Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q4 2024 Earnings Presentation
14 slides from Eastman Chemical's earnings presentation, Jan 31, 2025
Slide 1: 4Q and FY 2024 financial results
4Q and FY 2024 financial results January 30, 2025
Slide 2: Forward-looking statements and non-GAAP financial measures
Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. Forward-looking statements The information in this presentation and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litig
Slide 3: 2024 highlights
2024 highlights Delivered strong year-over-year sales volume/mix growth in Advanced Materials and Additives & Functional Products Drove a 190-basis-point adjusted EBIT margin improvement through volume/mix growth, operating leverage, and commercial excellence Established Eastman as a leader in circu
Slide 4: Corporate
Corporate $M (except EPS) 4Q24 4Q23 3Q24 FY24 FY23 4Q24 vs. 4Q23 highlights Revenue 2,245 2,207 2,464 9,382 9,210 • Higher sales volume/mix driven by the end of Adjusted EBIT 305 222 366 1,298 1,097 customer inventory destocking and innovation- driven growth Adjusted EBIT margin 13.6% 10.1% 14.9% 13
Slide 5: Kingsport methanolysis on track to deliver significant year-over-year growth in 2025
Kingsport methanolysis on track to deliver significant year-over-year growth in 2025 Achieving $75M – $100M incremental EBITDA in 2025 requires: Kingsport methanolysis Renew EBITDA – 2025 vs 2024 $75M–$100M • $75M–$100M of Renew revenue growth driven by ramp-up of existing customers plus new busines
Slide 6: Advanced Materials
Advanced Materials $M 4Q24 4Q23 3Q24 FY24 FY23 4Q24 vs. 4Q23 highlights Revenue 720 705 787 3,050 2,932 • Higher sales volume/mix from the end of customer inventory destocking and innovation initiatives Adjusted EBIT 107 65 122 464 343 Adjusted EBIT margin 14.9% 9.2% 15.5% 15.2% 11.7% • Favorable pr
Slide 7: Additives & Functional Products
Additives & Functional Products $M 4Q24 4Q23 3Q24 FY24 FY23 4Q24 vs. 4Q23 highlights Revenue 696 640 744 2,862 2,834 • Higher sales volume/mix from the end of customer inventory destocking across key end markets, Adjusted EBIT 128 67 130 490 436 including agriculture Adjusted EBIT margin 18.4% 10.5%
Slide 8: Fibers
Fibers $M 4Q24 4Q23 3Q24 FY24 FY23 4Q24 vs. 4Q23 highlights Revenue 321 346 336 1,318 1,295 • Lower sales volume/mix due to customer inventory management Adjusted EBIT 103 113 112 454 422 Adjusted EBIT margin 32.1% 32.7% 33.3% 34.4% 32.6% • Higher selling prices in acetate tow Revenue change % Total
Slide 9: Chemical Intermediates
Chemical Intermediates $M 4Q24 4Q23 3Q24 FY24 FY23 4Q24 vs. 4Q23 highlights Revenue 503 513 593 2,134 2,143 • Lower sales volume/mix due to weak end market demand Adjusted EBIT 20 24 43 101 111 Adjusted EBIT margin 4.0% 4.7% 7.3% 4.7% 5.2% • Spread compression partially offset by improved capacity u
Slide 10: Cash flow and other financial highlights
Cash flow and other financial highlights Resilient cash flow Balance sheet and tax rate Well positioned with FY25 forecasted Strong FY24 Expect continued operating cash flow disciplined cash flow solid investment-grade adjusted effective tax rate ~$1.3 billion management in FY25 balance sheet and su
Slide 11: 2025 end-market outlook
2025 end-market outlook End market 1Q25 sequential FY25 vs FY24 Stable end markets Modest increase in demand due to Low-single-digit demand growth, consistent with (>45% of corporate revenue) seasonality trends in 2H24 Transportation Decrease in global auto OEM production Projecting slightly lower g
Slide 12: 2025 outlook
2025 outlook Tailwinds vs FY2024 Headwinds/uncertainties vs FY2024 • $75 million–$100 million of incremental EBITDA from • Higher energy costs Kingsport methanolysis • Stronger U.S. dollar • Innovation driving growth above end-market trends in the specialties • Volume decline in Fibers due to custom
Slide 13: Appendix
Appendix 13
Slide 14: FY2025 underlying assumptions and modeling items
FY2025 underlying assumptions and modeling items • Natural gas prices consistent with recent FY25 Henry Hub average forward curves: ~$3.60/MMBtu • Brent crude oil: ~$75/barrel • Foreign currency exchange rates, net of hedging: USD/EURO $1.05; CNY/USD 7.20; JPY/USD 150 • Corporate ‘Other’ adjusted Lo
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