Kodak Q2 2025 slides reveal $26M loss as company pivots to pharmaceutical manufacturing

Introduction & Market Context

Eastman Kodak Co (NYSE:KODK) reported a significant downturn in its second quarter 2025 financial results during its earnings presentation on August 11, 2025. The iconic imaging company posted a $26 million net loss, a stark reversal from the $26 million profit recorded in the same period last year. Kodak shares closed at $7.04 on the day of the announcement, down 3.41%, but showed signs of recovery in after-hours trading with a 1.14% gain to $7.12.

The quarterly results continue a challenging trend for Kodak, following its Q1 2025 performance which saw a $7 million loss, suggesting an accelerating decline in profitability despite the company’s strategic initiatives in new growth areas.

Quarterly Performance Highlights

Kodak reported second quarter 2025 revenues of $263 million, representing a modest 1% decrease from $267 million in Q2 2024. More concerning was the company’s profitability metrics, with gross profit percentage dropping to 19% from 22% in the prior year quarter.

As shown in the comprehensive financial results table below, Kodak’s adjusted metrics also deteriorated significantly:

The company’s operational EBITDA fell 25% to $9 million, compared to $12 million in Q2 2024. Management attributed the decline to "lower volumes and higher aluminum/manufacturing costs," highlighting ongoing operational challenges.

For the first half of 2025, the financial picture shows similar trends, with revenue down 1% to $510 million and a substantial swing to a net loss of $33 million compared to a $58 million profit in the first half of 2024:

Segment Performance

Kodak’s financial results by segment reveal the company’s evolving business mix. The traditional Print segment remains the largest revenue contributor, while the Advanced Materials & Chemicals (AMC) division represents a growing focus area for the company.

The segment breakdown for Q2 2025 shows the following revenue distribution:

For the first half of 2025, the segment performance maintained similar proportions:

CEO Jim Continenza highlighted revenue growth in the Advanced Materials and Chemicals business during his presentation, positioning this segment as a key element of Kodak’s transformation strategy. This aligns with comments from the previous quarter where management emphasized the importance of this division for future growth.

Strategic Initiatives

Kodak’s strategic pivot toward pharmaceutical manufacturing emerged as a central theme in the Q2 presentation. The company announced a significant milestone with its cGMP pharmaceutical manufacturing facility in Rochester, NY now registered with the FDA and certified to manufacture and sell certain regulated pharmaceutical products.

As outlined in the CEO’s perspective, Kodak is pursuing several strategic initiatives:

The pharmaceutical manufacturing expansion builds on Kodak’s existing business in unregulated pharmaceutical key starting materials (KSM). Management indicated the facility will begin operations manufacturing phosphate buffered saline (PBS) for laboratory use, creating "a bridge to manufacturing more sophisticated products, and ultimately injectables such as IV saline."

In the printing technology space, Kodak reported completing initial sales of several PROSPER ULTRA 520 Presses, which are currently being installed at customer sites, demonstrating continued innovation in its core business.

Cash Flow and Balance Sheet

Kodak’s cash position deteriorated significantly in the first half of 2025, with the company reporting a $51 million decrease in cash and cash equivalents. The cash flow statement reveals concerning trends in operating activities:

The company used $30 million in operating activities during the first half of 2025, compared to generating $10 million in the same period last year. This $40 million negative swing in operating cash flow highlights the operational challenges facing the company.

Management addressed balance sheet concerns by noting that the Kodak U.S. Retirement Income Plan termination and settlement process is "preceding as planned." The company expects "a significant portion of any reverted assets to be used to reduce long term debt and, therefore, the annual cost of servicing that debt," potentially providing some financial relief in the future.

Forward-Looking Statements

Despite the challenging results, CEO Jim Continenza maintained a focus on long-term strategic execution, stating that the company continues to execute its plan "despite economic uncertainty" while "deleveraging the balance sheet and investing in growth businesses."

Kodak emphasized its commitment to being a U.S.-based manufacturer and noted that tariffs have not had a material impact in the first half of 2025. The company’s strategic direction appears firmly centered on expanding its Advanced Materials and Chemicals business, particularly in pharmaceutical manufacturing, while maintaining its core printing business.

The significant shift from profitability to losses in both Q1 and Q2 of 2025 suggests Kodak faces substantial headwinds in executing this transformation. Investors will likely be watching closely to see if the company’s strategic investments in pharmaceutical manufacturing and other growth initiatives can reverse the negative financial trends evident in the first half of the year.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.