Eastman Announces Third-Quarter 2026 Financial Results
EASTMAN CHEMICAL CO (EMN) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.01 Eastman Announces Third-Quarter 2026 Financial Results KINGSPORT, Tenn., October 29, 2026 – Eastman Chemical Company (NYSE:EMN) announced its third-quarter 2026 financial results. • Delivered EPS growth and solid cash flow in a dynamic environment • Strong performan
How this was made
The 30-second read
Why it matters
The earnings beat and upgraded full‑year EPS guidance provide a fresh catalyst for the stock, likely prompting buying interest.
Market read
Eastman's strong performance could positively influence the broader chemicals sector and related industrial stocks.
What to watch
Potential headwinds from the ongoing Middle‑East conflict affecting supply chains and input pricing.
Eastman Announces Third-Quarter 2026 Financial Results
Third-quarter sales revenue increased 8 percent, GAAP EBIT rose to $305 million from $188 million, and adjusted diluted EPS increased to $1.84 from $1.14. Results reflected higher selling prices and improved asset utilization, while operating cash flow declined to $290 million from $402 million and management cited softer underlying demand in automotive and consumer durables.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Third Quarter 2026 sales revenueGAAP | $2.38B | (5) % | 8 percent |
| Third Quarter 2026 cost of salesGAAP | $1.85B | – | – |
| Third Quarter 2026 gross profitGAAP | $532M | – | – |
| Third Quarter 2026 selling, general, and administrative expensesGAAP | $171M | – | – |
| Third Quarter 2026 research and development expensesGAAP | $63M | – | – |
| Third Quarter 2026 asset impairments, restructuring, and other charges, netGAAP | — | – | – |
| Third Quarter 2026 earnings before interest and taxesGAAP | $305M | – | – |
| Third Quarter 2026 adjusted EBITnon-GAAP | $305M | – | – |
| Third Quarter 2026 adjusted EBIT marginnon-GAAP | 12.8 % | – | – |
| Third Quarter 2026 net interest expenseGAAP | $56M | – | – |
| Third Quarter 2026 earnings before income taxesGAAP | $249M | – | – |
| Third Quarter 2026 benefit from income taxesGAAP | −$4M | – | – |
| Third Quarter 2026 net earningsGAAP | $253M | – | – |
| Third Quarter 2026 net earnings attributable to EastmanGAAP | $252M | – | – |
| Third Quarter 2026 diluted earnings per share attributable to EastmanGAAP | $2.19 | – | – |
| Third Quarter 2026 adjusted diluted earnings per sharenon-GAAP | $1.84 | – | – |
| Third Quarter 2026 net cash provided by operating activitiesGAAP | $290M | – | – |
| Third Quarter 2026 additions to properties and equipmentGAAP | −$95M | – | – |
| First Nine Months 2026 sales revenueGAAP | $7.08B | – | 4 % |
| First Nine Months 2026 gross profitGAAP | $1.52B | – | – |
| First Nine Months 2026 earnings before interest and taxesGAAP | $804M | – | – |
| First Nine Months 2026 adjusted EBITnon-GAAP | $825M | – | – |
| First Nine Months 2026 adjusted EBIT marginnon-GAAP | 11.7 % | – | – |
| First Nine Months 2026 net earnings attributable to EastmanGAAP | $542M | – | – |
| First Nine Months 2026 diluted earnings per share attributable to EastmanGAAP | $4.70 | – | – |
| First Nine Months 2026 adjusted diluted earnings per sharenon-GAAP | $4.90 | – | – |
| First Nine Months 2026 net cash provided by operating activitiesGAAP | $377M | – | – |
| September 30, 2026 cash and cash equivalentsGAAP | $768M | – | – |
| September 30, 2026 total borrowingsGAAP | $5.22B | – | – |
| September 30, 2026 net debtnon-GAAP | $4.45B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advanced Materials, Third Quarter 2026Higher selling prices in specialty plastics due to higher raw material and distribution costs and a 1 percent favorable foreign currency exchange rate. Sales volume/mix was unchanged. | $762M | (7) % | 5 % |
| Additives & Functional Products, Third Quarter 202610 percent higher selling prices from cost-pass-through contracts adjusting to higher raw material and distribution costs were partially offset by 1 percent lower sales volume/mix. | $784M | (3) % | 9 % |
| Chemical Intermediates, Third Quarter 202612 percent higher selling prices and 4 percent higher sales volume/mix, particularly for olefin and derivative products, were driven by increased volume availability and tight market conditions due to the ongoing conflict in the Middle East. | $580M | (10) % | 16 % |
| Fibers, Third Quarter 20264 percent higher sales volume/mix, due to increased sales of textiles and acetyl chemical products, was offset by 4 percent lower selling prices due to lower acetate tow contract pricing. | $255M | 5 % | — % |
| Advanced Materials, First Nine Months 2026Revenue change reflected 1 percent higher volume/product mix, a 2 percent exchange-rate effect, and no price effect. | $2.29B | – | 3 % |
| Additives & Functional Products, First Nine Months 2026Revenue change reflected 4 percent higher selling prices and a 2 percent exchange-rate effect, partially offset by 1 percent lower volume/product mix. | $2.33B | – | 5 % |
| Chemical Intermediates, First Nine Months 2026Revenue change reflected 8 percent higher volume/product mix, 5 percent higher selling prices, and a 1 percent exchange-rate effect. | $1.72B | – | 14 % |
| Fibers, First Nine Months 2026Revenue change reflected 7 percent lower volume/product mix and 4 percent lower selling prices. | $723M | – | (11) % |
Fourth-quarter and full-year 2026 outlook
- NoteFull-year 2026 adjusted earnings per share: between $6.00 and $6.20
- NoteFull-year 2026 operating cash flow: approximately $850 million
- NoteCost savings, net of inflation, in 2026: $125 million to $150 million
- NoteApproximately $500 million of selling price increases in 2026 compared to expectations from before the Middle East conflict began
- NoteExpect sequential demand declines with normal seasonality and some additional customer caution somewhat offset by innovation-driven growth
- NoteExpect an increase in acetate tow sales volume in Fibers as customers meet annual contract commitments
- NoteExpect higher planned shutdown costs in the fourth quarter, partially offset by a continuation of cost actions through the year
Capital returns
- Returned $96 million to stockholders through dividends in the third quarter of 2026.
- Dividends paid to stockholders were $288 million in the first nine months of 2026.
- Treasury stock purchases were — in the third quarter of 2026 and — in the first nine months of 2026.
What drove it
- Third-quarter sales revenue increased 8 percent due to 7 percent higher selling prices and 1 percent higher sales volume/mix.
- Higher selling prices across the company were primarily driven by higher raw material and distribution costs and tight market conditions in Chemical Intermediates due to the ongoing conflict in the Middle East.
- EBIT increased primarily due to improved asset utilization after actions to reduce inventory in third quarter 2025, including lower planned maintenance expense and favorable price-cost.
- Additives & Functional Products EBIT increased due to improvement in both price-cost and asset utilization.
- Chemical Intermediates EBIT increased primarily due to higher spreads.
- The company announced reinstatement of a $375 million U.S. Department of Energy award supporting continued scale up of the circular platform.
Concerns
- Input costs continued to elevate.
- Sequential sales volume/mix decreased due to seasonal declines across key end markets and softening underlying demand in automotive and consumer durables.
- Third-quarter operating cash flow declined to $290 million from $402 million in the third quarter of 2025.
- Fibers EBIT decreased due to lower acetate tow contract pricing and increased raw material and distribution costs.
- Management expects sequential demand declines with normal seasonality and some additional customer caution in the fourth quarter.
- Management expects higher planned shutdown costs in the fourth quarter.
What to watch
- Execution of additional price actions as raw material and distribution costs accelerated through the third quarter.
- Fourth-quarter operating cash flow and the expected release of working capital.
- Delivery of $125 million to $150 million of cost savings, net of inflation, in 2026.
- Growth of the circular platform and the effect of the reinstated $375 million U.S. Department of Energy award.
- Fibers acetate tow sales volume as customers meet annual contract commitments.
- Whether innovation-driven growth offsets expected seasonal demand declines and customer caution.
Balance sheet and cash flow
- Third-quarter 2026 net cash provided by operating activities was $290 million versus $402 million in the third quarter of 2025.
- First-nine-months 2026 net cash provided by operating activities was $377 million versus $468 million in the first nine months of 2025.
- Third-quarter 2026 additions to properties and equipment were $(95) million versus $(137) million in the third quarter of 2025.
- First-nine-months 2026 additions to properties and equipment were $(298) million versus $(434) million in the first nine months of 2025.
- Cash and cash equivalents at September 30, 2026 were $768 million, compared with $566 million at December 31, 2025.
- Total borrowings at September 30, 2026 were $5,218 million, compared with $4,787 million at December 31, 2025.
- Net debt at September 30, 2026 was $4,450 million, compared with $4,221 million at December 31, 2025.
Analysis
Eastman reported third-quarter sales revenue of $2,385 million, up 8 percent from $2,202 million. The increase comprised 7 percent higher selling prices and 1 percent higher sales volume/mix. Higher prices reflected higher raw material and distribution costs, as well as tight Chemical Intermediates markets linked to the ongoing Middle East conflict. Sequentially, company sales revenue declined 5 percent, as a 7 percent volume/product-mix decline more than offset a 2 percent price benefit.
Profitability improved materially year over year. GAAP EBIT was $305 million versus $188 million, while adjusted EBIT was $305 million versus $210 million and adjusted EBIT margin was 12.8 % versus 9.5 %. Management attributed the EBIT improvement primarily to improved asset utilization following third-quarter 2025 inventory-reduction actions, lower planned maintenance expense, and favorable price-cost, partly offset by higher variable compensation expense. GAAP diluted EPS was $2.19 versus $0.60, and adjusted diluted EPS was $1.84 versus $1.14. Sequentially, adjusted EBIT declined from $320 million and adjusted diluted EPS declined from $1.97.
All major segments except Fibers increased revenue year over year. Chemical Intermediates led with 16 percent growth and benefited from higher spreads, while Additives & Functional Products increased 9 percent and improved both price-cost and asset utilization. Advanced Materials revenue increased 5 percent, with higher specialty-plastics selling prices substantially offsetting higher raw material and distribution costs. Fibers revenue was unchanged and EBIT declined as lower acetate tow contract pricing and higher raw material and distribution costs outweighed higher textiles and acetyl chemical product sales.
Cash generation was lower in the quarter, with operating cash flow of $290 million versus $402 million, although management expects to release working capital in the fourth quarter. The company paid $96 million of dividends during the quarter and recorded no treasury stock purchases. At September 30, cash and cash equivalents were $768 million, total borrowings were $5,218 million, and net debt was $4,450 million. Full-year adjusted EPS guidance is $6.00 to $6.20 and operating cash flow guidance is approximately $850 million.
Management expects normal seasonal demand declines and additional customer caution in the fourth quarter, partly offset by innovation-driven growth and increased Fibers acetate tow volume as customers meet annual contract commitments. It also expects higher planned shutdown costs, continued cost actions, and further price actions to address accelerated raw material and distribution costs. The company remains on track for $125 million to $150 million of 2026 cost savings, net of inflation, and cited continued scale-up of its circular platform following reinstatement of a $375 million U.S. Department of Energy award.
Management, verbatim
Eastman delivered solid results amid ongoing global macroeconomic uncertainty and escalation of the Middle East conflict.
Mark Costa, Board Chair and CEO
We remain on track to implement approximately $500 million of selling price increases in 2026 compared to our expectations from before the Middle East conflict began.
Mark Costa, Board Chair and CEO
When putting these factors together, we project adjusted earnings per share for full-year 2026 to be between $6.00 and $6.20 and operating cash flow to be approximately $850 million.
Mark Costa, Board Chair and CEO
Not in the filing
stated, not guessed- Third-quarter 2026 gross margin was not reported.
- Third-quarter 2026 free cash flow was not reported.
- Fourth-quarter 2026 revenue guidance was not reported.
- Fourth-quarter 2026 adjusted diluted EPS guidance was not reported.
- Full-year 2026 revenue guidance was not reported.
- Full-year 2026 gross-margin, operating-expense, and tax-rate guidance was not reported.
- Prior-period outlook was not provided, so no comparison of actual results with prior guidance is available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Eastman Chemical filed a Form 8‑K announcing its third‑quarter 2026 financial results and outlook.
Ticker impact
Eastman Chemical provided guidance for full-year adjusted EPS of $6.00-$6.20 after reporting Q3 2026 earnings of $2.19 EPS and $305 M EBIT.
likely upward pressure as investors price in better-than-expected earnings and higher guidance.
Q3 EPS rose from $0.60 a year ago to $2.19, EBIT more than doubled and the company reaffirmed a higher full‑year EPS range, indicating improved profitability despite higher input costs.
Market effects
Results may lift sentiment across the specialty chemicals sector.
U.S. chemicals stocks could see modest gains.
Limited to investors tracking industrial commodities and input‑cost dynamics.
Counterpoint
Higher raw‑material and distribution costs could erode margins if price increases lag behind inflation.
Key entities
- companyEastman Chemical Company
U.S. specialty chemicals producer reporting Q3 2026 results.
