Eastman CFO Sees Q4 Miss on Weak Demand, Extended Turnaround

Eastman Chemical CFO William McLain said fourth-quarter earnings will fall slightly below the company's guidance range due to challenges in the chemical intermediates segment but highlighted accelerating demand for molecular recycling solutions as a 2026 growth driver at the Citigroup Basic Materials Conference.

“We think we’ll be a bit below $0.75,” McLain told a Citigroup analyst. 

Previous earnings projections fell between 0.75 and $1 per share. 

North American demand for chemical intermediates has deteriorated and a major cracker turnaround has taken longer than the planned 60-day timeline to return to full production rates, he said. The fiber business also continues facing destocking pressures.

Despite these headwinds, the company remains on track to approach $1 billion in cash generation for 2025, supported by decisive inventory management actions taken during the third quarter.

Kingsport Plastics Recycling On Track

A bright spot emerged in Eastman's methanolysis-based recycling operations. The Kingsport, Tennessee, facility is running well, with management increasingly confident about achieving 130% of its nameplate capacity and potential for further improvement, McLain said.

“The optionality that gives us right now and with the plan that we had already made to convert some of the polymer assets, it gives us the ability to ramp up the specialty side, at the same time, prove the circular solution,” he said.

McLain added that the company is working with the U.S. Department of Energy on the planned Longview, Texas, methanolysis plant, which was put on hold after the Trump administration announced it would cut $3.7 billion in clean-energy grants. 

More significantly, the company is seeing accelerated demand in packaging applications for 2026, representing growth above 2025 levels, as mechanical recycling proves unable to meet fitness-for-use criteria.

Management views the pause as an opportunity to refine the business model and prove economics before committing to additional capacity, McLain said.

_{This piece was created with the assistance of generative AI tools and was edited by our content team for clarity and accuracy.}