Eastman Chemical Company · NYSE:EMN
Eastman Chemical — Q1 2025 Earnings Presentation
14 slides from Eastman Chemical's earnings presentation, Apr 25, 2025
Slide 1: 1Q 2025 financial results
1Q 2025 financial results April 24, 2025
Slide 2: Prepared remarks, forward-looking statements, 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 release and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation
Slide 3: 1Q 2025 highlights
1Q 2025 highlights Strong start to 2025 with 19% adjusted EPS growth in 1Q25, in line with our January guidance Innovation strategy enabling 170-basis-point year-over-year adjusted EBIT margin improvement through innovation, commercial excellence, and operating leverage Strong operational performanc
Slide 4: Corporate
Corporate $M (except EPS) 1Q25 1Q24 4Q24 1Q25 vs. 1Q24 highlights Revenue 2,290 2,310 2,245 • Volume/Mix growth in AFP and CI offset by Fibers Adjusted EBIT 311 274 305 • Favorable price-cost Adjusted EBIT margin 13.6% 11.9% 13.6% • Benefit from Kingsport methanolysis facility Adjusted EPS 1.91 1.61
Slide 5: Circular Economy platform is a key differentiator for Eastman
Circular Economy platform is a key differentiator for Eastman ➢ Strong first-quarter operational performance at Kingsport methanolysis facility • Recorded best-ever uptime and production quantities producing at an annualized level >2.5x 2024 levels and great progress on cost-reduction targets ➢ Tari
Slide 6: Advanced Materials
Advanced Materials $M 1Q25 1Q24 4Q24 1Q25 vs. 1Q24 highlights • Favorable product mix driven by new application Revenue 719 748 720 wins in consumer durables Adjusted EBIT 116 104 107 • Stable price-cost Adjusted EBIT margin 16.1% 13.9% 14.9% • Continued cost discipline Revenue change % Total Vol /
Slide 7: Additives & Functional Products
Additives & Functional Products $M 1Q25 1Q24 4Q24 1Q25 vs. 1Q24 highlights • Higher selling prices driven by cost-pass-through Revenue 733 704 696 contracts Adjusted EBIT 141 109 128 • Higher sales volume/mix in coatings additives Adjusted EBIT margin 19.2% 15.5% 18.4% and specialty fluids Revenue c
Slide 8: Fibers
Fibers $M 1Q25 1Q24 4Q24 1Q25 vs. 1Q24 highlights • Lower sales volume/mix due to inventory Revenue 288 331 321 destocking in acetate tow and a Adjusted EBIT 88 117 103 discontinued product Adjusted EBIT margin 30.6% 35.3% 32.1% Revenue change % Total Vol / Mix Price FX 1Q25 vs 1Q24 -13 -12 -1 0 1Q2
Slide 9: Chemical Intermediates
Chemical Intermediates $M 1Q25 1Q24 4Q24 1Q25 vs. 1Q24 highlights • Spread expansion partially offset by Revenue 545 523 503 unfavorable product mix Adjusted EBIT 19 16 20 Adjusted EBIT margin 3.5% 3.1% 4.0% Revenue change % Total Vol / Mix Price FX 1Q25 vs 1Q24 4 2 3 -1 1Q25 vs 4Q24 8 9 0 -1 2Q 202
Slide 10: Net Debt / Adjusted EBITDA
Eastman is in a strong financial position to effectively navigate an uncertain environment Track record of strong operating Significantly improved financial Manageable public debt maturities* cash flow in any environment position since COVID $1,800 1,000 3.0 Net Debt / Adjusted EBITDA $1,600 900 2.8
Slide 11: With heightened uncertainty, we are focused on what we can control
With heightened uncertainty, we are focused on what we can control Focused on controllables Navigating uncertainties • Emphasizing cash generation in uncertain • Global trade dispute could result in a wide environment range of outcomes for the global economy • Reducing capital expenditures to ~$550
Slide 12: Appendix
Appendix 12
Slide 13: FY2025 underlying assumptions and modeling items
FY2025 underlying assumptions and modeling items Updated from prior guidance • Brent crude oil: ~$70/barrel; previously ~$75/barrel • Foreign currency exchange rates, net of hedging: USD/EUR $1.10 (previously $1.05); CNY/USD 7.20; JPY/USD 150 • Corporate ‘Other’ adjusted Loss Before Interest and Tax
Slide 14: Adjusted EBITDA to Net Earnings reconciliation
Adjusted EBITDA to Net Earnings reconciliation (Dollars in millions) Q4 2024 Q1 2020 TTM Full year Net earnings $ 908 $ 830 Plus: Depreciation 419 443 Amortization 90 152 Net interest expense 200 214 Provision for income taxes 170 141 EBITDA $ 1,787 $ 1,780 Add back: Cost of sales impact from restru
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