With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are diversified and specialty chemical manufacturers.

Fortune Sector Leaders: Chemicals

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

These companies use the creative tools of capitalism—including the profit motive—to address society’s unmet needs.

CTW-2021-22-Eastman

<span style="font-weight: 400">In 2019, Eastman began updating some plants to accept plastic waste, in processes it calls “carbon renewal technology” and “polyester renewal technology," through which feedstocks are broken down to the molecular level and used to make products that can theoretically be infinitely recycled, and waste polyester is made back into raw material. Some 25 brands and companies, including fashion retailer H&amp;M, now sell products made with Eastman materials derived from plastic waste—including packaging and carpet fibers. Eastman aims to recycle 500 million pounds of plastic a year by 2030. </span>

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This year’s Fortune 500 marks the 67th running of the list.

Created from a branch of Kodak in 1920, the company now works independently to produce chemicals for use in products such as tires, windows, and cigarette filters.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-343-Eastman-Chemical

The global chemical company spun out from parent Eastman Kodak in 1994 is headquartered in Kingsport, Tenn. and makes specialty chemicals and fibers found in a number of everyday items from product packaging to automotive tires. Eastman employs approximately 14,500 people and serves customers in more than 100 countries.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Eastman Chemical is a global specialty materials business that produces advanced materials, chemicals, and fibers. The company was founded in 1920 by inventor and high school dropout George Eastman, most known for his revolutionary innovation of the Kodak camera. Eastman Chemical Company was launched in order to provide Kodak’s business with raw materials such as photographic paper, optical glass, gelatin, and chemicals after a scarcity following World War I. Today, Eastman Chemical serves clients in a range of industries including agriculture, construction, water treatment, energy, wellness, electronics, and more.

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Eastman Chemical (EMN): Company Profile, Stock Price, News, Rankings

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Eastman Chemical

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Good day, everyone, welcome to the First Quarter 2026 Eastman Conference Call. Today's conference is being recorded. This call is being broadcast live on the Eastman website at www.eastman.com. I will now turn the call over to Mr. Greg Riddle, Eastman Investor Relations. Please go ahead, sir.

Thank you, Becky, and good morning, everyone, and thanks for joining us. On the call with me today are Mark Costa, Board Chair and CEO; Willie McLain, Executive Vice President and CFO; and Jake LaRoe, Senior Manager, Corporate Analysis and Investor Relations.

Yesterday after market close, we posted our first quarter 2026 financial results news release and SEC 8-K filing, our slides, and the related prepared remarks in the investor section of our website, eastman.com. Before we begin, I'll cover two items. First, during this presentation, you will hear certain forward-looking statements concerning our plans and expectations. Actual events or results could differ materially.

Certain factors related to future expectations are or will be detailed in our first quarter 2026 financial results news release, during this call, in the preceding slides and prepared remarks, and in our filings with the Securities and Exchange Commission, including the Form 10-Q to be filed for first quarter 2026 and the Form 10-K filed for full year 2025. Second, earnings referenced in this presentation excludes certain non-core and unusual items.

Reconciliations to the most directly comparable GAAP financial measures and other associated disclosures, including a description of the excluded and adjusted items, are available in the first quarter 2026 financial results news release. As we posted the slides and the accompanying prepared remarks on our website last night, we'll now go straight into questions. Becky, please, let's start with our first question.

Thank you. We'll now take our first question from Vincent Andrews from Morgan Stanley. Your line is now open. Please go ahead.

Thank you, and good morning. Mark, I'm wondering in methanolysis, you know, given what's going on, the run-up in crude oil prices and virgin plastic prices running beyond that, if in methanolysis, this is providing an opportunity for more customer trial or adaptation, whether it's in the U.S. or potentially some export opportunities.

'Cause I seem to remember over the last year or so, we've been talking about, you know, customers not wanting to spend or try things that are different, but it would seem to me now your product probably offers some significant relative value beyond just its, you know, recycled nature. If you could comment on that'd be really interesting.

Sure. Good morning, Vincent. We certainly are very excited about the strength of revenue growth associated with the Renew platform around methanolysis, both on the specialty side as well as the rPET side. We need to keep in mind that the end markets here, even though there's a lot of stress in the marketplace right now with the Mideast conflict, the end market demand situation hasn't really changed dramatically. Consumer discretionary on durables is still relatively challenged, or cosmetics, et cetera.

We're not seeing an uptick in end market demand in this concept. The customers are still, fortunately, very focused on the value of Renew content and interested in buying it. On the specialty side, I don't think anything's really changed. We are getting a bunch of wins.

We're seeing a great build in specialty customers. You saw some of that volume growth happen in Q1. It'll continue into Q2 and into the back end of the year. It's happening with Tritan sales and cosmetic packaging where we're seeing the most adoption. On the rPET side, I think there is more of a question around just relative value of our rPET relative to where virgin PET prices are going with the increase in oil.

Certainly that improves the price position of our material relative to those materials that are going up in a considerable way, we see strong demand there. Honestly, the demand was strong before oil went up, and we're running our capacity to serve that.

That 4%-5%, you know, revenue growth that we've talked about in January, we still think that's probably accurate. There may be some upside. You know, the real upside, I think, sits, you know, relative to the underlying market, sits more in the Middle East related issue than it is just on the Renew value proposition across the portfolio. In particular, specialty plastics, since we're talking about advanced materials right now, you know, has some upside there.

You know, as our competitors, in Asia, principally, you know, are facing much higher oil costs, much higher, you know, natural gas costs, they're, you know, they're having to raise prices like we are aggressively in this context. They're also facing security supply issues.

There are shortages out there that's driving all this price increase. You know, there's people are gonna start running into the inability to actually make product, polymers, whether it's direct competition or indirect polymer competition. We're just seeing signs of it, but we expect to see more potential volume upside driven by that operational constraint that's gonna be occurring in Asia in particular. There is a combination of Renew growth for sure.

What's, what's impressive in this entire environment is even with the challenges that our customers are facing economically, you know, we're still building, they're still paying premiums for these products, which is a really, you know, impressive test of the value proposition. Vincent?

Thank you. Our next question comes from Patrick Cunningham from Citigroup. Your line is now open. Please go ahead.

Hi, good morning. Thanks for taking my question. Sort of a related question just on, you know, the volume upside, you know, as being a reliable supplier here. You know, have you seen, you know, tangible market share gains, particularly in CI at this point? You kind of touched on this, but, you know, how would you sort of handicap the potential for share upside, you know, in other parts of the specialty business as a result of the conflict?

Yeah. It's a great question, and we're certainly paying a lot of attention to this issue, as I just mentioned. On the Chemical Intermediates side, certainly we can sell everything that we can make. And the good news about this year, because we had such large cracker turnarounds last year, is we have a lot more volume to sell this year than last year. We have more volume to sell. Remember, we sell a good amount of that in North America, where we have good margins always.

Then we have the export market, you know, that we would, we'd send material into from chemical intermediates to run the assets full. Those margins had been significantly compressed last year. Those margins now with the shortage out of the Middle East have gone up significantly.

We're gonna see the benefit of that. We see the benefit of lot more volume than we expected in North America with the tightness in the overall markets from the imports that would've come from Asia that are not coming as much as well as, you know, the spreads expanding and a lot more volume to sell. We're definitely seeing share benefits as well as being out, you know, export to higher value markets like Europe than Asia, where markets are being shorted by material that's not coming from Asia as readily.

Lots of different benefits going on there. When it comes to the specialty side, I already hit the point I think, but we definitely see the potential for a volume and market share upside in AFP and advanced materials.

We haven't seen any significant amount of improvement yet. We think that's still to come. A lot of people are very focused on the price of oil or the price of global natural gas, which is certainly, you know, raising the cost structure of our competitors around the world much higher than us. But the quantity shortage, I think is an impact to the world that we haven't actually seen yet.

You know, people are living off of a certain amount of inventory, whether it's customers or competitors and serving the market, but, you know, that's gonna start running out. And they're gonna start seeing more shortages impacting the markets, in addition to just the sort of direct oil or natural gas dynamic.

Understood. Very helpful. Then just on fibers, you specifically called out reduced customer shipments, you know, some forward-looking volume risks. Can you elaborate what you're seeing there and why the implied, you know, second half earnings run rate should, you know, still show some improvement year-on-year?

Sure. You know, just to sort of go back just a moment to sort of what we're dealing with in fibers. You know, when the earnings came off last year relative to 2024, it was really multiple components. The tow volume was part of the story, but it's important to remember that about $30 million of the decline was textiles, $20 million was sort of stream asset utilization due to weak demand across the company, and about $15 million in energy.

When you move to this year, what we told you in January was, we thought that the tow volume would be moderately up relative to last year, which was a combination of, you know, locking in our contract business with everyone.

We had a modest price decline to lock in our contracts. Our Middle East customers were expected to grow a bit because they were the ones that were missing their contract commitments last year due to the issues we explained about them not realizing market share growth in their markets. We were expecting some, you know, modest growth, you know, in tow from that. Obviously, with the Middle East war happening, those customers, you know, have been impacted. We actually have tow there to serve their demand in some warehouses. You know, it's not an issue of us getting material to them.

It's an issue of their ability to operate in this environment and be able to export their cigarettes to other markets 'cause a good portion of their production isn't just for the Middle East, it's for exports to other markets. How they get that material out is a bit of a constraint. Q1 was fine. We see a little bit of risk in Q2, you know, where they're not gonna buy quite as much in that quarter as we expected. The real question is: how do they come back in the back half of the year to meet their contract commitments?

You know, when it comes to your back half question, the other thing that's going a little bit slower, and why we lowered earnings about $20 million in our guide here, is the yarn business is not growing as fast in this market context. We don't see that volume pick up. As a result, we're not getting as much of an asset utilization tailwind as we expected.

When you think about that, you know, we still feel really good about how the business is doing. When you look at it from a second half point of view, you have several drivers, you know, that will make second half much better than the first half.

First is these contract commitments. Even with our large customers who have signed annual contracts to hold tow relatively constant to last year, the contracts allow flexibility in how and when they buy it. A number of them have chosen, you know, to buy less in the first half and buy more in the second half. You have a pretty significant ramp up in volume with our core customers around the world just meeting their contract minimums, which is sort of, you know, what we have in this outlook. That's happening. The second is, you know, you've got some continued build in the yarn and film side of things.

You will have a little bit of energy tailwind as the energy gets cheaper, and from a flow-through basis from the, you know, winter storm, you know, in Q1 to lower natural gas prices going forward. A number of these factors come together to, you know, enable this, and of course our cost reductions, you know, are sort of back-end loaded as well across the company, and some of that flows in here.

Thank you. Our next question comes from David Begleiter from Deutsche Bank. Your line is now open. Please go ahead.

Thank you. Good morning. Mark, on CI, if you were to hold spreads steady at today's rates and layer in that $15 million of maintenance tailwind for Q3, what would that mean for Q3 EBIT? Could we see EBIT $100 million in CI in Q3, or is that too ambitious?

Well, I think, Dave, we sort of guide you that in Q2 it would be around $50 million in EBIT with the pretty tight market situation that's going on obviously right now. As we look at Q3 and what the trends could be, you know, I would think it's gonna be more similar than to be substantially up. I mean, without a doubt, you know, the margins are tight right now, and there will be a tailwind from Q2 to Q3 on the shutdown side. It then comes to your assumptions around, you know, when the strait's gonna get opened.

You know, if the strait gets opened in the next month, obviously some pressure's gonna come off in the marketplace, and you'll have, you know, spreads moderate a bit. That, you know, makes it a little more complicated to sort of say it's gonna be up. I think it, you know, it being similar is, you know, a reasonable expectation. It really comes down to, you know, how this whole strait situation plays out and how long the market tightness goes.

You know, when you think about it, you know, the price of oil, price of global natural gas are, you know, obviously incredibly high right now. That gives us, you know, a very significant advantage in how we make a lot of products, not just olefins, but everything, 'cause a lot of our customers are also or competitors are based on natural gas, not just for energy, but for feedstock.

You know, if you think about just the cracker side of things on olefins, which is the vast majority of the improvement for us, you know, you've got naphtha offline. You've got methanol offline. That's 15%, 20%, you know, of that, not just the oil, but the, you know, these derived products. Lot of time for these refineries to restart.

You gotta get the derivatives to restart, then you gotta fix the logistics questions, and then you've got, you know, damage in places that have to be repaired. All this says, you know, the moderation isn't gonna go all the way back to pre-conflict in our minds on oil or the derivatives.

Certainly, you know, when the Strait opens, some of that pressure will come off, you know, and factor into sort of how the margins trend in the back half of the year. We feel great about how the business has improved. We're happy to have the cash flow that comes from this business. You know, we certainly think that it lets us to reset, you know, better.

Very good. Just on the potential volume upside in specialties from these disruptions in Asia, how do you go about making these permanent rather than just temporary?

That's a great question. I mean, I think it's gonna, you know, it's unfortunately a dependent answer, David, on where we pick up the volume. In some places where it's a like competitor, you know, the shares may normalize back a bit.

Customers are learning painful lessons about exposure and reliable suppliers, I think one thing to keep in mind is this is an excellent proof point about the advantages of being a North American chemical company. In particular, being a very vertically integrated chemical company with 80% of our assets in the U.S. gives us, you know, huge cost advantage, it also gives us a huge security supply advantage to our customers, there's value to that.

Certainly one we intend to take full advantage of in supplying our existing customers, but also picking up new ones that we will intend to hold onto. The chances are we can hold onto them if the value proposition of our product is better once they start using it. Typically they're using some cheaper polymer, like polycarbonate or SAN that doesn't perform as well, but it's cheap. When they switch over to our polymer, they're gonna see it perform far better in with their consumers. That should provide some stickiness in how we hold onto that share once they've realized it.

You know, we're gonna be doing everything we can, and of course, we're gonna be trying to lock business in on contracts, you know, for a longer term commitment where we can as well, in this environment to sort of give us resilience on the volume and the price side.

Thank you. Our next question comes from Josh Spector from UBS. The line is now open. Please go ahead.

Yeah. Hi, good morning. Just curious around your visibility around any pull forward or not. I mean, I think in your prepared remarks you said it's not pull forward, but how are you validating that? I guess all the conversation around potential supply risks from some of your competitors probably makes your customers a bit more nervous and probably build a little bit of inventory. Curious there. Related with that, just, you know, how does this impact your production plans?

I think you kept your asset utilization tailwind kind of the same. I would think if you're anticipating better demand, maybe there could be some upside there. Curious if you could talk about that as well. Thank you.

You know, when you think about the demand pull forward, you know, we're operating with the underlying assumption that in-market demand this year is gonna be similar to last year, which is the same assumption we gave you at the beginning of the year. It's, you know, the same thing we're using for how we think about planning and assessing what's going on.

In that context, you know, what we're seeing in volume growth in the second quarter sequentially is strength and growth in the AM business, really especially in plastics, you know, which is associated with all the methanolysis wins, which is associated with, you know, clear wins of new applications and market share we're getting in our core Tritan business, our cosmetic business. That doesn't have anything to do with pull forward.

We don't see a big spike in demand like last year where people are just trying to buy stuff ahead of, you know, tariff risk. I think part of what's going on is, you know, customers, you know, see the risks and want to get ahead of price increases or, you know, want to have security of supply, but they're also being cautious about what they do when it comes to building too much demand with, you know, market uncertainty that we all can recognize in the back half of the year in this context. And you know, the other factor in this too is inventories were really low at the end of last year. You also have to keep that in mind.

That's part of the strength of recovery you saw from Q4 to Q1, is people just starting to rebuild some inventories or, you know, if you will, end of destocking that was going on in Q4. We don't see a lot of inventory out there in the supply chains at this stage. It's always difficult to see it. To be clear, we certainly, along with the entire industry, have not been experts in understanding the supply chain inventory.

You know, we don't see a lot of build of that, certainly not in March. As we go through this quarter, our order books are really strong. We had a good March, a strong March. We see that continuing April and May, June's a wild card in this market context.

you know, we don't see any problems, but, you know, we just don't have that much visibility all the way out to June. Overall, you know, there's just no sign of, you know, significant market pull-through in the specialties. As I said, in CI, we can sell what we wanna make, you know, and probably can do that through the end of the year.

Thank you. Our next question comes from Frank Mitsch from Fermium Research. Your line is now open. Please go ahead.

Thank you so much. I was struck by the $500 million of price increases that you have started to implement. I'm wondering if you could talk about, you know, how you see that phasing in, what has been the initial reactions from your customer base and how does that match up in terms of your expected inflation in raw materials?

Hey, Frank. Good morning. You know, what I would say is, as Mark's already highlighted, in chemical intermediates, we were reacting in the moment and driving price increases and volume growth, as we think about what's required to supply. In the specialties, you know, obviously our pricing philosophy has been around the value of our products and, you know, as we pace that with our partners over time.

You know, what we expect sequentially is in our specialties, mid-single-digit price increases from Q1 to Q2. When you think about our chemical intermediates, those are phasing in. I would say they're in the high teens or approaching 20%, as we see that sequential momentum. Our teams across the world reacted in the moment in Q1 when March occurred. We have good progress out of the date.

Yeah. Just to answer the question around the sort of market competitive dynamics around this, clearly everyone is raising prices, whether it's polymers or chemicals across the entire industry. You have that momentum to leverage. Being cautious on price increases will accomplish nothing when you're trying to worry, you know, think about consumer demand, except you missing out on margin. I think everyone understands that. That's point one.

Number two is, you know, the competitors we have, especially in the specialties, especially in advanced materials, are Asian-based. They've got significant increase in oil, and they have significant increase in natural gas, prices. Their cost structure, their energy cost structure has gone up more than us.

They're feeling a lot of pressure to manage their prices, and we're seeing the price increases from our competitors similar to us across the markets. In this context, we feel pretty good that we can get the price up, hold our volumes. You know, we've got great commercial teams. We've shown the value of innovation by holding on to price incredibly well in 2024 and 2025 in very weak market conditions.

Now we're in a hyper-inflated market condition, and we're showing we can increase our price on our specialties and keep track with our raw material and distribution costs, which is just further proof that we have a specialty business that has differentiated value propositions. You know, but we're always close to our customers. We'll always be keeping, you know, an eye on competitive activity and, you know, make adjustments if we have to, but we're not seeing the need to do that at this stage.

That's, that's very helpful. If I could come back and get clarification. You know, when talking about fibers getting better in the second half of the year, part of that is you have contract commitments from Middle East customers that you're anticipating, you know, they're gonna meet their contract minimums, et cetera, et cetera. Wouldn't this qualify as force majeure? I mean, wouldn't they be able to say, "Hey look," I mean, you know, to me, this seems like the very definition of force majeure. How should we think about that?

First, to frame it, the Middle East customers are about 10% of our revenue in this segment. The other 90%, you know, is predominantly tow, as well as some yarn customers. And in that 90%, you know, the real dynamic here is just they all have contracts. They all have, you know, volume commitments. Our forecast is based on them buying at the bottom, you know, into the volume range in those contract commitments.

That's global. It has nothing to do with the Middle East. They bought less in the first half of the year and going to buy more in the back half of the year, and that is the principal driver of the increase in earnings in the second half relative to the first half.

Then when you get down to the Mideast part, these customers have made a lot of investments in new capacity and were winning in the marketplace, but not quite as fast as they wanted. That's where their volume draw last year came up short. They had taken a bunch of actions to start, gaining market share this year and are very focused on doing it. They just have a logistics issue of getting it out. We've adjusted our expectations for the risk of that challenge by lowering the earnings expectation segment to this $210 million-$240 million range, which is about a $20 million drop.

Part of it is just a bit less volume from them, a bit less yarn growth, and a bit less asset utilization benefit. You put those three together, and that's how you get to that $20 million versus where we were originally. That, that's really sort of the dynamic. It's, it's about customers meeting their contracts. Those customers historically have always met their contracts under any situation, and they don't have a force majeure excuse on that 90%.

Thank you. Our next question comes from Matthew DeYoe from Bank of America. Your line is now open. Please go ahead.

Morning. I can't remember right now if it was the slides or the, the release, but you talked a little bit about the IEEPA tariff refunds. Wondering if that was a tailwind to 1Q or if that's more 2Q. If it was, how much are you expecting to get back there?

Good morning, Matt. On the IEEPA tariffs, obviously with the Supreme Court ruling and the Court of International Trade, we recognized about $20 million within Q1. That wasn't a tailwind. The IEEPA recognition of the refund was basically in line with the winter storm impact. You can think about those two as being neutralized in Q1. Also, that is the recognition, there's no further IEEPA refunds to recognize, we would expect to get the cash related to that sometime in the second half of the year.

Just to clarify, that's been like included in the 1Q results then?

If you think about [crosstalk] they neutralize each other out.

When we gave you our guide in January, we said, you know, this is our outlook, excluding the winter storm impact that we were in the middle of. By the time we got to end of the quarter, the IEEPA tariffs neutralized the winter storm. It turned out to be about the same. It was just a clean quarter relative to how we guided in January.

All right. That's helpful. Thanks. I'm jumping back in, so context is helpful for me. On methanolysis, right, I just wanted to kind of square some of the commentary because you talk a bit about new wins, and at the other side you're saying, you know, demand hasn't really changed much. Can you just kind of refresh where we are on kind of the upscaling here?

Sure. When it comes to the, you know, revenue of circular, there are two components to it, right? There's the core business we have where we're adding recycled content to our Tritan products, our cosmetic products in our specialty businesses and growing, you know, those businesses.

Obviously, those in-market businesses have been very challenged economically, you know, from 2022 through 2025, you know, as a discretionary spend where consumers have, you know, pulled back. The rate of growth we've seen on the specialty side has not been as good as we would have expected in the last couple of years in 2024 and 2025, in particular as we were ramping up this plant.

The good news is, you know, we've been winning some more applications through the back half of last year that are showing up as additional revenue that you saw some of the benefit in Q1. You'll see it build in Q2 and even more so in the back half on that specialty side with those wins. To be clear, you know, we're not saying the end market is improving. We're just picking up more market share in durables or in cosmetic packaging with our value proposition. That's happening.

On top of that, you know, we swung a line that can make Tritan back to making PET, that we explained to you guys like, you know, a year ago, so that we could make PET and serve that rPET market 'cause Pepsi and some others wanted to start buying sooner than their original contract obligations because they saw the value proposition we have with our Renew products. You know, our superior clarity, our superior quality, our superior performance, you know, and how the product actually performs, was recognized and they wanted, you know, to start building and using that material this year.

When you put those two together of selling more rPET, with Pepsi and with some other, packaging companies, brands, you get that 4%-5% revenue growth that we talked about in January. When I was answering Vincent's call, I'm just confirming we still see that 4%-5% growth. The Middle East conflict hasn't yet significantly increased that to be more than 4%-5% growth. We're going to pick up volume for other reasons, as I described, you know, due to sort of impact on competitors.

In this case, you know, we're gonna sell what we can make, and we're ramping up our PET capability to sell even more, but it takes a bit of time to do that on the capacity side to continue supporting that growth, not just this year, but also additional growth next year on the rPET side.

Thank you. Our next question comes from Jeff Zekauskas from JPMorgan. Your line is now open. Please go ahead.

Thanks very much. You talked about earning $50 million perhaps in the second quarter and in the third quarter in chemical intermediates, but propane prices have really been pretty volatile. Sometimes they're $0.75 a gallon, and sometimes they're $0.90 a gallon. How are you handling your propane values? Can you reach these numbers that you're talking about if propane is at $0.90 a gallon?

Jeff, obviously, we're buying propane at the market prices that you're referencing. We do believe here in Q3, or I'm sorry, in Q2, that we believe that we've appropriately taken that into consideration as we look at the supply-demand balances and how we've priced into the market with our price increases. Yes, there's some range of, as we say, approaching $50 million for the quarter, but we think we've taken that into the appropriate context for $0.75-$0.90 range.

Okay. You talked about for the year perhaps approaching the cash flow that you generated last year. What are the parts of working capital that are sort of holding your operating cash flow back? Are they payables or receivables or something else?

Yeah, Jeff, what I would say is, as always, the Eastman team does a great job of generating and managing our cash flows. That was demonstrated again here in Q1 as we think about the level of consumption of cash actually being lower than the prior year. For Q1 out of the gate, I believe that we've got things well managed and under control. You know, as we think about sequentially, we know that we built some inventory in Q1 for our large turnarounds, and we expect to deplete that. That's gonna be offset with some of the inflation that we've described and have been talking about through the call.

At the end of the day, the pressure will come, as you think about, you know, there's pressure on the inventory and on the receivables accounts. We also think that that'll be mitigated by higher accounts payable at year-end. We're just trying to look and see, you know, what's the second half scenario when we get to mid-year, as we then think about managing, you know, all the various levers. Under control.

The range has narrowed because of the level and magnitude of inflation overall. As you think about net working capital, you've got 2/3 in your assets and 1/3 in payables, net net tension on that front. That's all we're highlighting at this point.

Thank you. Our next question comes from Kevin McCarthy from VRP. Your line is now open. Please go ahead.

Yes, thank you, and good morning. Mark, can you speak to the expected quarterly earnings cadence in advanced materials? Seems like we have a fair number of moving parts there. I'm curious about, you know, how you're dealing with paraxylene inflation here and whether you think you can recover or possibly over recover those sorts of input costs. You know whether there are any lag effects we should be keeping in mind.

You know, I think you called out some auto production variances there. Maybe you can kind of just kind of walk us through some of those moving parts and think about, you know, whether you would expect earnings to do better in the back half versus the second quarter and that sort of thing.

Sure, Kevin. When you think about advanced materials, there's a cadence, as you said. First of all, it was great recovery out of Q4 into Q1. Obviously, we had some asset utilization headwinds with some choices we made there. As you go into Q2, you've got the benefit of, you know, seasonal increase in volumes. These application wins we've talked about, starting with, you know, rPET and, you know, renewed specialty product selling, but other products, you know, growing. That's gonna give us a lift into Q2.

The automotive market, you know, relative on a year-over-year basis, you know, for the year, we're expecting to be sort of down, sort of low single digits. That's on a year-over-year basis, it's a bit of a headwind.

You know, on a sequential basis, it's a tailwind because the Performance Films business always has a big ramp up in volume from Q1 to Q2 that, you know, we'll also see helping us on that front. You have all those factors coming together on the volume side. Then you've got, you know, the actions we're taking on price, as you mentioned.

Eastman Chemical (EMN) Q1 2026 Earnings Call Transcript

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