Eastman Chemical's Q2 Earnings and Revenues Miss, Down Y/Y

Eastman Chemical Company EMN logged second-quarter 2025 earnings of $1.20 per share, a roughly 38% decline from the year-ago quarter's figure of $1.94.

EMN posted adjusted earnings of $1.60 per share, down from the year-ago quarter figure of $2.15. It lagged the Zacks Consensus Estimate of $1.72.

The company’s revenues in the second quarter were $2,287 million, down around 3% year over year. It missed the Zacks Consensus Estimate of $2,289.9 million. 

EMN faced significant challenges in the second quarter and only saw a modest sign of seasonal improvement across its end markets. It took actions to mitigate the economic impact of the increased level of tariffs through continued commercial excellence and supply-chain initiatives.

Eastman Chemical Company Price, Consensus and EPS Surprise

Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote

EMN’s Segment Highlights

Advanced Materials: Sales from the segment fell 2% year over year to $777 million in the reported quarter. The figure beat our estimate of $770 million. Sales revenues declined due to lower sales volume and mix resulting from weak demand in key end markets.

Additives & Functional Products: Sales from the segment were $769 million, reflecting an upside of 7% from the year-ago quarter. The figure topped our estimate of $732 million. Sales were driven by higher selling prices, improved sales volume and mix, and favorable foreign currency exchange fluctuations.

Chemical Intermediaries: Sales from the segment were down 10% year over year to $463 million. The figure missed our estimate of $529 million. Sales declined due to lower sales volume and mix and reduced selling prices.

Fibers: The segment reported sales of $274 million, down 17% year over year. The figure beat our estimate of $252 million. Sales declined primarily due to lower sales volume and mix.

EMN’s Financials

The company ended the quarter with cash and cash equivalents of $423 million. Net debt was $4,703 million. 

Cash provided by operating activities was $233 million, down around 37% year over year. EMN
returned $145 million to shareholders through dividends and share repurchases in the reported quarter.

EMN’s Guidance

EMN noted that it is seeing a challenging global macroeconomic environment entering the second half. Customers are increasingly cautious due to a changing tariff environment and soft demand. The company expects to gain from the ramp-up of cost-reduction initiatives and higher revenues from its Kingsport methanolysis facility.

EMN sees third-quarter adjusted earnings to be roughly $1.25 per share. It also expects to generate an operating cash flow of around $1 billion for the full year.

EMN’s Price Performance

EMN’s shares are down 25.5% over a year compared with a 22.8% decline recorded by the Zacks Chemicals Diversified industry.

EMN’s Zacks Rank & Key Picks

EMN currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space include Royal Gold, Inc. RGLD, Avino Silver & Gold Mines Ltd. ASM and Barrick Mining Corporation B.

Royal Gold is slated to report second-quarter results on Aug 6. The Zacks Consensus Estimate for earnings is pegged at $1.70. RGLD beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 9%. RGLD carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Avino Silver is scheduled to report second-quarter results on Aug 13. The Zacks Consensus Estimate for ASM’s second-quarter earnings is pegged at 3 cents. ASM beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 104.2%. ASM currently carries a Zacks Rank #1.

Barrick Mining is slated to report second-quarter results on Aug 11. The consensus estimate for Barrick’s earnings is pegged at 47 cents. Barrick, carrying a Zacks Rank #1, beat the consensus estimate in three of the last four quarters, with the average earnings surprise being 12.5%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research