Eastman Execs Discuss Cost Reduction, Methanolysis Facility Gains

Eastman Chemical Co. shared insights on its Q4 2025 earnings and outlook for 2026 during a conference call.

Jan. 30, 2026 at 7:07pm

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Eastman Chemical Co. held its fourth quarter and full-year 2025 earnings conference call, where executives discussed the company's cost reduction measures, performance of its Kingsport methanolysis facility, and the impact of winter storms on its first quarter outlook. CEO Mark Costa said Eastman aims to achieve $225 million to $250 million in cost savings over two years, while CFO Willie McLain noted the main impact so far has been on the natural gas market.

Why it matters

As a major chemical company, Eastman's performance and outlook provide insights into broader industry trends and the state of the economy. The company's focus on cost reduction and recycling initiatives also reflect the growing importance of sustainability in the sector.

The details

Eastman is targeting $125 million to $150 million in cost reductions this year, building on $100 million in cuts in 2025. The company's Kingsport methanolysis facility, which produces recycled content, saw a 2.5x increase in output in 2025 compared to 2024, generating around $60 million in additional earnings. However, Eastman's plans for a second methanolysis facility in Texas remain on hold after the U.S. Department of Energy withdrew a $375 million grant for the project.

  • Eastman held its Q4 2025 and full-year earnings call on Friday, January 31, 2026.
  • The Kingsport methanolysis facility began production and generating revenue in March 2024.

The players

Eastman Chemical Co.

A major American chemical company headquartered in Kingsport, Tennessee.

Mark Costa

Eastman's board chair and CEO.

Willie McLain

Eastman's executive vice president and chief financial officer.

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What they’re saying

“There are a bunch of actions in addition to stabilizing that business directly that we're taking. So the cost reduction actions across the company, that significant cost reduction goal that we have, this in the $125 million to $150 million range to build on $100 million last year.”

— Mark Costa, CEO

“We still have freezing temperatures here in Tennessee, as well as at our site in Longview, Texas. There's more snow that's getting ready to come. We've seen limited impact on our facilities so far.”

— Willie McLain, CFO

What’s next

Eastman is still evaluating options for a second methanolysis facility in Longview, Texas after the U.S. Department of Energy withdrew a $375 million grant for the project.

The takeaway

Eastman is focused on cost-cutting measures and expanding its recycling capabilities, reflecting broader industry trends towards sustainability. The company's performance provides insights into the state of the chemical sector and the broader economy.