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    KODK
    Earnings call· Jun 2026(Q2 FY26)

    EASTMAN KODAK Q2 FY26 earnings call KODK

    Aug 4, 2026 Source

    Executive summary

    Eastman Kodak Q2 FY26 — Strong Growth and Balance Sheet Improvement

    Eastman Kodak delivered a strong second quarter, marking its fourth consecutive quarter of year-over-year growth across key financial metrics. The company highlighted significant improvements in revenue, gross profit, and operational EBITDA, driven by strategic focus on core competencies and operational excellence. The balance sheet was further strengthened through substantial debt reduction. The call was a monologue with no Q&A session.

    Highlights

    5

    • Consolidated revenues increased by $48 million or 18% year-over-year to $311 million.

    • Gross profit grew by $31 million or 61% year-over-year to $82 million.

    • Operational EBITDA improved by $27 million or 300% year-over-year to $36 million.

    • Debt to EBITDA ratio significantly reduced to 1x in Q2 FY26 from 23x in Q2 FY25.

    • Net cash position increased by $52 million to $180 million at June 30, 2026.

    Concerns

    3

    • Unrestricted cash was down $47 million from December 31, 2025, primarily due to term loan repayments.

    • Inventory increased by $37 million, mainly in AM&C due to higher silver prices and building ahead of a maintenance shutdown.

    • Non-cash pension income declined by $11 million year-over-year following the termination of the CRIP pension plan.

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Advanced Materials and Chemicals
    Revenues increased significantly, driven by reinvestment in core competencies like motion picture film and new initiatives in pharma and battery coating.
    		$105 million40%——
    Commercial Print
    Achieved growth despite competitive market, supply shortages, and inflation, reflecting product and service superiority.
    		$195 million10%——

    Operational metrics

    18
    Consolidated Revenues
    $311 millionup $48 million or 18% YoY from $263 million
    Q2 FY26

    Fourth consecutive quarter of year-over-year growth.

    Gross Profit
    $82 millionup $31 million or 61% YoY from $51 million
    Q2 FY26

    Driven by favorable pricing and higher volumes, despite higher commodity costs.

    Operational EBITDA
    $36 millionup $27 million or 300% YoY from $9 million
    Q2 FY26

    Primarily driven by improved pricing and higher volumes, offsetting commodity costs and SG&A.

    Debt to EBITDA
    1xvs 23x in Q2 FY25
    Q2 FY26

    Reflects continued deleveraging of the business and balance sheet.

    Gross Profit Percentage
    26%vs 19% in Q2 FY25
    Q2 FY26

    Reflecting strong operational execution.

    GAAP Net Income
    $17 millionvs GAAP net loss of $26 million in Q2 FY25, a $43 million improvement
    Q2 FY26

    Significant year-over-year improvement.

    First Half Revenues
    $576 millionup $66 million or 13% YoY
    H1 FY26

    Continued momentum across the business.

    First Half Gross Profit
    $139 millionup $42 million or 43% YoY from $97 million
    H1 FY26

    Strong growth in the first half of the year.

    First Half Gross Profit Percentage
    24%vs 19% in prior year period
    H1 FY26

    Improved profitability.

    First Half GAAP Net Income
    $1 millionvs GAAP net loss of $33 million in prior year period, a $34 million increase
    H1 FY26

    Primarily driven by operating earnings, lower interest expense, and absence of asset impairment charges.

    First Half Operational EBITDA
    $51 millionup $40 million YoY from $11 million
    H1 FY26

    Driven by improved pricing and higher volumes, offsetting commodity costs and SG&A.

    Unrestricted Cash Balance
    $290 milliondown $47 million from Dec 31, 2025
    Q2 FY26

    Cash position at quarter end.

    Cash Proceeds from CRIP Pension Redemption
    $41 million
    Q2 FY26

    Received during the quarter from redemption of hedge fund investments.

    Term Loan Principal Payment
    $50 million
    Q2 FY26

    Additional payment made in June, consistent with term loan amendment.

    Net Cash Position
    $180 millionup $52 million from $128 million at Dec 31, 2025
    Q2 FY26

    Reflects continued strengthening of financial position.

    Inventory Increase
    $37 million
    Q2 FY26

    Impacted working capital.

    Interest Expense Reduction
    $9 millionYoY
    Q2 FY26

    Driven by significant reduction in term loan debt.

    Non-cash Pension Income Decline
    $11 millionYoY
    Q2 FY26

    Following the termination of the CRIP pension plan in Q4 2025; expected to remain below prior year levels throughout 2026.

    Industry KPIs

    4
    MetricValueDetails
    Capital return FCF$100 millionUSD
    Gross margin drivers26%%
    Component supply constraintsShortage in supply, high cost, inflation
    Revenue mix by end market segmentAM&C: $105 million; Commercial Print: $195 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Kodak Pharmaceutical Websitelaunch
    Vision 3 AHU film structureupdate

    Capital programs

    1
    Battery Coating Investmentunderway

    Benefit: additional capabilities such as coating electrodes at a large scale and using pilot facility to help other customers scale new technologies

    Investing CapEx into the machine to add additional capabilities for battery coating.

    Risks & headwinds

    5
    Continued volatility in commodity costs

    Higher commodity costs for aluminum and silver offset some gross profit gains.

    Mitigation: Focus on operational excellence and improving efficiency to navigate challenging business environment.

    Ongoing inflationary pressures

    Impacted commercial print business.

    Mitigation: Superior products and service allowed continued delivery and support to customers.

    Shortage in supply

    Impacted commercial print business.

    Mitigation: Superior products and service allowed continued delivery and support to customers.

    Lower non-cash pension incomeExpected to remain below prior year levels throughout 2026.

    $11 million decline YoY in Q2 FY26.

    Mitigation: Result of CRIP plan termination and asset reversion in Q4 2025.

    Increased inventory levels

    $37 million increase.

    Mitigation: Partially strategic (building ahead of maintenance shutdown) and partially due to higher silver prices and increased volume carried.

    What to watch in Q3 FY26

    4

    Battery Coating Capabilities Expansion

    next quarter
    CurrentCapEx being invested
    TargetProgress on large-scale electrode coating and pilot facility utilization

    Why it matters

    This investment is key to expanding into new, higher-margin areas within Advanced Materials and Chemicals.

    We continue to invest in our battery coating. We're putting CapEx into the machine to add additional capabilities, such as coating electrodes at a large scale and using our pilot facility to help other customers scale new technologies.

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Focus and Core Strengths

    Management emphasized a consistent focus on leveraging core strengths in layering and coating, which they consider a core competency where Kodak excels. This strategy has led to year-over-year improvements in key metrics for four consecutive quarters, indicating a stable and growing business. The company plans to continue focusing on execution and innovating new products.

    02

    Advanced Materials and Chemicals (AM&C) Performance

    The AM&C segment reported revenues of $105 million, a 40% increase from Q2 2025. This growth was attributed to reinvestment in core competencies, particularly in motion picture film, with two blockbuster movies ('The Odyssey' and 'Disclosure Day') shot on Kodak Film. The segment also launched its first pharmaceutical website and continues to invest in battery coating capabilities.

    03

    Commercial Print Segment Growth

    Commercial Print, now the largest division, saw revenues of $195 million, a 10% increase year-over-year. This growth was achieved despite a competitive marketplace, supply shortages, and inflationary pressures. Management highlighted the superiority of their products and service as key drivers for this performance across global markets.

    04

    Balance Sheet Strengthening and Debt Reduction

    Kodak significantly improved its balance sheet, reducing its debt to EBITDA ratio to 1x in Q2 2026 from 23x in Q2 2025. The company made $50 million in principal payments on term loans during the quarter, bringing the year-to-date total to $100 million. These repayments were primarily funded by $41 million in cash proceeds from CRIP pension asset redemptions, contributing to a $52 million increase in net cash position.

    05

    Operational Excellence and Profitability

    The company achieved a gross profit percentage of 26% in Q2 2026, up from 19% in the prior year quarter, reflecting strong operational execution. This was driven by favorable pricing and higher volumes, which more than offset increased commodity costs for aluminum and silver. The improvement in operational EBITDA also contributed to a $43 million improvement in GAAP net income.

    06

    Investment in Innovation and R&D

    Kodak is accelerating its investment in R&D, including the acquisition of an R&D division. This move is aimed at focusing on innovation, efficiency, and quality control. Specific investments include CapEx for battery coating machines to add capabilities like large-scale electrode coating and using pilot facilities to help customers scale new technologies.

    AI-generated summary of the company’s earnings call. Not investment advice.