Eastman Kodak Co. (KODK, Financials) shares rose 7.1% in pre-market trading Tuesday after the company reported a decline in revenue for both the fourth quarter and full year 2024 but posted higher net income driven by cost efficiencies and strategic investments.
From $275 million in the previous year, fourth-quarter sales dropped to $266 million, a 3% decline. From $47 million, gross profit climbed to $51 million, therefore raising the gross profit margin from 17% to 19%. Reflecting a 420% rise, net income for the quarter shot to $26 million from $5 million. From $1.117 billion, full-year sales dropped 7% to $1.043 billion. Rising 36% from $75 million, net income for 2024 came to $102 million. From $45 million, operational EBITDA declined 42% to $26 million mostly from reduced volumes, increased production costs, and IT and organizational transformation initiatives. Reflecting capital expenditure for development projects, the year-end cash balance dropped from $255 million to $ 201 million.
Kodak CEO Jim Continenza said the firm divested underperforming companies, concentrated on operational efficiency, and made investments in areas such as new materials and chemicals. He underlined developments in the digital print industry, growth in the film industry, and Kodak's forthcoming opening of a cGMP facility for pharmaceutical manufacture.
Kodak noted that just completing a tariff petition procedure with the U.S. International Trade Commission guarantees fair competition in the plates market. At a recent industry conference, its digital print division displayed the KODAK PROSPER 7000 Turbo Press.
Foreign currency headwinds, with a $3 million effect, helped to explain some of the yearly revenue drop. Kodak said it stays focused on long-term profitability even with the revenue decline. CFO David Bullwinkle pointed out that given the company's focus on operational savings and gross margin enhancements, revenue patterns matched expectations.
Kodak's print section witnessed sales fall in 2024, but its advanced materials and chemicals and brand licensing businesses saw growth. The firm got $40 million in trademark licensing income in the first quarter, which added to its working capital. For 2025, Kodak says it would continue automation initiatives to boost efficiency throughout its corporate activities.
