Form 8-K
8-K — EASTMAN CHEMICAL CO
Accession: 0000915389-26-000167
Filed: 2026-10-29
Period: 2026-10-29
CIK: 0000915389
SIC: 2821 (PLASTICS, MATERIALS, SYNTH RESINS & NONVULCAN ELASTOMERS)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — emn-20261029.htm (Primary)
EX-99.01 — EX-99.01 Q3 2026 EARNINGS RELEASE (ex99_0120260930cctables.htm)
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8-K
8-K (Primary)
Filename: emn-20261029.htm · Sequence: 1
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of The Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
October 29, 2026
EASTMAN CHEMICAL COMPANY
(Exact Name of Registrant as Specified in Its Charter)
Delaware 1-12626 62-1539359
(State or Other Jurisdiction
of Incorporation) (Commission File Number) (IRS Employer
Identification No.)
200 South Wilcox Drive
Kingsport Tennessee 37662
(Address of Principal Executive Offices) (Zip Code)
(423) 229-2000
(Registrant’s Telephone Number, Including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share EMN New York Stock Exchange
1.875% Notes Due 2026 EMN26 New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
EASTMAN CHEMICAL COMPANY - EMN
Item 2.02 Results of Operations and Financial Condition
On October 29, 2026, the registrant publicly released its financial results for third quarter 2026. The full text of the release is furnished as Exhibit 99.01 to this Current Report on Form 8-K, and is incorporated herein by reference. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits:
(d) Exhibits
The following exhibits are furnished pursuant to Item 9.01:
99.01 Public release by Eastman on October 29, 2026 of third quarter 2026 financial results
104 Cover Page Interactive Data File
EASTMAN CHEMICAL COMPANY - EMN
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
Eastman Chemical Company
By: /s/ Michelle R. Stewart
Michelle R. Stewart
Vice President, Chief Accounting Officer and Corporate Controller
Date: October 29, 2026
EX-99.01 — EX-99.01 Q3 2026 EARNINGS RELEASE
EX-99.01
Filename: ex99_0120260930cctables.htm · Sequence: 2
Document
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 performance in Additives & Functional Products, demonstrating resilience in a challenging environment
•Demonstrated commercial discipline in Advanced Materials as improved selling prices substantially offset higher raw material and distribution costs
•Fibers on track to deliver expected volume growth in the second half as customers meet annual contract commitments
•Announced reinstatement of a $375 million U.S. Department of Energy (DOE) award supporting the continued scale up of the circular platform; on track to drive significant revenue growth in 2026 and 2027
•On track to deliver $125 million to $150 million of cost savings, net of inflation
•Generated $377 million in operating cash flow through the first nine months and expect to release working capital in the fourth quarter
(In millions, except per share amounts; unaudited) 3Q26 3Q25
Sales revenue $2,385 $2,202
Earnings before interest and taxes ("EBIT") 305 188
Adjusted EBIT* 305 210
Earnings per diluted share 2.19 0.60
Adjusted earnings per diluted share* 1.84 1.14
Net cash provided by operating activities 290 402
*For non-core and unusual items excluded from adjusted earnings and for adjusted provision for income taxes, segment adjusted EBIT margins, and net debt, reconciliations to reported company and segment earnings and total borrowings for all periods presented in this release, see Tables 3A, 3B, 4A, and 6.
“Eastman delivered solid results amid ongoing global macroeconomic uncertainty and escalation of the Middle East conflict,” said Mark Costa, Board Chair and CEO. “Input costs continued to elevate, and the Eastman team successfully implemented higher sequential price increases in our specialties. 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. In addition, sequential sales volume/mix decreased due to seasonal declines across our key end markets and softening underlying demand in automotive and consumer durables. We also remain confident in the circular platform and are positioned for solid revenue growth this year. In this context, we remained focused on our disciplined approach toward cost savings, and we remain on track to reduce costs by $125 million to $150 million, net of inflation in 2026. We also continue to emphasize the importance of operating cash flow in this dynamic environment.”
Corporate Results 3Q 2026 versus 3Q 2025
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 as well as 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. These factors were partially offset by higher variable compensation expense.
Segment Results 3Q 2026 versus 3Q 2025
Advanced Materials – Sales revenue increased 5 percent due to 4 percent higher selling prices and 1 percent favorable foreign currency exchange rates.
Higher selling prices in specialty plastics were due to higher raw material and distribution costs. Sales volume/mix was unchanged as increases in specialty plastics and advanced interlayers were offset by lower sales volume/mix in performance films.
EBIT increased due to substantially improved asset utilization and lower planned maintenance costs.
Additives & Functional Products – Sales revenue increased 9 percent due to 10 percent higher selling prices partially offset by 1 percent lower sales volume/mix. Higher selling prices were due to cost-pass-through contracts adjusting to higher raw material and distribution costs.
EBIT increased due to improvement in both price-cost and asset utilization.
Fibers – Sales revenue was unchanged as 4 percent higher sales volume/mix was offset by 4 percent lower selling prices. Acetate tow volume was similar to last year.
Higher sales volume/mix was due to increased sales of textiles and acetyl chemical products. Lower selling prices were due to lower acetate tow contract pricing.
EBIT decreased due to lower acetate tow contract pricing and increased raw material and distribution costs.
Chemical Intermediates – Sales revenue increased by 16 percent due to 12 percent higher selling prices and 4 percent higher sales volume/mix.
Higher selling prices and 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.
EBIT increased primarily due to higher spreads.
Cash Flow
In the third quarter of 2026, cash provided by operating activities was $290 million versus $402 million in the third quarter of 2025. The company returned $96 million to stockholders through dividends. See Table 5. Priorities for uses of available cash for 2026 include payment of the quarterly dividend, capital expenditures, and maintaining our solid investment-grade balance sheet.
2026 Outlook
Commenting on the outlook for fourth-quarter and full-year 2026, Costa said: “We expect to deliver a solid full-year performance in both earnings and cash flow, despite a challenging macroeconomic environment and the escalation of the Middle East conflict. In particular, the Middle East conflict has led to higher raw material and distribution costs and increasing interest rates. We expect sequential demand declines with normal seasonality and some additional customer caution somewhat offset by innovation-driven growth. In this context, we are highly focused on delivering growth in our circular platform and driving innovation across our specialty businesses. We also expect an increase in acetate tow sales volume in Fibers, as customers meet annual contract commitments. Given the acceleration of raw material and distribution costs through this quarter, we are taking additional price actions across the company. We expect to have higher planned shutdown costs in the fourth quarter, which will be partially offset by a continuation of cost actions through the year. 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. These results demonstrate the value of our innovation-driven growth model and our ability to deliver solid earnings growth in an uncertain macroeconomic environment.”
The fourth-quarter 2026 projected adjusted diluted EPS excludes any non-core, unusual, or non-recurring items. Our financial results forecasts do not include non-core items (such as mark-to-market pension and other post-retirement benefit gain or loss, and asset impairments and restructuring charges) or any unusual or non-recurring items because we are unable to predict with reasonable certainty the financial impact of such items. These items are uncertain and depend on various factors, and we are unable to reconcile projected adjusted diluted EPS excluding non-core and any unusual or non-recurring items to reported GAAP diluted EPS without unreasonable efforts.
Forward-Looking Statements
The information in this release and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, pricing, margins, sales, cost reductions, expenses, taxes, liquidity, capital expenditures, cash flow, dividends, share repurchases or other financial items, supply and demand, capacity and utilization, growth opportunities, statements of management’s plans, strategies and objectives for future operations, and statements regarding future economic, industry or market conditions or performance. Such projections and estimates are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the sections entitled "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and as updated in the company’s filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov and the company’s website at www.eastman.com.
Financial Measures (Non-GAAP)
In addition to the financial information presented in accordance with Generally Accepted Accounting Principles ("GAAP"), this press release includes the following non-GAAP financial measures: adjusted EBIT, adjusted EBIT margin, and adjusted earnings per diluted share. We define adjusted EBIT as the GAAP measure EBIT adjusted for non-core, unusual, or non-recurring items. Adjusted earnings per diluted share is defined as the GAAP measure earnings per diluted share adjusted for
non-core, unusual, or non-recurring items. Adjusted EBIT margin is defined as adjusted EBIT divided by the GAAP measure sales revenue in the Company's Unaudited Consolidated Statement of Earnings, Comprehensive Income and Retained Earnings for the same periods. See the reconciliation tables presented in this release for a detailed reconciliation of non-GAAP financial measures to the most directly comparable GAAP measure.
We believe that in addition to our results determined in accordance with GAAP, these non-GAAP financial measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on GAAP measures. These non-GAAP financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. Non-GAAP financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as comparative measures.
Conference Call and Webcast Information
Eastman will host a conference call with industry analysts on Oct. 30, 2026, at 8:00 a.m. Eastern Time. To listen to the live webcast of the conference call and view the accompanying slides and prepared remarks, go to investors.eastman.com, Events & Presentations. The slides and prepared remarks to be discussed during the call and webcast will be available at investors.eastman.com at approximately 4:15 p.m. Eastern Time on Oct. 29, 2026. To listen via telephone, the toll-free dial-in number is +1 (833) 461-5787, passcode 652 847 425. To speed up connecting into the teleconference, participants may pre-register at https://events.q4inc.com/analyst/652847425?pwd=0MK9YrIb; upon registration, participants will receive unique dial-in information via email. A web replay, a replay in downloadable MP3 format, and the accompanying slides and prepared remarks will be available at investors.eastman.com, Events & Presentations. A telephone replay will be available continuously beginning at approximately 1:00 p.m. Eastern Time, Oct. 30, through 11:59 p.m. Eastern Time, Nov. 10, 2026, toll-free at +1 (833) 309-1852, passcode 652 847 425.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive company, Eastman employs approximately 13,000 people around the world and serves customers in more than 100 countries. The company had 2025 revenue of approximately $8.8 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.
# # #
Contacts:
Media: Tracy Kilgore Addington
423-224-0498 / tracy@eastman.com
Investors: Greg Riddle
212-835-1620 / griddle@eastman.com
FINANCIAL INFORMATION
October 29, 2026
For Eastman Chemical Company Third Quarter and Full Year 2026 Financial Results Release
Table of Contents
Item Page
Table 1
Statements of Earnings
1
Table 2A
Segment Sales Information
2
Table 2B
Sales Revenue Change
3
Table 2C
Sales by Customer Location
3
Table 3A
Segment, Other, and Company Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations
4
Table 3B
Segment Non-GAAP Earnings (Loss) Before Interest and Taxes Margins
6
Table 4A
Non-GAAP Earnings Before Interest and Taxes, Net Earnings, and Earnings Per Share Reconciliations
7
Table 4B
Adjusted Effective Tax Rate Calculation
9
Table 5
Statements of Cash Flows
10
Table 6
Total Borrowings to Net Debt Reconciliations
10
Table 1 – Statements of Earnings
Third Quarter First Nine Months
(Dollars in millions, except per share amounts; unaudited) 2026 2025 2026 2025
Sales $ 2,385 $ 2,202 $ 7,075 $ 6,779
Cost of sales (1)(2)
1,853 1,769 5,552 5,273
Gross profit 532 433 1,523 1,506
Selling, general, and administrative expenses 171 160 534 499
Research and development expenses 63 63 188 197
Asset impairments, restructuring, and other charges, net — 20 10 42
Other components of post-employment (benefit) cost, net (17) (1) (50) (4)
Other (income) charges, net 10 3 37 60
Earnings before interest and taxes 305 188 804 712
Net interest expense 56 54 163 156
Earnings before income taxes 249 134 641 556
(Benefit from) provision for income taxes (3)
(4) 65 97 164
Net earnings 253 69 544 392
Less: Net earnings attributable to noncontrolling interest 1 — 2 1
Net earnings attributable to Eastman $ 252 $ 69 $ 542 $ 391
Basic earnings per share attributable to Eastman $ 2.21 $ 0.60 $ 4.75 $ 3.41
Diluted earnings per share attributable to Eastman $ 2.19 $ 0.60 $ 4.70 $ 3.38
Shares (in millions) outstanding at end of period 114.4 114.1 114.4 114.1
Shares (in millions) used for earnings per share calculation
Basic 114.3 114.4 114.3 114.9
Diluted 115.3 115.4 115.3 116.0
(1)First nine months 2026 included inventory adjustment charges of $3 million related to the closure of a production line at a German performance films facility in the Advanced Materials ("AM") segment.
(2)Third quarter and first nine months 2025 included inventory adjustment charges of $2 million related to the decommissioning of certain assets at performance films facilities in North America.
(3)Third quarter and first nine months 2025 provision for income taxes have been revised as a result of a correction of an item in the third quarter 2025 provision for income tax. Full year 2025 provision for income taxes was not impacted.
1
Table 2A – Segment Sales Information
Third Quarter First Nine Months
(Dollars in millions, unaudited) 2026 2025 2026 2025
Sales by Segment
Advanced Materials $ 762 $ 728 $ 2,294 $ 2,224
Additives & Functional Products
784 716 2,330 2,218
Chemical Intermediates
580 499 1,718 1,507
Fibers 255 254 723 816
Total Sales by Segment 2,381 2,197 7,065 6,765
Other
4 5 10 14
Total Eastman Chemical Company $ 2,385 $ 2,202 $ 7,075 $ 6,779
Second Quarter
(Dollars in millions, unaudited) 2026
Sales by Segment
Advanced Materials $ 817
Additives & Functional Products
807
Chemical Intermediates
643
Fibers 243
Total Sales by Segment 2,510
Other
3
Total Eastman Chemical Company $ 2,513
2
Table 2B – Sales Revenue Change
Third Quarter 2026 Compared to Third Quarter 2025
Change in Sales Revenue Due To
(Unaudited) Revenue
% Change Volume / Product Mix Effect Price Effect Exchange
Rate
Effect
Advanced Materials 5 % — % 4 % 1 %
Additives & Functional Products 9 % (1) % 10 % — %
Chemical Intermediates 16 % 4 % 12 % — %
Fibers — % 4 % (4) % — %
Total Eastman Chemical Company
8 % 1 % 7 % — %
First Nine Months 2026 Compared to First Nine Months 2025
Change in Sales Revenue Due To
(Unaudited) Revenue
% Change Volume / Product Mix Effect Price Effect Exchange
Rate
Effect
Advanced Materials 3 % 1 % — % 2 %
Additives & Functional Products 5 % (1) % 4 % 2 %
Chemical Intermediates 14 % 8 % 5 % 1 %
Fibers (11) % (7) % (4) % — %
Total Eastman Chemical Company 4 % 1 % 2 % 1 %
Third Quarter 2026 Compared to Second Quarter 2026
Change in Sales Revenue Due To
(Unaudited) Revenue
% Change Volume / Product Mix Effect Price Effect Exchange
Rate
Effect
Advanced Materials (7) % (10) % 3 % — %
Additives & Functional Products (3) % (7) % 4 % — %
Chemical Intermediates (10) % (7) % (3) % — %
Fibers 5 % 3 % 2 % — %
Total Eastman Chemical Company (5) % (7) % 2 % — %
Table 2C – Sales by Customer Location
Third Quarter First Nine Months
(Dollars in millions, unaudited) 2026 2025 2026 2025
Sales by Customer Location
United States and Canada $ 1,094 $ 972 $ 3,231 $ 2,955
Europe, Middle East, and Africa 609 563 1,811 1,783
Asia Pacific 535 534 1,613 1,656
Latin America 147 133 420 385
Total Eastman Chemical Company $ 2,385 $ 2,202 $ 7,075 $ 6,779
3
Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (1)
Third Quarter First Nine Months
(Dollars in millions, unaudited) 2026 2025 2026 2025
Advanced Materials
Earnings before interest and taxes $ 103 $ 41 $ 272 $ 278
Cost of sales impact from restructuring activities (2)
— 2 3 2
Asset impairments, restructuring, and other charges, net (2)
— 10 6 10
Excluding non-core items 103 53 281 290
Additives & Functional Products
Earnings before interest and taxes 154 128 447 418
Asset impairments, restructuring, and other charges, net — — — 4
Excluding non-core items 154 128 447 422
Chemical Intermediates
Earnings (loss) before interest and taxes 35 1 75 (10)
Fibers
Earnings before interest and taxes 52 67 133 236
Other
Loss before interest and taxes (39) (49) (123) (210)
Asset impairments, restructuring, and other charges net (3)
— 10 4 28
Environmental and other costs (4)
— — 8 40
Excluding non-core items
(39) (39) (111) (142)
Total Eastman Chemical Company
Earnings before interest and taxes 305 188 804 712
Cost of sales impact from restructuring activities
— 2 3 2
Asset impairments, restructuring, and other charges, net
— 20 10 42
Environmental and other costs
— — 8 40
Total earnings before interest and taxes excluding non-core items
$ 305 $ 210 $ 825 $ 796
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes $ 305 $ 188 $ 804 $ 712
Cost of sales impact from restructuring activities — 2 3 2
Asset impairments, restructuring, and other charges, net — 20 10 42
Other (income) charges, net — — 8 40
Total earnings before interest and taxes excluding non-core items
$ 305 $ 210 $ 825 $ 796
(1)See "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Quarterly Report on Form 10-Q for third quarter 2025 for description of third quarter and first nine months 2025 non-core items.
(2)First nine months 2026 included inventory adjustment charges of $3 million, severance charges of $3 million, and restructuring charges of $3 million related to the closure of a production line at a German performance films facility in the AM segment.
(3)First nine months 2026 included severance charges related to corporate cost reduction initiatives reported in "Other."
(4)First nine months 2026 included environmental and other costs from previously divested or non-operational sites and product lines, which included associated gains and losses.
4
Table 3A - Segment, Other, and Company
Non-GAAP Earnings (Loss) Before Interest and Taxes Reconciliations (continued) (1)
Second Quarter
(Dollars in millions, unaudited) 2026
Advanced Materials
Earnings before interest and taxes $ 109
Additives & Functional Products
Earnings before interest and taxes 151
Chemical Intermediates
Earnings before interest and taxes 58
Fibers
Earnings before interest and taxes 36
Other
Loss before interest and taxes (43)
Asset impairments, restructuring, and other charges net 1
Environmental and other costs 8
Excluding non-core items
(34)
Total Eastman Chemical Company
Earnings before interest and taxes 311
Asset impairments, restructuring, and other charges, net
1
Environmental and other costs
8
Total earnings before interest and taxes excluding non-core items
$ 320
Company Non-GAAP Earnings Before Interest and Taxes Reconciliations by Line Items
Earnings before interest and taxes $ 311
Asset impairments, restructuring, and other charges, net 1
Other (income) charges, net 8
Total earnings before interest and taxes excluding non-core items
$ 320
(1)For description of second quarter 2026 non-core items, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the Quarterly Report on Form 10-Q for second quarter 2026.
5
Table 3B - Segment Non-GAAP Earnings (Loss) Before Interest and Taxes Margins (1)(2)
Third Quarter First Nine Months
2026 2025 2026 2025
(Dollars in millions, unaudited) Adjusted EBIT Adjusted EBIT Margin Adjusted EBIT Adjusted EBIT Margin Adjusted EBIT Adjusted EBIT Margin Adjusted EBIT Adjusted EBIT Margin
Advanced Materials $ 103 13.5 % $ 53 7.3 % $ 281 12.2 % $ 290 13.0 %
Additives & Functional Products
154 19.6 % 128 17.9 % 447 19.2 % 422 19.0 %
Chemical Intermediates
35 6.0 % 1 0.2 % 75 4.4 % (10) (0.7) %
Fibers 52 20.4 % 67 26.4 % 133 18.4 % 236 28.9 %
Total segment EBIT excluding non-core items
344 14.4 % 249 11.3 % 936 13.2 % 938 13.9 %
Other (39) (39) (111) (142)
Total EBIT excluding non-core items
$ 305 12.8 % $ 210 9.5 % $ 825 11.7 % $ 796 11.7 %
Second Quarter
2026
(Dollars in millions, unaudited) Adjusted EBIT Adjusted EBIT Margin
Advanced Materials $ 109 13.3 %
Additives & Functional Products
151 18.7 %
Chemical Intermediates
58 9.0 %
Fibers 36 14.8 %
Total segment EBIT excluding non-core items
354 14.1 %
Other
(34)
Total EBIT excluding non-core items
$ 320 12.7 %
(1)For identification of excluded non-core items and reconciliations to GAAP EBIT, see Table 3A.
(2)Adjusted EBIT margin is non-GAAP EBIT divided by GAAP sales. See Table 2A for sales.
6
Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations
Third Quarter 2026
Earnings Before Interest and Taxes Earnings Before Income Taxes (Benefit from) Provision for Income Taxes Effective Income Tax Rate Net Earnings
Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited) After Tax Per Diluted Share
As reported (GAAP) $ 305 $ 249 $ (4) (2) % $ 252 $ 2.19
Non-Core Items: (1)
Interim adjustment to tax provision (2)
— — 39 (39) (0.35)
Non-GAAP (Excluding non-core items and with adjusted provision for income taxes) $ 305 $ 249 $ 35 15 % $ 213 $ 1.84
Third Quarter 2025
Earnings Before Interest and Taxes Earnings Before Income Taxes
Provision for Income Taxes
Effective Income Tax Rate Net Earnings
Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited) After Tax Per Diluted Share
As reported (GAAP) (3)
$ 188 $ 134 $ 65 49 % $ 69 $ 0.60
Non-Core or Unusual Items: (1)
Cost of sales impact from restructuring activities
2 2 1 1 0.01
Asset impairments, restructuring, and other charges, net
20 20 5 15 0.13
Income tax related item (4)
— — (22) 22 0.20
Interim adjustment to tax provision (2)(3)
— — (25) 25 0.20
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes) $ 210 $ 156 $ 24 16 % $ 132 $ 1.14
(1)See Table 3A for description of third quarter 2026 and 2025 non-core items excluded from non-GAAP EBIT. Provision for income taxes for non-core items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)The adjusted provision for income taxes for third quarter 2026 and 2025 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
(3)Third quarter 2025 provision for income taxes and interim adjustment to tax provision have been revised by offsetting amounts as a result of a correction of an item in the third quarter 2025 provision for income tax. Full year 2025 provision for income taxes was not impacted.
(4)Third quarter 2025 included expense related to a prior tax law change.
7
First Nine Months 2026
Earnings Before Interest and Taxes Earnings Before Income Taxes Provision for Income Taxes Effective Income Tax Rate Net Earnings
Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited) After Tax Per Diluted Share
As reported (GAAP) $ 804 $ 641 $ 97 15 % $ 542 $ 4.70
Non-Core or Unusual Items: (1)
Cost of sales impact from restructuring activities
3 3 1 2 0.02
Asset impairments, restructuring, and other charges, net
10 10 3 7 0.06
Environmental and other costs 8 8 (1) 9 0.08
Income tax related item (2)
— — (13) 13 0.11
Interim adjustment to tax provision (3)
— — 8 (8) (0.07)
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)
$ 825 $ 662 $ 95 15 % $ 565 $ 4.90
First Nine Months 2025
Earnings Before Interest and Taxes Earnings Before Income Taxes Provision for Income Taxes Effective Income Tax Rate Net Earnings
Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited) After Tax Per Diluted Share
As reported (GAAP) (4)
$ 712 $ 556 $ 164 30 % $ 391 $ 3.38
Non-Core or Unusual Items: (1)
Cost of sales impact from restructuring activities
2 2 1 1 0.01
Asset impairments, restructuring, and other charges, net
42 42 11 31 0.27
Environmental and other costs 40 40 9 31 0.26
Income tax related item (2)
— — (22) 22 0.20
Interim adjustment to tax provision (3)(4)
— — (64) 64 0.54
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes) $ 796 $ 640 $ 99 16 % $ 540 $ 4.66
(1)See Table 3A for description of first nine months 2026 and 2025 non-core items excluded from non-GAAP EBIT. Provision for income taxes for non-core items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)First nine months 2026 and 2025 included expense related to a prior tax law change.
(3)The adjusted provision for income taxes for first nine months 2026 and 2025 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
(4)First nine months 2025 provision for income taxes and interim adjustment to tax provision have been revised by offsetting amounts as a result of a correction of an item in the third quarter 2025 provision for income tax. Full year 2025 provision for income taxes was not impacted.
8
Table 4A – Non-GAAP Earnings Before Interest and Taxes, Net Earnings,
and Earnings Per Share Reconciliations (continued)
Second Quarter 2026
Earnings Before Interest and Taxes Earnings Before Income Taxes
Provision for Income Taxes
Effective Income Tax Rate Net Earnings
Attributable to Eastman
(Dollars in millions, except per share amounts, unaudited) After Tax Per Diluted Share
As reported (GAAP) $ 311 $ 256 $ 72 28 % $ 183 $ 1.59
Non-Core or Unusual Items: (1)
Asset impairments, restructuring, and other charges, net 1 1 — 1 0.01
Environmental and other costs 8 8 (1) 9 0.08
Income tax related item (2)
— — (8) 8 0.07
Interim adjustment to tax provision (3)
— — (26) 26 0.22
Non-GAAP (Excluding non-core and unusual items and with adjusted provision for income taxes)
$ 320 $ 265 $ 37 15 % $ 227 $ 1.97
(1)See Table 3A for description of second quarter 2026 non-core items excluded from non-GAAP EBIT. Provision for income taxes for non-core items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(2)Second quarter 2026 included expense related to a prior tax law change.
(3)The adjusted provision for income taxes for second quarter 2026 is calculated applying the forecasted full year effective tax rate as shown in Table 4B.
Table 4B - Adjusted Effective Tax Rate Calculation
First Nine Months (1)
(Unaudited)
2026
2025 (5)
Effective tax rate 15 % 30 %
Discrete tax items (2)
(1) % — %
Tax impact of current year non-core and unusual items (3)
(1) % (1) %
Changes in tax contingencies and valuation allowances 3 % (1) %
Forecasted full year impact of expected tax events (4)
(1) % (12) %
Forecasted full year adjusted effective tax rate 15 % 16 %
(1)Effective tax rate percentages are rounded to the nearest whole percent. The forecasted full year effective tax rates are 14.5 percent and 15.5 percent in first nine months 2026 and 2025.
(2)"Discrete tax items" are items that are excluded from the Company's estimated annual effective tax rate and recognized entirely in the quarter in which the item occurs. Discrete tax items for first nine months 2026 are related to share based compensation expense and adjustments to certain prior year tax returns.
(3)Provision for income taxes for non-core and unusual items is calculated using the tax rate for the jurisdiction where the gains are taxable and the expenses are deductible.
(4)Expected future tax events may include finalization of tax returns; federal, state, and foreign examinations or the expiration of statutes of limitation; and corporate restructurings.
(5)Revised as a result of a correction of an item in the third quarter 2025 provision for income tax. Full year 2025 provision for income taxes was not impacted.
9
Table 5 – Statements of Cash Flows
Third Quarter First Nine Months
(Dollars in millions, unaudited) 2026 2025 2026 2025
Operating activities
Net earnings (1)
$ 253 $ 69 $ 544 $ 392
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization 134 129 397 382
Provision for deferred income taxes 55 87 65 39
Changes in operating assets and liabilities, net of effect of acquisitions and divestitures:
(Increase) decrease in trade receivables 37 52 (332) (131)
(Increase) decrease in inventories (83) 204 (229) 73
Increase (decrease) in trade payables (85) (120) — (275)
Pension and other postretirement contributions (in excess of) less than expenses (19) (11) (67) (28)
Variable compensation payments (in excess of) less than expenses 55 26 77 (60)
Other items, net (1)
(57) (34) (78) 76
Net cash provided by operating activities 290 402 377 468
Investing activities
Additions to properties and equipment (95) (137) (298) (434)
Government incentives
— — 3 14
Other items, net (1) — (4) 5
Net cash used in investing activities
(96) (137) (299) (415)
Financing activities
Net (decrease) increase in commercial paper and other borrowings — (54) — 290
Proceeds from borrowings — — 594 246
Repayment of borrowings — — (150) (550)
Dividends paid to stockholders (96) (96) (288) (287)
Treasury stock purchases — (50) — (100)
Other items, net (21) (1) (32) (14)
Net cash (used in) provided by financing activities (117) (201) 124 (415)
Effect of exchange rate changes on cash and cash equivalents — 2 — 14
Net change in cash and cash equivalents 77 66 202 (348)
Cash and cash equivalents at beginning of period 691 423 566 837
Cash and cash equivalents at end of period $ 768 $ 489 $ 768 $ 489
(1) Third quarter and first nine months 2025 net earnings and other items, net have been revised by offsetting amounts as a result of a correction of an item in the third quarter 2025 provision for income tax. Full year 2025 provision for income taxes was not impacted.
Table 6 – Total Borrowings to Net Debt Reconciliations
September 30, December 31,
(Dollars in millions, unaudited) 2026 2025
Total borrowings $ 5,218 $ 4,787
Less: Cash and cash equivalents 768 566
Net debt (1)
$ 4,450 $ 4,221
(1)Included a non-cash decrease of $18 million in 2026 and a non-cash increase of $68 million in 2025 resulting from foreign currency exchange rates.
10
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