Eastman Chemical's biggest risks in the FY2024 10-K
- Eastman's risks are dominated by raw material volatility, chemical manufacturing hazards, international operations, and environmental and climate compliance.
The risks most specific to Eastman Chemical
- Risks Related to Global Economy and Industry Conditions
Volatility in costs for strategic raw material and energy commodities or disruption in the supply and transportation of these commodities and in transportation of Company products could adversely impact the Company's financial results
Volatility in costs for strategic raw material and energy commodities or supply chain disruptions could adversely impact Eastman's financial results.
- Risks Related to Global Economy and Industry Conditions
The Company's substantial global operations subject it to risks of doing business in other countries that could adversely impact its business, financial condition, and results of operations
More than half of Eastman's sales and a significant portion of manufacturing capacity are located outside North America.
- Risks Related to the Company's Business and Strategy
The Company's business is subject to operating risks common to chemical and specialty materials manufacturing businesses, any of which could disrupt manufacturing operations or related infrastructure and adversely impact results of operations
Eastman's specialty materials business is subject to chemical manufacturing hazards like explosions, fires, and toxic releases.
- Risks Related to the Company's Business and Strategy
Growth initiatives may not achieve desired business or financial objectives and may require significant resources in addition to or different from those available or in excess of those estimated or budgeted for such initiatives
Sustainable innovation and circular economy growth initiatives may not achieve desired financial objectives or may require excessive resources.
- Risks Related to the Company's Business and Strategy
The Company may be subject to indemnity claims relating to properties or businesses it has divested or acquired
Eastman may face indemnity claims for unknown environmental or tax liabilities relating to divested or acquired properties.
- Risks Related to Regulatory Changes and Compliance
Financial, regulatory, physical and transition risks associated with climate change could materially adversely affect the Company's business, financial condition, and results of operations
Extreme weather events and transition risks associated with climate change could disrupt Eastman's manufacturing operations and those of key suppliers.
All 16 risk factors
Headings as the filing states them, in filing order.
Risks Related to Global Economy and Industry Conditions
- 01Continued uncertain conditions in the global economy, labor market, and financial markets could negatively impact the Company
- 02adversely impact the Company's financial condition and cash flows and ability to access the credit and capital markets under attractive rates and terms and negatively impact the Company's liquidity or ability to pursue certain growth initiatives
- 03Volatility in costs for strategic raw material and energy commodities or disruption in the supply and transportation of these commodities and in transportation of Company products could adversely impact the Company's financial results
- 04The Company's substantial global operations subject it to risks of doing business in other countries that could adversely impact its business, financial condition, and results of operations
Risks Related to the Company's Business and Strategy
- 05The Company's business is subject to operating risks common to chemical and specialty materials manufacturing businesses, any of which could disrupt manufacturing operations or related infrastructure and adversely impact results of operations
- 06The Company is subject to operating risks related to its information technology infrastructure, including service interruptions, data corruption, cyber-based attacks or network security incidents, which could cause operations to be disrupted, product manufacturing to be delayed or data confidentiality to be impaired
- 07Growth initiatives may not achieve desired business or financial objectives and may require significant resources in addition to or different from those available or in excess of those estimated or budgeted for such initiatives
- 08The Company is the subject of various legal proceedings, and may be subject to future claims, that could have a material adverse effect on the business, financial condition, and results of operations
- 09If Eastman is unable to protect its intellectual property rights, the Company's competitive position, financial condition, and results of operations could be adversely impacted
- 10Significant acquisitions or divestitures could expose the Company to risks and uncertainties, the occurrence of any of which could materially adversely affect the Company's business, financial condition, and results of operations
- 11The Company may be subject to indemnity claims relating to properties or businesses it has divested or acquired
- 12Failure to attract and retain talented personnel could adversely affect the Company's ability to compete and achieve its strategic objectives
Risks Related to Regulatory Changes and Compliance
- 13Legislative, regulatory, or voluntary actions, or violations thereof, could increase the Company's future health, safety, environmental, and other compliance costs and legal costs or have an adverse impact on the Company's ability to operate in foreign countries
- 14Financial, regulatory, physical and transition risks associated with climate change could materially adversely affect the Company's business, financial condition, and results of operations
- 15Changes in tax laws, regulations or treaties or adverse determinations by taxing or other governmental authorities could increase the Company's tax liabilities or otherwise affect its business, financial condition or results of operations
- 16The Company's insurance may not fully cover all potential exposures
Other Eastman Chemical 10-Ks
- FY2025 10-K risk factors18 risks2 new3 reworded
Eastman added new risk exposures regarding artificial intelligence adoption and complex divestitures. Tax risks now explicitly cite potential impacts from the One Big Beautiful Bill Act.
Filed Feb 13, 2026
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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.