Eastman Chemical Company EMN reported first-quarter 2025 earnings of $1.57 per share, reflecting a rise of 12.9% from the year-ago quarter's figure of $1.39.

EMN posted adjusted earnings of $1.91 per share, up 18.6% from the year-ago quarter figure of $1.61. It surpassed the Zacks Consensus Estimate of $1.89.

The company’s revenues in the first quarter were $2,290 million, which missed the Zacks Consensus Estimate of $2,308.6 million. Sales decreased around 1% from $2,310 million reported in the prior-year quarter.

The sales volumes were mainly impacted by customer inventory destocking in acetate tow products, but this was largely offset by increased sales volume in Additives & Functional Products and Chemical Intermediates. Selling prices rose primarily due to cost-pass-through contracts.

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Eastman Chemical Company Price, Consensus and EPS Surprise

Eastman Chemical Company price-consensus-eps-surprise-chart | Eastman Chemical Company Quote

EMN’s Segment Highlights

Advanced Materials: Revenues from this segment fell 3.9% year over year to $719 million in the first quarter. The figure missed our estimate of $763.7 million. Sales revenue declined as a result of reduced selling prices, a less favorable sales volume mix and negative effects from foreign currency exchange rates.

Additives & Functional Products: Revenues from this segment were $733 million, reflecting an upside of 4.1% from the year-ago quarter. The figure topped our estimate of $703.3 million. Sales were driven by higher selling prices and an improved sales volume mix, although gains were partially tempered by unfavorable foreign currency exchange fluctuations.

Chemical Intermediaries: Net sales from this segment were up 4.2% year over year to $545 million. The figure beat our estimate of $533.5 million. Sales revenue rose as a result of increased selling prices and a stronger sales volume mix, though the growth was partially offset by negative impacts from foreign currency exchange rates.

Fibers: This segment reported net sales amounting to $288 million, which reflected a decline of 12.9% year over year. The figure missed our estimate of $325 million. Sales revenue declined primarily due to a less favorable sales volume mix and reduced selling prices.

EMN’s Financials

In the first quarter of 2025, cash used in operating activities totaled $167 million. Dividends paid to stockholders were $96 million.

EMN’s Guidance

The company raised its cost reduction goal to approximately $75 million, net of inflation and lowering its capital expenditures to about $550 million. Backed by an innovative portfolio of specialty products, exposure to diverse end markets and a strong balance sheet, the company is well-equipped to manage challenges arising from increasing tariffs affecting global trade.

In this environment, the company anticipates generating a robust operating cash flow of around $1.2 billion for full-year 2025, continuing its consistent performance across varying macroeconomic conditions. Given the wide range of potential global economic outcomes and limited visibility, the company is shifting to providing adjusted earnings per share (EPS) guidance on a quarterly basis.

For the second quarter, order activity in April has remained steady compared to March, and the company expects a slight sequential volume increase across its markets. However, due to ongoing trade uncertainties, this growth may not reach typical levels. The quarter will also be affected by headwinds from U.S.-China tariffs and increased planned maintenance expenses. Considering all these factors, second-quarter adjusted EPS is projected to be within the range of $1.70 to $1.90.

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EMN’s Price Performance

EMN’s shares are down 15.9% over a year compared with a 25.7% decline recorded by its industry.Zacks Investment Research

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EMN’s Zacks Rank & Key Picks

EMN currently carries a Zacks Rank #4 (Sell).

Some top-ranked stocks worth a look in the basic materials space are  Hawkins, Inc. HWKN, Osisko Gold Royalties Ltd OR and Intrepid Potash, Inc. IPI. While HWKN sports a Zacks Rank #1 (Strong Buy), OR and IPI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is expected to report first-quarter results on May 21. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

Osisko Gold is scheduled to release first-quarter results on May 7. The Zacks Consensus Estimate for OR’s first-quarter earnings is pegged at 15 cents. OR has a trailing four-quarter earnings surprise of 4.4%, on average. 

Intrepid Potash is slated to release first-quarter results on May 5. The consensus estimate for IPI’s first-quarter loss is pegged at 12 cents, stable over the past 60 days.

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