Eastman Chemical commentary: Strong additives performance supports Q3 2026 EPS growth
EMN•Eastman Chemical reported third-quarter 2026 adjusted EPS of $1.84, up significantly year over year but modestly lower sequentially. Management projected full-year adjusted EPS of $6.00 to $6.20 and operating cash flow of approximately $850 million.
1. Quarterly performance
Third-quarter adjusted EPS was $1.84, up significantly year over year but modestly lower sequentially. Revenue fell 5% sequentially as sales volume and mix declined 7%, reflecting seasonal weakness and customer caution. Management attributed the sequential earnings decline primarily to escalating Middle East conflict, which increased costs and weakened demand.
2. Business outlook
Additives & Functional Products earnings exceeded expectations, while Advanced Materials faced softer demand, operational constraints and raw material cost pressures. Management projected full-year 2026 adjusted EPS of $6.00 to $6.20 and operating cash flow of approximately $850 million.
