Eastman Chemical Q4 sales fall on lower volumes

Eastman Chemical Co

29/01/2026 21:25

Overview

Specialty materials firm's Q4 sales revenue fell 12% yr/yr due to lower volumes and prices

Adjusted EBIT for Q4 decreased, impacted by lower sales volume and unfavorable price-cost

Company returned $500 mln to shareholders through dividends and buybacks in 2025

Outlook

Eastman expects first-quarter adjusted EPS between $1.00 and $1.20

Company plans cost structure reductions of $125 mln to $150 mln in 2026

Eastman anticipates foreign currency exchange rates to provide a tailwind

Result Drivers

COST REDUCTIONS - Eastman exceeded its cost reduction goals, achieving $100 mln in savings versus a target of $75 mln

METHANOLYSIS FACILITY - Kingsport methanolysis facility met operational goals, contributing $60 mln in incremental earnings

INVENTORY DESTOCKING - Ongoing customer inventory destocking affected sales volume, particularly in acetate tow

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Net Income
$105 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 10 "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 $72.00, about 4.3% above its January 28 closing price of $69.03

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)