Eastman Chemical (EMN)
NYSE:EMN
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Eastman Chemical
(NYSE:EMN)
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Rating:68Neutral
Price Target:
$76.00
▲(2.99% Upside)
Action:ReiteratedDate:02/22/26
EMN scores as moderately attractive: solid but recently weaker financial performance (2025 margin/return step-down and uneven cash conversion) is partially offset by strong technical momentum and a supportive dividend yield. The earnings call points to tangible self-help and project-driven upside, but near-term macro and segment headwinds keep the overall score in the upper-middle range.
Positive Factors
Cost reduction program
Material, multi-year cost saves ($225–$250M targeted over two years) create durable upside to margins and free cash flow if realized. These structural efficiency gains can offset cyclic revenue swings, support reinvestment in growth projects, and meaningfully improve ROIC over the 2–6 month planning horizon and beyond.
Negative Factors
Fibers volume and tariff pressure
Significant tow volume declines and tariff-driven EBIT losses indicate structural vulnerability in Fibers. Prolonged destocking, lower textile demand, and tariff exposure can depress utilization and margins, reducing segment cash contribution and complicating recovery even if other segments improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Cost reduction program
Material, multi-year cost saves ($225–$250M targeted over two years) create durable upside to margins and free cash flow if realized. These structural efficiency gains can offset cyclic revenue swings, support reinvestment in growth projects, and meaningfully improve ROIC over the 2–6 month planning horizon and beyond.
Read all positive factors
Eastman Chemical (EMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.46B
Dividend Yield5.33%
Average Volume (3M)1.66M
Price to Earnings (P/E)15.4
Beta (1Y)1.04
Revenue Growth-3.33%
EPS Growth-19.59%
CountryUS
Employees14,000
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)0.75
Shares Outstanding114,349,915
10 Day Avg. Volume1,373,524
30 Day Avg. Volume1,664,995
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.23
Price to Sales (P/S)0.84
P/FCF Ratio17.27
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit7.02
Enterprise Value/Ebitda9.98
Forecast
1Y Price Target
$79.70Price Target Upside8.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)5.98
Revenue Forecast (FY)$8.95B
Eastman Chemical Business Overview & Revenue Model
Company Description
Eastman Chemical Company operates as a specialty materials company in the United States and internationally. The company's Additives & Functional Products segment offers hydrocarbon and rosin resins; organic acid-based solutions; amine derivative-...
How the Company Makes Money
Eastman makes money primarily by manufacturing and selling chemicals and specialty materials to business customers under a portfolio organized by operating segment. (1) Additives & Functional Products: Generates revenue from specialty additives an...
Eastman Chemical Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Breaks down revenue across different business units, highlighting which segments are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyEastman Chemical Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call balanced clear near-term challenges (weakness in Fibers and Chemical Intermediates, tariff/destocking effects, price pressure, and a $50–$75 million variable compensation headwind) with multiple concrete mitigation and growth actions that are already yielding results: $100 million of cost savings delivered in 2025 and another $125–$150 million targeted; an ETP project that could add $50–$100 million of earnings; rPET/methanolysis ramp expected to add revenue (4%–5%) and ~$30 million incremental improvement; debottlenecking and targeted product ramps to improve utilization. Management is cautious on macro uncertainty but emphasizes controllable levers to restore earnings and cash flow.Positive Updates
Substantial Cost Reduction Program Delivered and Expanded
Delivered $100 million of cost reductions in 2025 (reported as $25 million above target) and targeting an additional $125–$150 million in 2026, implying $225–$250 million of savings over two years to boost margins and cash flow.
Negative Updates
Fibers Earnings and Volume Pressures
Fibers business experienced significant weakness (analyst cited ~19% volume decline in tow), with tow and textile mix pressures; company noted tariffs drove a ~$30 million decline in textile EBIT, destocking and lower utilization drove ~$20 million headwind, and energy costs added ~$15 million of pressure.
Read all updates
Q4-2025 Updates
Positive
Negative
Substantial Cost Reduction Program Delivered and Expanded
Delivered $100 million of cost reductions in 2025 (reported as $25 million above target) and targeting an additional $125–$150 million in 2026, implying $225–$250 million of savings over two years to boost margins and cash flow.
Read all positive updates
Company Guidance
Management guided to a stabilization-and-recovery path anchored in cost reductions, utilization gains and circular growth: they delivered $100M of cost saves in 2025 (≈$25M above plan) and target another $125–150M in 2026 (bringing total to ~$225–250M over two years); they noted last year’s EBIT hit included ~40% non‑tow impacts (about $30M tariff-driven, ~$20M utilization shortfall and ~$15M higher energy), expect a Q1 that starts soft (guidance excludes potential winter‑storm effects), and forecast a 2026 utilization tailwind of $25–50M (after a ~$100M 2025 utilization headwind) plus ≈$20M lower maintenance offset by a $50–75M variable‑comp headwind. Key growth drivers include circular/methanolysis (management cited ~+$30M incremental vs. 2025 and ~4–5% revenue growth from rPET/Kingsport ramps), the ETP ethylene→propylene project (potential ~$50–100M earnings uplift with <2‑year payback), and niche add‑ons (high‑purity solvents growing ~20–30% on a small base); management said an upper‑end EPS improvement near ~$5.50–$6/share is “in range” but emphasized wide macro uncertainty.Eastman Chemical Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.75B | 9.38B | 9.20B | 10.54B | 10.48B |
| Gross Profit | 1.84B | 2.29B | 2.06B | 2.06B | 2.52B |
| EBITDA | 1.29B | 1.80B | 1.81B | 1.64B | 1.81B |
| Net Income | 474.00M | 905.00M | 894.00M | 793.00M | 857.00M |
Balance Sheet | |||||
| Total Assets | 14.86B | 15.21B | 14.63B | 14.67B | 15.52B |
| Cash, Cash Equivalents and Short-Term Investments | 566.00M | 837.00M | 548.00M | 493.00M | 459.00M |
| Total Debt | 5.08B | 5.26B | 5.14B | 5.15B | 5.52B |
| Total Liabilities | 8.82B | 9.36B | 9.10B | 9.43B | 9.73B |
| Stockholders Equity | 5.96B | 5.78B | 5.46B | 5.15B | 5.70B |
Cash Flow | |||||
| Free Cash Flow | 424.00M | 688.00M | 546.00M | 364.00M | 1.04B |
| Operating Cash Flow | 970.00M | 1.29B | 1.37B | 975.00M | 1.62B |
| Investing Cash Flow | -462.00M | -534.00M | -432.00M | 392.00M | -29.00M |
| Financing Cash Flow | -797.00M | -454.00M | -888.00M | -1.32B | -1.69B |
Eastman Chemical Technical Analysis
Positive
73.79
Price Trends
73.52
Positive
68.48
Positive
66.69
Positive
Market Momentum
0.72
Negative
53.37
Neutral
36.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EMN, the sentiment is Positive. The current price of 73.79 is above the 20-day moving average (MA) of 72.20, above the 50-day MA of 73.52, and above the 200-day MA of 66.69, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 36.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EMN.
Eastman Chemical Risk Analysis
Eastman Chemical disclosed 16 risk factors in its most recent earnings report. Eastman Chemical reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
The Company is subject to risks associated with the potential use of artificial intelligence in the Company's own operations and by third-party partners that the Company may engage with. Q4, 2025
Eastman Chemical Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $9.26B | 31.70 | 7.29% | 1.25% | 3.87% | -10.30% | |
68 Neutral | $8.46B | 15.45 | 8.09% | 5.33% | -3.33% | -19.59% | |
66 Neutral | $6.19B | 15.40 | 25.38% | 1.59% | -1.11% | 5.15% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
58 Neutral | $15.37B | -6.32 | -15.50% | 2.88% | -5.32% | -1108.29% | |
57 Neutral | $21.85B | -32.60 | -5.13% | 1.10% | -23.92% | 90.47% | |
50 Neutral | $5.53B | ― | -9.02% | ― | -3.59% | -126.16% |
* Basic Materials Sector Average
EMN
Eastman Chemical
73.79
-0.25
-0.34%
ALB
Albemarle
189.86
136.78
257.70%
NEU
Newmarket
654.29
101.73
18.41%
WLK
Westlake Corporation
117.93
30.26
34.51%
ESI
Element Solutions
38.19
19.67
106.20%
AVTR
Avantor
8.20
-7.20
-46.75%
Eastman Chemical Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Eastman Chemical Issues $600 Million Senior Notes Offering
Positive
Feb 20, 2026
On February 20, 2026, Eastman Chemical Company issued $600 million of 4.500% unsecured notes due 2031 in a public offering, with interest payable semi-annually and optional redemption features that allow early repayment under specified make-whole ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.