Eastman Chemical (EMN) Projects $2.1B EBITDA Growth

By Bobby Samwell • Friday, November 22 10:15 • Permanent Link

Eastman Chemical Company (NYSE:EMN) held its 2024 circular economy deep dive event at its headquarters in Kingsport, where it highlighted its commitment to innovation and sustainability. The company's CEO, Mark Costa, emphasized the unwavering commitment to the innovation-driven growth model and reiterated the company's strong financial performance relative to its peers.

Eastman Chemical Company projects significant EBITDA growth through its circular economy initiatives. The company anticipates generating greater than $2.1 billion of EBITDA and approximately $1.6 billion of cash from operations in a normalized macroeconomic environment before the benefit of circular investments. Additionally, it expects to generate an additional EBITDA of over $500 million by 2029 through its circular initiatives, including over $350 million from methanolysis projects and $150 million–$200 million from its cellulosic biopolymer platform.

The company also anticipates an incremental $75 million–$100 million of EBITDA contribution in 2025 compared to 2024 from the Kingsport methanolysis facility.

To achieve these circular platform EBITDA targets, Eastman Chemical Company plans to continue investing in organic growth, with capital expenditures expected to be approximately $800 million in 2025 and ranging between $800 million and $1 billion in 2026 and 2027.

Executive Vice President and Chief Financial Officer Willie McLain stated that the company is in a solid financial position, with strong base businesses leveraged to an economic recovery, and the circular economy initiatives adding to that strength.

Eastman Chemical Company, founded in 1920, is a global specialty materials company with 2023 revenue of approximately $9.2 billion. It employs about 14,000 people globally and serves customers in more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA.

These figures and projections demonstrate Eastman Chemical Company's confidence in its circular economy initiatives and its commitment to sustainable growth and innovation. The market has reacted to these announcements by moving the company's shares 1.3% to a price of $104.97. Check out the company's full 8-K submission here.

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