- Net sales of $656 million, an increase of 2% on a reported basis or 5% on an organic basis from the third quarter of 2024
- Reported net income of $39 million, compared to $40 million in the same period last year, a decrease of 3% on a reported basis
- Adjusted EBITDA of $147 million, a record since the founding of Element Solutions, an increase of 3% on a reported basis compared to $143 million in the same period last year
- Adjusted EBITDA would have increased 10% year over year, excluding the impact of the divested MacDermid Graphics Solutions business in both periods
- Third quarter 2025 cash flows from operating activities of $100 million and adjusted free cash flow of $84 million
MIAMI–(BUSINESS WIRE)–Element Solutions Inc (NYSE:ESI) (“Element Solutions” or the “Company”), a global and diversified specialty chemicals technology company, today announced its financial results for the three and nine months ended September 30, 2025.
Executive Commentary
Chief Executive Officer Benjamin Gliklich commented, “Element Solutions’ strong 2025 continued in the third quarter with record adjusted EBITDA, despite the lost contribution from our recently sold Graphics business. In a mixed overall macroeconomic backdrop, like-for-like adjusted EBITDA growth of 10% year over year demonstrates the strength of our execution. The solid implementation of our strategy to position ourselves in the fastest growing, highest value pockets of our markets continues to deliver for our electronics business, as we report its 6th consecutive quarter of high single-digit organic revenue growth. While certain markets like power electronics softened, data center driven demand and the seasonal uplift from smart phone pre-builds pushed our Electronics segment to record revenue. We grew earnings in the Industrial & Specialty segment in a sluggish macro environment through procurement, productivity and portfolio optimization initiatives as well as ongoing performance from our Energy Solutions business. Overall, it was an exceptional quarter.”
Mr. Gliklich continued, “The consistent execution and underlying market conditions driving our results should continue through the end of 2025. Accordingly, we are narrowing our full year 2025 adjusted EBITDA guidance to the highest end of our prior range. While the Micromax acquisition announced today will not contribute this year, it should add meaningfully to earnings growth in 2026. We continue to work diligently to convert further opportunities to accelerate earnings growth from here, including Kuprion commercialization along with other new product introductions and additional potential acquisitions. I am very grateful for my colleagues around the world today as we report both record results and announce a new avenue for future long-term value creation in Micromax. Our ability to balance both organic operational excellence and prudent capital allocation testifies to the quality of our team and deepens my conviction in our bright future.”
Third Quarter 2025 Highlights (compared with third quarter 2024)
- Net sales on a reported basis for the third quarter of 2025 were $656 million, an increase of 2% over the third quarter of 2024. Organic net sales increased 5%.
- Electronics: Net sales increased 11% to $465 million. Organic net sales increased 7%.
- Industrial & Specialty: Net sales decreased 16% to $191 million, of which 17% resulted from divestitures. Organic net sales remained relatively flat.
- Third quarter of 2025 earnings per share (EPS) performance:
- GAAP diluted EPS was $0.16, as compared to $0.17 for the same period last year.
- Adjusted EPS was $0.41, as compared to $0.39 for the same period last year.
- Reported net income for the third quarter of 2025 was $39 million, as compared to $40 million for the third quarter of 2024, a decrease of 3%.
- Net income margin decreased by 30 basis points to 6.0%.
- Adjusted EBITDA for the third quarter of 2025 was $147 million, as compared to $143 million for the third quarter of 2024. On a constant currency basis, adjusted EBITDA increased 1%.
- Electronics: Adjusted EBITDA was $102 million, an increase of 3%. On a constant currency basis, adjusted EBITDA increased 1%.
- Industrial & Specialty: Adjusted EBITDA was $45 million, an increase of 3%. On a constant currency basis, adjusted EBITDA increased 1%. The MacDermid Graphics Solutions business had a negative impact of 21% on constant currency adjusted EBITDA growth.
- Adjusted EBITDA margin increased by 30 basis points to 22.4%. On a constant currency basis, adjusted EBITDA margin increased by 20 basis points.
2025 Guidance
The Company now expects full year 2025 adjusted EBITDA to be between $545 million and $550 million and adjusted free cash flow to be approximately $280 million.
Conference Call
Element Solutions will host a webcast/dial-in conference call to discuss its 2025 third quarter financial results at 8:30 a.m. (Eastern Time) on Wednesday, October 29, 2025. Participants on the call will include Chief Executive Officer Benjamin H. Gliklich and Chief Financial Officer Carey J. Dorman.
To listen to the call by telephone, please dial 888-510-2346 (domestic) or 646-960-0111 (international) and provide the Conference ID: 3799230. The call will be simultaneously webcast at www.elementsolutionsinc.com. A replay of the call will be available after completion of the live call at www.elementsolutionsinc.com.
About Element Solutions
Element Solutions Inc is a leading global specialty chemicals technology company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers’ manufacturing processes in several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing and offshore energy.
More information about the Company is available at www.elementsolutionsinc.com.
Forward-Looking Statements
This release is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 as it contains “forward-looking statements” within the meaning of the federal securities laws. These statements will often contain words such as “expect,” “anticipate,” “project,” “will,” “should,” “believe,” “intend,” “plan,” “assume,” “estimate,” “predict,” “seek,” “continue,” “outlook,” “may,” “might,” “aim,” “can have,” “likely,” “potential,” “target,” “hope,” “goal,” “priority,” “guidance” or “confident” and variations of such words and similar expressions. Examples of forward-looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding strategy implementation; industrial macro environment; execution and market conditions through the end of the year; full year 2025 adjusted EBITDA guidance; the expected benefit of the Micromax acquisition, including its contribution to the Company’s results in 2026; opportunities to accelerate earnings growth, including Kuprion commercialization, new product introductions and additional potential acquisitions; and future long-term value creation in Micromax. These projections and statements are based on management’s estimates, assumptions or expectations with respect to future events and financial performance, and are believed to be reasonable, though are inherently uncertain and difficult to predict. Such projections and statements are based on the assessment of information available as of the current date, and the Company does not undertake any obligations to provide any further updates. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the war in Ukraine, the Israel-Hamas conflict and other hostilities in the Middle-East as well as actions in response thereto and their impact on market conditions and the global economy; increases in tariffs and/or imposition of new tariffs and other changes in trade policy, in the U.S. and other countries, and other economic factors that may affect cost structure and demand; capital requirements and need for and availability of financing; the impact of government regulations on our ability to conduct operations; the impact of new accounting standards and accounting changes; dividend policy and dividend declarations; hedging activities; timing and outcome of environmental and legal matters; the impact of tax planning strategies, assessments and settlements; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; market volatility, including as a result of tariff uncertainty; price and cost environment; inflation and fluctuations in foreign exchange rates; the Company’s liquidity, cash flows and capital allocation; funding sources; capital expenditures; debt and debt leverage ratio; shares repurchases; debt and/or equity issuance or retirement; expected returns to stockholders; and the impact of acquisitions, divestitures, restructurings, refinancings, impairments and other unusual items, including the Company’s ability to integrate and obtain the anticipated benefits, results and synergies from these items or other related strategic initiatives. Additional information concerning these and other factors that could cause actual results to vary is, or will be, included in the Company’s periodic and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
|
ELEMENT SOLUTIONS INC |
|||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
(dollars in millions, except per share amounts) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||||||
|
Net sales |
$ |
656.1 |
|
|
$ |
645.0 |
|
|
$ |
1,875.0 |
|
|
$ |
1,832.7 |
|
|
Cost of sales |
|
379.1 |
|
|
|
377.5 |
|
|
|
1,081.1 |
|
|
|
1,053.0 |
|
|
Gross profit |
|
277.0 |
|
|
|
267.5 |
|
|
|
793.9 |
|
|
|
779.7 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Selling, technical, general and administrative |
|
158.1 |
|
|
|
157.6 |
|
|
|
471.2 |
|
|
|
462.1 |
|
|
Research and development |
|
18.1 |
|
|
|
14.9 |
|
|
|
50.2 |
|
|
|
48.6 |
|
|
Total operating expenses |
|
176.2 |
|
|
|
172.5 |
|
|
|
521.4 |
|
|
|
510.7 |
|
|
Operating profit |
|
100.8 |
|
|
|
95.0 |
|
|
|
272.5 |
|
|
|
269.0 |
|
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
|
Interest expense, net |
|
(13.3 |
) |
|
|
(14.2 |
) |
|
|
(40.5 |
) |
|
|
(42.4 |
) |
|
Foreign exchange (losses) gains |
|
(11.0 |
) |
|
|
11.1 |
|
|
|
(34.4 |
) |
|
|
24.0 |
|
|
Other expense, net |
|
(14.0 |
) |
|
|
(14.7 |
) |
|
|
(22.6 |
) |
|
|
(29.7 |
) |
|
(Loss) gain on divestitures |
|
(7.0 |
) |
|
|
— |
|
|
|
59.6 |
|
|
|
— |
|
|
Total other expense |
|
(45.3 |
) |
|
|
(17.8 |
) |
|
|
(37.9 |
) |
|
|
(48.1 |
) |
|
Income before income taxes and non-controlling interests |
|
55.5 |
|
|
|
77.2 |
|
|
|
234.6 |
|
|
|
220.9 |
|
|
Income tax expense |
|
(16.2 |
) |
|
|
(36.8 |
) |
|
|
(49.8 |
) |
|
|
(32.8 |
) |
|
Net income from continuing operations |
|
39.3 |
|
|
|
40.4 |
|
|
|
184.8 |
|
|
|
188.1 |
|
|
Income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
|
Net income |
|
39.3 |
|
|
|
40.4 |
|
|
|
184.8 |
|
|
|
189.7 |
|
|
Net income attributable to non-controlling interests |
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.2 |
) |
|
Net income attributable to common stockholders |
$ |
39.3 |
|
|
$ |
40.3 |
|
|
$ |
184.7 |
|
|
$ |
189.5 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Earnings per share |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.77 |
|
|
Basic from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Basic attributable to common stockholders |
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted |
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.77 |
|
|
Diluted from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
Diluted attributable to common stockholders |
$ |
0.16 |
|
|
$ |
0.17 |
|
|
$ |
0.76 |
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average common shares outstanding |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
241.6 |
|
|
|
242.1 |
|
|
|
242.0 |
|
|
|
242.0 |
|
|
Diluted |
|
242.0 |
|
|
|
242.6 |
|
|
|
242.4 |
|
|
|
242.5 |
|
|
ELEMENT SOLUTIONS INC |
|||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
|
(Unaudited) |
|||||||
|
|
September 30, |
|
December 31, |
||||
|
(dollars in millions) |
2025 |
|
2024 |
||||
|
Assets |
|
|
|
||||
|
Cash and cash equivalents |
$ |
594.3 |
|
|
$ |
359.4 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $10.7 and $10.3 at September 30, 2025 and December 31, 2024, respectively |
|
502.2 |
|
|
|
439.6 |
|
|
Inventories |
|
290.9 |
|
|
|
246.2 |
|
|
Prepaid expenses |
|
29.3 |
|
|
|
22.7 |
|
|
Other current assets |
|
109.5 |
|
|
|
136.9 |
|
|
Current assets held for sale |
|
— |
|
|
|
65.2 |
|
|
Total current assets |
|
1,526.2 |
|
|
|
1,270.0 |
|
|
Property, plant and equipment, net |
|
300.1 |
|
|
|
276.8 |
|
|
Goodwill |
|
2,234.1 |
|
|
|
2,132.0 |
|
|
Intangible assets, net |
|
675.6 |
|
|
|
732.0 |
|
|
Deferred income tax assets |
|
182.8 |
|
|
|
133.3 |
|
|
Other assets |
|
126.3 |
|
|
|
140.9 |
|
|
Non-current assets held for sale |
|
— |
|
|
|
188.9 |
|
|
Total assets |
$ |
5,045.1 |
|
|
$ |
4,873.9 |
|
|
Liabilities and stockholders’ equity |
|
|
|
||||
|
Accounts payable |
$ |
145.2 |
|
|
$ |
121.3 |
|
|
Current installments of long-term debt |
|
— |
|
|
|
10.4 |
|
|
Accrued expenses and other current liabilities |
|
231.5 |
|
|
|
229.3 |
|
|
Current liabilities held for sale |
|
— |
|
|
|
18.7 |
|
|
Total current liabilities |
|
376.7 |
|
|
|
379.7 |
|
|
Debt |
|
1,625.2 |
|
|
|
1,813.6 |
|
|
Pension and post-retirement benefits |
|
21.4 |
|
|
|
22.2 |
|
|
Deferred income tax liabilities |
|
97.4 |
|
|
|
93.9 |
|
|
Other liabilities |
|
255.7 |
|
|
|
152.6 |
|
|
Non-current liabilities held for sale |
|
— |
|
|
|
13.5 |
|
|
Total liabilities |
|
2,376.4 |
|
|
|
2,475.5 |
|
|
Stockholders’ equity |
|
|
|
||||
|
Common stock: 400.0 shares authorized (2025: 268.1 shares issued; 2024: 267.2 shares issued) |
|
2.7 |
|
|
|
2.7 |
|
|
Additional paid-in capital |
|
4,235.5 |
|
|
|
4,214.1 |
|
|
Treasury stock (2025: 26.1 shares; 2024: 25.0 shares) |
|
(373.9 |
) |
|
|
(349.5 |
) |
|
Accumulated deficit |
|
(891.1 |
) |
|
|
(1,017.1 |
) |
|
Accumulated other comprehensive loss |
|
(319.5 |
) |
|
|
(467.2 |
) |
|
Total stockholders’ equity |
|
2,653.7 |
|
|
|
2,383.0 |
|
|
Non-controlling interests |
|
15.0 |
|
|
|
15.4 |
|
|
Total equity |
|
2,668.7 |
|
|
|
2,398.4 |
|
|
Total liabilities and stockholders’ equity |
$ |
5,045.1 |
|
|
$ |
4,873.9 |
|
|
ELEMENT SOLUTIONS INC |
||||||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||||||||
|
|
|
|
September 30, |
|||||||||||||||||
|
(dollars in millions) |
September 30, 2025 |
|
June 30, 2025 |
|
March 31, 2025 |
|
|
2025 |
|
2024 |
||||||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net income |
$ |
39.3 |
|
|
$ |
47.5 |
|
|
$ |
98.0 |
|
|
|
$ |
184.8 |
|
|
$ |
189.7 |
|
|
Net income from discontinued operations, net of tax |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1.6 |
|
|
Net income from continuing operations |
|
39.3 |
|
|
|
47.5 |
|
|
|
98.0 |
|
|
|
|
184.8 |
|
|
|
188.1 |
|
|
Reconciliation of net income from continuing operations to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Depreciation and amortization |
|
38.6 |
|
|
|
38.2 |
|
|
|
37.2 |
|
|
|
|
114.0 |
|
|
|
119.8 |
|
|
Deferred income taxes |
|
(9.1 |
) |
|
|
(2.3 |
) |
|
|
(4.8 |
) |
|
|
|
(16.2 |
) |
|
|
(33.6 |
) |
|
Foreign exchange losses (gains) |
|
10.3 |
|
|
|
12.6 |
|
|
|
5.7 |
|
|
|
|
28.6 |
|
|
|
(24.9 |
) |
|
Incentive stock compensation |
|
4.5 |
|
|
|
6.3 |
|
|
|
5.0 |
|
|
|
|
15.8 |
|
|
|
11.5 |
|
|
Loss (gain) on divestitures |
|
7.0 |
|
|
|
5.5 |
|
|
|
(72.1 |
) |
|
|
|
(59.6 |
) |
|
|
— |
|
|
Other, net |
|
2.8 |
|
|
|
2.4 |
|
|
|
4.5 |
|
|
|
|
9.7 |
|
|
|
18.6 |
|
|
Changes in assets and liabilities, net of acquisitions and divestitures: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Accounts receivable |
|
(10.1 |
) |
|
|
(26.7 |
) |
|
|
(12.8 |
) |
|
|
|
(49.6 |
) |
|
|
(44.4 |
) |
|
Inventories |
|
(9.6 |
) |
|
|
(7.1 |
) |
|
|
(18.3 |
) |
|
|
|
(35.0 |
) |
|
|
(21.4 |
) |
|
Accounts payable |
|
(2.5 |
) |
|
|
(1.0 |
) |
|
|
19.3 |
|
|
|
|
15.8 |
|
|
|
(0.1 |
) |
|
Accrued expenses |
|
22.3 |
|
|
|
5.7 |
|
|
|
(44.5 |
) |
|
|
|
(16.5 |
) |
|
|
17.9 |
|
|
Prepaid expenses and other current assets |
|
(2.1 |
) |
|
|
(7.5 |
) |
|
|
(4.8 |
) |
|
|
|
(14.4 |
) |
|
|
(3.5 |
) |
|
Other assets and liabilities |
|
8.7 |
|
|
|
(1.0 |
) |
|
|
13.6 |
|
|
|
|
21.3 |
|
|
|
(4.7 |
) |
|
Net cash flows provided by operating activities |
|
100.1 |
|
|
|
72.6 |
|
|
|
26.0 |
|
|
|
|
198.7 |
|
|
|
223.3 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Capital expenditures |
|
(16.5 |
) |
|
|
(17.7 |
) |
|
|
(11.0 |
) |
|
|
|
(45.2 |
) |
|
|
(46.1 |
) |
|
Proceeds from disposal of property, plant and equipment |
|
0.1 |
|
|
|
0.6 |
|
|
|
0.1 |
|
|
|
|
0.8 |
|
|
|
— |
|
|
Proceeds from divestitures (net of cash of $2.3 million) |
|
(1.7 |
) |
|
|
2.6 |
|
|
|
322.9 |
|
|
|
|
323.8 |
|
|
|
— |
|
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(3.9 |
) |
|
Other, net |
|
(0.1 |
) |
|
|
— |
|
|
|
25.6 |
|
|
|
|
25.5 |
|
|
|
(6.4 |
) |
|
Net cash flows (used in) provided by investing activities |
|
(18.2 |
) |
|
|
(14.5 |
) |
|
|
337.6 |
|
|
|
|
304.9 |
|
|
|
(56.4 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Repayments of borrowings |
|
— |
|
|
|
— |
|
|
|
(202.6 |
) |
|
|
|
(202.6 |
) |
|
|
(8.6 |
) |
|
Repurchases of common stock |
|
— |
|
|
|
(19.4 |
) |
|
|
— |
|
|
|
|
(19.4 |
) |
|
|
— |
|
|
Dividends |
|
(19.3 |
) |
|
|
(19.3 |
) |
|
|
(19.8 |
) |
|
|
|
(58.4 |
) |
|
|
(58.8 |
) |
|
Payment of financing fees |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(2.1 |
) |
|
Other, net |
|
4.2 |
|
|
|
— |
|
|
|
(4.9 |
) |
|
|
|
(0.7 |
) |
|
|
(12.8 |
) |
|
Net cash flows used in financing activities |
|
(15.1 |
) |
|
|
(38.7 |
) |
|
|
(227.3 |
) |
|
|
|
(281.1 |
) |
|
|
(82.3 |
) |
|
Net cash flows provided by operating activities of discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
1.6 |
|
|
Effect of exchange rate changes on cash and cash equivalents |
|
(2.4 |
) |
|
|
11.3 |
|
|
|
3.5 |
|
|
|
|
12.4 |
|
|
|
0.5 |
|
|
Net increase in cash and cash equivalents |
|
64.4 |
|
|
|
30.7 |
|
|
|
139.8 |
|
|
|
|
234.9 |
|
|
|
86.7 |
|
|
Cash and cash equivalents at beginning of period |
|
529.9 |
|
|
|
499.2 |
|
|
|
359.4 |
|
|
|
|
359.4 |
|
|
|
289.3 |
|
|
Cash and cash equivalents at end of period |
$ |
594.3 |
|
|
$ |
529.9 |
|
|
$ |
499.2 |
|
|
|
$ |
594.3 |
|
|
$ |
376.0 |
|
|
ELEMENT SOLUTIONS INC |
|||||||||||||||||||||||||||||
|
ADDITIONAL FINANCIAL INFORMATION |
|||||||||||||||||||||||||||||
|
(Unaudited) |
|||||||||||||||||||||||||||||
|
I. SUMMARY RESULTS |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||||||||||||
|
(dollars in millions) |
|
2025 |
|
|
2024 |
|
Reported |
|
Constant Currency |
|
Organic |
|
|
2025 |
|
|
2024 |
|
Reported |
|
Constant Currency |
|
Organic |
||||||
|
Net Sales |
|||||||||||||||||||||||||||||
|
Electronics |
$ |
465.2 |
|
$ |
419.1 |
|
11 |
% |
|
10 |
% |
|
7 |
% |
|
$ |
1,298.9 |
|
$ |
1,160.0 |
|
12 |
% |
|
12 |
% |
|
8 |
% |
|
Industrial & Specialty |
|
190.9 |
|
|
225.9 |
|
(16 |
)% |
|
(17 |
)% |
|
0 |
% |
|
|
576.1 |
|
|
672.7 |
|
(14 |
)% |
|
(14 |
)% |
|
0 |
% |
|
Total |
$ |
656.1 |
|
$ |
645.0 |
|
2 |
% |
|
0 |
% |
|
5 |
% |
|
$ |
1,875.0 |
|
$ |
1,832.7 |
|
2 |
% |
|
2 |
% |
|
5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Net Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total |
$ |
39.3 |
|
$ |
40.4 |
|
(3 |
)% |
|
|
|
|
|
$ |
184.8 |
|
$ |
189.7 |
|
(3 |
)% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Adjusted EBITDA |
|||||||||||||||||||||||||||||
|
Electronics |
$ |
101.5 |
|
$ |
98.6 |
|
3 |
% |
|
1 |
% |
|
|
|
$ |
286.9 |
|
$ |
274.7 |
|
4 |
% |
|
4 |
% |
|
|
||
|
Industrial & Specialty |
|
45.4 |
|
|
44.1 |
|
3 |
% |
|
1 |
% |
|
|
|
|
124.4 |
|
|
130.1 |
|
(4 |
)% |
|
(3 |
)% |
|
|
||
|
Total |
$ |
146.9 |
|
$ |
142.7 |
|
3 |
% |
|
1 |
% |
|
|
|
$ |
411.3 |
|
$ |
404.8 |
|
2 |
% |
|
2 |
% |
|
|
||
|
|
Three Months Ended September 30, |
|
Constant Currency |
|
Nine Months Ended September 30, |
|
Constant Currency |
||||||||||||||||||
|
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|
2025 |
|
Change |
||||||
|
Net Income Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
6.0 |
% |
|
6.3 |
% |
|
(30)bps |
|
|
|
|
|
9.9 |
% |
|
10.3 |
% |
|
(40)bps |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Electronics |
21.8 |
% |
|
23.5 |
% |
|
(170)bps |
|
21.7 |
% |
|
(180)bps |
|
22.1 |
% |
|
23.7 |
% |
|
(160)bps |
|
22.1 |
% |
|
(160)bps |
|
Industrial & Specialty |
23.7 |
% |
|
19.5 |
% |
|
420bps |
|
23.8 |
% |
|
430bps |
|
21.6 |
% |
|
19.3 |
% |
|
230bps |
|
21.7 |
% |
|
240bps |
|
Total |
22.4 |
% |
|
22.1 |
% |
|
30bps |
|
22.3 |
% |
|
20bps |
|
21.9 |
% |
|
22.1 |
% |
|
(20)bps |
|
22.0 |
% |
|
(10)bps |
|
II. CAPITAL STRUCTURE |
||||||||||
|
(dollars in millions) |
|
|
Maturity |
|
Interest Rate |
|
September 30, |
|||
|
|
|
|
|
|
2025 |
|||||
|
Instrument |
|
|
|
|
|
|
|
|||
|
Term Loans |
(1 |
) |
|
12/18/2030 |
|
SOFR plus 1.75% |
|
$ |
836.2 |
|
|
Total First Lien Debt |
|
|
|
|
|
|
|
836.2 |
||
|
Senior Notes due 2028 |
|
|
9/1/2028 |
|
3.875% |
|
|
800.0 |
||
|
Total Debt |
|
|
|
|
|
|
|
1,636.2 |
||
|
Cash Balance |
|
|
|
|
|
|
|
594.3 |
||
|
Net Debt |
|
|
|
|
|
|
$ |
1,041.9 |
||
|
Adjusted Shares Outstanding |
(2 |
) |
|
|
|
|
|
|
244.0 |
|
|
Market Capitalization |
(3 |
) |
|
|
|
|
|
$ |
6,141.5 |
|
|
Total Capitalization |
|
|
|
|
|
|
$ |
7,183.4 |
||
|
(1) |
Element Solutions swapped its floating term loan rate to a fixed rate for a portion of its outstanding term loans through the use of interest rate swaps and cross-currency swaps which mature in December 2028 or December 2029, as applicable. At September 30, 2025, approximately 100% of the Company’s debt was fixed. |
|
|
(2) |
See “Adjusted Common Shares Outstanding at September 30, 2025 and 2024” following the footnotes under the “Adjusted Earnings Per Share (EPS)” reconciliation table below. |
|
|
(3) |
Based on the closing price of the shares of Element Solutions of $25.17 at September 30, 2025. |
|
III. SELECTED FINANCIAL DATA |
|
|
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||
|
(dollars in millions) |
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
Interest expense |
$ |
17.9 |
|
$ |
17.4 |
|
$ |
53.9 |
|
$ |
50.9 |
|
Interest paid |
|
24.9 |
|
|
24.3 |
|
|
59.1 |
|
|
56.9 |
|
Income tax expense |
|
16.2 |
|
|
36.8 |
|
|
49.8 |
|
|
32.8 |
|
Income taxes paid |
|
16.7 |
|
|
21.3 |
|
|
71.5 |
|
|
60.8 |
|
Capital expenditures |
|
16.5 |
|
|
12.6 |
|
|
45.2 |
|
|
46.1 |
|
Proceeds from disposal of property, plant and equipment |
|
0.1 |
|
|
— |
|
|
0.8 |
|
|
— |
Non-GAAP Measures
To supplement its financial measures prepared in accordance with GAAP, Element Solutions presents in this release the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted EBITDA growth, adjusted EBITDA margin, adjusted EPS, adjusted common shares outstanding, free cash flow, adjusted free cash flow, free cash flow conversion, organic net sales growth, full year 2025 guidance for adjusted EBITDA and adjusted free cash flow. The Company also evaluates and presents its results of operations on a constant currency basis.
Management internally reviews these non-GAAP measures to evaluate performance and liquidity on a comparative period-to-period basis in terms of absolute performance, trends and expected future performance with respect to the Company’s business, and believes that these non-GAAP measures provide investors with an additional perspective on trends and underlying operating results on a period-to-period comparable basis. The Company also believes that investors find this information helpful in understanding the ongoing performance of its operations as well as their ability to generate cash separate from items that may have a disproportionate positive or negative impact on its financial results in any particular period or that are considered to be associated with its capital structure. These non-GAAP financial measures, however, have limitations as analytical tools, and should not be considered in isolation from, a substitute for, or superior to, the related financial information that Element Solutions reports in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements, and may not be completely comparable to similarly titled measures of other companies due to potential differences in calculation methods. In addition, these measures are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. Investors are encouraged to review the definitions and reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures included in this press release, and not to rely on any single financial measure to evaluate the Company’s businesses.
The Company provides full year 2025 guidance for adjusted EBITDA on a non-GAAP basis only. Reconciliations of such forward-looking non-GAAP measures to GAAP are excluded in reliance upon the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K due to the inherent difficulty in forecasting and quantifying, without unreasonable efforts, certain amounts that are necessary for such reconciliations, including adjustments that could be made for restructurings, refinancings, impairments, divestitures, integration and acquisition-related expenses, share-based compensation amounts, non-recurring, unusual or unanticipated charges, expenses or gains, adjustments to inventory and other charges reflected in its reconciliations of historic numbers, the amount of which, based on historical experience, could be significant.
Constant Currency:
The Company discloses net sales and adjusted EBITDA on a constant currency basis by adjusting results to exclude the impact of changes due to the translation of foreign currencies of its international locations into U.
Contacts
Investor Relations Contact:
Varun Gokarn
Vice President, Strategy and Integration
Element Solutions Inc
1-203-952-0369
Media Contact:
Scott Bisang / Ed Hammond / Tali Epstein
Collected Strategies
1-212-379-2072
