Eastman Chemical reported fourth-quarter 2025 sales of $3.2 billion, a 7 percent year-over-year decline driven primarily by weaker demand in specialty plastics and advanced materials. GAAP earnings per share came in at $1.05, down from $1.20 in Q4 2024, reflecting continued destocking by key consumer and industrial customers in North America and Europe. Full-year 2025 revenue declined 3 percent to $13.4 billion, while full-year EPS was $4.75 compared with $5.10 in 2024.

Despite top-line pressure, Eastman exceeded its 2025 cost-savings target of $250 million, delivering $280 million in structural and efficiency improvements. These savings contributed to a fourth-quarter adjusted EBITDA margin of 18.5 percent, up 120 basis points sequentially. Management highlighted the benefits of its recent operating model optimization, including plant debottlenecking in Tennessee and energy-efficiency upgrades in Texas, which together generated $45 million of incremental annualized savings.

Q4 earnings per share fell $0.10 short of the $1.15 consensus, while sales trailed the $3.3 billion estimate by $100 million. Volume declines of 4 percent in specialty segments were partially offset by a 2 percent pricing improvement. Free cash flow for the quarter was $350 million, exceeding consensus by $50 million thanks to tighter working-capital management. For full-year 2026, management reiterated a mid-single-digit sales growth target and $300 million in incremental cost savings, while guiding adjusted EBITDA margins toward 19–19.5 percent.