Eastman Kodak Q3 Earnings Call Highlights

Key Points

• Kodak’s third-quarter results improved: Revenue rose 3% to $276 million, gross profit increased 7% to $73 million, and GAAP net income climbed 62% to $21 million.
• Advanced Materials and Chemicals drove growth with revenue up 21% to $99 million, while Print revenue fell 7% to $165 million amid cost, supply and competitive pressures.
• Kodak reported $317 million in unrestricted cash and a net cash position of $207 million at quarter-end; it said year-over-year debt was down about $400 million and plans to keep investing in AM&C and Print.

Eastman Kodak NYSE: KODK reported higher third-quarter revenue, gross profit and net income, with growth in its Advanced Materials and Chemicals segment offsetting lower sales in its Print business.

For the quarter ended Sept. 30, 2026, Kodak recorded revenue of $276 million, up 3% from $269 million a year earlier. Gross profit rose 7% to $73 million, while gross margin increased to 26% from 25% in the prior-year quarter.

GAAP net income increased 62% to $21 million, compared with $13 million in the third quarter of 2025. Chief Financial Officer David Bullwinkle said the improvement reflected lower interest expense following debt reduction and higher gross profit, partly offset by increased selling, general and administrative expenses.

Operational EBITDA, a non-GAAP measure, rose to $31 million from $29 million a year earlier. Kodak generated $27 million in cash during the quarter, according to Executive Chairman and Chief Executive Officer Jim Continenza.

Advanced Materials and Chemicals Drives Growth

Kodak’s Advanced Materials and Chemicals, or AM&C, segment generated $99 million of revenue in the third quarter, an increase of $17 million, or 21%, from the prior-year period. The segment represented 36% of company revenue during the quarter, compared with 30% a year earlier.

Continenza described AM&C as Kodak’s growth engine and said the business now accounts for about one-third of revenue and more than half of Operational EBITDA. He said the company’s investments in the segment over recent years were beginning to generate returns.

The company cited several AM&C initiatives, including its direct sales of a range of KODAK film products to distributors, continued motion-picture film growth, and the launch of the KODAK PHARMACEUTICALS online store. Kodak also added a saline product to its pharmaceutical offering and said it continues to pursue Class 2 certification to manufacture more complex, higher-margin products.

In battery coating, Kodak said it is investing in electrode-coating capacity and using its pilot coating facility to help customers scale newer technologies.

Print Revenue Declines, but Kodak Reaffirms Commitment

Print revenue fell 7% to $165 million from $177 million in the prior-year quarter. Continenza attributed the decline primarily to higher raw-material prices and availability challenges, digital substitution, competitive pricing pressure and what he called an uneven playing field in Europe.

Despite the decline, Continenza said the Print business was performing as expected as Kodak focuses on more profitable operations. He said the company has experienced growth in other regions, particularly the United States, and remains committed to the business.

“It’s our intent to be the last manufacturer standing in plates,” Continenza said, adding that Kodak expects its imprinting systems business to make significant contributions in digital printing.

Year-to-Date Results and Balance Sheet

For the first nine months of 2026, Kodak reported revenue of $852 million, up $73 million, or 9%, from the prior-year period. Currency fluctuations provided a $5 million favorable impact on revenue, Bullwinkle said. Revenue grew across all segments, led by 21% growth in AM&C.

• Gross profit increased 28% to $212 million.
• Gross margin rose to 25% from 21% in the first nine months of 2025.
• GAAP net income was $22 million, compared with a GAAP net loss of $20 million in the prior-year period.
• Operational EBITDA increased by $42 million to $82 million.

Bullwinkle said the year-to-date improvement was driven by higher operating earnings, lower interest expense and the absence of prior-year asset impairment charges. Lower non-cash pension income following the KRIP pension plan termination partly offset those gains.

As of Sept. 30, Kodak had $317 million in unrestricted cash, up $27 million from the end of the second quarter. Unrestricted cash was down $20 million from year-end 2025, primarily reflecting $101 million of required Term Loan repayments during 2026 and $18 million in capital expenditures.

The company’s net cash position increased to $207 million as of Sept. 30 from $128 million at the end of 2025, reflecting debt reduction. Bullwinkle said Kodak had reduced debt by approximately $400 million year over year and that trailing 12-month Operational EBITDA had more than doubled to $104 million.

Continenza said Kodak intends to continue investing in AM&C and Print while pursuing profitable growth, consistent cash generation and further balance-sheet improvement.

About Eastman Kodak (NYSE:KODK)

Eastman Kodak Company is a technology and manufacturing company based in Rochester, New York. It provides commercial printing, packaging, publishing and graphic communications solutions, including digital printing equipment, workflow software, consumables and related services. Kodak also develops advanced materials and chemical products used in specialized industrial and commercial applications.

The company serves customers in the commercial print, packaging, publishing, entertainment and manufacturing industries.

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