Breaking Down Eastman Kodak Company (KODK) Financial Health: Key Insights for Investors

If you're looking at Eastman Kodak Company (KODK), the story is no longer just about the past; it's a high-stakes balance sheet play that has finally cleared a major hurdle. For the third quarter of 2025, the company posted consolidated revenues of $269 million, a modest 3% year-over-year increase, but the real action is in the profitability and the balance sheet de-risking. Operational EBITDA soared to $29 million, a massive jump from just $1 million in Q3 2024, driven by a strong 15% revenue growth in the Advanced Materials & Chemicals (AM&C) segment, which is where the future growth is defintely coming from. But here's the quick math: the company's ability to move forward hinges on its pension plan; management is now expecting approximately $600 million in proceeds from the pension reversion by year-end 2025, a critical step that allowed them to fully resolve the prior going-concern issue and plan to reduce term loans to only about $200 million. That's a game-changer for liquidity, but the core business still needs to prove it can consistently generate enough cash to sustain growth initiatives, especially since the nine-month net result is still a $20 million loss.

Revenue Analysis

You're looking at Eastman Kodak Company (KODK) and trying to figure out where the money is actually coming from, which is smart. The headline for 2025 is that total revenue is holding mostly flat, sitting around the $1.05 billion mark for the trailing twelve months (TTM) ending Q3 2025, but the underlying segments tell a story of a company in a careful transition.

The year-over-year revenue change for the TTM through Q3 2025 was a slight decrease of -0.67%, which is essentially flat in a challenging industrial market. But look closer at the quarterly results for 2025: Q3 revenue was $269 million, a 3% jump year-over-year, which is defintely a positive signal, even if Q2 revenue of $263 million saw a slight 1% dip.

Primary Revenue Streams and Segment Contribution

Eastman Kodak Company's revenue is not a single stream; it's a mix of legacy strength and new growth areas. The company's core business is still Print, but the Advanced Materials & Chemicals (AM&C) segment is where the strategic investment is paying off. North America remains the largest market, bringing in 51.30% of the total revenue in Q3 2025.

Here's the quick math on segment contribution from the Q3 2025 results:

• Print: This segment is the workhorse, contributing $177 million in Q3 2025, or about 65.80% of the quarter's total revenue.
• Advanced Materials & Chemicals (AM&C): The growth engine, pulling in $82 million in Q3 2025.

The Print business is crucial for scale, but the future growth is tied to AM&C. You can see the long-term thinking in their Mission Statement, Vision, & Core Values of Eastman Kodak Company (KODK).

Analyzing Revenue Stream Changes

The significant change in 2025 is the clear divergence in growth rates between the two main segments. This is a deliberate shift, not an accident.

The Advanced Materials & Chemicals segment is showing real momentum, with Q3 2025 revenue growing by a strong 15% year-over-year, from $71 million to $82 million. This growth is driven by higher volumes and price increases in Industrial Film, Chemicals, and Motion Picture film. Plus, the new cGMP facility for pharmaceutical products is a key investment that should continue to expand this revenue base into regulated manufacturing.

On the flip side, Print revenue is under pressure, down 3% in Q3 2025 to $177 million. This decline is mostly tied to lower volume in Prepress Solutions, which includes lithographic printing plates. So, while price increases are helping, volume is still a headwind in parts of the core business. The company is actively shedding unprofitable business to focus on efficiency, which means some revenue decline is actually strategic.

Profitability Metrics

You're looking past the headlines and into the core financial engine of Eastman Kodak Company (KODK), and the profitability picture for 2025 is a study in two distinct trends: strong operational efficiency gains but a still-fragile bottom line.

The direct takeaway is that KODK's gross profitability is significantly outperforming its core industrial peers, but the company's overall net income still faces pressure from non-operational factors. Here's the quick math from the third quarter (Q3) of 2025, which is the most recent data we have.

Gross Margin and Operational Efficiency

The gross profit margin is the real bright spot, jumping to a robust 25% in Q3 2025, a massive increase of 8 percentage points from the 17% seen in the prior year period. This is defintely a win for operational efficiency (how well the company manages its direct production costs).

This improvement stems from a few clear actions: Eastman Kodak Company successfully implemented price increases and benefited from lower aluminum costs in its Print segment. The Advanced Materials & Chemicals (AM&C) segment also saw its Operational EBITDA climb from $6 million to $16 million year-over-year, showing that the strategic focus on high-value materials is paying off.

The trend is clear across 2025, too. The gross margin was stuck at 19% in both Q1 and Q2 2025, so the leap to 25% in Q3 is a significant step-change in performance. That's a strong signal of cost management working. You need to watch if they can sustain this level.

Net Profitability and Industry Comparison

While the operational performance is strong, the GAAP net income (net profit) tells a more complex story. The net profit margin for Q3 2025 was 4.83%, which is a respectable number but a 28% decline from the previous year's Q3 net income. The primary drag on the overall 2025 picture is non-cash items, specifically a large decrease in non-cash pension income, which led to a net loss of $20 million for the first nine months of 2025.

Comparing Eastman Kodak Company's margins to its peers highlights its unique, hybrid position:

• Gross Margin: KODK's 25% Gross Margin is far above the industry average for the Chemicals sector, which sits around 13.7% as of November 2025.
• Net Margin: The Q3 2025 Net Profit Margin of 4.83% is right in line with the typical Commercial Printing industry average, which often hovers around 5%. It also dramatically outperforms the Chemicals industry average Net Profit Margin of -5.5%.
• Operating Efficiency: KODK's Operational EBITDA Margin of 10.78% is solid for a manufacturing-heavy business, though it trails the nearly 20% EBITDA achieved by the highest-performing, diversified commercial printing firms.

The company is clearly managing its core manufacturing and materials business well, but the legacy financial structure, including pension obligations, is still muddying the final net profit number. This is why the expected $600 million proceeds from the US pension reversion transaction is so critical; it's a balance sheet move that will directly strengthen their financial position and allow them to pay down debt. To understand the bigger picture of their long-term strategy, you should review their Mission Statement, Vision, & Core Values of Eastman Kodak Company (KODK).

Debt vs. Equity Structure

If you look at Eastman Kodak Company (KODK)'s capital structure, the headline Debt-to-Equity (D/E) ratio looks manageable, but that number hides a major near-term refinancing risk. The company's D/E ratio stood at approximately 0.58 (or 58.9%) as of September 29, 2025, which means it uses about 58 cents of debt for every dollar of shareholder equity. That's a reasonable level, but the composition of that debt is the real issue.

The core problem is the sheer amount of debt that has become current, meaning it is due within the next year. Due to an accelerated maturity date, approximately $477 million of Term Loans were reclassified as short-term debt in the second quarter of 2025. This spike pushed total current liabilities to $729 million, which is a massive obligation to fund quickly. Honestly, this situation is why the company's Q2 2025 report included a disclosure about 'substantial doubt' regarding its ability to continue as a going concern.

Here's the quick math on the balance sheet structure as of late 2025:

When you compare the D/E ratio of 0.589 to industry benchmarks, Eastman Kodak Company (KODK) looks fine on paper. The average D/E for the Specialty Chemicals sector-a business segment the company is actively growing-is around 0.6457 for 2025, so KODK is actually slightly below that. Even the broader Photographic Equipment and Supplies industry had a higher median D/E of 1.03 in 2024. Still, these comparisons don't account for the accelerated maturity cliff the company faces.

To manage this debt, the company has taken clear, aggressive actions in 2025 to balance debt financing with equity funding.

• Converted the $125 million 5% Series C preferred stock into common equity in August 2025, eliminating a significant liability.
• Elected to pay interest on its Term Loans using a Payment-in-Kind (PIK) structure for up to six quarters, which provides temporary cash relief by reducing annual cash interest outflows by approximately $25 million to $30 million.
• Planned to use $300 million in proceeds from its overfunded pension plan (KRIP) in December 2025 to pay down the Term Loans.

This is defintely a high-wire act. S&P Global Ratings affirmed the company's credit rating at 'CCC+' but revised the outlook to Negative in October 2025, citing the heightened refinancing risk for the May 2026 maturities. The planned debt reduction is critical, but the company must still address the remaining $175 million in term loans and the $99 million Series B preferred shares due in May 2026. For a full picture of the company's direction, you should also review its Mission Statement, Vision, & Core Values of Eastman Kodak Company (KODK).

Liquidity and Solvency

If you're looking at Eastman Kodak Company (KODK), the first thing to understand is that their liquidity position, as of the trailing twelve months (TTM) ending September 2025, is tight. You need to look beyond the cash balance and focus on the ratios, which tell the real story about their ability to cover near-term obligations.

The core issue is that Eastman Kodak Company's current assets are not sufficient to cover their current liabilities, which is a classic red flag for a company in transition. Here's the quick math on the key liquidity ratios:

• Current Ratio (TTM Sep '25): 0.79. This means for every dollar of short-term debt, the company only has 79 cents in current assets to cover it. You want this number to be 1.0 or higher.
• Quick Ratio (TTM Sep '25): 0.46. This ratio removes inventory, which is often harder to liquidate quickly, and it's even lower. This shows a real reliance on selling inventory to meet immediate obligations.

Honestly, a current ratio below 1.0 is defintely a liquidity concern. It means the company is technically in a negative working capital position, a trend that has been persistent. The TTM Net Current Asset Value, a good proxy for working capital, sits at a negative $-609.00 million, underscoring the structural imbalance.

Cash Flow Statement Overview

The cash flow statement for the TTM period ending September 30, 2025, shows where the pressure is coming from and where the company is focusing its limited resources. The trends point to a business that is not generating enough cash from its core operations to fund its investments.

The negative operating cash flow of $-5 million is the biggest concern for investors, as it means the company is burning cash just to run the business. Plus, they are actively investing, with $-40 million going into capital expenditures, which is a necessary investment for future growth but adds immediate pressure to their cash reserves. This is a classic case of a company trying to invest its way out of a difficult spot, but it heightens the near-term liquidity risk.

Near-Term Liquidity Strengths and Risks

The good news is that management is taking clear action to address the balance sheet. Eastman Kodak Company's cash balance stood at $168 million as of September 30, 2025, which gives them some cushion. More importantly, they are executing a plan to use surplus assets from a pension reversion to pay down debt, which is expected to reduce their term debt to a healthier $200 million.

What this estimate hides, however, is the 'going concern assessment' disclosure included in their Q2 2025 Form 10-Q filing. This is a formal warning that their plans to fund future obligations are not solely within their control and thus not deemed 'probable' under US GAAP accounting rules. This is a serious risk. The debt reduction is crucial, but until that pension reversion is complete and the debt is paid down, the liquidity risk remains high.

For a deeper dive into the strategic implications, you can read more here: Breaking Down Eastman Kodak Company (KODK) Financial Health: Key Insights for Investors

Valuation Analysis

You're looking at Eastman Kodak Company (KODK) and trying to figure out if the recent stock price jump means the company is finally turning the corner or if it's just a speculative bubble. That's a smart question, because the traditional valuation metrics tell a complex story, suggesting the stock might be undervalued on an asset basis but still carries significant risk due to profitability issues.

The stock has seen a strong run this year, rising by approximately 36.87% over the last 12 months, which is defintely a notable move. The price has traded in a wide range, from a 52-week low of $4.93 to a high of $8.90. As of mid-November 2025, the stock is sitting around $7.21, closer to the high end of that range, which shows recent investor interest.

Here's the quick math on what the core financial ratios tell us about Eastman Kodak Company's valuation based on 2025 fiscal year data:

• Price-to-Earnings (P/E) Ratio: This ratio is currently negative (ranging from approximately -73.75 to -87.63 in November 2025). This isn't a surprise; it simply means the company is losing money on a trailing twelve-month basis, so the P/E ratio is effectively meaningless for valuation right now.
• Price-to-Book (P/B) Ratio: This is where things get interesting. The P/B ratio is approximately 0.86 as of November 20, 2025. A P/B ratio under 1.0 suggests the market is valuing the company at less than its net tangible assets (what shareholders would theoretically get if the company liquidated). This points toward a potential undervaluation based on book value.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is a better comparison tool because it strips out the effects of debt and non-cash expenses. Eastman Kodak Company's EV/EBITDA ratio is around 5.66 as of November 17, 2025, based on an Enterprise Value of $808.93 million and a TTM EBITDA of $143.00 million. For a manufacturing and technology company, this multiple is generally considered low, again suggesting a potential undervaluation relative to its operating cash flow.

The company does not offer a dividend, with the TTM dividend payout and yield both at $0.00 and 0.00% as of November 2025. Don't expect income here; this is a pure capital appreciation play.

Analyst Consensus and the Reality Check

The Street's view is still cautious, despite the low P/B and EV/EBITDA multiples. The general analyst consensus is a 'Sell' rating. To be fair, one firm recently upgraded its rating from 'Sell' to a 'Hold' in mid-November 2025, which shows a slight shift in sentiment, but the overall picture is still one of skepticism.

What this estimate hides is the market's concern over future profitability (the negative P/E) and the company's ability to consistently grow its new segments like Advanced Materials and Chemicals. The low P/B ratio is a clear signal that the market doesn't trust the book value of all those assets to generate sufficient future profit.

If you want to dig deeper into the company's structural shifts and risks, you should read the full post: Breaking Down Eastman Kodak Company (KODK) Financial Health: Key Insights for Investors.

Next Action: Compare Eastman Kodak Company's 0.86 P/B ratio against its closest industry peers to quantify the true asset discount by Friday.

Risk Factors

You need to look past the recent positive headlines from Eastman Kodak Company's (KODK) Q3 2025 report; the fundamental risks are still substantial, especially the near-term debt wall. While the company has made huge strides in shoring up its balance sheet, the core business remains under pressure. This is defintely a high-risk, high-reward turnaround play.

The Critical Financial Risk: May 2026 Debt Maturity

The most immediate and material risk is the looming May 2026 debt maturity. This is a classic refinancing risk (the chance you can't borrow new money to pay off old debt). The company faces a total obligation of approximately $626 million coming due, which includes a $477 million term loan, a $50 million cash collateralized letters of credit facility, and $99 million in 4% Series B preferred shares.

Here's the quick math on the mitigation plan: Eastman Kodak Company expects to use $300 million of the Kodak Retirement Income Plan (KRIP) proceeds in December 2025 to reduce the term loan. This would leave about $175 million in term loans outstanding, plus the other obligations. The good news is that the company has resolved the previously disclosed 'going concern' condition, which is a massive step for liquidity. Still, S&P Global Ratings revised the outlook to negative in October 2025, citing weak liquidity and the refinancing risk, projecting the company would maintain leverage well above 10x in 2025.

Operational Headwinds and Industry Competition

Operationally, Eastman Kodak Company is a tale of two segments, and one is still shrinking. The core Print segment, which generates the majority of revenue, continues to face a secular decline due to competition from digital alternatives.

• Print Segment Decline: Q3 2025 Print revenues were $177 million, a 3% decrease year-over-year, driven by lower volume in Prepress Solutions.
• Cost Pressures: Higher aluminum and manufacturing costs have been a persistent drag on profitability, though price increases have helped to partially offset this.
• Profitability Volatility: The GAAP net income is very sensitive to non-cash items. The Q3 2025 GAAP net income of $13 million was down 28% year-over-year, largely due to a $26 million decrease in non-cash pension income. The nine-month period ended September 30, 2025, still showed a $20 million net loss.

External and Strategic Risks

The company's strategic pivot toward high-growth areas like Advanced Materials & Chemicals (AM&C) and pharmaceutical manufacturing is the right move, but it carries execution risk. The AM&C segment is a growth driver, with Q3 2025 revenues up 15% to $82 million. But this growth has to be sustained to offset the print decline.

Also, external factors are a real threat. New US tariffs on chemicals and aluminum are an immediate headwind that could squeeze margins further, especially in the print business, making it hard to pass costs onto customers.

The mitigation strategy is clear: execute the growth plan and finish the financial restructuring. This involves leveraging the new cGMP pharmaceutical manufacturing facility and continuing to grow the AM&C business. Plus, the conversion of $100 million in Series C preferred stock and $24 million in accrued dividends into common stock has already simplified the capital structure.

For more on the segment performance, see our full analysis: Breaking Down Eastman Kodak Company (KODK) Financial Health: Key Insights for Investors.

Growth Opportunities

You want to know where Eastman Kodak Company (KODK) is going, and honestly, the answer is less about your grandfather's film camera and more about advanced materials. The company's future growth is defintely anchored in a disciplined shift away from declining print segments toward high-margin, specialized chemical and material science applications. This is a classic 'core competency pivot,' leveraging their deep expertise in layering and coating technology.

The primary engine for this growth is the Advanced Materials & Chemicals (AM&C) segment. In the third quarter of 2025, this segment's revenue hit $82 million, marking a strong 15% year-over-year increase, driven by price hikes and higher volumes in Industrial Film and Motion Picture. It's a small piece of the pie but it's the fastest-growing. The total trailing twelve months (TTM) revenue ending September 30, 2025, stood at approximately $1.05 billion, so getting AM&C to a larger scale is the critical near-term task.

Here's the quick math on the strategic shift: while consolidated Q3 2025 revenue was up 3% to $269 million, the Print segment was down 3%, meaning AM&C is carrying the growth load.

The company's strategic initiatives are laser-focused on this pivot:

• Pharma Expansion: Launching a new Current Good Manufacturing Practice (cGMP) facility in 2025 to produce FDA-regulated diagnostic test reagents and pharmaceutical ingredients like phosphate buffered saline (PBS). This is a high-potential, high-barrier-to-entry market expansion.
• Debt Reduction: The expected proceeds from the U.S. pension reversion transaction have increased to approximately $600 million, up from an initial estimate of $500 million. Using this surplus to pay down term debt will significantly strengthen the balance sheet and free up capital for growth investments.
• New Materials R&D: Investing in early-stage projects like battery films and functional materials, which leverage their coating expertise for the electric vehicle (EV) and electronics markets.

The competitive advantage for Eastman Kodak Company (KODK) isn't just technology; it's a matter of geography and legacy. The company is the last remaining U.S. manufacturer of lithographic printing plates and manufactures all its film products and fastest inkjet presses domestically. This U.S.-based manufacturing provides customers with a more reliable supply chain, which is a huge selling point in a world of geopolitical risk. Plus, that iconic brand name still generates revenue through licensing agreements for various consumer products.

The improved Q3 2025 Operational EBITDA of $29 million, up dramatically from $1 million in Q3 2024, shows that operational efficiencies and strategic pricing are starting to take hold, giving them more cash to fund these growth initiatives.

For a deeper dive into the balance sheet implications of the pension reversion, you should check out our full analysis: Breaking Down Eastman Kodak Company (KODK) Financial Health: Key Insights for Investors.

Here is a snapshot of the segment performance driving the narrative:

What this table hides is the risk: the Print segment is still the largest revenue generator, and its decline could offset AM&C's growth if the latter doesn't scale quickly enough. The action for you is to monitor AM&C's quarterly revenue growth rate and the progress of the cGMP facility launch in the coming quarters. If AM&C can maintain a double-digit growth rate and the pharma business starts generating meaningful revenue in 2026, the equity story changes fast.