Eastman reports third-quarter sales and earnings gains, raises selling prices
Eastman reports third-quarter sales and earnings gains, raises selling prices
Eastman Chemical reported third-quarter 2026 sales revenue of $2,385 million, up from $2,202 million, and adjusted EBIT of $305 million versus $210 million a year earlier. Selling prices rose 7 percent, driven by higher raw material and distribution costs and tight Chemical Intermediates markets tied to the Middle East conflict. The company expects full-year 2026 adjusted EPS of $6.00 to $6.20 and operating cash flow of about $850 million.
Tight olefin and derivative supply and further price increases across Eastman's specialty lines point to higher input costs for downstream customers in automotive, consumer durables and building end markets.
Key facts
| Companies | Eastman Chemical Company, Eastman |
|---|---|
| Chemicals | olefin and derivative products, acetate tow, specialty plastics, advanced interlayers, performance films |
| Investment | Reinstatement of a $375 million U.S. Department of Energy award supporting the circular platform; $125 million to $150 million of cost savings, net of inflation, in 2026 |
| Location | Kingsport, Tennessee |
| Timing | 2026-10-29, third quarter 2026, 2026 full year, fourth quarter 2026, 2026 and 2027 |
| Partners | U.S. Department of Energy |
| End uses | automotive, consumer durables, transportation, building and construction, consumables, textiles |
Market context
Eastman Chemical is a major producer of specialty materials built on petrochemical feedstocks such as olefins and their derivatives. Acetate tow, a fiber used mainly in cigarette filters and textiles, is one of its long-standing products, while specialty plastics, advanced interlayers and performance films serve more demanding applications. Demand for these materials comes from automotive, consumer durables, transportation, building and construction, and consumer goods. When olefin supply tightens, producers often pass higher raw material and logistics costs to customers through price increases, and specialty lines tend to follow the same pattern. For downstream buyers in these sectors, the practical effect is higher input costs and less room to negotiate on price. Competing producers with access to different feedstocks or regional supply can gain relative pricing power during such periods, so buyers may need to review contract terms and inventory planning.
Source: official release on eastman.com. Summary and context written by Market Krystal.
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