Eastman Kodak Company

Good day and thank you for standing by. Welcome to the Eastman Kodak Second Quarter 2026 Earnings Conference Call. At this time, all participants are on a listen-only mode. Please be advised, today's conference is being recorded. I would now like to hand the conference over to your speaker today. Denisse Goldbarg, please go ahead.

Thank you and good afternoon, everyone. I am Denisse Goldbarg, Eastman Kodak's Chief Marketing Officer. And welcome to Eastman Kodak's Second Quarter 2026 Earnings Call. At 4.15 this afternoon, Kodak filed its Form 10-Q and issued its release on financial results for the second quarter of 2026. 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 on Kodak's expectations and various assumptions. Future events or results may differ from those anticipated or 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 risks, 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 this presentation and are expressly qualified in their entirety by the cautionary statements included or referenced in this presentation. Kodak undertakes no obligation to update or revise forward looking statements or 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 contains 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 and other documents on our website in 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. 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 second quarter 2026 investor call for Eastman Kodak. If I had to summarize our performance in the second quarter, it would be stability and growth. Kodak has delivered year-over-year improvements in key metrics for four consecutive quarters. We've done it by consistent focus on leveraging our core strengths and focusing on execution. Highlights for the second quarter, consolidated revenues of $311 million, compared with $263 million for Q2 2025, an increase of $48 million or 18%. Gross profit of $82 million compared with $51 million for Q2 2025, an increase of $31 million or 61%. Operational EBITDA of $36 million compared with $9 million for Q2 2025, an increase of $27 million or 300%. Total debt to EBITDA of one times in Q2 2026 versus total debt to EBITDA of 23 times in Q2 2025. I don't want to just breeze through these metrics again. The growth in revenue, growth in growth profit, growth in operational EBITDA, the continuing de-levering of the business and strengthening the balance sheet has all been part of our long-term plan over the last seven years. We've continued to focus and execute on our plan, and we're going to continue to focus and execute and innovate new products in the future. Moving on to segments of the business. Several years ago, part of our business we were vacating was AM&T. As you recall, we've invested heavily back in it. This is our core competencies. This is what we do. This is our know-how. This is where our people shine. We are the best in the world at layering and coding. It's just what we do. When we get into AM&C, I'm proud to see the results. I'm going to walk through some of them now. Advanced materials and chemicals revenues were $105 million compared with $75 million for Q2 2025, an increase of $30 million or 40%. Still film. We now offer a range of Kodak films sold directly to distributors to stabilize the market and meet customer demand. Motion picture film. This is a big one for me. When we look at where we are today and the resurgence we've seen in the demand, I'm so proud of the decision from my board all the way down to the leadership to really reinvest in this. And I want to thank some key directors, Christopher Nolan, Steven Spielberg, and others for helping us understand the importance and pushing and supporting it. Currently out are two blockbuster movies that were shot on Kodak film. The Odyssey, which was shot on 65 millimeter and played on 70 millimeter at IMAX theaters. You have to see it. That's all I'm going to tell you. Steven Spielberg, Disclosure Day, again, phenomenal movie, shot on Kodak film. utilized our new Vision 3 AHU film structure. And we're glad to see, you know, the resurgence coming back into the industry and the appreciation we're seeing even of movie buffs and movie fans. Continue on AM&C. Let me give you an update on pharma. Kodak launched its first pharmaceutical web store, an important part of our strategic growth, adding saline products to the portfolio, continuing to work towards Class II certification to manufacture more complex, higher margin products. We continue to invest in our battery coating. We're putting CapEx into the machine to add additional capabilities, such as coating electrodes at a large scale and using our pilot facility to help other customers scale new technologies. Moving on to now our largest division, commercial print. We continue to see growth in our commercial print business. Print revenues were $195 million compared with $178 million due to 2025, an increase of $17 million or 10%. Growth is remarkable in a competitive marketplace that's also dealing with shortage in supply, high cost, inflation. We continue to deliver all over the globe and all three markets that we manufacture. The performance you're seeing in commercial print reflects the superiority of our products and service, particularly when we have a level playing field. And in these markets today with wars, supply, inflation, we continue to deliver and support and take care of our customers. Our next steps, focus. We have to focus on growth. We've been saying that for the last few quarters. We have built a stable, growing business. We are solidly in control of our destiny. We continue to work for shareholders, employees, and customers. We are building momentum. We will continue to capitalize on our strengths as an industrial manufacturer. To accelerate our investment in R&D, we acquired an R&D division to help us focus on innovation Efficiency, and Quality Control.