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Eastman Chemical Boosts Dividend Leveraging Strong Cash Generation

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Key Takeaways

  • Eastman Chemical has raised its quarterly dividend to 84 cents per share, backed by its cash strength.
  • Working-capital moves, including a $204M inventory cut, supported Q3 cash generation.
  • EMN targets over $75M in 2025 structural cost cuts with an additional $100 reduction in 2026.

Eastman Chemical Company(EMN - Free Report) has announced its 16th straight annual dividend increase. The company announced a raise in its quarterly cash dividend from 83 cents to 84 cents per share. The revised dividend, payable Jan. 8, 2026, to the shareholders of record as of Dec. 15, 2025, underscores EMN’s long-standing commitment to shareholder value. 

Eastman Chemical delivered a strong operating cash flow of $402 million in the third quarter, up nearly 1.5% from last year’s figure, driven principally by working-capital initiatives — including a roughly $204 million inventory reduction. In the same quarter, the company returned $146 million to its shareholders via a combination of dividends and share repurchases. 

Despite the near-term headwinds from soft demand, Eastman Chemical remains focused on cost discipline and cash generation. The company is on track to cut over $75 million in structural costs this year (net of inflation) and aims for an additional $100 million cost reduction in 2026. For the full-year 2025, management forecasts operating cash flow to approach $1 billion. 

Eastman Chemical expects challenges to persist due to cautious customer spending, ongoing inventory destocking and weak demand in markets like building and construction, consumer durables and automotive. However, it anticipates a gradual recovery supported by rising sales from the new Kingsport methanolysis facility, better plant efficiencies and continued cost-saving efforts. 

Shares of EMN have lost 40% over the past year compared with the industry’s 31.9% decline. 

Zacks Investment ResearchImage Source: Zacks Investment Research

EMN’s Zacks Rank & Key Picks

EMN currently carries a Zacks Rank #5 (Strong Sell). 

Some better-ranked stocks in the Basic Materials space are Glencore Plc. (GLNCY - Free Report) , Hochschild Mining Plc. (HCHDF - Free Report) and Iamgold Corporation (IAG - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) Stocks here.

The Zacks Consensus Estimate for GLNCY’s current-year earnings is pegged at 21 cents per share, indicating a 2000% year-over-year increase. Shares of GLNCY have gained 6.6% over the past year. 

The Zacks Consensus Estimate for HCHDF’s current fiscal-year earnings stands at 36 cents per share, reflecting a 57% year-over-year increase.Shares of HCHDF have surged 99.9% over the past year. 

The Zacks Consensus Estimate for IAG’s current fiscal-year earnings is pegged at 83 cents per share, indicating a 51% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 3.2%. 


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