Eastman Chemical (EMN.N): Pricing Execution on Track; Beat on 2Q and 3Q Guide Above Investor Expectations

研报英文原文证据摘录

Eastman Chemical (EMN.N): Pricing Execution on Track; Beat on 2Q and 3Q Guide Above Investor Expectations

Flash |

30 Jul 2026 17:24:20 ET │ 12 pages

Eastman Chemical (EMN.N)

Pricing Execution on Track; Beat on 2Q and 3Q Guide Above Investor

Expectations

CITI'S TAKE Buy

Price (30 Jul 26 16:00) US$70.07 EMN delivered a beat on 2Q26 adj. EPS with $1.97, coming in above our

Target price US$85.00 and consensus of $1.82. A&FP led the beat with adj. EBIT of $151mm,

coming in above our $134mm-E on favorable price/cost offsetting Expected share price return 21.3%

maintenance expense. AM delivered solid 4% volume/mix growth Y/Y and Expected dividend yield 4.8%

selling prices were flat, as specialty plastics increases were offset by lower Expected total return 26.1%

interlayer pricing. CI was relatively in line with significantly higher spreads Market Cap US$8,013M

and a remarkable 24% increase in volume/mix Y/Y. Fibers was the lone

weak spot, with further price declines and cost pressure. That said, with

the EMN implementing $500mm in pricing and methanolysis revenue

acceleration now expected to deliver ~$100mm in incremental earnings, Patrick CunninghamAC

EMN highlights 2H earnings to be above 1H, with OCF approaching +1-212-816-6684

$900mm. For 3Q26, EMN estimates EPS “approach 2Q26", which we patrick.cunningham@citi.com

believe is roughly in line with $1.91 consensus. We heard from investors Alexander Yi

expecting a modest sequential step-down ($1.60-1.80). +1-212-816-4220

alexander.yi@citi.com

Segment Analysis — Additives and Functional Products sales increased 5% Y/Y to Rachel Lee

$807mm (vs our $815mm est) due to 4% price growth and 1% FX tailwind and flat +1-212-816-4559

volumes. Segment EBIT decreased 1% Y/Y to $151mm (vs our $134mm est), given rachel.lee@citi.com