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Kodak Q2 Earnings Rise Y/Y as Operational EBITDA Quadruples
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Shares of Eastman Kodak Company (KODK - Free Report) have gained 16.5% since reporting second-quarter 2026 results on Aug. 4, outperforming the S&P 500 index’s 1.7% return. Over the past month, Kodak shares have advanced 21.6% compared with a 2.9% return for the S&P 500.
Earnings & Revenue Performance
Kodak reported second-quarter revenues of $311 million, up $48 million, or 18%, from $263 million a year earlier. Sales revenues increased to $276 million from $226 million, while services revenues declined to $35 million from $37 million. Earnings were 13 cents per share, reversing a loss of 36 cents in the prior-year quarter. GAAP net income improved by $43 million to $17 million from a net loss of $26 million.
Eastman Kodak Company Price, Consensus and EPS Surprise
Gross profit rose $31 million, or 61%, to $82 million from $51 million. The gross margin expanded 7 percentage points to 26% from 19%. Operational EBITDA, a non-GAAP measure, increased $27 million, or 300%, to $36 million from $9 million, marking the fourth consecutive quarter of year-over-year growth in revenues, gross profit and operational EBITDA.
Print revenues increased $17 million, or 10%, to $195 million, while segment operational EBITDA improved to $8 million from a $4 million loss. Advanced Materials & Chemicals revenues climbed $30 million, or 40%, to $105 million, and operational EBITDA rose to $22 million from $8 million. Brand revenues increased to $7 million from $6 million, with operational EBITDA advancing to $6 million from $5 million. Foreign currency movements did not affect quarterly revenues or operational EBITDA.
Kodak ended the quarter with $290 million in cash, down $47 million from Dec. 31, 2025. However, cash was $135 million higher than the $155 million held a year earlier. Total debt fell to $110 million from $490 million, leaving net cash of $180 million against net debt of $335 million. Trailing-12-month operational EBITDA increased to $102 million from $21 million, while the total-debt-to-operational-EBITDA ratio improved to 1 times from 23 times.
Management Commentary
Executive chairman and CEO Jim Continenza characterized the quarter as one of “stability and growth,” attributing the results to execution of Kodak’s long-term plan, investments in product development and manufacturing infrastructure, and operational improvements. Management said that Kodak is entering a phase of its transformation in which its operating and financial leverage can support growth.
The company plans to expand its core businesses, improve efficiency and accelerate research and development spending. In Advanced Materials & Chemicals, management highlighted demand for still and motion-picture film, the launch of Kodak’s first pharmaceutical web store, work toward Class 2 certification for more complex pharmaceutical products, and additional investment in battery-coating capabilities.
Factors Influencing Results
Favorable pricing and higher volumes in Print and Advanced Materials & Chemicals drove the increases in gross profit and operational EBITDA. These benefits more than offset higher silver and aluminum costs, and increased selling, general and administrative expenses related to employee-benefit reserves and corporate infrastructure.
The improvement in GAAP earnings also reflected a $20-million increase in operating earnings, a $9-million reduction in interest expenses and a $28-million improvement in other income and charges, largely because the quarter did not repeat the prior year’s $17-million asset-impairment charge. An $11-million decline in non-cash pension income partially offset those gains.
Inventory increased $37 million, primarily because of higher silver prices, additional silver held under supply terms and production built ahead of a planned maintenance shutdown.
Outlook
Management expects pension income to remain below the prior-year levels throughout 2026 following the termination and asset reversion of the Kodak Retirement Income Plan. Its stated growth strategy centers on core competencies, industrial businesses with high barriers to entry and investments selected for long-term return potential.
Other Developments
Kodak said that it acquired an R&D division to support innovation, efficiency and quality control, but did not disclose the transaction’s timing, purchase price or other terms. The company also repaid $100 million of term-loan principal during the first half, partly funded by $87 million of pension-plan asset-redemption proceeds.
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Kodak Q2 Earnings Rise Y/Y as Operational EBITDA Quadruples
Shares of Eastman Kodak Company (KODK - Free Report) have gained 16.5% since reporting second-quarter 2026 results on Aug. 4, outperforming the S&P 500 index’s 1.7% return. Over the past month, Kodak shares have advanced 21.6% compared with a 2.9% return for the S&P 500.
Earnings & Revenue Performance
Kodak reported second-quarter revenues of $311 million, up $48 million, or 18%, from $263 million a year earlier. Sales revenues increased to $276 million from $226 million, while services revenues declined to $35 million from $37 million. Earnings were 13 cents per share, reversing a loss of 36 cents in the prior-year quarter. GAAP net income improved by $43 million to $17 million from a net loss of $26 million.
Eastman Kodak Company Price, Consensus and EPS Surprise
Eastman Kodak Company price-consensus-eps-surprise-chart | Eastman Kodak Company Quote
Other Key Business Metrics
Gross profit rose $31 million, or 61%, to $82 million from $51 million. The gross margin expanded 7 percentage points to 26% from 19%. Operational EBITDA, a non-GAAP measure, increased $27 million, or 300%, to $36 million from $9 million, marking the fourth consecutive quarter of year-over-year growth in revenues, gross profit and operational EBITDA.
Print revenues increased $17 million, or 10%, to $195 million, while segment operational EBITDA improved to $8 million from a $4 million loss. Advanced Materials & Chemicals revenues climbed $30 million, or 40%, to $105 million, and operational EBITDA rose to $22 million from $8 million. Brand revenues increased to $7 million from $6 million, with operational EBITDA advancing to $6 million from $5 million. Foreign currency movements did not affect quarterly revenues or operational EBITDA.
Kodak ended the quarter with $290 million in cash, down $47 million from Dec. 31, 2025. However, cash was $135 million higher than the $155 million held a year earlier. Total debt fell to $110 million from $490 million, leaving net cash of $180 million against net debt of $335 million. Trailing-12-month operational EBITDA increased to $102 million from $21 million, while the total-debt-to-operational-EBITDA ratio improved to 1 times from 23 times.
Management Commentary
Executive chairman and CEO Jim Continenza characterized the quarter as one of “stability and growth,” attributing the results to execution of Kodak’s long-term plan, investments in product development and manufacturing infrastructure, and operational improvements. Management said that Kodak is entering a phase of its transformation in which its operating and financial leverage can support growth.
The company plans to expand its core businesses, improve efficiency and accelerate research and development spending. In Advanced Materials & Chemicals, management highlighted demand for still and motion-picture film, the launch of Kodak’s first pharmaceutical web store, work toward Class 2 certification for more complex pharmaceutical products, and additional investment in battery-coating capabilities.
Factors Influencing Results
Favorable pricing and higher volumes in Print and Advanced Materials & Chemicals drove the increases in gross profit and operational EBITDA. These benefits more than offset higher silver and aluminum costs, and increased selling, general and administrative expenses related to employee-benefit reserves and corporate infrastructure.
The improvement in GAAP earnings also reflected a $20-million increase in operating earnings, a $9-million reduction in interest expenses and a $28-million improvement in other income and charges, largely because the quarter did not repeat the prior year’s $17-million asset-impairment charge. An $11-million decline in non-cash pension income partially offset those gains.
Inventory increased $37 million, primarily because of higher silver prices, additional silver held under supply terms and production built ahead of a planned maintenance shutdown.
Outlook
Management expects pension income to remain below the prior-year levels throughout 2026 following the termination and asset reversion of the Kodak Retirement Income Plan. Its stated growth strategy centers on core competencies, industrial businesses with high barriers to entry and investments selected for long-term return potential.
Other Developments
Kodak said that it acquired an R&D division to support innovation, efficiency and quality control, but did not disclose the transaction’s timing, purchase price or other terms. The company also repaid $100 million of term-loan principal during the first half, partly funded by $87 million of pension-plan asset-redemption proceeds.