
Eastman Chemical Company (NYSE:EMN) has officially announced its financial results for the fourth quarter and full year of 2024, highlighting strong performance across key business segments and continued progress in strategic growth initiatives.
Strong Performance and Key Achievements
Throughout 2024, Eastman Chemical delivered significant growth in specialty volume/mix within its Advanced Materials and Additives & Functional Products divisions. This momentum carried into the fourth quarter, where the company demonstrated resilience and operational excellence in the face of macroeconomic challenges.
One of the most notable accomplishments was the improvement in adjusted EBIT margin, which increased by 350 basis points in the fourth quarter and 190 basis points for the full year. This was driven by growth in volume/mix, operational efficiencies, and a commitment to commercial excellence.

Additionally, Eastman Chemical successfully managed the Kingsport methanolysis facility, positioning it for strong earnings contributions in 2025. The company’s cash flow remained robust, with approximately $1.3 billion generated from operating activities, demonstrating financial strength and operational discipline. Consistent with its capital allocation strategy, Eastman returned approximately $700 million to shareholders through dividends and share repurchases.
Financial Highlights
(In millions, except per share amounts; unaudited)
Metric | 4Q24 | 4Q23 | FY24 | FY23 |
---|---|---|---|---|
Sales Revenue | $2,245 | $2,207 | $9,382 | $9,210 |
EBIT | $349 | $477 | $1,278 | $1,302 |
Adjusted EBIT | $305 | $222 | $1,298 | $1,097 |
Earnings Per Diluted Share | $2.82 | $2.61 | $7.67 | $7.49 |
Adjusted Earnings Per Diluted Share | $1.87 | $1.31 | $7.89 | $6.40 |
Net Cash Provided by Operating Activities | $540 | $452 | $1,287 | $1,374 |
According to Mark Costa, Board Chair and CEO of Eastman Chemical, 2024 was a tremendous year for the company. “Adjusted earnings per share grew by 23 percent, demonstrating the strength of our business despite ongoing macroeconomic uncertainties and weak end-market demand. Our ability to drive margin expansion and generate strong cash flow reflects our commitment to delivering shareholder value.”
Costa also highlighted the successful launch of the world’s largest molecular recycling facility, reinforcing Eastman’s leadership position in sustainable innovation and the circular economy. “We made significant progress with our Kingsport methanolysis facility, ensuring that we can build on our Renew sales funnel as we enter 2025,” he added. “Our innovation-driven growth model positions us to outperform market trends, and I am confident in our team’s ability to drive resilient earnings and cash flow going forward.”
Fourth-Quarter Performance vs. Prior Year
Sales revenue in Q4 2024 increased by 2 percent, driven by a 1 percent rise in sales volume/mix and a 1 percent increase in selling prices. Growth in Advanced Materials and Additives & Functional Products was partially offset by lower sales in Fibers and Chemical Intermediates.
Adjusted EBIT growth was supported by higher capacity utilization, improved operational efficiencies, and favorable price-cost dynamics. However, reported EBIT in Q4 2023 included a Eastman gain from the sale of Texas City Operations, which affected year-over-year comparisons.
Segment-Specific Performance in Q4 2024
- Advanced Materials: Sales revenue increased by 2 percent due to a 5 percent rise in volume/mix, offset by a 3 percent decline in selling prices. Strong demand across key markets, reduced customer inventory destocking, and innovation-driven growth contributed to this performance.
- Additives & Functional Products: Sales revenue grew by 9 percent, driven by a 7 percent increase in volume/mix and a 2 percent rise in selling prices. The recovery of the agriculture sector and robust demand for aviation fluids were key contributors.
- Fibers: Sales revenue declined by 7 percent due to a 9 percent drop in volume/mix, partially mitigated by a 2 percent increase in selling prices. Lower acetate tow sales were the primary reason for the decline.
- Chemical Intermediates: Sales revenue dropped by 2 percent as a 4 percent decline in volume/mix was only partially offset by a 2 percent increase in selling prices. Weak demand and year-end customer inventory destocking impacted this segment.
Full-Year 2024 vs. 2023
For the full year, Eastman Chemical’s sales revenue increased by 2 percent, primarily due to a 4 percent growth in sales volume/mix, partially offset by a 2 percent decline in selling prices. The Advanced Materials division was a major driver of this growth, benefiting from strong innovation and reduced inventory destocking across industries.
Segment Highlights for Full-Year 2024:
- Advanced Materials: Sales revenue grew by 4 percent, driven by an 8 percent increase in volume/mix, despite a 4 percent decline in selling prices. Notable growth was seen in automotive applications, with demand for premium interlayers products boosting results.
- Additives & Functional Products: Sales revenue increased by 1 percent, with a 4 percent increase in volume/mix largely offset by a 3 percent decline in selling prices. Growth in aviation, personal care, and water treatment helped drive segment performance.
- Fibers: Sales revenue increased by 2 percent, supported by higher acetate tow contract prices. While volume/mix remained flat, growth in Naia™ was balanced by a slight decline in acetate tow.
- Chemical Intermediates: Sales revenue remained steady as a 3 percent increase in volume/mix was offset by a 3 percent drop in selling prices, primarily due to lower raw material and energy costs.
Cash Flow and Capital Allocation
Eastman Chemical generated approximately $1.3 billion in operating cash flow in 2024, slightly down from the $1.4 billion in 2023. This modest decline was primarily due to an increase in working capital. Despite this, the company maintained a strong financial position, returning $679 million to shareholders through dividends and share repurchases.