Eastman Kodak Company (KODK Quick QuoteKODK - Free Report) is showing clear signs of a business and balance sheet turnaround in 2025. The company points to a mix of margin expansion, segment-level growth opportunities and a pending pension reversion event that will significantly reduce leverage. Together, these factors suggest that KODK could offer meaningful upside for investors interested in companies undergoing operational recovery.

KODK Stock Price Performance

Shares of Kodak have outperformed the industry in the past six months. The company’s stock has gained 29% compared with the industry’s 23.6% growth.

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Profitability Is Rising Sharply Alongside Revenues

Kodak’s third-quarter results show that profitability improvements are outpacing top-line growth. For the third quarter of 2025, consolidated revenues reached $269 million, up modestly from $261 million a year earlier, but gross profit surged to $68 million from $45 million. This lifted gross margin to 25% compared to 17% in the prior-year quarter, reflecting a step-change in operating efficiency and pricing outcomes. The company attributes the improvement to price increases, better volumes, lower aluminum costs and reduced litigation spending, partially offset by higher manufacturing costs. This kind of margin expansion, especially in a relatively flat revenue environment, suggests Kodak is becoming more profitable per dollar of sales.

Operational EBITDA underscores the same shift. Kodak reported Operational EBITDA of $29 million in the third quarter of 2025, up from $1 million in the prior-year quarter. This reflects broad-based improvement in the underlying business, rather than a one-off accounting benefit. In turn, the company has been able to grow its cash balance sequentially through profitability.

Advanced Materials and Chemicals Is Becoming a Growth Engine

Kodak’s Advanced Materials & Chemicals (“AM&C”) segment is emerging as its clearest and fastest-growing driver. In the third quarter of 2025, AM&C revenues rose 15% year over year to $82 million, and segment profitability expanded alongside revenue gain. Management’s remarks emphasize that years of reinvesting in Kodak’s coating and layering competencies are beginning to pay off, with growth supported by industrial film, chemicals and motion picture demand.

A particularly notable development is Kodak’s cGMP pharmaceutical manufacturing facility, which is now certified and operating. Certification allows Kodak to manufacture and sell regulated products, beginning with diagnostic reagents, with the stated goal of expanding its product set over time. Entry into regulated pharma-adjacent manufacturing can offer higher stability and margin potential than traditional print cycles.

Film Demand & Direct Distribution Add Another Layer of Momentum

Kodak also describes a resurgence in its film business, supported by both capacity investment and structurally improving demand. Kodak has invested heavily in film finishing lines, nearly doubling capacity, and is seeing rising interest from motion picture and still-film users. Importantly, Kodak has launched its own direct distribution brand for still film, intended to stabilize supply, pricing and availability across global channels. This gives Kodak more direct control over a growing consumer and professional niche while reinforcing its brand equity in analog imaging. Combined with AM&C growth, film provides another lever for multi-year revenue durability.

Print Is More Profitable Even With Slightly Lower Sales

While print revenues slipped slightly year over year in the third quarter, the profitability profile of the print division improved sharply. Print Operational EBITDA swung from negative $9 million in the third quarter of 2024 to positive $8 million in the third quarter of 2025. The company links this rebound to higher pricing, lower aluminum costs, cost discipline and prior-year inventory reserve effects.

At the same time, Kodak continues to invest in a full print ecosystem that includes workflow software, computer-to-plate systems, lithographic plates, digital presses and services. Even in a mature global print market, Kodak’s ability to restore print profitability supports overall cash generation and reduces downside risk for shareholders.

Pension Reversion Is a Balance Sheet Catalyst

Kodak is nearing completion of its U.S. pension reversion process. After settling roughly $2.1 billion of pension obligations and finalizing annuity transfers and lump sums, Kodak expects surplus assets to revert to the company in December 2025. The latest estimate for reversion proceeds is approximately $600 million, up from the earlier guidance of $500 million. About $450 million is expected in cash and $150 million in non-cash hedge fund assets that are being redeemed. This infusion is not merely incremental liquidity; it is central to Kodak’s stated deleveraging plan.

Kodak is required under its credit agreements to use a significant portion of the cash to repay term loans, cutting debt to around $200 million and lowering interest expense going forward. Management expects that after applying these proceeds, Kodak will be net cash positive versus its term loans and Series B preferred obligations and will exit 2025 with more than $300 million in cash.

The Bottom Line

Profitability is improving faster than revenues, AM&C is scaling into new, higher-value markets, the film business is benefiting from renewed demand and better distribution control, and print has returned to positive earnings contribution. Above all, the impending $600 million pension reversion is set to reduce debt dramatically and push Kodak into a net-cash-positive posture, while the removal of the going-concern warning signals that balance sheet stress has eased. On the evidence contained in these filings alone, KODK appears positioned for a stronger, more flexible and potentially higher-valued future.