Eastman Kodak Company (KODK) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $261 million, down 3% year-over-year, with the decline slowing and in line with expectations.

• Net income for Q3 2024 was $18 million, up from $2 million in Q3 2023, driven by lower restructuring and absence of prior year debt extinguishment losses.

• Ongoing investments in innovation, advanced materials, chemicals, and battery technology remain a strategic focus.

• Print segment revenues declined 7% in Q3, while Advanced Materials & Chemicals grew 11% in Q3.

• Significant win in U.S. tariff cases on aluminum printing plates, establishing a level playing field in the U.S. market.

Financial highlights

• Gross profit for Q3 2024 was $44–$45 million, down $5 million (10%) year-over-year, with gross margin at 17% versus 19% last year.

• Operational EBITDA for Q3 2024 was $1 million, down from $12 million in Q3 2023, mainly due to higher manufacturing and litigation costs.

• For the nine months ending September 30, 2024, revenue was $777 million (down 8%), and net income was $76 million (up $6 million year-over-year).

• Excluding non-recurring items, nine-month net income was $60 million, down from $87 million in the prior year.

• Basic EPS for Q3 2024 was $0.16, diluted EPS $0.15.

Outlook and guidance

• Financial results are within expectations for the current year and align with the long-term strategy.

• Management expects continued challenges from global economic volatility, inflation, and supply chain disruptions.

• Continued focus on operational efficiency, innovation, and growth in advanced materials and chemicals.

• Liquidity is considered adequate for current needs, but long-term funding depends on positive cash flow and refinancing preferred stock maturities in 2026.