Eastman Chemical Co (NYSE:EMN) Q2 2025 Earnings Report: Revenue and EPS Miss Estimates, Shares Plunge 8.5%

Eastman Chemical Co (NYSE:EMN) Reports Q2 2025 Earnings: Misses Revenue and EPS Estimates, Shares Drop Sharply

Eastman Chemical Co released its second-quarter 2025 financial results, falling short of analyst expectations on both revenue and earnings per share (EPS). The company reported revenue of $2.287 billion, below the consensus estimate of $2.325 billion, while adjusted EPS came in at $1.60, missing the expected $1.75. The market reacted negatively, with shares dropping more than 8.5% in after-hours trading.

Key Financial Highlights vs. Estimates

• Revenue: $2.287B (vs. $2.325B expected) – a 1.6% miss
• Adjusted EPS: $1.60 (vs. $1.75 expected) – an 8.6% miss
• EBIT: $275M (adjusted), down from $353M in Q2 2024
• Operating Cash Flow: $233M, down from $367M YoY

The decline in revenue was attributed to weaker demand in key segments, including Advanced Materials and Fibers, as well as an unplanned outage in Chemical Intermediates that reduced EBIT by approximately $20 million.

Segment Performance Breakdown

• Advanced Materials: Sales declined 2% due to soft demand in automotive and construction markets.
• Additives & Functional Products: Sales rose 7%, supported by cost-pass-through contracts and stable end markets.
• Fibers: Sales dropped 17% due to destocking in acetate tow and lower textile sales in China.
• Chemical Intermediates: Sales fell 10% on lower commodity prices and the impact of an unplanned outage.

Market Reaction & Outlook

The sharp after-hours decline reflects investor disappointment, particularly given the broader macroeconomic challenges Eastman faces, including tariff-related uncertainties and weak industrial demand. Management’s outlook for Q3 2025 projects adjusted EPS of around $1.25, which, if achieved, would still represent a year-over-year decline.

The company expects full-year operating cash flow of approximately $1 billion, supported by working capital reductions, though this will come with an earnings headwind of $75M–$100M in the second half due to inventory drawdowns.

Key Takeaways from the Press Release

• Circular Economy Progress: The methanolysis plant is performing well, with recycled content production expected to exceed 2.5x 2024 levels.
• Cost Management: Eastman is intensifying cost-cutting efforts amid persistent macroeconomic pressures.
• Trade Disruptions: The company is adjusting its supply chain in response to tariff impacts but expects continued volume declines.

For more detailed earnings estimates and historical performance, visit Eastman Chemical Co’s earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.