improve our cost structure, and capture recovery-driven upside when market conditions improve," Costa said in the release. For more information about Eastman, visit https://www.eastman.com/. Eastman closing stock price on January 29, 2026: $68.75 (-0.28 change)