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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Q4 2024

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

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Eastman Chemical

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Good day, everyone, and welcome to the Fourth Quarter and Full Year 2024 Eastman Conference Call. Today's conference is being recorded. This call is being broadcast live on the Eastman website, www.eastman.com. We will now turn the call over to Mr. Greg Riddle, Eastman Investor Relations.

Thank you, Harry, and good morning, everyone, and thanks for joining us. On the call with me today are Mark Costa, Board Chair and CEO William MacLean, Executive Vice President and CFO and Jake LaRoe and Emily Alexander from the Investor Relations team. Yesterday, after market close, we posted our Q4 full year 2024 financial results news release and SEC 8 ks filing, our slides and the related prepared remarks in the Investors section of our website, eastman.com. Before we begin, I'll cover 2 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 our future expectations are or will be detailed in our Q4 and full year 2024 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 ks filed for full year 2023 and the Form 10 ks to be filed for full year 2024. 2nd, 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 Q4 and full year 2024 financial results news release. As we posted the slides and accompanying prepared remarks on our website last night, we will now go straight into Q and A.

Harry, please let's start with our first question.

Our first question will come from the line of Josh Spector with UBS. Please go ahead. Your line is open.

Hey, guys. This is James Cannon on for Josh. Thanks for taking my question. I just wanted to jump in on the AM guidance. I think between the overall segment and what you're assuming for the Kingsport contribution, It seems like you're assuming a decline in the base business.

And I just was wondering if you could unpack some of the moving pieces there.

Yes, sure. First of all, AM has had a great success in recovering earnings from a challenging environment in 2023 through 2024. And it really is an impressive recovery of the actual core business and advanced materials in 2024 as we fell short on sort of our circular earnings goals in that year. So the macro economy is certainly challenging right now as we all know and lack of destocking certainly helped last year. As we move into this year, you really got a more stable flat market without that tailwind.

So you have to create all of your own growth this year, which we're doing. So when you look at the growth that we're going to deliver and the circular platform is pretty substantial with that $75,000,000 to $100,000,000 guide for the company with $50,000,000 of it being in Advanced Materials. When you look at the innovation that we're creating that drove growth last year and we'll continue to drive growth this year through our innovation in our core business in a very flat market, I think is again a testament to the power of our strategy and the value of this segment. But there are headwinds in the core business that sort of mitigate some of that volume growth within the core to your question. So we've got increasing natural gas prices across the company and a good portion of that shows up in the Advanced Materials.

You've got currency being a headwind and that a good portion of that shows up in Advanced Materials. That's a good portion of the $50,000,000 in natural gas and the $30,000,000 in currency. So that offsets some of that volume and mix growth and sort of levels out the core earnings. But we still expect the segment overall to have very strong performance. And I think it's really well positioned when you think about the strength of that stability in the core, building with innovation on top of it and then and how that then levers into more growth in 2026.

I would also say that cost management is going to help the segment as well. So it's a combination of things that sort of flatten out the earnings growth in the core due to these new headwinds, but I don't think it's anything to be concerned about long term.

Okay, got it. And then could you just frame for us what the Kingsport contribution looked like in 4Q and maybe what you're assuming in 1Q?

Yes. So as we look at how we ended the year, we came in modestly below the low end of the range that we gave for 2024. We continue to work through the higher cost associated with reduced uptime from earlier in the year. But in the Q4, we demonstrated continual operational improvement and we've run well since we saw each of you in November. We're at 85% DMT yield since our fall turnaround and uptime continues to prove.

We continue setting new production levels since that last shutdown and we're well positioned for strong operating leverage in 2025 from both higher production and reduced operational spend.

I would add that all the success in this plant is a tremendous testament to the teams, the operators, the engineers, everyone who surrounded and built this plant and got it up and running. It's just extraordinary amount of effort that this team has invested to get such a complicated plant to do something so extraordinary to take basically garbage and turn it into high quality virgin polymer is a real proof point for how Eastman can build extraordinarily advantaged technologies and build a long term competitive advantage that I think will be very difficult for anyone to replicate. And the only reason that happens is all the people who've done such great work.

Our next question today will be from the line of David Begleiter with Deutsche Bank. Please go ahead. Your line is open.

Thank you. Good morning. Mark, a couple of questions related to the new administration. First on the Texas project, any concerns or thoughts on the DOE funding going forward? And could that be at risk here?

Sure, David. Thanks for the question. Obviously, we're paying very close attention to the new administration. First, our project is under contract with the DOE and we've already received our first funds from the program. And so we feel like we're on a good track there.

To back up for a moment, I want to sort of recognize and say, I really appreciate President Trump's focus on growing U. S. Manufacturing. I think it's incredibly important. I think a lot of us forget that you don't really actually have an economy without an industrial base and that includes vertical integration to key raw materials.

And that's really both not just for an economic reason, but also for a security national security reason. And so if we reflect on where we are today in America, we're really at risk of losing American competitiveness that we've built over the last 80 years. In a while, sort of U. S. Consumption has gone up a lot over the last 2 decades, U.

S. Manufacturing has declined. So the idea of driving and supporting U. S. Manufacturing, I think is an incredibly important priority.

And when you think about our Circular Economy project, I think it fits perfectly with his agenda and what he's trying to accomplish on 3 different reasons. First, the Circular Investment is about building infrastructure in America and reassuring jobs and building supply chain resiliency. When you think about the products that come off of this facility for food packaging, medical and a variety of other vital consumer durables, we need to have that sort of resiliency in this country and we're onshoring jobs basically from Asia to Texas. We're also going to create a lot of jobs downstream of this as people sort of want to lever into reshoring manufacturing and supplying raw materials to them and importantly upstream of us. So as we make this investment, we create jobs and revenue for recycling infrastructure that feeds into this kind of facility and the others that need to be built in this country.

And that creates a sustainable growth, not just in Texas, but across the country. The second factor is it actually creates energy independence. Plastic waste is basically oil sitting above ground in landfill. So you're using it as feedstock with a world scale advantage process and we have an advantage cost position if oil is above $60 so it's value creating in a meaningful way. And the third factor, of course, is the circular economy will create a long term U.

S. Competitive advantage because the circular economy is by definition defined as taking local plastic waste as feedstock from the local environment. Imports obviously shouldn't count as recycled content because that's solving someone else's waste problem, not ours. And whether you're a Republican or a Democrat, no one likes plastic waste. They all want it solved.

Even Trump signed Save Our Seas Act in the first term showing that marine debris and impacts to the environment are important to him on this topic. So I think that it fits his agenda well. We're very excited to be sort of doing this. I think Eastman, frankly, as a company fits his agenda well with as given how large we are of a U. S.

No, very good. And just on the similar point, you are a large U. S. Exporter. What are your thoughts, concerns over potential as Trump raises tariffs potentially, potentially retaliatory tariffs on U.

Yes. So I was just building on, I guess, the last answer, David. I do think that trade is an important topic. Back to that U. S.

Manufacturing point I just made, I think strategic trade actions along with addressing sort of overwhelming regulations, having pro growth tax policy, workforce development, etcetera, were all critical to sort of driving and growing U. S. Manufacturing, which will certainly benefit Eastman in long term and many other companies. When I look back at the last time there was a sort of trade event in 2019, Eastman actually managed that from a direct impact really quite well. And the only impact we really had was there was a slowdown in the short term there for economic activity and sort of we felt that.

And when I reflect back on that timeframe, we don't really face that much Chinese competition in North America. So it didn't have a lot of relevance to us to see the trade benefits, but obviously a lot of U. S. Manufacturing did and that helped stabilize the economy and some other areas that sort of helps as we sort of go through that trade friction. Today is different though.

So when you look at where we are today versus then, the economy was actually relatively strong going into that event. The economy in global manufacturing now is incredibly weak across the globe. So I think the rate at which people can get aggressive if they're focused on stabilizing and growing their economy will be limited given those weaker positions that many countries have. And we're also in a pretty challenged economic time. So it's not clear to me how much more negative impact tariffs can have on top of the manufacturing recession we're already in.

So I think that this while it sounds really dramatic because there's so many different countries being discussed around what might have some tariff actions in it. And that is certainly a wider factor than 2019. I think that there's pros and cons to this and I think so far we have seen some careful thought being deployed by the administration about what's appropriate and not acting yet until they have a clear plan. So we'll see, there's no way for me to estimate the impacts at this stage given everything I just said. We're going to need to see specific actions to really have an informed point of view.

But I will say that our forecast does not include any significant impact from the trade actions.

Our next question will be from the line of Mike Sison with Wells Fargo. Please go ahead. Your line is open.

Hey, guys. Nice end of the year. I had a question on AFP. The adjusted EBIT came in a lot stronger in the Q4 versus the Q3 relative to your guidance. You talked about a couple of things in the transcript, but can

bit of color on why that segment did so well sequentially when normally it takes a little bit of a dip?

Yes. So first, AFP had a great year as well as a great quarter and frankly the whole company had a great year. We're really excited about it, both on the earnings we delivered and the strength of cash flow, that we generated. So and AFP was a strong contributor to both the earnings and the cash flow. So it was great.

When it came to sort of how it came in better than expected, it was on both fronts. So volume mix came in a bit more it came in a bit better than we expected. We expected a certain amount of destocking that might have gone beyond normal destocking. And we came in a little bit better than our original thought on that side. And then raw material flow through was also better across a number of different products and that combination of those two things helped.

We even got some more fills in HCF than we expected as part of that. And all those came together in a way that made the outcome better. And then I'd say that's sort of the story for the year for AM and for the company. We didn't have a market that gave us a lot of tailwinds outside of a lack of destocking. So the 22% earnings growth ASPs contribution in it is about pulling every lever we got, defending every bit of volume we had with customers, finding innovation everywhere we can, spending price incredibly well, which is a true testament to the sustainability of our value propositions through our innovation and good management on costs, etcetera.

So this was a tough year that was delivered by actions, small little actions taken by everyone across the company to deliver it.

Got it. And then just a quick one on Fibers. Looks like this will be the 30 in a row of really good margins, pricing. You're going to the guidance that looks pretty good in that 400 plus level. When you think about that business going forward, how sustainable do you think these pricing levels are?

You saw some destocking here. I think there's some new capacity coming on as well. And just given that it's been such a big improvement from 2,022 levels.

So certainly, fiber has improved significantly back to where it was back in the sort of 2013, 2014 time frame. So it's not like these are new levels. We were at them in our history. In the short term, what I'd say is based on everything customers are telling us, you've got a set of actions that are happening that are causing earnings to sort of normalize. Inventory management is certainly the key driver of the volume being adjusted.

You have to remember that toe is 2% of the price of a cigarette. And the cigarette margins for our customers are greater than 60% in gross margin. So they really don't want to miss a sale. So security supply is phenomenally important to them when the markets are very tight. And so they built a lot of safety stock as a result of the 2021, 2022 time frame to make sure that they were never shorting a customer.

So I think that is what's going on right now. And we still have as we look through 2026, greater than 80% of our customers under volume commitments. But there's a band of volume that they can hit inside these contracts and so that destocking is showing up with some customers. And we do expect the prices to be higher. But the bigger overall question is just what's the supply demand dynamics in this context.

And you know, 1st demand is not changing. So when it comes to volume adjustments here, we're not seeing any sort of material change in the demand from the end market. We still expect it to be a modest 1% to 2% decline. Cigarettes are declining faster than that, but it's being offset by the high growth of the heat not burn products that still use toe and in some cases more toe than a cigarette. So market end market stability, I think, still is in place there.

There is some new capacity that's been added in China, which is roughly sort of 5% of market demand. So when you compare this back to 2015, the amount of change in demand in 2015 was significantly higher than this kind of modest market decline, because the Chinese have massively overbuilt inventory through their retail channel and we're destocking it in a pretty aggressive way. And the capacity that was added in China also back in that timeframe was significant. It makes this current capacity adds look very small in comparison to the backward integration that they did in that 2014 timeframe. So these conditions now are a lot more modest.

So when you put them together for now, we're going from a very tight market condition to probably utilizations in the low 90s. So while we certainly see some adjustments going on, we think of this current dynamic being a lot more stable than what occurred in the past. And also historically, we've seen companies in this industry adjust high cost capacity to align their low cost capacity to serve the existing market as it adjusts in volume. So and there's still high cost assets out there. So we'll see how this plays out, but we think this business is still going to normalize at a very attractive level for the company and for investors.

Of course, we're also not just sitting around waiting for the market. We're taking cost reduction actions across the company and a significant amount of that also applies into this area over the next couple of years and as a way to continue to manage our cost competitiveness. And we haven't been sitting on our laurels on this one either, right. We've known that a diverse portfolio of ways to grow from the cellulosic chain, as we talked about in the deep dive, is incredibly important. So a lot of growth opportunities in Naya, a lot of growth opportunities in Aventa and some other products to drive the stream and keep it growing.

So we feel good about where we're at and all the innovation investments we've made to make this whole stream vital going forward.

The next question will be from the line of Aleksey Yefremov with KeyBanc Capital Markets. Please go ahead. Your line is open.

Thanks. Good morning, everyone. Reading about your Rapid Brewer last night was quite a blessing. I wanted to ask you a question about Advanced Materials outlook this year. You're discussing that there's higher costs in the first half that could pinch your margins and then you'll be raising your prices was a lag.

So should we think of that dynamic as your first half earnings in Advanced Materials are somewhat under the run rate at which they'll be exiting the year?

Yes. So look, there's a lot of dynamics going on and it's a little more complicated this year than most. So in the Q1, you've got roughly $25,000,000 of costs that's moving out of corporate other and going into advanced materials in Q1. So on a year over year basis, obviously, that's a headwind. And it's impressive that we're delivering the earnings in our forecast for Q1 offsetting that with volume mix growth as well as maintaining good price discipline and starting to lay some cost reduction actions for the year which will started which we started in December November headed into this year.

So you're going to see some of that benefit, but that will definitely fill through the year. So as you look through the year, you've got the cost benefits coming in through the year that are helpful. You've got the circular economy that's going to definitely be back half loaded and how it helps earnings in the back half relative to the first half as sales ramp up and utilization ramps up. Offsetting that, you've got natural gas energy costs that they're good a good portion of that $50,000,000 I mentioned earlier flows into the segment and that flows in as a headwind through the year as those costs go into inventory and then flow out of inventory with increasing energy costs. So there are a lot of moving parts.

I think the segment overall is well positioned to deliver very attractive results for the year. But there's a lot of pluses and minuses as you look first half back half.

Thanks, Mark. And I also wanted to follow-up on the Filter Tow. So in the past, you used to go through your annual contract negotiations right about now. So I wanted to ask you if you gained any visibility in your portfolio of contracts here beyond 2026 in terms of prices, margins, volumes, etcetera, kind of a 2% year out year?

So we switched from an annual contracting process to a multi year process with a number of customers, not all but a number of them, especially the big ones. And to provide that stability, we've talked a lot about that to all of you over the past quarters. And that process is still in place where we have, as I said, about 80% of the volume contracted in 2026. We probably have 60% contracted in 2027. And probably it's actually higher than that, but it's closer to 70%.

So we feel good about sort of this multi year contracting that we have in place and how that adds a certain amount of volume stability and price stability to this business. But we also have to respect that our customers have to manage their inventory and make sure it's at the right levels to demand and working with them on how to make those adjustments this year.

The next question will be from the line of Vincent Andrews with Morgan Stanley. Please go ahead. Your line is now open.

It sounds like the methanolus plant is running well still, which is great. So maybe you could talk a little bit about the volume sales side of the equation. I think last year, the sales were a little bit below what you expected. And I think some of it had to do with just sort of not being able to run the plant as well as you wanted to early in the year when the consumer products companies tend to introduce innovation and maybe you miss some opportunities to be in those lines. So could you talk about how you're seeing the order book at this point in the year from that perspective as well as have been some sort of high profile backing off from some of the consumer brands on some of their recycled plastic targets.

So just where are we with all that and your view on sales for this year?

That's a great question, Mitch. And as you might guess, I spent a lot of my personal time with the team on this topic and all things circular. First of all, I think that we covered this topic fairly well at the deep dive and our perspective on sort of the market conditions both this year and beyond have not changed. So nothing substantially changed. But to re hit the sort of key points that we discussed back then, I mean, first, we have to recognize that the macroeconomic conditions that we're in right now are not helpful, right?

So when you've got an economy that is challenged and weak demand combined with inflation at the same time that our customers are trying to manage through in what they're buying as well as consumers' attitude about all these brands and the prices, They're having to make choices and so I think that has reduced the pace at which some of the brands are converting to ramp up their orders. But we see a solid funnel that has developed and I believe we're sort of on track across all the different markets we're serving. It's a bit different depending on which market you look at. When you look at the durable side, we already have over 100 customers who've committed to renew and they're already paying premiums for those products. So there's not a lack of interest in the product, but there's a moderated pace.

They want to really focus their efforts around product new launches where they can sort of do something in the market and see a way to grow share and create their own growth in a weak underlying market just like we are doing and where we can help them do that but less interest in cannibalizing something that's been on the shelf where they don't necessarily see an immediate improvement in their demand and that kind of upgrade because they need the splash of the new product. So I think that's pretty aligned and pretty sensible and we still see a lot of growth happening for us as a result of that. On the consumer packaging side, you have to remember that the first plant we built here is not really aimed at recycled PET. We are converting a line over to be able to make recycled PET by the summer where we will sell some PET in the back half of the year with a number of different customers and we believe that will be successful. I think that on the broader question that you asked Vincent, are people sort of changing their sort of commitment to recycled content?

I don't think there's any signs from a long term point of view where we see people backing off at the brand level on the need to change. I mean, the reality is the brands are very focused on the brand equity and consumers' engagement around their products. And consumers really don't like plastic waste. It's an invisible tangible issue to them in their lives every day. I can't you how much it comes up in every cocktail session or dinner party I go to.

And everyone's debating climate right now including President Trump, but I'm not sure anyone's really debating plastic waste. I'm not seeing that. You know, and it's an issue, that people feel like they can do something about now that doesn't have a big sacrifice for them and what products they want to support, compared to some of the climate implied choices they have to make. And it's bipartisan. I mean, as I said, President Trump even signed a Save Your Sees Act.

So I think that there's economic reasons brands are moving a bit slower, but I'm not sure that I don't think it's a lack of issue. The NGOs, the media are still very much going after plastic waste. I'd say in many states they're more committed post election to driving this agenda with what choices they can make at the state level. And regulations are certainly coming out in Europe that are driving and forcing change, as well as in multiple states in the U. S.

So I don't think that context is changing. I think it's moderated to be reasonable in the economic environment we're in.

And if I could just follow-up separately, the prepared remarks talked about there being some volume in the Q4 that was customers sort of preparing around tariffs and things like that. But it doesn't look like that's coming out of your first quarter or is having a negative impact on your guidance. So was that particularly material in any of the segments, the sort of loading? And I guess a sort of correlated to that question is just if it's not coming back out in the Q1, is that just a function of customers, they just don't have a lot of inventory?

Thanks for the question. And yes, definitely agree, it was a modest impact on our volume mix beat here in Q4. And we're entering the year with order books that are strong that fully support the year over year growth that we see in Q1. We're expecting volume mix growth as well as price cost in the specialties in Q1. And along with the absence of the start up cost, that's going to be more than offsetting the fibers inventory destocking.

Thank you. And the next question will be from the line of Frank Mitsch with Fermium Research. Please go ahead. Your line is open.

Hi, guys. Good morning. It's Aziza on for Frank. My first question was on the $50,000,000 of net cost reduction for 2025. Can you elaborate on the regions or segments where the majority of that is expected to occur?

Thanks, Aziza. We are definitely focused on improving our cost structure and this is to compete in the challenging environment. Our comprehensive plan to improve operating costs goes beyond our usual focus on offsetting inflation. I would highlight that success and innovation has driven complexity in our operations and we're optimizing our products and operations to maximize gross margin realization and that's key to success long term. This was going to be meaningful yield improvements, optimizing our contractors and the usage of those.

And right now also there's significant MRO purchasing opportunities in this weak manufacturing environment. We also have some opportunities to optimize our global asset base and we did some of that in 2024 with the shutdown of our interlayers resin operations line. And with rising natural gas prices as you would expect, the drive on energy efficiency will be key. As we think about operating segments, it will be across all 4 operating segments. To stay competitive in this global environment, that $50,000,000 will be key.

And we're not standing still. We're moving forward aggressively on this plan.

Great. Thank you. And in your conversations with your auto customers, I was curious what are their expectations in terms of a recovery on auto builds in the U. S. And Europe?

So on the auto sector, I think our expectations are pretty in line with what I've been hearing in the marketplace so far where automotive demand in the 2025 versus 2024 are probably going to be globally sort of slightly down. I think it's likely that Europe might be up a bit given how low it already is, North American being more flattish and China maybe being a bit lower given especially given the strong sales they had in the Q4. I would note that this business has been very successful in creating its own growth, right? So if you look at 2024, we delivered high single digit growth in a market that was slightly down largely from mix improvement as opposed to just absolute volume. We have quite a wide range of products here from our standard interlayers to our acoustic interlayers to our heads up display or our color and special gradients, solar rejection, all kinds of different features.

The price points are quite vastly different as well as the margins across that product slate. So as we're dramatically growing in the upper end of the market in this functionality, there's a huge mix lift from these sales. And our addressable market is actually growing before you even layer on that mix growth. So there's a lot of things where we're seeing more territory growth per car right. So they're moving from windshields to side lamination.

With EVs even the sunroof has to be laminated because their sunroof is so big to you know help the drivers not feel so claustrophobic as they're sitting on 6 inches of battery. So, there's a lot of territory we're getting and it's not limited to EVs. It's including ICE cars that are moving to the side lamps and bigger sunroofs. We also are just getting more value per product as I said with these higher value products are being installed in these windows. So you got levered volume growth, as well as mix upgrade associated with basically a flat market.

So we continue finding ways to sort of create our own growth.

The next question will be from the line of Jeff Zekauskas with JPMorgan. Please go ahead. Your line is open.

Thanks very much. I think your forecast for operating cash flow in 2025 is $1,300,000,000 which is flat with $24,000,000 Why isn't operating cash flow growing?

Good morning, Jeff. Thanks for the question. Obviously, the largest driver for operating cash improvement this year is EBITDA growth. That's largely being offset in our base plan due to higher cash taxes. Right now, our baseline expectation is that our cash conversion cycle for working capital will stay flat with the last couple of years, which is around 85 days.

Obviously, at Eastman, the entire global team is focused on delivering cash and cash flow. And our challenge is to deliver that. And then as the environment unfolds, deliver as much upside to that as possible. So we're focused on cash. There's no change in that commitment, but there will be higher cash taxes in 2025.

chemical intermediates tended to move in operating income with Advanced Materials and AFP. In other words, you'd make a lot in chemical intermediates and then you'd make a lot in Advanced Materials and AFP. And then conversely, they would move together, not perfectly, but in general. Whereas in 2024, Chemical Intermediates went down and the other two businesses went up. And you see that in the Q4.

And I get it. There have been divestitures in Chemical Intermediates. In general, should those income levels be correlated? Should we expect the 3 divisions to move in the same direction? Or has something changed about Eastman that they don't move in the same direction?

Eastman Chemical (EMN) Q4 2024 Earnings Call Transcript

Company Participants