Eastman Kodak Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated revenues reached $276 million, a 3% year-over-year increase from $269 million in Q3 2025.
• Gross profit was $73 million, up 7% from $68 million in Q3 2025, resulting in a gross profit percentage of 26% compared to 25% in the prior year.
• GAAP net income increased to $21 million from $13 million in Q3 2025, driven by improved gross profit and reduced interest expense, partially offset by higher SG&A expenses.
• Operational EBITDA rose to $31 million from $29 million in Q3 2025, an increase of 7%.
• Cash flow from operations for the quarter was $25 million, contributing to a year-to-date break-even operating cash flow position.
• The quarter-end cash balance was $317 million, an increase of $27 million from $290 million on June 30, 2026, but a decrease of $20 million from $337 million on December 31, 2025.
• Interest expense decreased significantly to $3 million from $18 million in Q3 2025.
• SG&A expenses increased to $50 million from $41 million in Q3 2025, primarily due to higher equity compensation and changes in employee benefit accruals.

Guidance and Future Outlook:

• Management expressed confidence in executing its long-term plan and seeing a return on ongoing investments.
• The company aims to finish the year with profitable growth.
• Future focus remains on continuing to invest in core businesses.

Business Segments and Product Lines:

• Advanced Materials & Chemicals (AM&C) revenue grew 21% to $99 million from $82 million in Q3 2025, becoming the company's fastest-growing and most profitable unit.
• Print revenue declined 7% to $165 million from $177 million in Q3 2025.
• Brand segment revenue increased to $9 million from $6 million in Q3 2025.
• AM&C Operational EBITDA increased to $21 million from $16 million in Q3 2025.
• Print Operational EBITDA decreased to $1 million from $8 million in Q3 2025.
• Brand Operational EBITDA increased to $9 million from $5 million in Q3 2025.
• Print business performed well year-to-date despite challenging economic conditions.
• AM&C growth was driven by improved pricing and higher volume, partially offset by higher aluminum and silver prices.

Market and Competitive Landscape:

• The press release notes challenging economic conditions affecting the print business.
• Management highlighted the company's position as a partner of choice for commercial printers worldwide.
• No specific market share data or direct competitor comparisons were provided in the text.

Risks and Challenges:

• Risks include fluctuations in commodity prices (aluminum, silver), tariff rates, foreign currency exchange rates, and interest rates.
• Potential impacts from global economic environment, geopolitical issues, inflationary pressures, and trade policy changes.
• Challenges related to supply chain disruptions, single-source raw material constraints, and ability to mitigate increased costs of energy, labor, and shipping.
• Risks associated with managing worldwide cash, servicing debt, and complying with credit facility covenants.
• Potential for material losses from current and legacy claims, cyber-attacks, or data security incidents.
• Increased SG&A costs related to equity compensation and employee benefit accruals.

Management Commentary and Tone:

• Jim Continenza, Executive Chairman and CEO, described the quarter as "strong performance" with year-over-year improvements in revenue, gross profit, and Operational EBITDA.
• Management characterized the AM&C unit as the primary growth engine and noted the operational strength indicated by $27 million in cash generation for the quarter.
• The tone was confident regarding the execution of the long-term plan and the return on investments.

Other Key Points:

• The company repaid $101 million in Term Loans during the quarter, contributing to the decrease in cash from the prior year-end.
• Capital expenditures for the quarter were $18 million.
• Cash proceeds from the redemption of Kodak Retirement Income Plan (KRIP) reversion investments were $93 million.
• Stock-based compensation expense increased to $8 million from $1 million in Q3 2025.
• Restructuring costs and other expenses were $2 million, up from $1 million in Q3 2025.
• The Eastman Business Park segment is not a reportable segment and is excluded from segment financial tables.
• Basic and diluted net income per share was $0.18, compared to a loss of $0.08 per share in Q3 2025.
• Total assets decreased to $1,539 million from $1,617 million at December 31, 2025, primarily due to the repayment of debt and capital expenditures.
• Total liabilities decreased to $809 million from $904 million at December 31, 2025.