Eastman Chemical Company Announces First-Quarter 2026 Financial Results

Eastman Chemical Company reported its first-quarter 2026 financial results, showing a 5% decrease in sales revenue to $2,177 million compared to $2,290 million in the first quarter of 2025. This decrease was attributed to a 4% lower sales volume/mix and a 4% decrease in selling prices, partially offset by a 3% favorable foreign currency exchange impact. Earnings Before Interest and Taxes (EBIT) decreased to $188 million from $302 million year-over-year. Adjusted EBIT was $200 million, down from $311 million in the prior year. Diluted earnings per share were $0.93, down from $1.57 in Q1 2025, while adjusted diluted earnings per share were $1.09, down from $1.91. The company experienced sequential sales volume/mix improvement of over 10% in its specialty businesses and implemented approximately $500 million in price increases to counter raw material and distribution inflation. Eastman is on track with its methanolysis facility revenue acceleration, expecting ~$30 million in incremental earnings. The company utilized $137 million in operating cash flow in Q1 2026, compared to $167 million used in Q1 2025. Looking ahead, Eastman anticipates a positive impact on earnings from the Middle East conflict, improved margins in Chemical Intermediates, and potential volume/mix upsides due to its U.S. asset base. They are maintaining cost reduction targets of $125-$150 million and disciplined capital expenditures of approximately $400 million for 2026.