Kodak's Q2 2025: Conflicting Signals on Debt Reduction, Revenue Stability, and Financial Viability

Pension plan reversion and debt reduction, revenue and earnings growth, U.S. Kodak Retirement Income Plan (KRIP) termination and reversion of assets, Series B preferred stock maturity and going concern doubt, revenue trends are the key contradictions discussed in Eastman Kodak Company's latest 2025Q2 earnings call.



Revenue Performance and Business Growth:
- Eastman Kodak reported revenue of $263 million for Q2 2025, roughly flat year-over-year compared to $267 million in Q2 2024.
- The company's Advanced Materials and Chemicals (AMC) business showed revenue growth, supported by investments in growth areas like film, EV batteries, and the medical group.

Operational Efficiency and Cost Management:
- Eastman Kodak's gross profit percentage was 19% in Q2 2025, compared to 22% in the same period last year.
- The decline was due to lower volumes and higher aluminum and manufacturing costs, partially offset by price increases, as the company continues to focus on operational efficiencies through technology and automation.

Pension Plan and Debt Management:
- The company's U.S. Kodak Retirement Income Plan (KRIP) termination and reversion process is on track, with approximately $500 million in excess assets expected to revert to the company by December 2025.
- Kodak plans to use these funds to reduce long-term debt and lower interest costs, supporting its long-term growth initiatives.

Cash Position and Liquidity:
- Eastman Kodak ended Q2 2025 with an unrestricted cash balance of $155 million, reflecting significant improvement in cash use compared to previous periods.
- The improvement is attributed to the company's continued investments in growth initiatives and increased commodity and manufacturing costs.

Commercial Print Business and U.S. Manufacturing Commitment:
- Kodak's commercial print business continues to see improvements in efficiency and product acceptance despite global economic uncertainties.
- The company remains committed to U.S. manufacturing, with all motion picture film, most still film, digital printers, ink, chemicals, and lithographic plates made in the U.S., supporting logistics and customer servicing.