Eastman Kodak Q4 Earnings Call Highlights

13 Mar 2026, 03:18 by Mitch Edgeman · The Markets Daily

Eastman Kodak (NYSE:KODK) executives said the company finished 2025 with stronger operating performance in the second half of the year, while also completing a major pension reversion transaction that reshaped its balance sheet and capital structure.

On the company’s fourth-quarter and full-year 2025 earnings call, Executive Chairman and CEO Jim Continenza characterized the results as “almost a tale of two halves,” pointing to improved performance in the third and fourth quarters following earlier-year results. CFO David Bullwinkle detailed the financial impact of the pension reversion, debt reduction actions, and a subsequent amendment to the company’s Series B preferred equity.

Fourth-quarter results show higher revenue and profitability metrics

Kodak reported fourth-quarter revenue of $290 million, up $24 million, or 9%, year over year. Bullwinkle said revenue increased $19 million on a constant-currency basis. Continenza noted revenue growth came from both the Advanced Materials & Chemicals (AM&C) segment and the print business.

Gross profit for the quarter was $67 million, an increase of $16 million, or 31%, compared with the prior-year quarter. Gross margin was 23%, up from 19% a year earlier. Bullwinkle said foreign exchange had no impact on gross profit.

Operational EBITDA for the fourth quarter was $22 million, up $13 million, or 144%, driven by improved pricing and higher volume, partially offset by higher manufacturing costs and broader cost increases.

On a GAAP basis, Kodak posted a net loss of $108 million for the fourth quarter, compared with GAAP net income of $26 million in the prior-year quarter. Bullwinkle attributed the year-over-year decline primarily to pension-related items and debt extinguishment costs:

$153 million of excise tax expense on the Kodak Retirement Income Plan (KRIP) reversion surplus
$7 million loss on early extinguishment of debt tied to term loan paydown using reversion proceeds
Partially offset by a $66 million gain on settlement of the KRIP plan

Adjusting for non-recurring items and excluding non-cash asset impairment charges and non-cash changes in workers’ compensation and other employee benefit reserves, Bullwinkle said Kodak’s net loss was $12 million for the quarter, compared with adjusted net income of $27 million a year earlier. He said the decline was largely due to a $41 million year-over-year reduction in non-cash pension income (excluding service cost) and a $7 million increase in restructuring costs as Kodak continues to streamline its operating model.

Full-year revenue rose slightly as margins and operational EBITDA improved

For full-year 2025, Kodak reported consolidated revenue of $1.069 billion, an increase of $26 million, or 2%, compared with 2024. On a constant-currency basis, revenue increased $15 million.

Gross profit improved $29 million, or 14%, and gross margin rose to 22% from 19% in the prior year. Bullwinkle said the improvement reflected stronger pricing discipline and continued operational execution.

Operational EBITDA for the year was $62 million, up $36 million, or 138%, driven by improved pricing, operational efficiencies, and lower inventory reserve adjustments in Kodak’s EPS business, partially offset by higher aluminum and manufacturing costs.

On a GAAP basis, Kodak reported a net loss of $128 million for 2025, compared with GAAP net income of $102 million in 2024. Bullwinkle said the full-year results reflected pension-related excise tax expense and a loss on early debt extinguishment, partially offset by a gain on settlement of KRIP. Adjusted for the current- and prior-year items discussed on the call, Kodak recorded a net loss of $11 million for 2025, compared with adjusted net income of $87 million in 2024. Bullwinkle said the decline was largely driven by a $111 million reduction in non-cash pension income (excluding service cost) and a $13 million increase in restructuring costs.

Pension reversion generated $1.023 billion in proceeds, reshaping the balance sheet

A central focus of the call was Kodak’s pension reversion process, which Bullwinkle said was completed in November 2025 following the full settlement of all KRIP obligations. The transaction generated approximately $1.023 billion in pension reversion proceeds and resulted in an $870 million net benefit to Kodak after $153 million of excise tax payments on the reversion surplus.

Bullwinkle outlined how the proceeds were used:

Debt reduction: Kodak used $312 million of cash proceeds to reduce term loan principal to $200 million and satisfy accrued interest and prepayment premiums, which he said lowered ongoing interest expense by approximately $40 million annually.
Funding the new pension plan: Kodak contributed $251 million in investment assets and $5 million in cash to fund the new Kodak Cash Balance Plan, which Bullwinkle said provides the same level of benefit for active employees as under KRIP.
Net proceeds retained: After debt paydown, replacement plan funding, and excise tax payments, Kodak received $144 million in net cash and $158 million in investment assets; $9 million of those investment assets were redeemed for cash in December 2025.

Kodak ended 2025 with $337 million in unrestricted cash, and Bullwinkle said the company was in a net positive cash position relative to its term loan and Series B preferred equity obligations. Continenza said the balance sheet “hasn’t been this strong in many years,” adding that the company has reduced debt over several years and taken more than $200 million of operating expense out of the business.

Series B amendment extends redemption date and revises dividend rate

Bullwinkle also discussed a subsequent capital structure development. On March 11, 2026, Kodak filed a 2026 Series B amendment, which extended the mandatory redemption date to June 2029 and revised several terms, including increasing the cumulative dividend rate to 6% per annum from 4%, reducing the conversion price to $10 per share from $10.50, and revising mandatory conversion terms.

In parallel, Kodak amended its term loan credit agreement on the same date. Bullwinkle said the amendment requires Kodak to pay down term loans by $50 million within five days of the effective date and another $50 million on or before June 1, 2026. He noted that term loans accrue interest at 12.5%, and said the extension of the preferred equity obligation allows Kodak to use $100 million to pay down higher-interest term loan debt over the next three months.

Business updates: film, print, brand licensing, and targeted investments

Operationally, Continenza said Kodak’s AM&C business delivered 25% revenue growth in the fourth quarter. He highlighted the launch of a direct distribution brand of still film, aimed at stabilizing supply and supporting distributors, retailers, and consumers, and pointed to what he described as a resurgence in the company’s film business. He also said “many Oscar nominees were shot on Kodak film,” citing several titles as examples.

In the company’s pharma initiatives, Continenza said the goal is to achieve Class II certification, while also launching four new products “from PBS to Water for Injection.”

In commercial print, Continenza said Kodak remains committed to the market and cited growth in North America plates. He also said the PROSPER 520 is moving from controlled introduction to full production, and that Kodak invested in a new rapid response service system as well as the incorporation of AI and machine learning to better serve customers, which he said should support growth and margins.

Continenza also pointed to continued growth in brand licensing, describing it as a significant contributor to gross profit and increased brand awareness, particularly outside the U.S. and in Asia.

The company did not hold a formal Q&A session. Bullwinkle said Kodak remained in full compliance with all financial covenants, and Continenza said the company is “focused on growth following a very strong 2025,” emphasizing continued investment in areas including pharma and battery coating.

About Eastman Kodak (NYSE:KODK)

Eastman Kodak Company (NYSE: KODK) is a global technology firm specializing in imaging, printing and advanced materials. The company offers a wide array of products and services that enable customers to create, manage and share visual content across traditional and digital platforms. Its core offerings include graphic communications solutions, enterprise inkjet systems, packaging technologies, functional printing and micro 3D printing systems.

Kodak’s graphic communications segment serves commercial printers, packaging converters and publishing houses with offset plates, digital presses, workflow software and services designed to streamline production.