Free cash flow remains highly unstable, evidenced by a sharp decline to negative $240 million in 2026Q1 compared to a positive $390 million in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 1B | 970M | 1.29B | 1.37B | 975M | 1.62B | 1.46B | 1.5B | 1.54B | 1.66B | 1.39B | 1.62B | 1.43B | 1.3B | 1.13B | 625M | 575M | 758M | 653M | 732M | 609M | 769M | 494M | 244M | 801M | 397M | 846M | 744M | 731M | 698M | 746M |
| Operating CF Margin % | - | 11.08% | 13.72% | 14.94% | 9.25% | 15.44% | 17.19% | 16.26% | 15.24% | 17.42% | 15.48% | 16.99% | 15.07% | 13.86% | 13.99% | 8.71% | 9.92% | 15.09% | 9.71% | 10.72% | 8.17% | 10.89% | 7.51% | 4.21% | 15.06% | 7.37% | 15.99% | 16.21% | 16.31% | 14.92% | 15.6% |
| Operating CF Growth % | -24.07% | -24.63% | -6.33% | 40.92% | -39.78% | 11.27% | -3.26% | -2.53% | -6.88% | 19.64% | -14.72% | 13.33% | 10.49% | 14.98% | 80.48% | 8.7% | -24.14% | 16.08% | -10.79% | 20.2% | -20.81% | 55.67% | 102.46% | -69.54% | 101.76% | -53.07% | 13.71% | 1.78% | 4.73% | -6.43% | -10.98% |
| Net Income | 399M | 474M | 908M | 896M | 796M | 867M | 489M | 762M | 1.08B | 1.39B | 859M | 854M | 757M | 1.17B | 444M | 647M | 427M | 136M | 346M | 300M | 409M | 557M | 170M | -270M | 61M | -175M | 303M | 48M | 249M | 286M | 380M |
| Depreciation & Amortization | 518M | 513M | 509M | 498M | 477M | 538M | 574M | 611M | 604M | 587M | 580M | 571M | 450M | 433M | 360M | 273M | 280M | 274M | 267M | 327M | 308M | 304M | 322M | 367M | 397M | 435M | 418M | 383M | 351M | 327M | 314M |
| Stock-Based Compensation | -49M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 139M | 141M | -52M | -102M | -136M | -38M | -111M | 23M | -51M | -394M | 177M | 107M | 99M | 331M | 48M | -22M | 47M | 185M | -71M | -9M | 7M | 115M | -136M | -140M | 95M | -78M | 67M | -18M | 66M | 7M | 8M |
| Other Non-Cash Items | -294M | 28M | -49M | -209M | -175M | 279M | 338M | 134M | -21M | -67M | -138M | 76M | 202M | -422M | 222M | -11M | 172M | 179M | -13M | 130M | -12M | -115M | 118M | 464M | 27M | 378M | -29M | 79M | 33M | 0 | 0 |
| Working Capital Changes | 287M | -186M | -29M | 291M | 13M | -27M | 165M | -26M | -73M | 143M | -93M | 16M | -75M | -217M | 54M | -262M | -351M | -16M | 124M | -16M | -103M | -92M | 20M | -177M | 221M | -163M | 87M | 252M | 32M | 78M | 44M |
| Change in Receivables | -69M | 61M | 28M | 126M | 93M | -281M | -31M | 170M | 16M | -53M | -29M | 114M | 19M | -38M | 48M | -73M | -358M | 2M | 261M | -28M | -82M | 60M | -133M | -46M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 25M | 24M | -344M | 201M | -430M | -389M | 291M | -80M | -224M | -71M | 55M | -26M | -61M | -6M | 38M | -156M | -160M | 100M | -95M | 66M | -99M | -110M | 18M | 41M | -58M | -8M | -43M | 63M | 19M | -65M | 10M |
| Change in Payables | -4M | -76M | 188M | -190M | 60M | 554M | -100M | -27M | 90M | 123M | 7M | -102M | -30M | -2M | 10M | -51M | 152M | 16M | -211M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -435M | -462M | -534M | -432M | 392M | -29M | -394M | -480M | -463M | -643M | -655M | -693M | -4.09B | -457M | -2.96B | -142M | -442M | -369M | -376M | -335M | -94M | -18M | -148M | -160M | -467M | -523M | -465M | -715M | -545M | -745M | -809M |
| Capital Expenditures | -502M | -546M | -599M | -828M | -611M | -555M | -383M | -425M | -528M | -649M | -626M | -652M | -593M | -483M | -465M | -457M | -243M | -310M | -634M | -529M | -405M | -343M | -248M | -230M | -427M | -234M | -226M | -292M | -500M | -749M | -789M |
| CapEx % of Revenue | 5.81% | 6.24% | 6.38% | 9% | 5.8% | 5.29% | 4.52% | 4.6% | 5.22% | 6.82% | 7% | 6.82% | 6.23% | 5.16% | 5.77% | 6.37% | 4.19% | 6.17% | 9.43% | 7.75% | 5.44% | 4.86% | 3.77% | 3.97% | 8.03% | 4.34% | 4.27% | 6.36% | 11.16% | 16.01% | 16.5% |
| Acquisitions | 38M | 38M | 38M | 379M | 997M | 553M | -1M | -48M | -3M | -4M | -26M | -41M | -3.51B | 0 | -2.67B | -156M | -190M | -68M | -38M | -40M | 0 | 0 | 0 | -15M | -6M | -257M | -261M | -381M | -27M | 0 | -26M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 29M | 46M | 27M | 17M | 6M | -27M | -10M | -7M | 68M | 10M | -3M | 0 | 11M | 26M | -28M | 671M | -9M | -21M | -41M | 234M | 311M | -92M | 100M | 85M | -34M | -32M | 10M | -42M | -18M | 4M | 6M |
| Cash from Financing | -332M | -797M | -454M | -888M | -1.32B | -1.69B | -704M | -1.04B | -1.04B | -1.01B | -838M | -844M | 2.64B | -859M | 1.5B | -423M | -411M | 18M | -779M | -448M | -101M | -547M | -579M | 397M | -323M | 91M | -466M | 128M | -186M | 52M | -13M |
| Debt Issued (Net) | -285M | -304M | 198M | -338M | 76M | -350M | -307M | -370M | -316M | -369M | -428M | -505M | 3.25B | -530M | 1.64B | -37M | -122M | 150M | -182M | -22M | -50M | -505M | -519M | 529M | -187M | 210M | -278M | 314M | -66M | 191M | 273M |
| Equity Issued (Net) | -100M | -100M | -300M | -150M | -1B | -1B | -60M | -325M | -400M | -350M | -145M | -103M | -410M | -238M | 0 | -316M | -280M | -21M | -501M | -279M | 93M | 100M | 77M | 0 | -1M | 16M | -53M | -51M | 0 | -8M | -161M |
| Dividends Paid | -381M | -381M | -379M | -376M | -381M | -375M | -358M | -343M | -318M | -296M | -272M | -238M | -210M | -140M | -192M | -136M | -127M | -128M | -135M | -147M | -144M | -142M | -137M | -136M | -135M | -135M | -135M | -138M | -138M | -138M | -134M |
| Share Repurchases | -100M | -100M | -300M | -150M | -1B | -1B | -60M | -325M | -400M | -350M | -145M | -103M | -410M | -238M | 0 | -316M | -280M | -21M | -501M | -382M | 0 | 0 | 0 | 0 | -1M | -4M | -57M | -51M | 0 | -8M | -161M |
| Other Financing | 434M | -12M | 27M | -24M | -14M | 35M | 21M | -5M | -6M | 9M | 7M | 2M | 9M | 49M | 52M | 66M | 118M | 17M | 39M | 0 | 0 | 0 | 0 | 4M | 0 | 0 | 0 | 3M | 18M | 7M | 9M |
| Net Change in Cash | -319M | -837M | 289M | 55M | 34M | -105M | 360M | -22M | 35M | 10M | -112M | 79M | -23M | -12M | -328M | 61M | -277M | 406M | -501M | -51M | 415M | 199M | -233M | 481M | 11M | -35M | -85M | 157M | 0 | 5M | -76M |
| Free Cash Flow | 498M | 424M | 688M | 546M | 364M | 1.04B | 1.06B | 1.07B | 1.01B | 1.01B | 759M | 972M | 840M | 814M | 658M | 159M | 325M | 440M | 9M | 203M | 204M | 426M | 246M | 14M | 374M | 163M | 620M | 452M | 231M | -51M | -43M |
| FCF Margin % | 5.76% | 4.84% | 7.33% | 5.94% | 3.46% | 9.93% | 12.51% | 11.6% | 10.03% | 10.59% | 8.49% | 10.17% | 8.83% | 8.7% | 8.16% | 2.22% | 5.61% | 8.76% | 0.13% | 2.97% | 2.74% | 6.03% | 3.74% | 0.24% | 7.03% | 3.02% | 11.72% | 9.85% | 5.16% | -1.09% | -0.9% |
| FCF Growth % | -13.39% | -38.37% | 26.01% | 50% | -65.03% | -1.7% | -1.3% | 5.71% | 0.69% | 32.81% | -21.91% | 15.71% | 3.19% | 23.71% | 313.84% | -51.08% | -26.14% | 4788.89% | -95.57% | -0.49% | -52.11% | 73.17% | 1657.14% | -96.26% | 129.45% | -73.71% | 37.17% | 95.67% | 552.94% | -18.6% | -110.97% |
| FCF per Share | - | 3.67 | 5.84 | 4.57 | 2.91 | 7.59 | 7.76 | 7.75 | 7.10 | 6.90 | 5.11 | 6.49 | 5.56 | 5.20 | 4.41 | 1.11 | 2.20 | 2.99 | 0.06 | 1.21 | 1.22 | 2.60 | 1.57 | 0.09 | 2.42 | 1.06 | 4.03 | 2.87 | 1.45 | -0.32 | -0.27 |
| FCF Conversion (FCF/Net Income) | 1.25x | 2.05x | 1.42x | 1.54x | 1.23x | 1.89x | 3.04x | 1.98x | 1.43x | 1.12x | 1.60x | 1.92x | 1.91x | 1.11x | 2.58x | 0.90x | 1.31x | 5.57x | 1.89x | 2.44x | 1.49x | 1.38x | 2.91x | -0.90x | 13.13x | -2.22x | 2.79x | 15.50x | 2.94x | 2.44x | 1.96x |
| Interest Paid | 0 | 0 | 0 | 214M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cyclical cash flow volatility
As reported in recent financial statements, EMN's operating cash flow to net income ratio has fluctuated wildly, reaching a negative 1.28 in 2026Q1, which highlights a significant divergence between accounting profits and the actual cash generated from core industrial operations during periods of inventory-related working capital swings.
The frequent decoupling of net income from operating cash flow suggests that earnings are heavily influenced by non-cash adjustments and timing differences in working capital. Investors should monitor whether this volatility is a structural feature of the company's LIFO accounting method or a sign of deteriorating cash collection efficiency.
Based on EMN's reported figures, free cash flow margins have exhibited extreme volatility, swinging from a positive 19.8% in 2025Q4 to a negative 11.0% in 2026Q1, indicating that the company's ability to self-fund operations remains highly sensitive to quarterly shifts in production and demand cycles.
The inability to maintain consistent positive free cash flow suggests that the company's capital-intensive business model is currently struggling to absorb fixed costs during revenue downturns. This trajectory warrants further investigation into whether the recent negative cash flow is a temporary byproduct of strategic growth investments or a more permanent erosion of operational efficiency.
According to recent SEC filings, EMN's capital expenditure as a percentage of revenue has remained elevated, peaking at 8.1% in 2023Q4, which reflects the ongoing financial burden of maintaining large-scale integrated manufacturing sites while simultaneously funding new molecular recycling capacity in a softening demand environment.
The persistent level of capital spending relative to revenue suggests that the company is prioritizing long-term infrastructure over immediate cash preservation. Analysts should evaluate whether these investments are effectively replacing aging assets or if they represent a significant increase in the company's baseline maintenance requirements.
As indicated by quarterly data, working capital changes have acted as a primary driver of cash flow variance, with a notable $350 million outflow in 2025Q1 followed by a $137 million inflow in 2025Q4, demonstrating the company's vulnerability to inventory management and supply chain timing.
The sharp swings in working capital suggest that EMN's cash position is highly susceptible to the timing of raw material procurement and finished goods inventory levels. This pattern may indicate that the company is struggling to optimize its cash conversion cycle in response to the current cyclical slowdown in end-market demand.
Based on reported financial statements, EMN has maintained consistent dividend payments of approximately $95 million per quarter despite significant fluctuations in free cash flow, which may indicate a management preference for shareholder returns even when operational cash generation is temporarily insufficient to cover these obligations.
The commitment to dividends during periods of negative free cash flow suggests a high degree of confidence in the company's long-term liquidity, yet it also limits the financial flexibility available for debt reduction or growth initiatives. Investors should monitor whether this payout policy remains sustainable if the current revenue contraction persists.
Quick answers to the most common questions about buying EMN stock.
Eastman Chemical Company (EMN) generated $970.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Eastman Chemical Company (EMN) generated $424.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Eastman Chemical Company (EMN) spent $546.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Eastman Chemical Company (EMN) returned $381.0M to shareholders via cash dividends and spent $100.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.