Eastman Kodak Company

Good day and thank you for standing by. Welcome to the Kodak fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. Today's call is being recorded. I would now like to hand the conference over to your speaker host, Anthony Redding. Please go ahead.

Thank you and good afternoon, everyone. Welcome to Kodak's fourth quarter and full year 2025 earnings call. At 4.15 p.m. this afternoon, Kodak filed its annual Form 10-K, Initiatives Release on Financial Results for the Fourth Quarter and Full Year of 2025. You may access the presentation and webcast for today's call on our Investor Center at investor.kodak.com. During today's conference call, we will be making certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Investors are cautioned not to unduly rely on forward-looking statements, and such statements should not be read or understood as a guarantee of future performance or results. All forward-looking statements are based upon CODAX expectations and various assumptions. Future events or results may differ from those anticipated or those expressed in the forward-looking statements. Important factors that could cause actual events or results to differ materially from these forward-looking statements include, among others, the risk, uncertainties, and other factors described in more detail in Kodak's filings with the U.S. Securities and Exchange Commission from time to time. All forward-looking statements attributable to Kodak or persons acting on its behalf only apply as of the date of the presentation and are expressly qualified in their entirety, but the cautionary statements included a reference in this presentation. Kodak undertakes no obligation to update or revise forward-looking statements to reflect events or circumstances that may arise after the date made or to reflect the occurrence of unanticipated events. In addition, the release just issued and the presentation provided contain certain measures that are deemed non-GAAP measures. Reconciliations to the most directly comparable GAAP measures have been provided with the release and within the presentation on our website and our investor center at investor.kodak.com. Speakers on today's call are Jim Continenza, Kodak's Executive Chairman and Chief Executive Officer, and David Bullwinkle, Kodak's Chief Financial Officer and Senior Vice President. We will not be holding a formal Q&A during today's call. However, as always, the investor relations team is available for follow-up. I will now turn the call over to Jim. Thank you and have a great day.

Welcome, everyone, and thank you for joining the fourth quarter and full year 2025 investor call for Eastman Kodak. I'm proud to say our long-term plan continues to be on track. We finished the quarter and the year very strong. It's almost a tale of two halves. Look at the first and second quarter and look at the results of the third and fourth and the closet of the year. We're going to cover that through the presentation. You'll see the difference, and the difference really comes from the long-term investments that we've made are really starting to pay off. One piece you'll notice going forward is the pension fund and the reversion. As you look at the reversion in the 2025 numbers, it really took place in late November, early December. So the numbers you're seeing, the Interest expense and the reversion had very little impact. These are true operating numbers within the business. By completing that, we're able to focus more clearly on our financial reporting and operations. It simplifies the company and easier for everyone to understand the true impact of the operations. And I'm proud to say our balance sheet hasn't been this strong in many years. We have continued to reduce debt over the last several years. We've reduced over $40 million of interest expense. And that all falls to the bottom line. So where does Kodak go from here, right? We stabilize the business. We put the investments in place. We fixed the balance sheet over several years. We've lowered our interest. We're poised for growth. And that is where we're going. When you look at the company going forward, heavily delivered, streamlined operations, and investments in new products, we have continued to rationalize the business, focused on smart revenue, took on over $200 million of operating expense over the last few years, invested heavily in new infrastructure and new products. Today, Kodak is well positioned to drive growth. Kodak's in a good position between balance sheet and operations to focus on free cash flow. Highlights for the fourth quarter. As I said, it's a tale of two halves of the year. The success of the third quarter carried into the fourth quarter, as we expected. Increase in both revenue and profits. Revenues of $290 million, an increase of 9%. Fourth quarter revenues grew for both AM&C and print. Said differently, both sides of the company are now contributing to our growth and our success. Gross profit percentage of 23%, an increase of 4 percentage points, demonstrates our value of executing on smart revenue. Now let's jump to highlights of the full year. Consolidated revenues of $1.069 billion, an increase of $26 million or 2%. Gross profit percentage of 22% compared with 19% for the prior year is an increase of 3 percentage points. What's driving these results are a number of factors. Dreamland operations focused on innovation, putting that customer first, and continuing to drive smart revenue. Moving on, let me give you an update on AM&C. As we said for the last several years, right, we're a great industrial manufacturer and primarily an American manufacturer. Bringing back that park and investing into our core competencies, we're starting to see the results truly pay off. When you look at revenue up 25% for the fourth quarter, we launched owned direct distribution brand of still films to stabilize the market and to provide distributors and retailers, consumers, with a more reliable source. Many Oscar nominees were shot on Kodak film. As an example, One Battle After Another, Sinners, Marty Supreme, and many others. We've seen a real resurgence in our film group. And onto pharma. We've invested into our pharma group. And let's be very clear, our goal here is to get Class II certification. In the interim, we also launched four new products, from PBS to water for injection. Continue highlights, right? Again, remind everyone of the three core things Kodak does today. Brand licensing, AM&C, and commercial print. I'm pleased to say our investment in commercial print has been paying off. We continue to be heavily committed to print. Areas of growth for our print division have been in North America in our plates division, in printing systems. I'm proud to say finally the Prosper 520 is moving from controlled introduction to full production. We've also invested in a new rapid response service system to better serve our customers, and we continue to incorporate AI and machine learning to also better serve our customers. These investments will help drive additional growth and better margins. As I touched on brand licensing, something we should not forget, it continues to grow. It's a significant contributor to our gross profit. It adds value, increased awareness of Kodak, especially among the next generation of consumers. Our brand continues to grow outside the U.S., particularly in Asia. There are stores that sell only Kodak-branded clothes and materials. I will now turn it over to Dave to discuss the fourth quarter and full year financial results.