EarningsQ3 2026 Earnings Report
MX:EMN Q3 2026 EPS Results
Actual EPS$34.57
Consensus EPS$36.22
Beat/MissMissed by -$1.65
One Year Ago EPS$21.42
MX:EMN Q3 2026 Revenue Results
Actual Revenue$44.81B
Expected Revenue$45.31B
Beat/MissMissed by -$499.28M
YoY Revenue Growth+8.07%
Earnings Announcement Details
QuarterQ3 2026
Date10/29/2026
TimeAfter Close
Conference CallThursday, October 29, 2026
MX:EMN Upcoming Earnings
Eastman Chemical's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:EMN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
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.Company Guidance
DOE Grant Reinstated at Full Value
Eastman 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 Plan
The 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 Capacity
Eastman 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 Growth
Advanced 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 Momentum
Circular 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 Potential
The 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 Volatility
Eastman 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 Performance
Advanced 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 Execution
Approximately 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 Q3
Eastman 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 Support
Eastman 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 Improvement
Management 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 Outlook
Eastman 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 Stable
Although 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 Expected
Eastman 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 Growth
Management 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.
MX:EMN Earnings History
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.
Beat
Missed