Shares of Eastman Kodak Company (KODK Quick QuoteKODK - Free Report) have jumped 46.6% since the firm released its third-quarter 2025 results, sharply outperforming the S&P 500 index’s decline of 1.2%. Over the past month, the stock has advanced 30.3%, beating the broader market’s 7.6% rise. The rally reflects investors’ renewed confidence in Kodak’s balance sheet strength, operational improvement and progress in resolving long-standing financial uncertainties.

Kodak reported third-quarter 2025 revenues of $269 million, up 3% year over year from $261 million in the comparable period of 2024. The improvement was driven by a strong performance in its Advanced Materials & Chemicals (AM&C) segment, which grew 15% to $82 million, offsetting a 3% decline in Print revenues to $177 million.

The company’s gross profit jumped 51% to $68 million from $45 million, lifting the gross margin to 25% from 17% a year earlier. However, GAAP net income declined 28% to $13 million from $18 million due to lower pension income. On an adjusted basis, operational EBITDA soared to $29 million from just $1 million, underscoring a sharp rebound in underlying operations. On a per-share basis, Kodak’s loss was 8 cents against earnings of 15 cents in the prior-year quarter.

Eastman Kodak Company Price, Consensus and EPS Surprise

 

Eastman Kodak Company price-consensus-eps-surprise-chart | Eastman Kodak Company Quote

Operational & Segment Performance

The quarter’s operational strength stemmed from improved pricing, higher volumes and lower input costs, particularly aluminum. In AM&C, operational EBITDA rose to $16 million from $6 million, supported by strong results in Industrial Film, Chemicals and Motion Picture products. The segment benefited from the certification of Kodak’s current Good Manufacturing Practice (cGMP) pharmaceutical manufacturing facility, enabling the sale of regulated products.

In addition, Kodak launched its branded line of still films, distributed directly to retailers — an initiative designed to stabilize supply and strengthen margins in the consumer film market.

In contrast, the Print segment faced softer demand in Prepress Solutions, pushing its revenues down 3% year over year. Still, Print’s operational EBITDA swung to a positive $8 million from a loss of $9 million a year ago. Management credited pricing actions, cost control and lower aluminum prices for the turnaround. The brand licensing division contributed a steady $5 million in EBITDA.

Management Commentary

Executive chairman and CEO, Jim Continenza, described the third quarter as Kodak’s “best performance in years,” citing evidence that long-term investments are beginning to yield results. He emphasized the company’s focus on “smart revenue,” operational excellence and the disciplined deleveraging of the balance sheet. Continenza highlighted that the company is “a proud U.S. manufacturer,” noting progress in film and chemicals, two of Kodak’s historic core competencies.

He also stressed the cultural shift within Kodak, asserting that profitability improvements stem from “operational discipline and a customer-first mindset.” In addition to restoring film capacity, Kodak has strengthened its motion picture film operations and expanded into still film, with several high-profile directors continuing to favor film formats. The Print business, meanwhile, remains a critical pillar, with continued investment in workflow software, lithographic plates and digital presses manufactured in the United States, Germany and Japan.

Factors Influencing the Headline Numbers

The significant swing in operational EBITDA — up 2800% year over year — was mainly attributed to cost efficiencies, a favorable product mix and lower litigation expenses. The company benefited from inventory adjustments made in the prior year. However, the decline in net income reflected a $26-million year-over-year reduction in non-cash pension income, a result of changes in the investment strategy for the Kodak Retirement Income Plan.

Kodak ended the quarter with $168 million in cash, up from $155 million at the end of June 2025. The operating cash flow improved by $2 million for the first nine months of 2025. CFO David Bullwinkle noted that the stronger cash position and pension reversion proceeds will “reduce term debt to $200 million, lower interest expense, and improve liquidity,” calling it the company’s “healthiest balance sheet in years.”

Guidance & Outlook

Management conveyed optimism about continued margin expansion and balance-sheet repair. Continenza and Bullwinkle both emphasized that with the pension reversion proceeds of approximately $600 million, up from the prior estimate of $500 million, the company will achieve a net cash-positive position once the transaction concludes in December 2025. The firm expects to allocate $305 million of those proceeds to repay term loans, lowering leverage.

This transaction also fully resolves previously disclosed “going concern” conditions under U.S. GAAP accounting standards, marking a milestone in Kodak’s turnaround efforts.

Management reiterated its commitment to a disciplined approach to cash management, operational efficiencies and sustainable growth. Bullwinkle added that Kodak remains in compliance with all financial covenants and expects “continued execution of our plan to provide the liquidity to fulfill obligations and deliver long-term shareholder value.”

Other Developments

The most significant non-operational event of the quarter was the completion of key steps in Kodak’s pension reversion plan. The company successfully transferred $1.8 billion in pension obligations to Metropolitan Tower Life Insurance Company and settled $233 million in lump-sum payments to participants, paving the way for the expected $600 million in surplus proceeds to be received by the year-end. Kodak also established a new cash balance pension plan identical in benefits to the prior plan for active employees, ensuring continuity while freeing up corporate cash flow.

Another notable development was the conversion of Series C preferred stock held by Grand Oaks Capital into common stock, eliminating $100 million in preferred obligations and $24 million in accrued dividends. Combined with debt reduction, this restructuring substantially strengthens Kodak’s capital structure ahead of 2026.

Overall, Kodak’s third-quarter 2025 results represented a turning point in both operations and financial stability. The company’s profitability improvements, progress on pension reversion and debt reduction initiatives underpin investor optimism reflected in the stock’s post-earnings surge. As management focuses on core competencies in print and chemicals, the firm appears better-positioned to sustain profitability and rebuild long-term shareholder value.