Eastman Announces Fourth-Quarter and Full-Year 2024 Financial Results
Eastman Chemical (EMN) reported strong Q4 and full-year 2024 results, with adjusted earnings per share growing 23% in 2024. Q4 sales revenue increased 2% to $2,245 million, driven by 1% higher sales volume/mix and 1% higher selling prices. The company generated approximately $1.3 billion in operating cash flow for 2024 and returned $700 million to shareholders through dividends and share repurchases.
Advanced Materials and Additives & Functional Products segments showed strong specialty volume growth. The Kingsport methanolysis facility operated well in Q4, positioning for strong earnings growth in 2025. The company's adjusted EBIT margin improved by 350 basis points in Q4 and 190 basis points in 2024.
For 2025, Eastman projects EPS between $8.00-$8.75 and expects operating cash flow of approximately $1.3 billion, despite facing global economic uncertainty.
Eastman Chemical (EMN) ha riportato risultati solidi per il quarto trimestre e per l'intero anno 2024, con utili per azione rettificati in crescita del 23% nel 2024. Le entrate delle vendite del Q4 sono aumentate del 2% a 2.245 milioni di dollari, grazie a un volume/mix di vendite cresciuto dell'1% e a un incremento dei prezzi di vendita dell'1%. L'azienda ha generato circa 1,3 miliardi di dollari in flusso di cassa operativo per il 2024 e ha restituito 700 milioni di dollari agli azionisti attraverso dividendi e riacquisti di azioni.
I segmenti Materiali Avanzati e Additivi & Prodotti Funzionali hanno mostrato una forte crescita del volume specialistico. L'impianto di metanolo di Kingsport ha funzionato bene nel Q4, preparandosi per una forte crescita degli utili nel 2025. Il margine EBIT rettificato dell'azienda è migliorato di 350 punti base nel Q4 e di 190 punti base nel 2024.
Per il 2025, Eastman prevede un EPS compreso tra 8,00 e 8,75 dollari e si aspetta un flusso di cassa operativo di circa 1,3 miliardi di dollari, nonostante le incertezze economiche globali.
Eastman Chemical (EMN) reportó resultados sólidos para el cuarto trimestre y para todo el año 2024, con ganancias por acción ajustadas que crecieron un 23% en 2024. Los ingresos de ventas del Q4 aumentaron un 2% a 2,245 millones de dólares, impulsados por un volumen/mix de ventas un 1% más alto y precios de venta un 1% más altos. La compañía generó aproximadamente 1.3 mil millones de dólares en flujo de efectivo operativo para 2024 y devolvió 700 millones de dólares a los accionistas a través de dividendos y recompras de acciones.
Los segmentos de Materiales Avanzados y Aditivos & Productos Funcionales mostraron un fuerte crecimiento del volumen especializado. La instalación de metanolisis de Kingsport funcionó bien en el Q4, posicionándose para un fuerte crecimiento de ganancias en 2025. El margen EBIT ajustado de la compañía mejoró en 350 puntos básicos en el Q4 y en 190 puntos básicos en 2024.
Para 2025, Eastman proyecta un EPS entre 8.00 y 8.75 dólares y espera un flujo de efectivo operativo de aproximadamente 1.3 mil millones de dólares, a pesar de enfrentar incertidumbres económicas globales.
이스먼 화학 (EMN)은 2024 회계연도의 4분기 및 연간 강력한 실적을 보고했으며, 조정 주당순이익이 2024년에 23% 증가했습니다. Q4 판매 수익은 22억 4,500만 달러로 2% 증가했으며, 이는 판매량/믹스가 1% 증가하고 판매 가격이 1% 상승한 데 기인합니다. 회사는 2024년 동안 약 13억 달러의 운영 현금 흐름을 창출하고, 배당금 및 자사주 매입을 통해 주주에게 7억 달러를 반환했습니다.
고급 소재 및 첨가제 및 기능성 제품 부문은 강력한 특수 물량 성장을 보였습니다. 킹스포트 메탄올리시스 시설은 4분기에 잘 운영되었으며, 2025년 강력한 수익 성장에 대비하고 있습니다. 회사의 조정된 EBIT 마진은 4분기에 350bp 개선되었고, 2024년에는 190bp 증가했습니다.
2025년을 위해 이스먼은 EPS가 8.00~8.75 달러
Eastman Chemical (EMN) a annoncé de solides résultats pour le quatrième trimestre et l'année complète 2024, avec un bénéfice par action ajusté en hausse de 23% en 2024. Les revenus des ventes du T4 ont augmenté de 2% pour atteindre 2,245 millions de dollars, soutenus par une augmentation de 1% du volume/mix de ventes et des prix de vente également en hausse de 1%. L'entreprise a généré environ 1,3 milliard de dollars de flux de trésorerie d'exploitation pour 2024 et a restitué 700 millions de dollars aux actionnaires par le biais de dividendes et de rachats d'actions.
Les segments Matériaux Avancés et Additifs & Produits Fonctionnels ont montré une forte croissance des volumes spécialisés. L'usine de méthanol à Kingsport a bien fonctionné au T4, se positionnant pour une forte croissance des bénéfices en 2025. La marge EBIT ajustée de l'entreprise s'est améliorée de 350 points de base au T4 et de 190 points de base en 2024.
Pour 2025, Eastman prévoit un BPA compris entre 8,00 et 8,75 dollars et s'attend à un flux de trésorerie d'exploitation d'environ 1,3 milliard de dollars, malgré l'incertitude économique mondiale.
Eastman Chemical (EMN) meldete starke Ergebnisse für das 4. Quartal und das gesamte Jahr 2024, wobei das bereinigte Ergebnis je Aktie um 23% im Jahr 2024 wuchs. Der Umsatz im Q4 stieg um 2% auf 2,245 Millionen Dollar, bedingt durch einen um 1% höheren Verkaufsvolumen/Mix und um 1% höhere Verkaufspreise. Das Unternehmen erwirtschaftete circa 1,3 Milliarden Dollar an operativem Cashflow für 2024 und gab 700 Millionen Dollar an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück.
Die Segmente Advanced Materials und Additives & Functional Products zeigten ein starkes Wachstum im Spezialvolumen. Die Methanol-Anlage in Kingsport arbeitete im Q4 gut und positionierte sich für ein starkes Gewinnwachstum im Jahr 2025. Die bereinigte EBIT-Marge des Unternehmens verbesserte sich im Q4 um 350 Basispunkte und um 190 Basispunkte im Jahr 2024.
Für 2025 prognostiziert Eastman einen EPS zwischen 8,00 und 8,75 Dollar und erwartet einen operativen Cashflow von etwa 1,3 Milliarden Dollar, trotz der globalen wirtschaftlichen Unsicherheit.
- Adjusted EPS grew 23% in 2024 to $7.89
- Q4 adjusted EBIT margin improved 350 basis points
- Generated $1.3 billion operating cash flow in 2024
- Returned $679 million to stockholders through dividends and share repurchases
- Sales revenue increased 2% to $9,382 million for full-year 2024
- Operating cash flow decreased from $1.374 billion in 2023 to $1.287 billion in 2024
- Fibers segment revenue decreased 7% in Q4 due to lower sales volume
- Chemical Intermediates segment saw 4% lower sales volume in Q4
- Facing headwinds from higher energy costs and stronger U.S. dollar in 2025
Insights
Eastman Chemical's Q4 and FY2024 results demonstrate remarkable operational execution amid challenging market conditions. The 23% year-over-year growth in adjusted EPS showcases successful implementation of their specialty-focused strategy. The standout 350 basis point improvement in Q4 adjusted EBIT margin reflects enhanced operational leverage and commercial excellence.
Two key segments warrant attention: Advanced Materials showed 5% volume growth despite market headwinds, driven by innovation initiatives, while Additives & Functional Products delivered 7% volume growth, benefiting from recovery in agriculture and aviation markets. The successful operation of the Kingsport methanolysis facility positions Eastman as a leader in circular economy solutions, with projected EBITDA growth of
The company's robust cash generation of
The 2025 guidance of
The market dynamics across Eastman's portfolio reveal a nuanced growth story. In consumer discretionary markets, management expects continued challenges through 2025, yet the company's innovation-driven model has demonstrated ability to outperform underlying market trends. The end of destocking across key end markets suggests stabilizing demand conditions, particularly evident in Advanced Materials' automotive applications and Additives & Functional Products' agriculture segment.
The circular economy initiative, centered on the Kingsport molecular recycling facility, represents a significant competitive advantage. As sustainability demands grow across industries, Eastman's early-mover position in chemical recycling technology could drive substantial value creation. The company's strong Renew sales funnel development indicates growing market acceptance of circular solutions.
Market positioning in stable end markets like personal care, aviation and water treatment provides resilience against broader economic uncertainties. The strategic focus on specialty products, evidenced by volume/mix improvements in Advanced Materials (
- Delivered strong specialty volume/mix growth in Advanced Materials and Additives & Functional Products in the fourth quarter and full year.
- Delivered adjusted EBIT margin improvement of both 350 basis points in the fourth quarter and 190 basis points in 2024 through volume/mix growth, operating leverage, and commercial excellence.
-
Continued to operate the
Kingsport methanolysis facility well in the fourth quarter, positioning the facility to deliver strong earnings growth in 2025. -
Generated approximately
$1.3 billion -
Returned approximately
$700 million
(In millions, except per share amounts; unaudited) |
4Q24 |
4Q23 |
FY24 |
FY23 |
Sales revenue |
|
|
|
|
|
|
|
|
|
Earnings before interest and taxes (“EBIT”) |
349 |
477 |
1,278 |
1,302 |
|
|
|
|
|
Adjusted EBIT* |
305 |
222 |
1,298 |
1,097 |
Earnings per diluted share |
2.82 |
2.61 |
7.67 |
7.49 |
|
|
|
|
|
Adjusted earnings per diluted share* |
1.87 |
1.31 |
7.89 |
6.40 |
Net cash provided by operating activities |
540 |
452 |
1,287 |
1,374 |
*For non-core and unusual items excluded from adjusted earnings and for adjusted provision for income taxes, segment adjusted EBIT margins, and net debt, reconciliations to reported company and segment earnings and total borrowings for all periods presented in this release, see Tables 3A, 3B, 4, and 6. |
||||
“The fourth quarter capped off a tremendous year for Eastman, with adjusted earnings per share growing 23 percent in 2024,” said Mark Costa, Board Chair and CEO. “As we ended the year, demand was consistent with our expectations, and we saw seasonal declines across our key end markets. Adjusted EBIT margin increased 350 basis points compared to last year and was supported by higher sales volume/mix, strong operating leverage, and commercial excellence. Throughout 2024, the Eastman team found ways to deliver earnings in line with our commitments despite facing significant macroeconomic uncertainty and persistently weak end-market demand. We also added to our track record of strong cash generation by delivering
Corporate Results 4Q 2024 versus 4Q 2023
Sales revenue increased 2 percent due to 1 percent higher sales volume/mix and 1 percent higher selling prices.
Higher sales volume/mix in Additives & Functional Products and Advanced Materials was mostly offset by lower sales volume/mix in Fibers and Chemical Intermediates. Higher selling prices across Additives & Functional Products, Chemical Intermediates, and Fibers were partially offset by lower selling prices in Advanced Materials.
Reported EBIT includes the gain on the sale of Texas City Operations in fourth-quarter 2023. Adjusted EBIT increased due to higher sales volume/mix, improved capacity utilization, and favorable price-cost.
Segment Results 4Q 2024 versus 4Q 2023
Advanced Materials – Sales revenue increased 2 percent due to 5 percent higher sales volume/mix partially offset by 3 percent lower selling prices.
Higher sales volume/mix was due to the lack of customer inventory destocking across key end markets and continued momentum from our innovation initiatives creating growth above underlying markets. These factors were partially offset by lower selling prices.
EBIT increased due to favorable price-cost, higher sales volume/mix, and improved capacity utilization. These factors were partially offset by operating costs associated with
Additives & Functional Products – Sales revenue increased 9 percent due to 7 percent higher sales volume/mix and 2 percent higher selling prices.
Higher sales volume/mix was due to the end of destocking in the agriculture end market and stronger demand for aviation fluids.
EBIT increased due to higher sales volume/mix, favorable price-cost, improved capacity utilization, and lower planned maintenance costs.
Fibers – Sales revenue decreased 7 percent due to 9 percent lower sales volume/mix partially offset by 2 percent higher selling prices.
Lower sales volume/mix for acetate tow was driven by year-end customer inventory management. Higher selling prices were primarily for acetate tow.
EBIT decreased due to lower sales volume/mix partially offset by favorable price-cost.
Chemical Intermediates – Sales revenue decreased 2 percent due to 4 percent lower sales volume/mix partially offset by 2 percent higher selling prices.
Lower sales volume/mix was driven by weak end-market demand and year-end customer inventory destocking.
Reported EBIT includes the gain on the sale of Texas City Operations in fourth-quarter 2023. Excluding this unusual item, adjusted EBIT was slightly down compared to the prior year period as lower spreads were partially offset by improved capacity utilization.
Corporate Results 2024 versus 2023
Sales revenue increased 2 percent due to 4 percent higher sales volume/mix partially offset by 2 percent lower selling prices.
Higher sales volume/mix was driven by the end of destocking in most end markets and innovation-driven growth above end-market demand, particularly in the Advanced Materials segment. Lower selling prices were primarily due to lower raw material and energy prices.
Reported EBIT includes the gain on the sale of Texas City Operations in fourth-quarter 2023. Adjusted EBIT increased primarily due to higher sales volume/mix and associated capacity utilization as well as favorable price-cost, partially offset by operating costs from new facilities and continued investment in growth.
Segment Results 2024 versus 2023
Advanced Materials – Sales revenue increased 4 percent due to 8 percent higher sales volume/mix partially offset by 4 percent lower selling prices.
Higher specialty plastics sales volume/mix was driven by the end of customer inventory destocking across key end markets and by continued momentum from our innovation initiatives. Growth above underlying end-market demand in automotive was driven by innovation in premium interlayers products. Lower selling prices were driven by lower raw material and energy prices.
EBIT increased due to higher sales volume/mix and improved capacity utilization partially offset by operating costs associated with
Additives & Functional Products – Sales revenue increased 1 percent due to 4 percent higher sales volume/mix mostly offset by 3 percent lower selling prices.
Higher sales volume/mix was due to the end of destocking in the agriculture end market as well as growth in stable end markets, including personal care, aviation, and water treatment. Lower selling prices were in part driven by cost-pass-through contracts.
EBIT increased due to higher sales volume/mix and favorable price-cost.
Fibers – Sales revenue increased 2 percent due to 2 percent higher selling prices.
Higher selling prices were due to higher acetate tow contract prices. Sales volume/mix was unchanged as strong growth in Naia™ was offset by a modest decline in acetate tow.
EBIT increased due to favorable price-cost.
Chemical Intermediates – Sales revenue was flat, as 3 percent higher sales volume/mix was offset by 3 percent lower selling prices.
Higher sales volume/mix was primarily driven by reduced customer inventory destocking across most end markets. Lower selling prices were driven by lower raw material and energy prices.
Reported EBIT includes the gain on the sale of Texas City Operations in fourth-quarter 2023. Adjusted EBIT decreased as lower spreads were partially offset by lower operating costs.
Cash Flow
In 2024, cash provided by operating activities was approximately
2025 Outlook
Commenting on the outlook for full-year 2025, Costa said: “As we begin 2025, the global economic and geopolitical environment remains highly uncertain. Despite this uncertainty, we are confident in our ability to generate growth across our portfolio as we build upon a strong year in 2024. First, we expect modest volume growth in our specialty businesses, and we will continue to leverage our innovation-driven growth model to deliver growth above underlying challenged market trends. Across our consumer discretionary end markets, we are not projecting any underlying demand improvement in 2025. Across our more stable markets, we are projecting modest demand growth. A key driver of our innovative growth will be our circular platform as we remain on track with our 2025 commitments of
The full-year 2025 projected adjusted diluted EPS and Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”) exclude any non-core, unusual, or nonrecurring items. Our financial results forecasts do not include non-core items (such as mark-to-market pension and other postretirement benefit gain or loss, and asset impairments and restructuring charges) or any unusual or non-recurring items because we are unable to predict with reasonable certainty the financial impact of such items. These items are uncertain and depend on various factors, and we are unable to reconcile projected adjusted diluted EPS and EBITDA excluding non-core and any unusual or non-recurring items to reported GAAP diluted EPS or net earnings without unreasonable efforts.
Forward-Looking Statements
This information and other statements by the company may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to, among other items: projections and estimates of earnings, revenues, volumes, pricing, margins, cost reductions, expenses, taxes, liquidity, capital expenditures, cash flow, dividends, share repurchases or other financial items, statements of management’s plans, strategies and objectives for future operations, and statements regarding future economic, industry or market conditions or performance. Such projections and estimates are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans. Forward-looking statements are subject to a number of risks and uncertainties, and actual performance or results could differ materially from that anticipated by any forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise any forward-looking statement. Other important assumptions and factors that could cause actual results to differ materially from those in the forward-looking statements are detailed in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and as updated in the company’s filings with the Securities and Exchange Commission (the “SEC”), which are accessible on the SEC’s website at www.sec.gov and the company’s website at www.eastman.com.
Conference Call and Webcast Information
Eastman will host a conference call with industry analysts on Jan. 31, 2025, at 8:00 a.m. ET. To listen to the live webcast of the conference call and view the accompanying slides and prepared remarks, go to investors.eastman.com, Events & Presentations. The slides and prepared remarks to be discussed during the call and webcast will be available at investors.eastman.com at approximately 4:30 p.m. ET on Jan. 30, 2025. To listen via telephone, the dial-in number is +1 (833) 470-1428, passcode: 793608. A web replay, a replay in downloadable MP3 format, and the accompanying slides and prepared remarks will be available at investors.eastman.com, Events & Presentations. A telephone replay will be available continuously beginning at approximately 1:00 p.m. ET, Jan. 31, 2025, through 11:59 p.m. ET, Feb. 9, 2025, Toll Free at +1 (866) 813-9403, passcode 540646.
Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive company, Eastman employs approximately 14,000 people around the world and serves customers in more than 100 countries. The company had 2024 revenue of approximately
View source version on businesswire.com: https://www.businesswire.com/news/home/20250130973764/en/
Media: Tracy Kilgore Addington
423-224-0498 / tracy@eastman.com
Investors: Greg Riddle
212-835-1620 / griddle@eastman.com
Source: Eastman Chemical Company
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