Eastman Reports Q1 2025 Results: EPS Rises 19%, Cost Focus Strengthens Amid Trade Uncertainty

Eastman Chemical Company (NYSE: EMN) reported a strong first quarter for 2025, posting adjusted earnings per share of $1.91—up 19% year over year and in line with prior guidance. Despite a 1% decline in sales to $2.29 billion, adjusted EBIT rose to $311 million with margin expansion of 170 basis points, driven by innovation, cost control, and improved operations, including record uptime at the Kingsport methanolysis facility.

Segment highlights included a 4% sales increase in both Additives & Functional Products and Chemical Intermediates, while the Fibers segment declined 13% due to continued destocking. Cash used in operations rose to $167 million, primarily from inventory buildup ahead of planned Q2 maintenance.

CEO Mark Costa reaffirmed a focus on cash generation, cost discipline, and capital spending cuts amid escalating tariff risks. Full-year operating cash flow is projected at $1.2 billion, with Q2 adjusted EPS expected between $1.70 and $1.90.