Eastman Kodak Company

Company Overview

Business Model: Eastman Kodak Company is a global manufacturer focused on commercial print and advanced materials and chemicals. The company leverages over 130 years of research and development, holding 79,000 patents. Its primary revenue generation mechanisms include sales of digital offset plates, computer-to-plate (CTP) imaging solutions, production press systems, consumables (primarily ink), inkjet components, software, and services within the Print segment. The Advanced Materials and Chemicals segment generates revenue from professional and consumer still photographic film, industrial film, specialty chemicals, motion picture film, pharmaceuticals (reagents), advanced materials, functional printing, and intellectual property licensing. The Brand segment generates revenue through licensing the Kodak brand to third parties for various consumer products. The Prepress Solutions business within the Print segment aims for a contract-based, stable, and recurring cash flow model with an average contract duration of two years for plates. Sales of PROSPER presses and components also result in recurring revenue from ink and equipment service.

Market Position: Eastman Kodak Company positions itself as a partner of choice for commercial printers worldwide, emphasizing innovative, award-winning products and a customer-first approach. It is committed to environmental stewardship, leading in sustainable print solutions such as KODAK SONORA Process Free Plates. The Software business is noted as a leader in production workflow solutions for the commercial print and packaging industries. The company faces challenges from higher raw material and supply chain costs, tariffs, competitive pricing pressures, and volume declines in its Print segment. Notably, Kodak Alaris, a customer in the Advanced Materials and Chemicals segment, represented approximately 33% of that segment's total revenues in 2025 and 2024. The company has faced increasing competition in the U.S. from low-priced plates imported from China and Japan, leading to the imposition of anti-dumping and countervailing duties.

Recent Strategic Developments:

• Print Segment: Ceased manufacturing of KODAK VERSAMARK Press Systems and NEXFINITY printers (effective December 2022), continuing to provide consumables and service. Launched the PROSPER 7000 Turbo Press in June 2022 and the KODAK PROSPER ULTRA 520 Digital Press utilizing ULTRASTREAM inkjet technology. Introduced the cloud-based PRINERGY On Demand Platform in 2022. Successfully petitioned the U.S. Department of Commerce and the U.S. International Trade Commission, resulting in anti-dumping and countervailing duties on imported plates from China and Japan in 2024.
• Advanced Materials and Chemicals Segment: Completed construction of a Current Good Manufacturing Practice (cGMP) lab and manufacturing facility at Eastman Business Park in 2025, certified to manufacture reagents for healthcare applications, beginning with phosphate buffered saline (PBS). Initiated investment in 2025 (continuing into 2026) to expand manufacturing volume of coated substrates for EV cell assembly. Recorded impairment charges of $22 million in 2025 related to its $25 million minority preferred equity interest in Wildcat Discovery Technologies, Inc., which subsequently merged in February 2026, converting Kodak's interest into cash proceeds and potential earn-out payments. Installed a production-scale machine for light-blocking fabric coating at Eastman Business Park. Launched its own direct distribution brand of still films in Q4 2025. Acquired Graphic Systems Services, Inc. in May 2023.
• Corporate: Terminated the Kodak Retirement Income Plan effective March 31, 2025, establishing the Kodak Cash Balance Plan as a replacement. Received $144 million in net cash and $158 million in investment assets from the Kodak Retirement Income Plan reversion in Q4 2025. Sold 200,000 shares for approximately $1 million in net proceeds under an ATM Equity Offering Sales Agreement in 2025. Completed a Series C Preferred Stock exchange on August 8, 2025, issuing 15,103,163 shares of common stock for all outstanding Series C Preferred Stock. Subsequent to year-end, on March 11, 2026, the Series B Preferred Stock terms were amended, extending the redemption date to June 11, 2029, increasing cash dividends to 6.0% per annum, and adjusting conversion terms. The Term Loan Credit Agreement was also amended on March 11, 2026, requiring $100 million in prepayments by June 1, 2026.

Geographic Footprint: Eastman Kodak Company is headquartered in Rochester, New York, with operations spanning 27 countries. Over half of its sales are generated outside the U.S. Principal manufacturing facilities for the Print segment are located in Rochester, New York, USA; Columbus, Georgia, USA; Dayton, Ohio, USA; Osterode, Germany; Vancouver, Canada; Gunma, Japan; and Shanghai, China. The Advanced Materials and Chemicals segment has manufacturing facilities in Rochester, New York, USA; Xiamen, China; and Vancouver, Canada. Research and development activities are centered at the Kodak Research Laboratories in Rochester, New York, with additional R&D groups in Dayton, Ohio; Columbus, Georgia; Canada; Israel; Germany; Japan; and China. Regional distribution centers are located globally. The direct operations of its Israel subsidiary were less than 1% of total consolidated revenue and assets in 2025, and the company ceased direct Russian operations, which also had an immaterial financial impact. In 2025, the United States accounted for $511 million of revenue, Europe, Middle East and Africa for $322 million, Asia Pacific for $199 million, North America (excluding US) for $19 million, and Latin America for $18 million.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 21.7%
• Operating Margin: 0.0%
• Net Margin: -12.0%

Investment in Growth:

• R&D Expenditure: $33 million (3.1% of revenue)
• Capital Expenditures: $34 million
• Strategic Investments: $25 million investment in Wildcat Discovery Technologies, Inc. (2022), with $22 million impairment in 2025. Ongoing investment in EV cell assembly production facility.

Business Segment Analysis

Print

Financial Performance:

• Revenue: $715 million (-3.0% YoY)
• Operating Margin: 0.4% (Operational EBITDA as a % of revenues)
• Key Growth Drivers: Improved pricing in Prepress Solutions ($19 million), Prosper ($7 million), and Electrophotographic Printing Solutions ($3 million); lower inventory reserve adjustments for Electrophotographic Printing Solutions ($5 million); higher volumes in Electrophotographic Printing Solutions ($4 million); lower SG&A costs ($5 million); and favorable foreign currency fluctuations ($10 million). These were partially offset by reduced volumes in Prepress Solutions ($40 million), Electrophotographic Printing Solutions ($16 million), Prosper ($4 million), and Software ($2 million), as well as higher manufacturing costs ($11 million) and aluminum costs ($9 million).

Product Portfolio:

• Prepress Solutions: Offers digital offset plate offerings, including KODAK SONORA Process Free Plates, and CTP imaging solutions. The core business is manufacturing aluminum digital printing plates, generating recurring revenue from plate sales under average two-year contracts.
• Prosper: Provides PROSPER press systems and components based on KODAK’s Continuous Inkjet Technologies (KODAK Stream and ULTRASTREAM), along with KODACHROME and KODAK EKTACOLOR Inks and KODAK OPTIMAX Primers. Examples include the PROSPER 7000 Turbo Press and PROSPER ULTRA 520 Press. PROSPER print head components are integrated into OEM partner products. Recurring revenue is generated from ink sales and equipment service. Manufacturing of predecessor KODAK VERSAMARK Press Systems has ceased, but ink and service sales continue.
• Software: Offers PRINERGY workflow production software, including the cloud-based PRINERGY On Demand Platform, and digital front-end controllers.
• Electrophotographic Printing Solutions: Provides NEXFINITY printers. Manufacturing of NEXFINITY printers ceased in December 2022, but Eastman Kodak Company continues to offer ink, consumables, and service for the installed base.

Market Dynamics:

• Serves commercial print, direct mail, book publishing, newspapers and magazines, and packaging/labels industries. Products are sold through direct sales and indirectly via dealers and channel partners. Key competitors include Fuji, EC03, HP, Canon, Ricoh, and Screen. The segment faces challenges from rising raw material and supply chain costs, tariffs, competitive pricing, and volume declines. Anti-dumping and countervailing duties have been imposed on plates imported from China and Japan due to unfair trade practices.

Advanced Materials and Chemicals

Financial Performance:

• Revenue: $316 million (+16.6% YoY)
• Operating Margin: 12.3% (Operational EBITDA as a % of revenues)
• Key Growth Drivers: Improved pricing in Industrial Film and Chemicals ($18 million) and Motion Picture ($8 million); volume increases in Industrial Film and Chemicals ($13 million) and Motion Picture ($6 million); and favorable foreign currency fluctuations ($1 million). These were partially offset by higher manufacturing costs ($7 million).

Product Portfolio:

• Industrial Film and Chemicals: Offers professional and consumer still photographic film, industrial film (e.g., for printed circuit boards). Includes Specialty Chemicals (unregulated key starting materials for pharmaceuticals, battery materials, functional materials for personal care), Solvent Recovery, and Polyester Film. Also offers specialty inks and dispersions, and coating and product commercialization services (e.g., coated substrates for EV cell assembly).
• Motion Picture: Serves the entertainment industry with motion picture film, sold directly to studios, laboratories, distributors, and independent filmmakers. Offers onsite film processing services in the U.S. and Europe.
• Pharmaceuticals: Leveraging chemical manufacturing expertise, completed a cGMP lab and manufacturing facility at Eastman Business Park in 2025, certified to manufacture Diagnostic Test Reagent solutions, starting with phosphate buffered saline (PBS).
• Advanced Materials and Functional Printing: Develops component smart materials (e.g., light blocking particles for window treatments, specialized functional film for 3D printing). Focuses on contract manufacturing, development partnerships, and/or licensing for high-resolution micro-3D printing solutions (e.g., printed electronics, transparent heaters, transparent antennas).
• IP Licensing and Analytical Services: Actively seeks to leverage its patent portfolio and technology for licensing and cross-licensing, and provides analytical services to external clients.

Market Dynamics:

• Kodak Alaris accounted for approximately 33% of this segment's revenues in 2025 and 2024. The segment includes Kodak Research Laboratories for R&D and patent applications. It has experienced labor shortages in certain manufacturing areas, and increased demand for consumer film products, coupled with equipment limitations, led to backorders, which were reduced in 2024 through increased headcount and capital investments.

Brand

Financial Performance:

• Revenue: $23 million (+15.0% YoY)
• Operating Margin: 87.0% (Operational EBITDA as a % of revenues)
• Key Growth Drivers: Higher volumes.

Product Portfolio:

• Licenses the Kodak brand to third parties for a range of products, including digital, instant print and 35mm film cameras, printing and scanning consumer use devices, eyewear, batteries, and apparel.

Market Dynamics:

• Brand licensees utilize their own distribution channels. Eastman Kodak Company aims to expand its portfolio of brand licenses to generate ongoing royalty streams and upfront payments.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Eastman Kodak Company repurchased 1,460,250 shares for $7 million in 2025, primarily to satisfy tax withholding obligations or exercise prices for employee stock options and restricted stock units.
• Dividend Payments: $2 million in cash dividends were paid on Series B Preferred Stock in 2025. No dividends were declared or paid on common stock in 2025 or 2024.
• Future Capital Return Commitments: The Series B Preferred Stock, as amended on March 11, 2026, entitles holders to cumulative cash dividends at 6.0% per annum and requires redemption of unconverted shares by June 11, 2029, at $100 per share plus accrued dividends. The company has an ATM Equity Offering Sales Agreement to sell up to $100 million of common stock.

Balance Sheet Position:

• Cash and Equivalents: $337 million as of December 31, 2025.
• Total Debt: $209 million as of December 31, 2025.
• Net Cash Position: $128 million as of December 31, 2025.
• Credit Rating: The company's corporate family credit rating is currently below investment grade.
• Debt Maturity Profile (as of December 31, 2025): $2 million due in 2026, $2 million in 2027, $199 million in 2028 (Term Loans), $1 million in 2029, $1 million in 2030, and $4 million in 2031 and thereafter. Subsequent to year-end, the Term Loan Credit Agreement was amended on March 11, 2026, requiring $50 million prepayments by March 18, 2026, and an additional $50 million by June 1, 2026.

Cash Flow Generation:

• Operating Cash Flow: $480 million net cash provided by operating activities in 2025, an increase of $487 million from 2024. This was primarily driven by $618 million in cash proceeds from the Kodak Retirement Income Plan reversion and a decrease in inventory, partially offset by a $153 million excise tax payment on the reversion surplus and a $35 million decrease in brand licensing proceeds.
• Free Cash Flow: Approximately $446 million ($480 million operating cash flow - $34 million capital expenditures).
• Cash Conversion Metrics: Inventory decreased by $1 million, trade receivables increased by $7 million, and trade accounts payable decreased by $19 million in 2025.

Operational Excellence

Production & Service Model: Eastman Kodak Company operates as a global manufacturer with a diversified production and service model. In the Print segment, it manufactures aluminum digital printing plates, PROSPER press systems, and components, and integrates print head components into OEM partner products. While manufacturing of NEXFINITY printers and KODAK VERSAMARK Press Systems has ceased, the company continues to provide consumables and service for the installed base. The Advanced Materials and Chemicals segment includes manufacturing of various films, specialty chemicals, and motion picture products. In 2025, it completed a cGMP lab and manufacturing facility for Diagnostic Test Reagent solutions and is investing in a production coating facility for EV cell assembly components. The company emphasizes environmental stewardship through products like KODAK SONORA Process Free Plates, which reduce waste and energy use, and is developing in-house life cycle assessment capabilities.

Supply Chain Architecture: Key Suppliers & Partners:

• Lithographic Aluminum: Sourced from multiple suppliers, with pricing tied to market rates.
• Electronic Components & Specialty Chemicals: Certain critical items are obtained from single or limited sources, posing supply risks.
• Film and Chemicals: Utilizes a broad range of suppliers for raw materials, including silver.
• OEM Partners: Collaborates for the integration of PROSPER print head components.
• Wildcat Discovery Technologies, Inc.: Former strategic investment for battery materials R&D.
• Metropolitan Tower Life Insurance Company: Partnered for the transfer of Kodak Retirement Income Plan annuity obligations.
• RED-Rochester, LLC: Provides utilities to Eastman Business Park.
• Graphic Systems Services, Inc.: Acquired in 2023, providing web inkjet press transport systems and engineering services.

Facility Network:

• Manufacturing: Key Print facilities in Rochester, New York, USA; Columbus, Georgia, USA; Dayton, Ohio, USA; Osterode, Germany; Vancouver, Canada; Gunma, Japan; and Shanghai, China. Advanced Materials and Chemicals manufacturing is in Rochester, New York, USA; Xiamen, China; and Vancouver, Canada.
• Research & Development: Headquartered at Kodak Research Laboratories within Eastman Business Park in Rochester, New York, with additional centers in Dayton, Ohio; Columbus, Georgia; Canada; Israel; Germany; Japan; and China.
• Distribution: Supported by regional distribution centers globally.
• Eastman Business Park (EBP): A 1,200-acre innovation and manufacturing hub in Rochester, New York, with extensive infrastructure, where Eastman Kodak Company owns over 600 acres and leases out significant space.

Operational Metrics: The company employed approximately 3,500 individuals across 27 countries as of year-end 2025. It has implemented measures to mitigate supply chain disruptions, including increasing safety stock, extending lead-times, providing longer supplier forecasts, and certifying alternative sources. Labor shortages in Advanced Materials and Chemicals manufacturing areas, particularly for consumer film products, led to backorders, which were reduced in 2024 through increased headcount and capital investments.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes a direct sales team for Print segment products and sells motion picture products directly to studios, laboratories, distributors, and independent filmmakers.
• Channel Partners: Leverages dealers and channel partners for Print segment products.
• Digital Platforms: Engages in online sales channels and e-commerce initiatives, particularly for software offerings.
• Brand Licensees: Third-party licensees use their own distribution channels for Kodak-branded consumer products.

Customer Portfolio: Enterprise Customers: Eastman Kodak Company serves a diverse base of commercial printers globally, as well as major studios and independent filmmakers.

• Customer Concentration: Kodak Alaris is a significant customer, accounting for approximately 33% of the Advanced Materials and Chemicals segment's total revenues in 2025 and 2024. No other single customer represented 10% or more of total net revenue in 2025.

Geographic Revenue Distribution:

• United States: 47.8% of total revenue.
• Europe, Middle East and Africa: 30.1% of total revenue.
• Asia Pacific: 18.6% of total revenue.
• North America (excluding US): 1.8% of total revenue.
• Latin America: 1.7% of total revenue.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: Eastman Kodak Company operates in industries characterized by rapid technological change, frequent product and service introductions, and evolving standards. Both the print and film industries face ongoing competition from digital substitution. Commercial printing has historically been a significant source of waste, driving demand for sustainable solutions. The global economic environment, including inflation, trade policies, commodity price volatility, and geopolitical issues, significantly impacts market dynamics.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: In the Print segment, key competitors include Fuji, EC03, HP, Canon, Ricoh, and Screen. Competitive Threats and Company Responses: Eastman Kodak Company has faced increased competition in the U.S. from low-priced plates imported from China and Japan. In response, the company successfully filed petitions leading to the imposition of anti-dumping and countervailing duties on these imports, though Fuji has appealed the ITC's material injury determination. The company's strategy involves offsetting market dynamics through continuous product innovation, particularly in digital print technologies, and leveraging its intellectual property for new business and licensing opportunities.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics: The company is exposed to global economic and geopolitical conditions, including ongoing conflicts, medical epidemics, inflationary pressures, commodity price and interest rate fluctuations, and changes in trade policies (e.g., tariffs). These factors can lead to increased operational costs, business interruptions, reduced customer demand, and heightened credit risk. Technology Disruption: Operating in rapidly changing technological environments, Eastman Kodak Company faces risks from failing to anticipate technology trends or develop new products that meet evolving customer needs, which could adversely affect revenue, earnings, and cash flow. Competitors with greater resources may outpace its innovation. Customer Concentration: A significant portion of the Advanced Materials and Chemicals segment's revenue is derived from Kodak Alaris (approximately 33%), posing a concentration risk if the customer's financial condition deteriorates. New Market Expansion: Expansion into new markets like specialty chemicals, pharmaceuticals, EV/energy storage batteries, and functional printing carries risks related to resource allocation, new sales strategies, varying profitability, and competition. Investment Returns: Investments in new products and services may not achieve expected returns or profitability, and delays in development can negatively impact financial performance.

Operational & Execution Risks

Supply Chain Vulnerabilities: Reliance on third-party suppliers for critical materials and components, some from single or limited sources, exposes the company to risks of supply interruptions, increased costs, and impaired product quality due to capacity constraints, financial challenges, or external events. Capacity Constraints: Aging manufacturing facilities and equipment may lead to failures and require substantial capital investment. Labor shortages in certain manufacturing areas, such as film production, can also constrain capacity. Product Reliability & Quality: Issues with product reliability or quality, including defects in processes or third-party components, can delay launches, increase costs, harm reputation, and lead to recalls or litigation. IT Systems: The company relies on complex IT systems and third-party technology services, making it vulnerable to system failures, disruptions, or cybersecurity incidents that could impact operations, financial reporting, and reputation. Human Capital: The loss of key personnel or the inability to attract and retain highly skilled talent, particularly in growth markets, could harm the business. Workforce reductions and restructuring initiatives also carry risks of capacity constraints and loss of institutional knowledge.

Financial & Regulatory Risks

Market & Financial Risks: The company's cash flows are negatively impacted by volume declines, higher manufacturing costs, and increased labor, material, and distribution costs. Its non-investment grade credit rating may adversely affect commercial operations, increase liquidity requirements, and raise refinancing costs. Substantial debt and preferred stock obligations require significant cash flow. Pension & OPEB Costs: Future pension and other postretirement benefit costs and required contributions could increase due to changes in actuarial assumptions, market performance, or legislative mandates. Asset Impairments: There is a risk of future impairments in the value of the Kodak trade name and other long-lived assets if expected future cash flows decline or fair values change materially. Regulatory & Compliance Risks: Eastman Kodak Company is subject to a wide array of environmental laws, trade and export controls, and data privacy regulations (e.g., GDPR, CCPA, PIPL). Non-compliance can result in significant costs, legal actions, and reputational damage. Emerging AI regulations also pose potential legal and reputational risks. Legal Proceedings: The company is involved in various lawsuits, claims, and investigations, including patent infringement and tax matters in Brazil, which could result in material losses or disruptions. Tax Liabilities: Operating in multiple taxing jurisdictions, the company faces complex and evolving tax laws. Changes in economic conditions, political developments, and tax reforms (e.g., BEPS Pillar 2, U.S. corporate alternative minimum tax) could increase its overall tax liability.

Geopolitical & External Risks

Geopolitical Exposure: Global operations expose the company to political or economic instability in various regions. Trade relations and policies, including tariffs and sanctions, can disrupt supply chains and negatively impact global economic conditions. Business Disruptions: The company's global operations are vulnerable to natural and man-made disruptions, such as extreme weather, natural disasters, infrastructure failures, cyber-attacks, epidemics, and political instability, which could harm revenue and financial condition.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas: Eastman Kodak Company's R&D focuses on core competencies in advanced materials and print. This includes lithographic printing plates and related equipment systems, digital printing workflow and color management proofing systems, key press components and toners for electrophotographic printing, commercial inkjet writing systems and components, presses and inks, custom and specialty materials for 3D printing, functional printing materials, engineered microparticles, and security materials. It also encompasses know-how in color negative films, processing and print films, and manufacturing of unregulated key starting materials for the pharmaceutical industry. Innovation Pipeline: Key innovations include KODAK SONORA Process Free Plates (eliminating chemicals, water, and energy), KODAK’s Continuous Inkjet Technologies (KODAK Stream and ULTRASTREAM) for high-quality, high-speed digital printing, and the cloud-based PRINERGY On Demand Platform. Strategic initiatives in advanced materials include EV/Energy Storage Battery Material Manufacturing (coating substrates for batteries), Pharmaceuticals Manufacturing (Diagnostic Test Reagent solutions), Light-Blocking Technology (carbon-less fabric coating), and Transparent Antennas (copper micro-wire technologies for printed electronics).

Intellectual Property Portfolio:

• Patent Strategy: The company's general practice is to protect its R&D investments and freedom to operate through patents, holding extensive portfolios in critical technology areas. Its major products are supported by an aggregation of patents and know-how, rather than a single material patent.
• Licensing Programs: Eastman Kodak Company actively seeks to leverage its patents and associated technology through licensing and cross-licensing deals to support revenue growth and ongoing businesses.
• IP Litigation: The company is involved in intellectual property litigation, including patent infringement claims by FUJIFILM Corporation related to SONORA process free plates, which it is vigorously defending.

Technology Partnerships: Eastman Kodak Company engages in strategic alliances, such as integrating PROSPER print head components into OEM partner products. It also participates in research collaborations, including a minority investment in Wildcat Discovery Technologies, Inc. for battery materials research, and works with local schools for apprentice and intern programs.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Executive Chairman and CEO Agreement for James V. Continenza is effective for a three-year period ending February 26, 2027. Board Composition: The Board of Directors, through its Audit and Finance Committee, provides oversight of cybersecurity risk management. An affiliate of the Term Loan Lenders and GO EK Ventures IV, LLC each have the right to nominate one member for election to the Board, subject to certain ownership thresholds.

Human Capital Strategy

Workforce Composition: As of the end of 2025, Eastman Kodak Company employed approximately 3,500 individuals across 27 countries. A small portion of its workforce (less than 1%) is temporary. Employees in certain non-U.S. countries are represented by unions or similar organizations or are covered by collective bargaining agreements.

Talent Management: Acquisition & Retention: The company's success relies on identifying, attracting, engaging, developing, and retaining a highly skilled workforce, particularly in technical and specialized areas. It utilizes temporary staffing programs and collaborates with local schools for apprentice and intern programs to develop a talent pipeline. Diversity & Development: Eastman Kodak Company maintains a code of conduct policy that mandates fair treatment of all employees and a zero-tolerance stance on harassment or intimidation, reinforced by annual training.

Culture & Engagement: The company is dedicated to continuous safety improvement across its operations, which includes risk identification and mitigation, targeted training, information sharing on safe work practices, and thorough incident analysis.

Environmental & Social Impact

Environmental Commitments: Eastman Kodak Company is committed to environmental stewardship, including industry leadership in developing sustainable solutions for print. Climate Strategy: The company is focused on developing and delivering products and technologies that enhance sustainability and profitability by increasing operational efficiency, minimizing resource use, and reducing costs. It is developing in-house life cycle assessment and carbon footprint capabilities to identify areas for further environmental footprint reduction, particularly for print products, which have historically been a significant source of waste. Supply Chain Sustainability: Not explicitly detailed in the filing.

Social Impact Initiatives:

• Community Investment: Not explicitly detailed in the filing.
• Product Impact: KODAK SONORA Process Free Plates are designed to be environmentally friendly, eliminating processing chemicals, water, and excess energy and waste from the plate-making process.
• Health, Wellness and Safety: The company is dedicated to driving continuous safety improvement across its operations, implementing measures such as risk identification, targeted training, and thorough incident analysis.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Printing equipment and plate unit sales typically exhibit seasonality, with higher volumes generally observed in the fourth quarter, influenced by customer and industry budgeting practices and buying patterns.
• Economic Sensitivity: The company's operations are sensitive to global economic conditions, including inflationary pressures, geopolitical issues, and changes in trade policies. These factors have contributed to a slowdown in customer demand and volume declines, particularly within the Print segment.
• Industry Cycles: The print and film industries in which Eastman Kodak Company operates face ongoing competition from digital substitution, which can influence demand patterns.

Planning & Forecasting: The company's management of demand patterns and industry cycles is reflected in its efforts to mitigate supply chain disruptions, manage inventory, and address labor shortages through strategic investments and operational adjustments.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations: Eastman Kodak Company is subject to a wide array of increasingly stringent federal, state, local, and foreign environmental laws and regulations concerning pollutant discharge, hazardous material management, waste disposal, and contaminated site cleanup. International Compliance: The company's global operations necessitate compliance with diverse import, export, and other regulatory requirements across multiple jurisdictions. Trade & Export Controls: The company adheres to trade and export controls, including sanctions related to geopolitical events such as the war in Ukraine, which led to the cessation of its direct Russian operations. It has also been impacted by U.S. tariffs on imported goods and has successfully sought anti-dumping and countervailing duties on certain imported plates.

Legal Proceedings: Eastman Kodak Company is involved in various lawsuits, claims, investigations, and proceedings, including commercial, customs, employment, environmental, tort, and health and safety matters. Notably, it faces patent infringement claims from FUJIFILM Corporation regarding its SONORA process free plates. Its Brazilian operations are also engaged in litigation concerning indirect taxes and other disputes.

Tax Strategy & Considerations

Tax Profile: Eastman Kodak Company's effective tax rate for 2025 was -14%.

• Geographic Tax Planning: The company intends to repatriate offshore earnings when prudent and has recorded deferred tax liabilities of $15 million for potential taxes on undistributed foreign earnings, primarily foreign withholding taxes.
• Tax Reform Impact: The company has availed itself of the BEPS Pillar 2 transitional safe harbor rules in most jurisdictions, with an immaterial impact in 2025. The U.S. One Big Beautiful Bill Act (OBBBA), enacted in July 2025, had no material impact on the effective tax rate in 2025 but provided a beneficial impact to current cash taxes through the immediate expensing of certain qualified domestic research expenses.
• Tax Attributes: As of December 31, 2025, the company had U.S. net operating loss (NOL) carryforwards of approximately $1,906 million and unused foreign tax credits of $37 million. The utilization of these tax attributes may be subject to limitations under Section 382 of the Internal Revenue Code due to significant changes in stock ownership.
• Valuation Allowance: A valuation allowance of $589 million was recorded as of December 31, 2025, against net deferred tax assets where realization is not considered more likely than not.

Insurance & Risk Transfer

Risk Management Framework: Eastman Kodak Company manages its exposures to foreign currency exchange rates, commodity prices, and interest rates through derivative financial instruments, primarily foreign currency forward contracts, which are not used for trading or speculative purposes.

• Insurance Coverage: The company participates in high-deductible insurance programs for workers’ compensation obligations and maintains cybersecurity insurance.
• Risk Transfer Mechanisms: Foreign currency forward contracts are utilized to hedge existing foreign currency denominated assets and liabilities, as well as forecasted intercompany sales.
• Collateral Requirements: As of December 31, 2025, the company had $45 million in surety bonds and $30 million deposited directly with the New York State Workers’ Compensation Board (NYS WCB) to support workers’ compensation obligations. These surety bonds are collateralized with $32 million in cash. Additionally, $25 million in cash collateral was posted for letters of credit under the Amended and Restated L/C Facility Agreement.