Eastman Kodak Company Q2 FY2026 earnings call

• Overall Financial Performance

  • Kodak delivered four consecutive quarters of year-over-year improvements across all key financial metrics, including revenue, gross profit, and operational EBITDA.
  • Consolidated Q2 2026 revenue hit $311 million, an 18% ($48 million) increase year-over-year; gross profit reached $82 million, a 61% ($31 million) increase year-over-year; operational EBITDA was $36 million, a 300% ($27 million) increase year-over-year.
  • Total debt to EBITDA improved to 1x in Q2 2026 from 23x in Q2 2025, driven by aggressive deleveraging that significantly strengthened the company's balance sheet.
  • GAAP net income was $17 million in Q2 2026, a $43 million improvement from the $26 million GAAP net loss in Q2 2025.
  • For the first half of 2026, total revenue was $576 million (up 13% year-over-year), operational EBITDA was $51 million (up from $11 million year-over-year), and GAAP net income was $1 million, an improvement from a $33 million net loss in the prior year period.

• Operational Strategic Progress

  • AM&C segment: Motion picture film is experiencing a market resurgence, with two recent blockbusters shot on Kodak film, supported by industry directors, and Kodak has reinvested in film production to meet renewed customer demand. Kodak launched its first pharmaceutical web store, added saline products to its portfolio, and is working toward Class II manufacturing certification for higher-margin complex products. The company is investing capital expenditure in large-scale battery electrode coating capabilities and leveraging its pilot facility to help customers scale new battery technologies.
  • Commercial Print segment: The business delivered 10% year-over-year revenue growth despite industry-wide supply chain challenges, high inflation, and intense competition, which management attributes to the superiority of Kodak's products and global customer service.

• Balance Sheet and Cash Management

  • Kodak ended Q2 2026 with $290 million in unrestricted cash. It made $100 million in principal repayments on higher-interest term loans year-to-date, funded primarily by asset redemptions from the terminated CRIP pension plan, reducing future interest expense and further strengthening the balance sheet. Net cash position increased 52 million to $180 million by the end of Q2 2026, compared to the end of 2025. Inventory increased $37 million, driven by higher silver prices, increased silver inventory volumes for supply stability, and pre-build ahead of a planned Q2 maintenance shutdown.

1. Advanced Materials and Chemicals (AM&C): Q2 2026 revenue was $105 million, compared to $75 million in Q2 2025, representing a $30 million (40%) year-over-year increase. This segment contributed 33.8% of total consolidated Q2 2026 revenue. 2. Commercial Print: Q2 2026 revenue was $195 million, compared to $178 million in Q2 2025, representing a $17 million (10%) year-over-year increase. This is Kodak's largest division, contributing 62.7% of total consolidated Q2 2026 revenue. Total consolidated Q2 2026 revenue is $311 million.

No explicit forward-looking financial guidance (revenue, margin, or earnings targets) was provided during this call. Management reaffirmed the company's long-term strategic plan, noting Kodak has shifted into a new growth phase after completing its multi-year turnaround and balance sheet strengthening. Management stated the company will continue executing on its core strategic priorities: leveraging core competencies in industrial materials layering and coating, prioritizing ROI-positive growth opportunities in high-barrier-to-entry industrial segments, accelerating R&D investment, and continuing to improve operational efficiency.

Management noted the following known risk factors that could impact future results: ongoing volatility in commodity prices (specifically aluminum and silver, which increased during the quarter), persistent global inflationary pressures, supply chain disruptions, and general macroeconomic uncertainty. All forward-looking statements were qualified by the standard safe harbor disclosure that actual results may differ materially from expectations due to risk factors detailed in Kodak's ongoing SEC filings. No new operational failures or unanticipated risks were disclosed during the call.

No formal Q&A session was held during this earnings call. The company noted that its investor relations team is available to address follow-up inquiries from analysts and investors after the call.