Revenue growth has decelerated to a 4.9% contraction in 2026Q1, while gross margins have compressed significantly from 25.3% in 2024Q2 to 19.8% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 8.64B | 8.75B | 9.38B | 9.2B | 10.54B | 10.48B | 8.46B | 9.25B | 10.12B | 9.51B | 8.95B | 9.56B | 9.51B | 9.36B | 8.06B | 7.18B | 5.8B | 5.02B | 6.73B | 6.83B | 7.45B | 7.06B | 6.58B | 5.8B | 5.32B | 5.39B | 5.29B | 4.59B | 4.48B | 4.68B | 4.78B |
| Revenue Growth % | -7.72% | -6.71% | 2% | -12.69% | 0.5% | 23.85% | -8.47% | -8.64% | 6.39% | 6.36% | -6.41% | 0.48% | 1.65% | 16.05% | 12.34% | 23.8% | 15.41% | -25.3% | -1.52% | -8.32% | 5.54% | 7.28% | 13.45% | 9.02% | -1.3% | 1.85% | 15.29% | 2.43% | -4.21% | -2.17% | -5.12% |
| Cost of Goods Sold | 6.93B | 6.91B | 7.09B | 7.14B | 8.48B | 7.96B | 6.46B | 7B | 7.69B | 7.03B | 6.49B | 6.85B | 7.3B | 6.59B | 6.32B | 5.54B | 4.37B | 3.99B | 5.59B | 5.59B | 6.17B | 5.66B | 5.6B | 4.99B | 4.54B | 4.5B | 4.23B | 3.77B | 3.55B | 3.58B | 3.6B |
| COGS % of Revenue | - | 78.93% | 75.59% | 77.58% | 80.48% | 75.98% | 76.31% | 75.69% | 76% | 73.9% | 72.55% | 71.68% | 76.73% | 70.4% | 78.35% | 77.15% | 75.35% | 79.38% | 83.13% | 81.83% | 82.86% | 80.11% | 85.14% | 86.03% | 85.36% | 83.43% | 79.86% | 82.09% | 79.13% | 76.57% | 75.34% |
| Gross Profit | 1.71B | 1.84B | 2.29B | 2.06B | 2.06B | 2.52B | 2B | 2.25B | 2.43B | 2.48B | 2.46B | 2.71B | 2.21B | 2.77B | 1.75B | 1.64B | 1.43B | 1.04B | 1.14B | 1.24B | 1.28B | 1.4B | 978M | 810M | 779M | 893M | 1.07B | 822M | 935M | 1.1B | 1.18B |
| Gross Margin % | 19.77% | 21.07% | 24.41% | 22.42% | 19.52% | 24.02% | 23.69% | 24.31% | 24% | 26.1% | 27.45% | 28.32% | 23.27% | 29.6% | 21.65% | 22.85% | 24.65% | 20.62% | 16.87% | 18.17% | 17.14% | 19.89% | 14.86% | 13.97% | 14.64% | 16.57% | 20.14% | 17.91% | 20.87% | 23.43% | 24.65% |
| Gross Profit Growth % | - | -19.48% | 11.06% | 0.29% | -18.35% | 25.59% | -10.81% | -7.45% | -2.17% | 1.14% | -9.31% | 22.32% | -20.11% | 58.65% | 6.46% | 14.77% | 37.93% | -8.72% | -8.54% | -2.82% | -9.05% | 43.56% | 20.74% | 3.98% | -12.77% | -16.23% | 29.68% | -12.09% | -14.69% | -7.04% | -34.93% |
| Operating Expenses | 900M | 913M | 914M | 966M | 972M | 1.05B | 880M | 925M | 956M | 956M | 913M | 985M | 936M | 802M | 798M | 623M | 583M | 536M | 577M | 576M | 604M | 616M | 604M | 1.08B | 571M | 1.02B | 504M | 620M | 501M | 590M | 516M |
| OpEx % of Revenue | - | 10.43% | 9.74% | 10.5% | 9.23% | 10.01% | 10.4% | 10% | 9.44% | 10.05% | 10.21% | 10.31% | 9.84% | 8.57% | 9.9% | 8.68% | 10.06% | 10.67% | 8.58% | 8.43% | 8.11% | 8.73% | 9.18% | 18.57% | 10.73% | 18.91% | 9.52% | 13.51% | 11.18% | 12.61% | 10.79% |
| Selling, General & Admin | 652M | 658M | 664M | 727M | 708M | 795M | 654M | 691M | 721M | 729M | 694M | 743M | 709M | 609M | 600M | 465M | 431M | 399M | 419M | 420M | 437M | 454M | 450M | 414M | 407M | 407M | 346M | 355M | 316M | 337M | 332M |
| SG&A % of Revenue | - | 7.52% | 7.08% | 7.9% | 6.72% | 7.58% | 7.73% | 7.47% | 7.12% | 7.66% | 7.76% | 7.77% | 7.45% | 6.51% | 7.44% | 6.48% | 7.43% | 7.94% | 6.23% | 6.15% | 5.87% | 6.43% | 6.84% | 7.14% | 7.65% | 7.55% | 6.54% | 7.73% | 7.05% | 7.2% | 6.94% |
| Research & Development | 248M | 255M | 250M | 239M | 264M | 254M | 226M | 234M | 235M | 214M | 217M | 251M | 227M | 193M | 198M | 158M | 152M | 137M | 158M | 156M | 167M | 162M | 154M | 173M | 159M | 160M | 149M | 187M | 185M | 191M | 184M |
| R&D % of Revenue | - | 2.91% | 2.66% | 2.6% | 2.51% | 2.42% | 2.67% | 2.53% | 2.32% | 2.25% | 2.43% | 2.63% | 2.39% | 2.06% | 2.46% | 2.2% | 2.62% | 2.73% | 2.35% | 2.28% | 2.24% | 2.29% | 2.34% | 2.98% | 2.99% | 2.97% | 2.82% | 4.07% | 4.13% | 4.08% | 3.85% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 490M | 5M | 452M | 9M | 78M | 0 | 62M | 0 |
| Operating Income | 808M | 931M | 1.38B | 1.1B | 1.08B | 1.47B | 1.13B | 1.32B | 1.47B | 1.53B | 1.54B | 1.72B | 1.28B | 1.97B | 948M | 1.02B | 846M | 500M | 558M | 665M | 673M | 788M | 374M | -267M | 208M | -126M | 562M | 202M | 434M | 506M | 663M |
| Operating Margin % | 9.35% | 10.64% | 14.67% | 11.92% | 10.29% | 14.01% | 13.29% | 14.31% | 14.55% | 16.05% | 17.24% | 18.02% | 13.43% | 21.03% | 11.76% | 14.17% | 14.59% | 9.95% | 8.3% | 9.74% | 9.03% | 11.16% | 5.68% | -4.6% | 3.91% | -2.34% | 10.62% | 4.4% | 9.69% | 10.82% | 13.86% |
| Operating Income Growth % | - | -32.34% | 25.55% | 1.11% | -26.21% | 30.58% | -14.97% | -10.18% | -3.54% | -0.97% | -10.45% | 34.85% | -35.11% | 107.59% | -6.78% | 20.21% | 69.2% | -10.39% | -16.09% | -1.19% | -14.59% | 110.7% | 240.07% | -228.37% | 265.08% | -122.42% | 178.22% | -53.46% | -14.23% | -23.68% | -31.22% |
| EBITDA | 1.2B | 1.44B | 1.89B | 1.59B | 1.56B | 2.01B | 1.7B | 1.93B | 2.07B | 2.11B | 2.12B | 2.29B | 1.73B | 2.4B | 1.31B | 1.29B | 1.13B | 774M | 825M | 992M | 981M | 1.09B | 696M | 100M | 605M | 309M | 980M | 585M | 785M | 833M | 977M |
| EBITDA Margin % | 13.83% | 16.5% | 20.09% | 17.33% | 14.82% | 19.15% | 20.07% | 20.9% | 20.49% | 22.19% | 23.72% | 23.99% | 18.16% | 25.66% | 16.22% | 17.97% | 19.42% | 15.41% | 12.27% | 14.52% | 13.17% | 15.47% | 10.58% | 1.72% | 11.37% | 5.73% | 18.52% | 12.75% | 17.52% | 17.81% | 20.43% |
| EBITDA Growth % | -37.89% | -23.4% | 18.26% | 2.11% | -22.22% | 18.13% | -12.11% | -6.8% | -1.75% | -0.52% | -7.46% | 32.77% | -28.07% | 83.56% | 1.4% | 14.56% | 45.48% | -6.18% | -16.83% | 1.12% | -10.16% | 56.9% | 596% | -83.47% | 95.79% | -68.47% | 67.52% | -25.48% | -5.76% | -14.74% | -23.19% |
| D&A (Non-Cash Add-back) | 387M | 513M | 509M | 498M | 477M | 538M | 574M | 610M | 601M | 584M | 580M | 571M | 450M | 433M | 360M | 273M | 280M | 274M | 267M | 327M | 308M | 304M | 322M | 367M | 397M | 435M | 418M | 383M | 351M | 327M | 314M |
| EBIT | 479M | 776M | 1.29B | 1.31B | 1.16B | 1.27B | 735M | 1.12B | 1.54B | 1.53B | 1.33B | 1.41B | 1.19B | 1.86B | 815M | 1.05B | 742M | 311M | 523M | 573M | 681M | 896M | 185M | 222M | 213M | 281M | 571M | 227M | 434M | 506M | 663M |
| Net Interest Income | -159M | -208M | -200M | -215M | -182M | -189M | -201M | -218M | -235M | -241M | -255M | -263M | -187M | -180M | -143M | -76M | -99M | -78M | -70M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 5M | 0 | 16M | 10M | 6M | 3M | 4M | 3M | 3M | 3M | 3M | 3M | 16M | 6M | 5M | 7M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 216M | 208M | 216M | 225M | 188M | 192M | 205M | 221M | 238M | 244M | 258M | 266M | 203M | 186M | 148M | 83M | 105M | 78M | 70M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -357M | -363M | -298M | -9M | -107M | -387M | -595M | -421M | -163M | -238M | -493M | -593M | -287M | -289M | -299M | -53M | -210M | -274M | -129M | -195M | -97M | -5M | -310M | -114M | -124M | -171M | -110M | -130M | -74M | -60M | -56M |
| Pretax Income | 451M | 568M | 1.08B | 1.09B | 977M | 1.08B | 530M | 902M | 1.31B | 1.3B | 1.07B | 1.13B | 990M | 1.68B | 649M | 964M | 636M | 226M | 429M | 470M | 576M | 783M | 64M | -381M | 84M | -297M | 452M | 72M | 360M | 446M | 607M |
| Pretax Margin % | 5.22% | 6.49% | 11.49% | 11.82% | 9.27% | 10.32% | 6.26% | 9.75% | 12.94% | 13.69% | 11.96% | 11.81% | 10.41% | 17.94% | 8.05% | 13.43% | 10.97% | 4.5% | 6.38% | 6.88% | 7.73% | 11.09% | 0.97% | -6.57% | 1.58% | -5.51% | 8.54% | 1.57% | 8.03% | 9.53% | 12.69% |
| Income Tax | 52M | 93M | 170M | 191M | 181M | 215M | 41M | 140M | 226M | -177M | 199M | 275M | 235M | 507M | 206M | 307M | 211M | 90M | 101M | 149M | 167M | 226M | -106M | -108M | 5M | -118M | 149M | 24M | 111M | 160M | 227M |
| Effective Tax Rate % | 11.53% | 16.37% | 15.77% | 17.57% | 18.53% | 19.87% | 7.74% | 15.52% | 17.25% | -13.59% | 18.6% | 24.36% | 23.74% | 30.2% | 31.74% | 31.85% | 33.18% | 39.82% | 23.54% | 31.7% | 28.99% | 28.86% | -165.63% | 28.35% | 5.95% | 39.73% | 32.96% | 33.33% | 30.83% | 35.87% | 37.4% |
| Net Income | 399M | 474M | 905M | 894M | 793M | 857M | 478M | 759M | 1.08B | 1.47B | 866M | 848M | 751M | 1.17B | 437M | 696M | 438M | 136M | 346M | 300M | 409M | 557M | 170M | -270M | 61M | -179M | 303M | 48M | 249M | 286M | 380M |
| Net Margin % | 4.62% | 5.42% | 9.65% | 9.72% | 7.53% | 8.18% | 5.65% | 8.21% | 10.67% | 15.49% | 9.68% | 8.87% | 7.9% | 12.45% | 5.42% | 9.7% | 7.55% | 2.71% | 5.14% | 4.39% | 5.49% | 7.89% | 2.58% | -4.66% | 1.15% | -3.32% | 5.73% | 1.05% | 5.56% | 6.11% | 7.95% |
| Net Income Growth % | -56.72% | -47.62% | 1.23% | 12.74% | -7.47% | 79.29% | -37.02% | -29.72% | -26.73% | 70.21% | 2.12% | 12.92% | -35.54% | 166.59% | -37.21% | 58.9% | 222.06% | -60.69% | 15.33% | -26.65% | -26.57% | 227.65% | 162.96% | -542.62% | 134.08% | -159.08% | 531.25% | -80.72% | -12.94% | -24.74% | -32.02% |
| Net Income (Continuing) | 399M | 475M | 908M | 896M | 796M | 867M | 489M | 762M | 1.08B | 1.39B | 859M | 854M | 755M | 1.17B | 443M | 657M | 425M | 136M | 328M | 321M | 427M | 557M | 170M | -273M | 79M | -175M | 303M | 48M | 249M | 286M | 380M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2M | 0 | 0 | 0 | 13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 77M | 76M | 73M | 72M | 83M | 84M | 85M | 74M | 75M | 77M | 76M | 80M | 80M | 79M | 85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | 4.10 | 7.67 | 7.49 | 6.35 | 6.25 | 3.50 | 5.48 | 7.56 | 10.09 | 5.84 | 5.66 | 4.97 | 7.44 | 2.93 | 4.86 | 2.96 | 0.93 | 2.28 | 1.79 | 2.46 | 3.41 | 1.09 | -1.75 | 0.40 | -1.17 | 1.97 | 0.31 | 1.57 | 1.82 | 2.40 |
| EPS Growth % | -55.98% | -46.54% | 2.4% | 17.95% | 1.6% | 78.57% | -36.13% | -27.51% | -25.07% | 72.77% | 3.18% | 13.88% | -33.2% | 153.92% | -39.71% | 64.19% | 218.28% | -59.21% | 27.37% | -27.24% | -27.86% | 212.84% | 162.29% | -537.5% | 134.19% | -159.39% | 535.48% | -80.25% | -13.74% | -24.17% | -29.2% |
| EPS (Basic) | - | 4.13 | 7.75 | 7.54 | 6.42 | 6.35 | 3.53 | 5.52 | 7.65 | 10.18 | 5.88 | 5.71 | 5.03 | 7.57 | 3.00 | 4.98 | 3.04 | 0.94 | 2.30 | 1.82 | 2.49 | 3.45 | 1.10 | -1.75 | 0.40 | -1.17 | 1.98 | 0.31 | 1.58 | 1.83 | 2.42 |
| Diluted Shares Outstanding | 0 | 115.6M | 117.9M | 119.4M | 124.9M | 137.1M | 136.5M | 138.5M | 142.9M | 146.1M | 148.4M | 149.8M | 151.1M | 156.5M | 149.1M | 143.1M | 147.8M | 147.03M | 152M | 167.6M | 166.6M | 163.6M | 156.6M | 154.29M | 154.43M | 153.51M | 153.81M | 157.38M | 159.11M | 157.6M | 158.6M |
| Basic Shares Outstanding | 0 | 114.7M | 116.7M | 118.6M | 123.5M | 134.9M | 135.5M | 137.4M | 141.2M | 144.8M | 147.3M | 148.6M | 149.5M | 154M | 145.5M | 139.7M | 144.2M | 144.68M | 150.4M | 165.29M | 164.26M | 161.4M | 155.2M | 154.29M | 154.43M | 153.51M | 153.42M | 157.38M | 158.1M | 156.2M | 157M |
| Dividend Payout Ratio | - | 80.38% | 41.88% | 42.06% | 48.05% | 43.76% | 74.9% | 45.19% | 29.44% | 20.08% | 31.41% | 28.07% | 27.96% | 12.02% | 43.94% | 19.54% | 29% | 94.12% | 39.02% | 49% | 35.21% | 25.49% | 80.59% | - | 221.31% | - | 44.55% | 287.5% | 55.42% | 48.25% | 35.26% |
Cyclical volume and margin compression
According to recent financial disclosures, Eastman Chemical has experienced a sustained period of top-line pressure, with revenue growth declining by 4.9% in 2026Q1, reflecting broader challenges in volume leverage across its core specialty and intermediate segments compared to the prior year's performance.
The consistent negative growth trajectory suggests that the company is struggling to overcome destocking cycles in its key automotive and construction end-markets. Investors should monitor whether the recent startup of the Kingsport methanolysis facility can provide a sufficient volume offset to stabilize the top line in upcoming quarters.
As reported in quarterly filings, Eastman's gross margin has compressed from a peak of 25.3% in 2024Q2 to 19.8% in 2026Q1, indicating that the company is facing significant difficulty in maintaining price-cost spreads amidst volatile raw material inputs and softening demand for specialty polymers.
The contraction in gross margins appears to reflect the company's high-fixed-cost manufacturing model, which struggles to absorb overhead when capacity utilization rates decline. This trend warrants further investigation into whether the current margin profile is a temporary cyclical trough or a more permanent shift in competitive pricing power.
Based on the provided income statement data, operating margins have retreated to 8.9% in 2026Q1 from a high of 16.8% in 2024Q4, suggesting that the company is currently unable to scale operating income effectively in the face of persistent revenue headwinds and elevated cost structures.
The inability to maintain operating leverage implies that SG&A and R&D expenses are not scaling down in proportion to the revenue decline, putting additional pressure on bottom-line profitability. Analysts should evaluate whether management can implement sufficient cost-discipline measures to protect operating margins if the current demand environment persists.
Analysis of recent financial statements reveals significant volatility in net income, which dropped to $107 million in 2026Q1 from $330 million in 2024Q4, a trend exacerbated by non-operating items and the recent recognition of $49 million in stock-based compensation during the most recent quarter.
The sharp fluctuations in net income suggest that reported EPS may not fully reflect the underlying operational health of the business, as pension adjustments and maintenance turnaround timing often distort quarterly results. Investors should look past the headline EPS to assess the core cash-generating capability of the specialty materials portfolio.
While management emphasizes the transition to circular economy products, the income statement data suggests that the company remains highly vulnerable to cyclical downturns, with the 2026Q1 performance highlighting a potential disconnect between long-term strategic investments and the immediate reality of declining core segment profitability.
Short-sellers may focus on the heavy capital intensity of the molecular recycling facilities, which could weigh on free cash flow if the expected price premiums for 'Tritan Renew' fail to materialize. The market may be underestimating the risk that legacy business segments continue to deteriorate faster than the new growth initiatives can scale.
Quick answers to the most common questions about buying EMN stock.
For fiscal year 2025, Eastman Chemical Company (EMN) reported total revenue of $8.75B. This represents a 83.0% increase compared to $4.78B in 1996.
Eastman Chemical Company (EMN) is profitable, generating $474.0M in net income for the fiscal year ending 2025 with a net profit margin of 5.4%.
Eastman Chemical Company (EMN) reported an operating income of $931.0M, resulting in an operating profit margin of 10.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Eastman Chemical Company (EMN) generated $1.84B in gross profit for the year, representing a gross profit margin of 21.1%. This demonstrates the company's core pricing power and production efficiency.