By Claudia Assis
Going-concern warning comes as Kodak reports second-quarter results
A vintage Kodak camera and box. The company, which diversified its business to include chemicals and printing, spooked investors Monday.
It’s the Kodak moment no one wanted to see again.
Eastman Kodak Co. (KODK) late Monday warned investors that it runs the risk of not being around much longer.
Similar warnings have plagued the company, an undisputable household name in the U.S. and abroad, in the past, most recently around 2019. A year later, it got a $765 million government loan to produce domestic ingredients for generic drugs in order to reduce U.S. reliance on foreign-made ones.
Kodak has pivoted to other industries, including industrial printing and chemicals, and has offered nods to technology a little closer to its roots, including offering a Barbie-branded mini photo printer.
The going-concern language was added to Kodak’s second-quarter results Monday. A plan to use excess funds from the end of a pension plan to pay down debt and remain afloat is “progressing as planned,” the company said.
The company expects to have “a clear understanding” of how it will satisfy its obligations to plan participants this week; it says it expects to complete the funds reversion by December.
The focus for the second half of the year is on continuing to reduce costs and on converting investments into “long-term growth,” Kodak said.
After initially dropping nearly 20% in the extended session Monday, the stock ended the after-hours session down 6.6%.
So far this year, the shares have gained about 3%, which compares with an advance of around 8% for the S&P 500 index SPX. The stock last ended in the black for the year in 2016, when it rose 24%. It lost 48% last year.
Kodak reported second-quarter sales of $263 million, down 1% compared with the same period in 2024. It swung to a GAAP net loss of $26 million for the quarter, compared with a profit of $26 million in the year-ago quarter.
Kodak ended the quarter with $155 million in cash, a drop of $46 million from Dec. 31. That’s mostly due to capital expenses to fund its growth plans, changes in working capital, higher costs and lower profitability from operations, the company said.
The focus remains on improving “the efficiency of our operations and investing in growth initiatives in our [advanced materials and chemicals] group,” Chief Financial Officer David Bullwinkle said in a statement.
-Claudia Assis
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08-11-25 2022ET
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