Eastman Chemical sees FY25 EPS $5.40-$5.65, consensus $5.77

The company states: “We expect a greater than normal seasonal decline in volume as the macroeconomic environment continues to be challenging, especially in the consumer discretionary markets (building and construction, consumer durables and auto aftermarket). We see signs of increasing consumer caution, including value-oriented trade-down behavior. Our customers through the retailers are also continuing to unwind inventory purchased and prepositioned geographically in the first half of the year to mitigate tariff risks and reduce the impact on consumer prices. We do expect most of this pre-buy inventory to be depleted by end of year. Against this dynamic backdrop, we remain focused on controlling what we can, including driving cash flow. We delivered strong cash flow in the third quarter with our inventory actions and aggressive cost management. We expect price-cost stability, as our commercial teams continue to demonstrate excellence in defending our prices and market share, based on the innovative value of our products. We also expect a modest increase in revenue from the Kingsport methanolysis facility. We are on track to reduce costs by more than $75 million, net of inflation, and also plan to build on this progress by reducing structural costs by approximately $100 million, net of inflation, in 2026. We expect lower planned shutdown costs and a modest asset utilization tailwind, after substantially completing our inventory reduction actions in third quarter. When putting these factors together, we project adjusted earnings per share for full-year 2025 to be between $5.40 and $5.65 and for operating cash flow to approach $1 billion.”