Eastman Chemical Q2 revenue beats estimates on higher pricing, volume

Eastman Chemical

30/07/2026 21:25

Overview
US specialty materials maker's Q2 revenue rose 10% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat consensus, driven by higher sales and cost management
Company achieved 350-basis-point sequential adjusted EBIT margin improvement on higher volume and pricing

Outlook
Eastman projects Q3 adjusted EPS to approach Q2 2026 EPS of $1.97
Company expects 2026 operating cash flow to approach $900 mln, modestly below prior expectation
Eastman maintains 2026 cost reduction target of $125 mln to $150 mln, net of inflation

Result Drivers
VOLUME AND PRICING GAINS - Higher sales volume/mix and increased selling prices, especially in Chemical Intermediates and Advanced Materials, drove revenue and margin improvement
COST MANAGEMENT - Disciplined price-cost management and cost-reduction initiatives contributed to higher EBIT and margin expansion
SEGMENT VARIATION - Strong growth in Chemical Intermediates offset by declines in Fibers due to inventory destocking and weak textiles demand

Company press release: ID:nBwbC4R7ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$2.51 bln
$2.40 bln (11 Analysts)
Q2 Adjusted EPS
Beat
$1.97
$1.82 (14 Analysts)
Q2 EPS
 
$1.59
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Eastman Chemical Co is $79.50, about 18.2% above its July 29 closing price of $67.28
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
July 30 - Solstice Advanced Materials Q2 revenue beats; raises outlook
July 28 - Ashland Q3 profit beats on higher volume, pricing; cuts FY EPS forecast
July 30 - Air Products beats quarterly profit estimates, raises annual forecast

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)