Eastman Chemical's stock experienced a significant after-hours plunge of 5.73% following the release of its fourth-quarter 2025 financial results. The specialty materials company reported declining sales and provided first-quarter guidance that fell short of analyst expectations.
The company's Q4 sales revenue fell 12% year-over-year due to an 11% decline in sales volume and mix, along with 2% lower selling prices. Management attributed the weaker pricing to soft commodity market fundamentals in chemical intermediates. Adjusted EBIT for the quarter also decreased, impacted by lower sales volume and unfavorable price-cost dynamics. While the company beat adjusted EPS estimates ($0.75 vs. $0.72 expected), it missed revenue expectations ($1.973 billion vs. $2.019 billion expected).
Looking ahead, Eastman Chemical expects first-quarter adjusted EPS between $1.00 and $1.20, which is below the analyst consensus of $1.27. The company cited ongoing macroeconomic challenges, including weakness in consumer discretionary end markets and customer inventory destocking, particularly in acetate tow. Notably, management declined to provide full-year adjusted EPS guidance due to significant macroeconomic uncertainty, while announcing plans to increase cost structure reductions to $125-$150 million in 2026.
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