Eastman projects Q3 adjusted EPS to approach Q2 2026 EPS of $1.97
Company expects 2026 operating cash flow to approach $900 mln, modestly below prior expectation
Eastman maintains 2026 cost reduction target of $125 mln to $150 mln, net of inflation
Overview
US specialty materials maker's Q2 revenue rose 10% yr/yr, beating analyst expectations
Adjusted EPS for Q2 beat consensus, driven by higher sales and cost management
Company achieved 350-basis-point sequential adjusted EBIT margin improvement on higher volume and pricing
Result drivers
Volume and pricing gains - Higher sales volume/mix and increased selling prices, especially in Chemical Intermediates and Advanced Materials, drove revenue and margin improvement.
Cost management - Disciplined price-cost management and cost-reduction initiatives contributed to higher EBIT and margin expansion.
Segment variation - Strong growth in Chemical Intermediates offset by declines in Fibers due to inventory destocking and weak textiles demand.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the specialty chemicals peer group is "buy".
Wall Street's median 12-month price target for Eastman Chemical Co is $79.50, about 18.2% above its July 29 closing price of $67.28.
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago.
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