EMN

Eastman Chemical is a specialty-materials company moving through a cyclical trough, and FY2025 shows the squeeze. Revenue fell 6.7% to $8.75B, gross profit dropped 19.5% to $1.84B (gross margin 21.1%), and net income nearly halved to $474M (EPS $4.10, -46.5%) — a sharp step down from the steady ~$800-900M earnings of FY2021-2024. Weaker volumes and margin compression across plastics, resins and specialty additives are the story, a familiar pattern for a chemicals producer exposed to industrial and consumer demand cycles.

Despite the earnings hit, the business remains solidly cash-generative and the balance sheet is sound. Operating cash flow was $970M (down 24.6% but comfortably positive) against $546M of capex, leaving free cash to cover the $381M dividend (+0.5%, signaling the payout is defended). Long-term debt fell 8.0% to $4.20B and liabilities/equity sits at a manageable 1.48x; equity actually grew 3.1%. Cash dropped 32.4% to $566M, the main balance-sheet soft spot, and short-term borrowings rose 30.2%.