- Eastman Chemical Company (EMN, Financial) reports a 19% year-over-year increase in adjusted EPS for Q1 2025.
- The Kingsport methanolysis facility achieved record uptime and production quantities.
- The company highlights an increased focus on cash generation amid economic challenges.
Eastman Chemical Company (EMN) has announced its first-quarter 2025 financial results, showcasing a robust performance with an adjusted earnings per share (EPS) of $1.91, marking a 19% increase compared to the same quarter last year. This growth aligns with the company's guidance provided in January 2025, despite a 1% decline in overall sales revenue to $2,290 million from $2,310 million in Q1 2024.
The company saw an adjusted EBIT margin improvement of 170 basis points, indicative of the firm’s strategic focus on innovation, commercial excellence, and operational leverage in a challenging economic landscape. Notably, the Kingsport methanolysis facility recorded its best-ever uptime and production quantities, underscoring operational efficiencies.
Segment-wise, Advanced Materials saw a 4% decline in sales revenue, driven by lower selling prices and weaker demand in automotive and construction sectors. Conversely, Additives & Functional Products and Chemical Intermediates segments recorded revenue growth of 4% each. These improvements were fueled by higher selling prices and volume/mix enhancements, although partially affected by unfavorable foreign currency exchange impacts.
Eastman (EMN, Financial) is also prioritizing cost discipline and cash generation, with net cash used in operating activities increasing to $167 million in Q1 2025, compared to $16 million in Q1 2024, primarily due to inventory builds for a planned shutdown in Q2 2025. The company returned $96 million to shareholders via dividends.
Looking ahead to the remainder of 2025, CEO Mark Costa expressed confidence in Eastman's ability to navigate the economic challenges posed by escalating trade tariffs and potential recessions. The company plans to generate approximately $1.2 billion in operating cash flow for the year, supported by a diverse product portfolio and end-market reach.
Eastman has adjusted its guidance to a quarterly outlook for adjusted EPS, anticipating Q2 2025 EPS to range between $1.70 and $1.90, taking into account trade uncertainties, increased maintenance costs, and tariffs between the U.S. and China.
