Eastman Chemical Company (EMN) Status Update summary

Strategic progress and innovation

• Maintains focus on five strategic pillars since 2021, emphasizing innovation-driven growth, circular economy, investment in people/assets, ESG, and portfolio discipline.

• Innovation-driven growth model has delivered a significant product mix upgrade, even during weak macroeconomic conditions.

• Resilient earnings and cash flow achieved through disciplined portfolio management and divestiture of underperforming assets.

• Continued investment in capabilities and culture to support growth and value creation.

• Returned $5 billion to shareholders from 2019–2024, with a 15% reduction in share count.

Circular economy and sustainability initiatives

• Circular economy platform leverages advanced methanolysis technology to recycle hard-to-recycle plastics into high-quality polymers.

• Kingsport methanolysis facility and Texas project expected to deliver >$350M EBITDA by 2029.

• Methanolysis plant operational, producing 20,000 tons of recycled DMT in 2024, with 85% yield and 90% uptime post-November restart.

• Texas and France projects will expand capacity, with Texas benefiting from a $375 million DOE grant and targeting >12% returns.

• Texas project targets net zero products, leveraging renewable energy and advanced process heat.

Market engagement and customer adoption

• Strong customer engagement and application development drive adoption of sustainable products in new and existing markets.

• Renew revenue in durables expected to double in 2025, with packaging sales set for dramatic increase as capacity expands.

• Flexible asset base allows optimization between specialty and PET production to maximize value.

• Customer demand for recycled content varies by segment, with both mass balance and direct content models in use.

• Off-take agreement momentum has slowed in Europe due to inflation and regulatory uncertainty, delaying the France project.