Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eastman Kodak Co (KODK, Financial) continues to execute its long-term plan despite global economic uncertainty.
- The company is expanding its US operations in the pharmaceutical and battery sectors.
- Ongoing investments in advanced materials and chemical growth initiatives, including a new CGMP Pharma manufacturing facility.
- Demand for various types of film, including motion picture and NDT, continues to grow.
- The company remains committed to US-based manufacturing, reducing environmental impact and ensuring high-quality supply.
Negative Points
- Revenue for the first quarter of 2025 was $247 million, a slight decline from $249 million in the prior year.
- Gross profit percentage decreased from 20% in the first quarter of 2024 to 19% in 2025.
- The company reported a net loss of $7 million for the first quarter of 2025, compared to a net income of $32 million in the prior year.
- Higher aluminum and manufacturing costs negatively impacted gross profit and operational EBITA.
- Cash balance decreased by $43 million from December 31, 2024, primarily due to investments in growth initiatives and increased costs.
Q & A Highlights
Q: Can you provide an update on Kodak's financial performance for the first quarter of 2025?
A: Jim Continenza, CEO, reported that Kodak's revenue for Q1 2025 was $247 million, slightly down from $249 million in Q1 2024. The gross profit percentage was 19%, compared to 20% in the previous year. The company experienced a net loss of $7 million, a significant decrease from a net income of $32 million in Q1 2024.
Q: What are the key growth initiatives for Kodak's Advanced Materials and Chemicals (AM&C) group?
A: Jim Continenza, CEO, highlighted ongoing investments in AM&C, including a new CGMP Pharma manufacturing facility expected to be operational later this year. The company is also expanding its pharma business into manufacturing FDA-regulated diagnostic test reagents.
Q: How is Kodak addressing the challenges posed by tariffs and global economic uncertainties?
A: Jim Continenza, CEO, stated that Kodak is working through the challenges posed by tariffs, emphasizing the need to endure short-term pain for long-term gain. The company is committed to complying with all tariff regulations and continues to focus on operational efficiencies and cost reduction.
Q: What is the status of Kodak's US pension plan termination process?
A: David Bullwinkle, CFO, explained that the termination process for the US Kodak Retirement Income Plan (CRIP) is proceeding as planned. The company expects to receive pension reversion proceeds within 7 to 11 months after required debt prepayments, subject to regulatory review and approval.
Q: How is Kodak managing its cash flow and financial covenants?
A: David Bullwinkle, CFO, reported that Kodak ended Q1 2025 with a cash balance of $158 million, a decrease of $43 million from the end of 2024. The company remains in compliance with all applicable financial covenants and continues to focus on improving profitability and working capital performance.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
