Slides
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3Q 2025 financial results November 3, 2025
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Forward-looking statements The information in this release 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. Non-GAAP financial measures Earnings referenced in this presentation and the accompanying prepared remarks exclude certain non-core items. “Adjusted EBIT” is Earnings Before Interest and Taxes (“EBIT”) adjusted for non-core items. “Adjusted EBIT Margin” is Adjusted EBIT divided by GAAP sales. “Adjusted EBITDA” is Earnings Before Interest, Taxes, Depreciation, and Amortization adjusted for non-core items. Adjusted EPS is defined as the GAAP measure earnings per diluted share adjusted for non-core, unusual, or non-recurring items. “Net Debt” is total borrowings less cash and cash equivalents. “Net Debt to Adjusted EBITDA” is Net Debt divided by EBITDA adjusted for non-core items. Reconciliations to the most directly comparable GAAP financial measures and other associated disclosures, including a description of the excluded and adjusted items, are available in our third-quarter 2025 financial results news release which is posted in the “Investors” section of our website and in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Forms 10-K filed for 2024 and 10-Q to be filed for third quarter 2025 with the SEC for the periods for which non-GAAP financial measures are presented. Prepared remarks These slides should be reviewed with the accompanying prepared remarks posted on our website. 2
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3Q 2025 – Executing on key priorities 3 Delivered strong cash flow consistent with the prior-year quarter, underscoring our commitment to cash generation. Demonstrated significant progress on inventory actions, with an approximately $200 million reduction from second-quarter 2025 levels. Continued commercial excellence by our teams keeping price-cost in specialties stable and defending market share. Remain on track to reduce cost structure by more than $75 million in 2025, with an additional ~$100 million in 2026. Continued commercial ramp-up in circular economy platform with strong operational performance. Returned $146 million to shareholders through dividends and share repurchases. 3Q 2025 – Executing on key priorities
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Corporate 3Q25 vs. 3Q24 EBIT highlights • Lower sales volume/mix driven by weak discretionary end markets and customer unwinding of inventory prepositioned to mitigate tariff risk • Price-cost was stable in our specialty businesses and Fibers while Chemical Intermediates realized competitive spread compression • Utilization headwind modestly higher than expected due to our aggressive inventory management actions • Substantial benefit from cost reductions Revenue change % Total Vol / Mix Price FX 3Q25 vs 3Q24 -11 -10 -1 0 3Q25 vs 2Q25 -4 -3 -1 0 $M (except EPS) 3Q25 3Q24 2Q25 Revenue 2,202 2,464 2,287 Adjusted EBIT 210 366 275 Adjusted EBIT margin 9.5% 14.9% 12.0% Adjusted EPS 1.14 2.26 1.60 4
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Tailwinds: • Lower shutdown costs and improved asset utilization • Cost reductions • Ramp up of packaging revenue for the Kingsport methanolysis facility 3Q25 vs. 3Q24 EBIT highlights • Weakness in high-value consumer discretionary end markets • Customers leveraging tariff-related prepositioned inventory built in 1H25 • Substantially lower asset utilization to drive cash generation partially offset by cost reductions • Higher energy and tariff costs Headwinds: • Normal seasonal decline in consumer durables and auto performance films • Inventory management in the consumer discretionary supply chains as tariff-related prepositioned inventory is unwound 4Q 2025 sequential outlook Advanced Materials Revenue change % Total Vol / Mix Price FX 3Q25 vs 3Q24 -7 -7 -1 1 3Q25 vs 2Q25 -6 -6 -1 1 $M 3Q25 3Q24 2Q25 Revenue 728 787 777 Adjusted EBIT 53 122 121 Adjusted EBIT margin 7.3% 15.5% 15.6% Expect 2025 adjusted EBIT ~$340 million, with FY25 sales volume/mix down ~4% 5
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Circular Economy platform remains a key differentiator for Eastman ➢ Demonstrating the ability to operationalize our technology • In 3Q25, methanolysis consistently delivered high yields and the highest production to date • Remain on track to produce >2.5X 2024 production levels ➢ Building wins in a difficult market • >100 specialty customers paying premiums • Pace of specialty wins more than doubled in 3Q relative to 1H25, positioning for growth in 2026 despite difficult economy • Tritan Renew highlighted in Yeti’s sustainability report for enabling them to divert 2,300 metric tons of plastic waste from landfills in 2024, a number that continues to build as they integrate Tritan Renew into even more of their product lineup • For 2026, flagship consumer brand commitments for significant ramp-up of recycled PET volume for packaging applications with polymer line conversion completed in November ➢ Advancing options for a second facility leveraging a capital -efficient phased investment approach • Debottlenecking Kingsport methanolysis facility by ~30% enables capital efficient approach • Good progress on three options to access more capital efficient sites 6 Expect incremental EBITDA in FY25 of $60 million-$65 million from Kingsport methanolysis facility and 4Q25 revenue to be at a $100 million to $125 million annualized rate
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3Q25 vs. 3Q24 EBIT highlights • Lower sales volume/mix due to timing of heat transfer fluids project completions and weakness in building and construction and auto refinish end markets • Favorable price-cost, with pricing mostly driven by cost-pass-through contracts • Cost reductions and lower planned maintenance expense Additives & Functional Products $M 3Q25 3Q24 2Q25 Revenue 716 744 769 Adjusted EBIT 128 130 153 Adjusted EBIT margin 17.9% 17.5% 19.9% Revenue change % Total Vol / Mix Price FX 3Q25 vs 3Q24 -4 -8 3 1 3Q25 vs 2Q25 -7 -7 -1 1 Tailwinds: • Continued commercial excellence in defending price and share • Cost reductions Headwinds: • Normal seasonal declines in building and construction • Weaker auto refinish market • Limited seasonal improvement in agriculture as customers are cautious about building inventory • Lag of cost-pass-through contract prices Expect 2025 adjusted EBIT ~$510 million with FY25 sales volume/mix down LSD% 4Q 2025 sequential outlook 7
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3Q25 vs. 3Q24 EBIT highlights • Lower sales volume/mix due to: • Acetate tow customer inventory destocking and industry capacity share adjustments • Customers unwinding inventory that was prepositioned in 1H25 • Higher raw material and energy costs Fibers $M 3Q25 3Q24 2Q25 Revenue 254 336 274 EBIT 67 112 81 EBIT margin 26.4% 33.3% 29.6% Revenue change % Total Vol / Mix Price FX 3Q25 vs 3Q24 -24 -24 0 0 3Q25 vs 2Q25 -7 -8 1 0 Tailwinds: • Cost reductions Headwinds: • Continued customer inventory destocking in acetate tow • Weak demand for textiles due to tariff impacts Expect 2025 adjusted EBIT ~$300 million 4Q 2025 sequential outlook 8
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3Q25 vs. 3Q24 EBIT highlights • Lower sales volume/mix primarily due to continued weakness in U.S. building and construction end market • Spread compression from weak market conditions • Cost reductions Chemical Intermediates 9 $M 3Q25 3Q24 2Q25 Revenue 499 593 463 EBIT 1 43 -30 EBIT margin 0.2% 7.3% -6.5% Revenue change % Total Vol / Mix Price FX 3Q25 vs 3Q24 -16 -8 -8 0 3Q25 vs 2Q25 8 10 -2 0 Tailwinds: • Improved asset utilization • Cost reductions Headwinds: • Continued weak commodity market fundamentals • Normal seasonal declines across key end markets 4Q 2025 sequential outlook Expect FY 2025 adjusted EBIT around breakeven
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Multi-year cost actions have achieved meaningful results, with more to come 10 Gross margin optimization driven by substantial reduction in contracted services, maintenance and reliability transformation program, material spend, asset footprint optimization, and yield and energy improvements ~7% reduction in global headcount by around EOY 2025, including actions taken YTD, as we align organizational structure to current market needs while maintaining investment in top innovation platforms Leveraging digital solutions, with an increased emphasis on AI, to modernize capabilities that improve visibility, decision making and action and accelerate our innovation of new products and applications Actions on track to reduce ~$175 million of costs, net of inflation, in 2025-2026 and targeted to address 2025 earnings decline in Fibers and Chemical Intermediates
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We are taking aggressive actions and are focused on what we can control Focused on controllables 11 Sequential headwinds • Normal seasonal declines across key end markets impacting consumer durables, building and construction, and automotive aftermarket films • Customer and retailer caution negatively impacting volume in consumer discretionary end markets • Unwind of tariff-related inventory prepositioned in first half, causing above-normal seasonality in the second half • Emphasizing cash generation in uncertain environment with every lever in the company • Remaining disciplined on working capital after strong inventory reduction in 3Q • FY25 capital expenditures ~$550 million and lower in 2026 • Stable price-cost in specialties with commercial excellence in defending price and share • On track to achieve more than $75 million cost reduction, net of inflation, in 2025 • Taking actions to mitigate tariff impacts • $60 million-$65 million of incremental EBITDA from Kingsport methanolysis Expect FY25 adjusted EPS $5.40 to $5.65 Expect FY25 operating cash flow approaching $1 billion
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12 With macroeconomic uncertainty persisting, we are focused on improving results Improving competitiveness Growth through innovation Focus on cash flow and disciplined capital allocation Address underperforming parts of our portfolio • Significant step up in Renew revenue for both rPET sales and specialty wins in a wide range of applications • Growth in cellulosic biopolymers including Aventa and a recovery of Naia textiles • HUD interlayers in luxury cars and EVs growing in Europe and China • EastaPure high purity process solvents for semiconductors • Optimizing and rationalizing underperforming assets • Ethylene-to-propylene investment to improve earnings by $50 million-$100 million over the cycle and enhance operating flexibility at Longview, Texas, facility with a short payback period • Will maintain highest and best owner mindset • Right-sizing working capital for current market conditions • Lowering capex in 2026 versus 2025 to navigate a challenging environment • Evaluating capital efficient options for additional methanolysis capacity as we maximize production from the Kingsport facility • Confident in our dividend • Total cost savings ~$175 million net of inflation in 2025– 2026 • On track to achieve cost savings target of more than $75 million in 2025 • Expanding program to achieve cost savings of additional ~$100 million in 2026, building on actions taken in 2025 12
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Appendix 13
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• Corporate ‘Other’ adjusted Loss Before Interest and Taxes: ~$180 million; previously ~$190 million • Interest expense: $205 million–$210 million; previously ~$205 million FY2025 underlying assumptions and modeling items 14 Updated from prior guidance Unchanged from prior guidance • Brent crude oil: ~$70/barrel • Natural gas prices consistent with recent FY25 Henry Hub avg forward curves: ~$3.60/MMBTU • Foreign currency exchange rates, net of hedging: USD/EUR $1.15; CNY/USD 7.20; JPY/USD 150 • Capital expenditures: ~$550 million • Share repurchases: $100 million • Full-year adjusted effective tax rate: 15%–16% • FY25 Depreciation & Amortization expense: $510 million