- Operating cash flow reached $402 million, matching last year's quarter.
- Inventory reduced by $200 million from Q2 2025 levels.
- Cost structure reduction targets: $75 million in 2025, $100 million in 2026.
- Returned $146 million to shareholders via dividends and buybacks.
Financial Performance
Eastman Chemical Company reported a strong operating cash flow of $402 million for Q3 2025, consistent with the previous year. The company achieved a $200 million reduction in inventory from Q2 2025 levels, highlighting effective inventory management.
Cost Reduction and Shareholder Returns
Eastman is on track to reduce its cost structure by over $75 million in 2025 and an additional $100 million in 2026, net of inflation. The company returned $146 million to shareholders through dividends and share repurchases.
Market Conditions and Strategic Actions
Sales revenue decreased by 11% due to a 10% drop in sales volume/mix and a 1% decline in selling prices, driven by weak consumer discretionary markets and inventory unwinding. EBIT fell due to lower sales volume/mix and reduced asset utilization, though stable price-cost in specialty businesses and cost-lowering actions provided some offset.
Future Outlook
Eastman is focusing on cash generation, disciplined capital allocation, and structural cost reduction amid a weak macroeconomic environment. The company is also progressing in securing Renew rPET contracts for increased sales volume next year, positioning itself for growth and recovery when economic conditions stabilize.
