Eastman Kodak Company Q1 FY2025 earnings call

• Continued execution of long-term plan despite global economic uncertainty.
• Expanded U.S. operations in pharma and battery, invested in innovation across the board.
• Focused on operational efficiencies and cost reduction, shed unprofitable businesses.
• Revenue was $247 million in Q1 2025, roughly flat year-over-year; gross profit percentage was 19%, roughly flat year-over-year.
• AM&C ongoing investments include new CGMP pharma facility and expansion into diagnostic test reagents manufacturing.
• Commercial print business: moving to controlled production of PROSPER ULTRA 520 press, with installed sales and continuous demand for U.S.-made lithographic printing plates.
• U.S. pension plan termination and settlement process proceeding as planned, with expected reverted assets to reduce long-term debt.

For the first quarter of 2025, revenue was $247 million, compared to $249 million in the first quarter of 2024, roughly flat year-over-year. The Advanced Materials and Chemical Group (AM&C) is key to Kodak's future. Ongoing investments in AM&C include a new CGMP pharma manufacturing facility set to be online later this year, expanding pharma business into manufacturing FDA-regulated diagnostic test reagents. Demand for various types of film (still motion picture, NDT, etc.) continues to grow, and the company has invested in expanding capacity in the film facility. In the commercial print business, they are moving from controlled introduction to controlled production of the PROSPER ULTRA 520 press, with several installed sales and continuous demand for U.S.-made lithographic printing plates. AM&C growth initiatives are U.S.-based, and manufacturing in the U.S. reduces environmental impact and provides reliable supply.

• The termination and settlement process of the U.S. pension plan is proceeding as planned, with expected reverted assets to be used to reduce long-term debt and annual debt servicing cost.
• Entered into the second amendment to the term loan credit agreement, with option to make next six quarterly interest payments in PIK form, and revised term debt prepayment requirements.

• Global economic uncertainty, including uncertainties around global trade and inflation.
• Tariffs, with changing environment requiring short-term pain for long-term gain.
• Risks associated with the pension plan termination and settlement process, including regulatory review and approval factors beyond Kodak's control.

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