By Katherine Hamilton

Eastman Chemical increased its target for cost reductions in 2026 as it continues to run up against macroeconomic challenges.

The chemicals and fibers manufacturer said Thursday it would ramp up its cost structure reduction actions to a range of $125 million to $150 million in 2026.

In 2025, Eastman Chemical reduced costs by $100 million, above its previous target of $75 million.

The Kingsport, Tenn., company is still facing weakness in consumer discretionary end markets and the chemical industry as a whole, Chief Executive Mark Costa said. Sales fell 12% in the fourth quarter due to 11% lower sales volume and mix and 2% lower selling prices.

Customers are destocking in acetate tow and adjusting capacity share. There were also sharper-than-usual declines in seasonal demand within consumer discretionary markets, the company said.

Because of the macro uncertainty, Eastman Chemical didn't provide a full-year earnings outlook. It said it expects first-quarter adjusted earnings per share to be $1 to $1.20. Analysts polled by FactSet were projecting $1.27 a share.

Eastman Chemical is expecting some improvement in the first quarter, including growth in volume and mix from normal seasonality, as well as reduced customer caution now that customers have finished year-end inventory management.

Shares were down 4% to $66.00 in after-hours trading Thursday.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 29, 2026 17:01 ET (22:01 GMT)

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