Eastman Chemical (EAC) Q3 2026 Earnings Report
CH:EAC Q3 2026 EPS Results
- Actual EPS
- CHF 1.51
- Consensus EPS
- CHF 1.58
- Beat/Miss
- Missed by -CHF 0.07
- One Year Ago EPS
- CHF 0.93
CH:EAC Q3 2026 Revenue Results
- Actual Revenue
- CHF 1.96B
- Expected Revenue
- CHF 1.98B
- Beat/Miss
- Missed by -CHF 21.79M
- YoY Revenue Growth
- +8.07%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- After Close
- Conference Call
- Thursday, October 29, 2026
Eastman Chemical's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was broadly positive. Management highlighted the reinstated DOE grant, lower-capital circular expansion, strong innovation-driven volume growth, record earnings expectations for AFP and functional amines, the high-return metathesis project, and expected 2027 volume and cash-flow improvement. These positives outweighed challenges including macroeconomic weakness, automotive and construction declines, Q4 price-cost and Chemical Intermediates pressure, project delays, elevated working capital, and acetate tow pricing declines.
Guidance included Advanced Materials volume mix of about 3% up for the full year, circular revenue up to $100 million in 2026 and $100 million as a minimum for 2027, with incremental circular earnings around $20 million this year and expected to be at or above those in 2027; operating cash flow around $850 million for 2026, with significant cash flow above the $850 million in 2027; 2026 CapEx of $400 million and a 2027 baseline starting point around $500 million; DOE coverage of 30% to 50% of the capital cost for the combined investment and roughly 50% of additional investments in '28 and the future; metathesis earnings of $75 million to $125 million, about $100 million on average, with a payback in 1 to 2 years and the project online in the middle of 2028; another mid-single-digit decline in acetate tow prices in 2027 with improvement in volume and earnings stable to this year; and volume growth in AM, AFP, and Fibers next year relative to this year, with volumes similar to this year in CI.
- DOE Grant Reinstated at Full ValueEastman regained the Department of Energy grant at its full value. The DOE can fund up to 50% of eligible capital, and management expects the grant to cover approximately 30% to 50% of the combined investment for the Kingsport expansion and second methanolysis plant.
- Lower-Capital Circular Expansion PlanThe DOE-supported scope includes debottlenecking the current methanolysis plant to increase production by 30%, expanding feed processing, and adding polymer and infrastructure capacity. Eastman is also evaluating previously shut-down recycling plants, polymer lines, and related infrastructure that can be acquired at very low capital, while the second methanolysis plant is expected to have materially lower capital needs than the previously discussed Longview, Texas project.
- Higher Planned Methanolysis CapacityEastman expects the second methanolysis plant to have 130,000 tons of capacity rather than 100,000 tons, based on learnings from the first plant. The solar facility is outside the project scope.
- Advanced Materials Volume GrowthAdvanced Materials is expected to deliver approximately 3% volume-mix growth for the full year. Management cited innovation in automotive interlayer applications, including head-up displays and increased content in electric vehicles, as well as mid-single-digit growth in consumer durables despite down markets.
- Circular Revenue MomentumCircular sales are expected to reach up to or approach $100 million in 2026, with approximately $20 million of incremental earnings. Management said $100 million is the minimum revenue target for 2027 relative to 2026, supported by additional PET capacity, Pepsi and other major-brand opportunities, and continued specialty growth.
- E-to-P Project Offers Significant Earnings PotentialThe ethylene-to-propylene metathesis project is expected to generate approximately $75 million to $125 million of EBITDA, with a payback period of 1 to 2 years. Management said the project could have contributed approximately $100 million of earnings in 2026 if it had been online for the full year, and it is expected to be online in the middle of 2028.
- Metathesis Project Improves Capital Efficiency and Reduces VolatilityEastman plans to repurpose existing cracker assets for the metathesis project. Management said the project is capital-efficient, creates approximately $100 million of average earnings within the stated range, and reduces exposure to volatility in bulk ethylene sales.
- Strong AFP and Functional Amines PerformanceAdvanced Formulation Products is on track for record earnings, and functional amines is also expected to achieve record earnings this year. Management said functional amines has delivered consistent year-over-year earnings growth since its acquisition, supported by stable personal-care and home-care markets.
- Effective AFP Pricing ExecutionApproximately half of AFP pricing is contractual cost pass-through, while the other half reflects commercial pricing choices. Management credited strong commercial execution, stable markets representing approximately two-thirds of AFP, and contractual mechanisms with supporting price-cost performance.
- Operational Improvements in Q3Eastman said operations ran well in Advanced Formulation Products during the quarter. The absence of a large Q2 shutdown provided a sequential benefit, and two major shutdown-related effects are expected to support performance.
- CapEx Discipline and DOE SupportEastman expects 2026 capital expenditures of approximately $400 million. The baseline starting point for 2027 is around $500 million, while DOE support is expected to reduce additional investments from 2028 onward by roughly 50%. Management said there would be no major change to planned 2027 capital expenditures from the first phase of the circular project.
- Expected Inventory and Cash-Flow ImprovementManagement expects working capital to be released in Q4 and said inventory should normalize through Q4 and 2027. Days inventory declined from approximately 115 days at year-end 2025 to about 105 days at the end of Q3, and lower inventory is expected to create a tailwind in 2027.
- Broad-Based 2027 Volume OutlookEastman expects volume growth in Advanced Materials, Advanced Formulation Products, and Fibers in 2027, with Chemical Intermediates volumes expected to be similar to 2026. Management said customer caution and destocking are affecting orders, but underlying end-market demand is described as relatively stable in several markets.
- Acetate Tow Earnings Expected to Remain StableAlthough acetate tow prices are expected to decline another mid-single-digit percentage in 2027, management expects improved volumes, completion of destocking among independent customers, market-share recovery, and other growth programs to create an asset-utilization tailwind and keep earnings stable with 2026.
- No Material Competitive Interlayer Capacity Expansion ExpectedEastman does not see material capacity expansions from the Japanese competitors in the interlayer markets in which it competes. Management said challenged demand provides limited incentive for competitors to add capacity.
- Innovation and Renew Programs Supporting GrowthManagement said the Renew program, Tritan applications, automotive innovation, and broader market positioning are supporting revenue growth despite challenged discretionary markets. Renew revenue momentum is expected to contribute significantly to Q4 and continue into 2027.
CH:EAC Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2026 (Q4) | 1.02- | 0.61 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 1.581.51 | 0.93 | 61.40% (+0.57) | |
| Jul 30, 2026 | 2026 (Q2) | 1.491.61 | 1.31 | 23.13% (+0.30) | |
| Apr 30, 2026 | 2026 (Q1) | 0.870.89 | 1.57 | -42.93% (-0.67) | |
| Jan 29, 2026 | 2025 (Q4) | 0.590.61 | 1.53 | -59.89% (-0.92) | |
| Nov 03, 2025 | 2025 (Q3) | 0.950.93 | 1.85 | -49.56% (-0.92) | |
| Aug 01, 2025 | 2025 (Q2) | 1.421.31 | 1.76 | -25.58% (-0.45) | |
| Apr 24, 2025 | 2025 (Q1) | 1.551.57 | 1.32 | 18.63% (+0.25) | |
| Jan 30, 2025 | 2024 (Q4) | 1.291.53 | 1.07 | 42.75% (+0.46) | |
| Oct 31, 2024 | 2024 (Q3) | 1.761.85 | 1.21 | 53.74% (+0.65) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
