Eastman Chemical Company (EMN) Q2 2026 earnings summary

Executive summary

• Achieved strong sequential EPS growth and robust cash flow, with Q2 2026 sales revenue up 10% year-over-year, led by Advanced Materials and Chemical Intermediates.

• Adjusted EPS rose to $1.97, and adjusted EBIT margin improved to 12.7%, reflecting commercial and operational excellence.

• Circular platform revenue doubled in the first half of 2026, with continued innovation and strategic momentum.

• Progressed toward $125–$150 million in cost savings, net of inflation, and maintained focus on solid operating cash flow.

• Full-year earnings outlook improved, supported by price discipline, cost reductions, and operational tailwinds.

Financial highlights

• Q2 2026 revenue was $2,513M, up 10% year-over-year, with adjusted EBIT of $320M and adjusted EPS of $1.97.

• Advanced Materials and Chemical Intermediates segments led growth, with Chemical Intermediates sales up 39% and EBIT up to $58M.

• Gross margin reached $560M (22.3%), and operating margin improved to 12.4%.

• Net earnings for Q2 2026 were $183M, up from $140M in Q2 2025.

• Operating cash flow for the first six months was $87M, with net cash from operating activities at $224M in Q2.

Outlook and guidance

• Full-year 2026 earnings expected to significantly improve versus 2025, with Q3 adjusted EPS projected to approach Q2's $1.97.

• Operating cash flow for 2026 projected to approach $900M, with disciplined capital expenditures of ~$400M.

• Circular platform sales expected to grow by $100M or more in 2026, with margins above company average.

• Cost reduction targets of $125–$150M net of inflation are on track.

• No improvement expected in weak discretionary end markets for the remainder of the year.