Venerable Kodak Corporation contemplates shutting down its operations, reflecting a potential demise after 133 years.
In the midst of financial struggles, Eastman Kodak, the iconic photography company, is looking to transform its fortunes by expanding its pharmaceutical business.
Founded in 1892 by George Eastman, the inventor of the word "Kodak", the company's history dates back to 1879 when Eastman obtained his first patent for a plate-coating machine. The first Kodak camera was sold for $25 in 1888, revolutionising the world of photography with the slogan: "You push the button, we do the rest."
However, the company has faced turbulent times. In 2012, Eastman Kodak filed for bankruptcy with 100,000 creditors and debts totaling $6.75 billion. In more recent years, the company has struggled with declining operational EBITDA, cash burn, and debt pressures.
In Q2 2025, Eastman Kodak reported a net loss of $26 million, falling revenues down 1% year-over-year to $263 million, and shrinking gross margins (from 22% to 19%). These figures have raised concerns among investors about the company’s debt and liquidity.
To address these challenges, Eastman Kodak has outlined several plans. The company is expecting to receive $300 million in cash from a pension plan termination in December 2025, which it plans to use to reduce a large portion of its $477 million in term debt.
Kodak is also aiming to serve customers, strengthen its balance sheet, and build growth businesses, particularly in its pharmaceutical manufacturing expansion at its FDA-registered Rochester facility. The facility currently produces phosphate buffered saline (PBS) and could soon manufacture more advanced injectable products.
The company is also planning to repay, extend, or refinance its debt before due dates, and has publicly denied rumours of shutdown or bankruptcy. Eastman Kodak is confident it will be able to pay off a significant portion of its term loan before it becomes due, and amend, extend, or refinance its remaining debt and/or preferred stock obligations.
Despite these efforts, Eastman Kodak is still facing uncertainty around its ability to meet debt obligations due within 12 months without committed financing or liquidity, prompting investor apprehension. The company's shares slumped more than 25% in midday trading Tuesday, reflecting these concerns.
In summary, Eastman Kodak is grappling with shrinking margins, cash burn, debt pressures, and operational cost inflation, but is banking on its pharmaceutical manufacturing growth and strategic financial maneuvers—including pension-related cash inflows and debt restructuring—to stabilise and improve its financial position through 2025 and beyond.
Sources: [1] CNBC [2] Reuters [3] The Wall Street Journal [4] Seeking Alpha
Eastman Kodak, recognizing the need for change, is exploring ways to revitalize its financial standing by focusing on expanding its pharmaceutical business in the broader industry landscape. In light of the company's persistent struggles with shrinking margins, cash burn, and debt pressures, this strategic shift could potentially position the company for long-term growth and sustainability.
