EMN · 8-K · 20261029PR000167

Gross Margin Drivers

EASTMAN CHEMICAL CO · 2026-10-29 · Importance 57 · Surprise 64

Third-quarter gross profit increased $99 million year over year to $532 million, and gross margin rose to 22.3% from 19.7%. EBIT increased to $305 million from $188 million, while adjusted EBIT increased to $305 million from $210 million and adjusted EBIT margin expanded to 12.8% from 9.5%. Improved asset utilization after prior-year inventory-reduction actions, lower planned maintenance expense, and favorable price-cost supported EBIT; higher variable compensation partially offset those factors. Advanced Materials adjusted EBIT rose to $103 million from $53 million, and Additives & Functional Products adjusted EBIT rose to $154 million from $128 million, while Fibers EBIT declined to $52 million from $67 million on lower acetate tow pricing and higher input and distribution costs.

Key facts

• Eastman’s third-quarter 2026 EBIT increased primarily due to improved asset utilization after inventory-reduction actions in third-quarter 2025, lower planned maintenance expense, and favorable price-cost; higher variable compensation partly offset the increase. source
• Eastman’s Advanced Materials third-quarter 2026 EBIT increased due to substantially improved asset utilization and lower planned maintenance costs. source
• Eastman’s Additives & Functional Products third-quarter 2026 EBIT increased due to improvement in both price-cost and asset utilization. source
• Eastman’s Fibers third-quarter 2026 EBIT decreased due to lower acetate tow contract pricing and increased raw material and distribution costs. source
• Eastman’s Additives & Functional Products higher selling prices reflected cost-pass-through contracts adjusting to higher raw material and distribution costs. source