- 2025 net sales of $2.55 billion, an increase of 4% on a reported basis or 6% on an organic basis from 2024
- 2025 reported net income of $191 million and Adjusted EBITDA of $548 million
- 2025 GAAP EPS of $0.79 and adjusted EPS of $1.49
- Introduces 2026 full year financial guidance for Adjusted EBITDA in the range of $650 million to $670 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 twelve months ended December 31, 2025.
Executive Commentary
Chief Executive Officer Benjamin Gliklich commented, “Element Solutions had a record year in 2025. Demand from the datacenter infrastructure and high-performance computing markets drove double digit organic growth in our Electronics business that accelerated in the fourth quarter. Our electronics material solutions are supporting and enabling the leaps in performance and faster product development cycles that this market demands. Overall, our Company delivered record adjusted EBITDA in 2025, despite continued western industrial weakness and the divestiture of the Graphics business in the first quarter. As evidenced by nearly two years of consistent quarterly high single digit organic net sales growth in our Electronics segment, our strategy to penetrate the fastest growing, highest value niches in the market is working. The acquisitions we announced in the fourth quarter and closed earlier this year expand our footprint in these high-value supply chains and improve our offerings to new exciting growth categories.”
Mr. Gliklich continued, “The past year epitomized our dual focus on operational excellence and prudent capital allocation. We found numerous ways to improve our existing businesses through productivity improvements, targeted commercial investments and technical capability expansion, while divesting a lower value business and expanding our presence in attractive adjacencies through acquisitions. Even in our weaker end-markets, we delivered profit growth. Entering 2026, our initial focus will be on operational excellence, as we integrate recent acquisitions and support several new exciting product introductions. However, we should have both the financial and management capacity to deploy incremental capital as high-returning opportunities become available. We expect market conditions in 2026 to resemble latter 2025. Specifically, demand should continue growing in high-performance computing and leading-edge applications, while industrial markets should remain slower. Inclusive of the expected contributions of EFC and Micromax, we expect 2026 adjusted EBITDA to be between $650 million and $670 million and adjusted EPS growth in the mid to high teens. We are positioned for a record 2026, and I am grateful for the extraordinary talent at ESI that is responsible for a terrific year in 2025 and focused on another one ahead.”
Fourth Quarter 2025 Highlights (compared with fourth quarter 2024):
-
Net sales on a reported basis for the fourth quarter of 2025 were $676 million, an increase of 8% over the fourth quarter of 2024. Organic net sales increased 10%.
- MacDermid Alpha Electronics Solutions (“Electronics”): Net sales increased 21% to $487 million. Organic net sales increased 13%.
- Element Specialties (“Specialties”): Net sales decreased 15% to $189 million, of which 22% resulted from divestitures. Organic net sales increased 4%.
-
Fourth quarter of 2025 earnings per share (EPS) performance:
- GAAP diluted EPS was $0.03, as compared to $0.23 for the same period last year.
- Adjusted EPS was $0.37, as compared to $0.35 for the same period last year.
-
Reported net income for the fourth quarter of 2025 was $6 million, as compared to $55 million for the fourth quarter of 2024, a decrease of 89%.
- Net income margin decreased by 790 basis points to 0.9%.
-
Adjusted EBITDA for the fourth quarter of 2025 was $136 million, as compared to $130 million for the fourth quarter of 2024, an increase of 5%. On a constant currency basis, adjusted EBITDA increased 3%.
- Electronics: Adjusted EBITDA was $95 million, an increase of 10%. On a constant currency basis, adjusted EBITDA increased 8%.
- Specialties: Adjusted EBITDA was $41 million, a decrease of 5%. On a constant currency basis, adjusted EBITDA decreased 7%. The sale of the MacDermid Graphics Solutions business had a negative impact of 14% on constant currency adjusted EBITDA growth.
- Adjusted EBITDA margin decreased by 60 basis points to 20.2%. On a constant currency basis, adjusted EBITDA margin decreased by 70 basis points.
Full Year 2025 Highlights (compared with full year 2024):
-
Net sales on a reported basis for the full year 2025 were $2.55 billion, an increase of 4% over the prior full year period. Organic net sales increased 6%.
- Electronics: Net sales increased 14% to $1.79 billion. Organic net sales increased 10%.
- Specialties: Net sales decreased 15% to $765 million, of which 16% resulted from divestitures. Organic net sales increased 1%.
-
Full year 2025 EPS performance:
- GAAP diluted EPS was $0.79, as compared to $1.00 for 2024.
- Adjusted EPS was $1.49, as compared to $1.44 for 2024.
-
Reported net income for the full year 2025 was $191 million, as compared to $245 million for 2024, a decrease of 22%.
- Net income margin decreased by 250 basis points to 7.5%.
-
Adjusted EBITDA for the full year 2025 was $548 million, as compared to $535 million for 2024, an increase of 2%. On a constant currency basis, adjusted EBITDA increased 2%.
- Electronics: Adjusted EBITDA was $382 million, an increase of 6%. On a constant currency basis, adjusted EBITDA increased 5%.
- Specialties: Adjusted EBITDA was $165 million, a decrease of 5%. On a constant currency basis, adjusted EBITDA decreased 4%. The sale of the MacDermid Graphics Solutions business had a negative impact of 15% on constant currency adjusted EBITDA growth.
- Adjusted EBITDA margin decreased by 30 basis points to 21.5%. On a constant currency basis, adjusted EBITDA margin decreased by 30 basis points.
2026 Guidance
For the full year 2026, the Company expects adjusted EBITDA to be in the range of $650 million to $670 million, inclusive of expected contributions from the Micromax and EFC acquisitions on a full-year basis and assuming current exchange rates and metal prices, and adjusted EPS growth rate in the mid to high teens. In addition, the Company expects first quarter 2026 adjusted EBITDA to be between $140 million and $155 million.
Recent Developments
Portfolio Optimization - On February 28, 2025, the Company completed the sale of its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $320 million, net of disposed cash. MacDermid Graphics Solutions was reported within the Specialties segment. The sale resulted in a gain of $66.5 million.
EFC Acquisition - On January 2, 2026, the Company completed the acquisition of EFC Gases & Advanced Materials, a provider of high-purity specialty gases and other advanced materials, for a purchase price of approximately $369 million, net of cash and subject to adjustments, with a potential earn-out based on EFC's 2026 performance of up to $30.0 million cash or 1.16 million Company shares.
Micromax Acquisition - On February 2, 2026, the Company completed the acquisition of Micromax, a global supplier of advanced electronics inks and pastes, for a purchase price of approximately $500 million, net of cash and subject to adjustments.
Add-on Term Loans & Revolver Upsize - On February 2, 2026, the Company completed the syndication of $450 million of Add-on Term Loans and a 5-year $500 million senior secured revolving credit facility, which replaced its then existing 5-year $375 million revolving facility, upsizing the facility by $125 million and extending its maturity to 2031. The proceeds of the Add-on Term Loans were used to fund a portion of the purchase price of the Micromax Acquisition.
Cash Dividends - On February 10, 2026, the Board of Directors of the Company declared a cash dividend of $0.08 per outstanding share of its common stock. The dividend is expected to be paid on March 16, 2026 to stockholders of record at the close of business on March 2, 2026. For the full year 2025, approximately $77.8 million was returned to the Company's stockholders in the form of cash dividends.
Repurchases of Common Stock - During the year ended December 31, 2025, the Company repurchased 1.2 million shares of its common stock for $25.0 million. The remaining authorization under the Company's stock repurchase program was approximately $556 million at December 31, 2025.
Conference Call
Element Solutions will host a webcast/dial-in conference call to discuss its 2025 fourth quarter and full year financial results at 8:30 a.m. (Eastern Time) on Wednesday, February 18, 2026. Participants on the call will include Chief Executive Officer Benjamin H. Gliklich and President, Enterprise Operations 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 the Company's expected benefits of recent divestitures and acquisitions; integration of these recent acquisitions; product introductions; financial and management capacity; capital deployment; market conditions and demand expectations; expected contributions of the Micromax and EFC acquisitions to the Company's 2026 adjusted EBITDA, adjusted EBITDA growth and adjusted EPS growth; position for a record 2026; first quarter 2026 guidance for adjusted EBITDA; full year 2026 guidance for adjusted EBITDA; and record performance in 2026. 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 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, including the cost and availability of raw materials and precious metals; capital requirements and need for and availability of financing; the impact of government regulations on our ability to conduct operations; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; inflation and fluctuations in foreign exchange rates; our liquidity, cash flows and capital allocation; funding sources and capital expenditures; outstanding 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 CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
| Three Months Ended December 31, |
| Twelve Months Ended December 31, | ||||||||||||
(dollars in millions, except per share amounts) |
| 2025 |
|
|
| 2024 |
|
|
| 2025 |
|
|
| 2024 |
|
Net sales | $ | 676.2 |
|
| $ | 624.2 |
|
| $ | 2,551.2 |
|
| $ | 2,456.9 |
|
Cost of sales |
| 399.6 |
|
|
| 368.2 |
|
|
| 1,480.7 |
|
|
| 1,421.2 |
|
Gross profit |
| 276.6 |
|
|
| 256.0 |
|
|
| 1,070.5 |
|
|
| 1,035.7 |
|
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Selling, technical, general and administrative |
| 189.5 |
|
|
| 166.7 |
|
|
| 660.7 |
|
|
| 628.8 |
|
Research and development |
| 17.4 |
|
|
| 14.4 |
|
|
| 67.6 |
|
|
| 63.0 |
|
Total operating expenses |
| 206.9 |
|
|
| 181.1 |
|
|
| 728.3 |
|
|
| 691.8 |
|
Operating profit |
| 69.7 |
|
|
| 74.9 |
|
|
| 342.2 |
|
|
| 343.9 |
|
Other (expense) income: |
|
|
|
|
|
|
| ||||||||
Interest expense, net |
| (12.9 | ) |
|
| (13.9 | ) |
|
| (53.4 | ) |
|
| (56.3 | ) |
Foreign exchange (losses) gains |
| (0.9 | ) |
|
| 1.1 |
|
|
| (35.3 | ) |
|
| 25.1 |
|
Other (expense) income, net |
| (24.3 | ) |
|
| 4.7 |
|
|
| (46.9 | ) |
|
| (25.0 | ) |
(Loss) gain on divestitures |
| (0.6 | ) |
|
| — |
|
|
| 59.0 |
|
|
| — |
|
Total other expense |
| (38.7 | ) |
|
| (8.1 | ) |
|
| (76.6 | ) |
|
| (56.2 | ) |
Income before income taxes and non-controlling interests |
| 31.0 |
|
|
| 66.8 |
|
|
| 265.6 |
|
|
| 287.7 |
|
Income tax expense |
| (24.8 | ) |
|
| (12.0 | ) |
|
| (74.6 | ) |
|
| (44.8 | ) |
Net income from continuing operations |
| 6.2 |
|
|
| 54.8 |
|
|
| 191.0 |
|
|
| 242.9 |
|
Income from discontinued operations, net of tax |
| — |
|
|
| — |
|
|
| — |
|
|
| 1.6 |
|
Net income |
| 6.2 |
|
|
| 54.8 |
|
|
| 191.0 |
|
|
| 244.5 |
|
Net income attributable to non-controlling interests |
| (0.1 | ) |
|
| (0.1 | ) |
|
| (0.2 | ) |
|
| (0.3 | ) |
Net income attributable to common stockholders | $ | 6.1 |
|
| $ | 54.7 |
|
| $ | 190.8 |
|
| $ | 244.2 |
|
|
|
|
|
|
|
|
| ||||||||
Earnings per share |
|
|
|
|
|
|
| ||||||||
Basic from continuing operations | $ | 0.03 |
|
| $ | 0.23 |
|
| $ | 0.79 |
|
| $ | 1.00 |
|
Basic from discontinued operations |
| — |
|
|
| — |
|
|
| — |
|
|
| 0.01 |
|
Basic attributable to common stockholders | $ | 0.03 |
|
| $ | 0.23 |
|
| $ | 0.79 |
|
| $ | 1.01 |
|
|
|
|
|
|
|
|
| ||||||||
Diluted from continuing operations | $ | 0.03 |
|
| $ | 0.23 |
|
| $ | 0.79 |
|
| $ | 1.00 |
|
Diluted from discontinued operations |
| — |
|
|
| — |
|
|
| — |
|
|
| 0.01 |
|
Diluted attributable to common stockholders | $ | 0.03 |
|
| $ | 0.23 |
|
| $ | 0.79 |
|
| $ | 1.01 |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
| ||||||||
Basic |
| 242.1 |
|
|
| 242.2 |
|
|
| 242.0 |
|
|
| 242.1 |
|
Diluted |
| 242.4 |
|
|
| 242.7 |
|
|
| 242.4 |
|
|
| 242.6 |
|
ELEMENT SOLUTIONS INC CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||
| December 31, | ||||||
(dollars in millions) |
| 2025 |
|
|
| 2024 |
|
Assets |
|
|
| ||||
Cash and cash equivalents | $ | 626.5 |
|
| $ | 359.4 |
|
Accounts receivable, net of allowance for doubtful accounts of $9.4 and $10.3 at December 31, 2025 and 2024, respectively |
| 517.7 |
|
|
| 439.6 |
|
Inventories |
| 294.7 |
|
|
| 246.2 |
|
Prepaid expenses |
| 28.3 |
|
|
| 22.7 |
|
Other current assets |
| 115.3 |
|
|
| 136.9 |
|
Current assets held for sale |
| — |
|
|
| 65.2 |
|
Total current assets |
| 1,582.5 |
|
|
| 1,270.0 |
|
Property, plant and equipment, net |
| 319.6 |
|
|
| 276.8 |
|
Goodwill |
| 2,241.9 |
|
|
| 2,132.0 |
|
Intangible assets, net |
| 657.2 |
|
|
| 732.0 |
|
Deferred income tax assets |
| 175.5 |
|
|
| 133.3 |
|
Other assets |
| 124.7 |
|
|
| 140.9 |
|
Non-current assets held for sale |
| — |
|
|
| 188.9 |
|
Total assets | $ | 5,101.4 |
|
| $ | 4,873.9 |
|
Liabilities and stockholders' equity |
|
|
| ||||
Accounts payable | $ | 165.5 |
|
| $ | 121.3 |
|
Current installments of long-term debt |
| — |
|
|
| 10.4 |
|
Accrued expenses and other current liabilities |
| 264.4 |
|
|
| 229.3 |
|
Current liabilities held for sale |
| — |
|
|
| 18.7 |
|
Total current liabilities |
| 429.9 |
|
|
| 379.7 |
|
Debt |
| 1,625.9 |
|
|
| 1,813.6 |
|
Pension and post-retirement benefits |
| 22.3 |
|
|
| 22.2 |
|
Deferred income tax liabilities |
| 93.1 |
|
|
| 93.9 |
|
Other liabilities |
| 240.8 |
|
|
| 152.6 |
|
Non-current liabilities held for sale |
| — |
|
|
| 13.5 |
|
Total liabilities |
| 2,412.0 |
|
|
| 2,475.5 |
|
Stockholders' equity |
|
|
| ||||
Common stock, 400.0 shares authorized (2025: 269.6 shares issued; 2024: 267.2 shares issued) |
| 2.7 |
|
|
| 2.7 |
|
Additional paid-in capital |
| 4,279.2 |
|
|
| 4,214.1 |
|
Treasury stock (2025: 26.9 shares; 2024: 25.0 shares) |
| (393.9 | ) |
|
| (349.5 | ) |
Accumulated deficit |
| (904.6 | ) |
|
| (1,017.1 | ) |
Accumulated other comprehensive loss |
| (308.9 | ) |
|
| (467.2 | ) |
Total stockholders' equity |
| 2,674.5 |
|
|
| 2,383.0 |
|
Non-controlling interests |
| 14.9 |
|
|
| 15.4 |
|
Total equity |
| 2,689.4 |
|
|
| 2,398.4 |
|
Total liabilities and stockholders' equity | $ | 5,101.4 |
|
| $ | 4,873.9 |
|
ELEMENT SOLUTIONS INC CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | |||||||||||||||||||||||||
| 2025 |
|
|
| 2024 |
| |||||||||||||||||||
(dollars in millions) | Q1 |
| Q2 |
| Q3 |
| Q4 |
|
| FY |
|
| FY | ||||||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Net income | $ | 98.0 |
|
| $ | 47.5 |
|
| $ | 39.3 |
|
| $ | 6.2 |
|
|
| $ | 191.0 |
|
|
| $ | 244.5 |
|
Net income from discontinued operations, net of tax |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| 1.6 |
|
Net income from continuing operations |
| 98.0 |
|
|
| 47.5 |
|
|
| 39.3 |
|
|
| 6.2 |
|
|
|
| 191.0 |
|
|
|
| 242.9 |
|
Reconciliation of net income to net cash flows provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Depreciation and amortization |
| 37.2 |
|
|
| 38.2 |
|
|
| 38.6 |
|
|
| 37.2 |
|
|
|
| 151.2 |
|
|
|
| 157.6 |
|
Deferred income taxes |
| (4.8 | ) |
|
| (2.3 | ) |
|
| (9.1 | ) |
|
| 3.6 |
|
|
|
| (12.6 | ) |
|
|
| (39.2 | ) |
Foreign exchange losses (gains) |
| 5.7 |
|
|
| 12.6 |
|
|
| 10.3 |
|
|
| 0.8 |
|
|
|
| 29.4 |
|
|
|
| (24.4 | ) |
Incentive stock compensation |
| 5.0 |
|
|
| 6.3 |
|
|
| 4.5 |
|
|
| 43.3 |
|
|
|
| 59.1 |
|
|
|
| 14.8 |
|
Net (gain) loss on divestitures |
| (72.1 | ) |
|
| 5.5 |
|
|
| 7.0 |
|
|
| 0.6 |
|
|
|
| (59.0 | ) |
|
|
| — |
|
Other, net |
| 4.5 |
|
|
| 2.4 |
|
|
| 2.8 |
|
|
| (0.5 | ) |
|
|
| 9.2 |
|
|
|
| 22.9 |
|
Changes in assets and liabilities, net of acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Accounts receivable |
| (12.8 | ) |
|
| (26.7 | ) |
|
| (10.1 | ) |
|
| (8.0 | ) |
|
|
| (57.6 | ) |
|
|
| (29.9 | ) |
Inventories |
| (18.3 | ) |
|
| (7.1 | ) |
|
| (9.6 | ) |
|
| (4.1 | ) |
|
|
| (39.1 | ) |
|
|
| 7.8 |
|
Accounts payable |
| 19.3 |
|
|
| (1.0 | ) |
|
| (2.5 | ) |
|
| 11.6 |
|
|
|
| 27.4 |
|
|
|
| (1.0 | ) |
Accrued expenses |
| (44.5 | ) |
|
| 5.7 |
|
|
| 22.3 |
|
|
| 16.2 |
|
|
|
| (0.3 | ) |
|
|
| 33.0 |
|
Prepaid expenses and other current assets |
| (4.8 | ) |
|
| (7.5 | ) |
|
| (2.1 | ) |
|
| (7.2 | ) |
|
|
| (21.6 | ) |
|
|
| (4.2 | ) |
Other assets and liabilities |
| 13.6 |
|
|
| (1.0 | ) |
|
| 8.7 |
|
|
| (8.6 | ) |
|
|
| 12.7 |
|
|
|
| (18.3 | ) |
Net cash flows provided by operating activities |
| 26.0 |
|
|
| 72.6 |
|
|
| 100.1 |
|
|
| 91.1 |
|
|
|
| 289.8 |
|
|
|
| 362.0 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Capital expenditures |
| (11.0 | ) |
|
| (17.7 | ) |
|
| (16.5 | ) |
|
| (17.0 | ) |
|
|
| (62.2 | ) |
|
|
| (68.4 | ) |
Proceeds from disposal of property, plant and equipment |
| 0.1 |
|
|
| 0.6 |
|
|
| 0.1 |
|
|
| 0.7 |
|
|
|
| 1.5 |
|
|
|
| — |
|
Proceeds from divestitures (net of cash of $2.4 million) |
| 322.9 |
|
|
| 2.6 |
|
|
| (1.7 | ) |
|
| (2.6 | ) |
|
|
| 321.2 |
|
|
|
| — |
|
Acquisitions, net of cash acquired |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| (3.9 | ) |
Other, net |
| 25.6 |
|
|
| — |
|
|
| (0.1 | ) |
|
| 0.1 |
|
|
|
| 25.6 |
|
|
|
| (1.5 | ) |
Net cash flows provided by (used in) investing activities |
| 337.6 |
|
|
| (14.5 | ) |
|
| (18.2 | ) |
|
| (18.8 | ) |
|
|
| 286.1 |
|
|
|
| (73.8 | ) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Debt proceeds, net of discount |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| 1,040.1 |
|
Repayments of borrowings |
| (202.6 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| (202.6 | ) |
|
|
| (1,152.6 | ) |
Repurchases of common stock |
| — |
|
|
| (19.4 | ) |
|
| — |
|
|
| (5.6 | ) |
|
|
| (25.0 | ) |
|
|
| — |
|
Dividends |
| (19.8 | ) |
|
| (19.3 | ) |
|
| (19.3 | ) |
|
| (19.4 | ) |
|
|
| (77.8 | ) |
|
|
| (78.2 | ) |
Payment of financing fees |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| (3.2 | ) |
Other, net |
| (4.9 | ) |
|
| — |
|
|
| 4.2 |
|
|
| (14.3 | ) |
|
|
| (15.0 | ) |
|
|
| (12.7 | ) |
Net cash flows used in financing activities |
| (227.3 | ) |
|
| (38.7 | ) |
|
| (15.1 | ) |
|
| (39.3 | ) |
|
|
| (320.4 | ) |
|
|
| (206.6 | ) |
Net cash flows provided by operating activities of discontinued operations |
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
|
| — |
|
|
|
| 1.6 |
|
Effect of exchange rate changes on cash and cash equivalents |
| 3.5 |
|
|
| 11.3 |
|
|
| (2.4 | ) |
|
| (0.8 | ) |
|
|
| 11.6 |
|
|
|
| (13.1 | ) |
Net increase in cash and cash equivalents |
| 139.8 |
|
|
| 30.7 |
|
|
| 64.4 |
|
|
| 32.2 |
|
|
|
| 267.1 |
|
|
|
| 70.1 |
|
Cash and cash equivalents at beginning of period |
| 359.4 |
|
|
| 499.2 |
|
|
| 529.9 |
|
|
| 594.3 |
|
|
|
| 359.4 |
|
|
|
| 289.3 |
|
Cash and cash equivalents at end of period | $ | 499.2 |
|
| $ | 529.9 |
|
| $ | 594.3 |
|
| $ | 626.5 |
|
|
| $ | 626.5 |
|
|
| $ | 359.4 |
|
Supplemental disclosure information of continuing operations: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Cash paid for interest | $ | 25.4 |
|
| $ | 8.8 |
|
| $ | 24.9 |
|
| $ | 9.5 |
|
|
| $ | 68.6 |
|
|
| $ | 64.8 |
|
Cash paid for income taxes | $ | 28.3 |
|
| $ | 26.5 |
|
| $ | 16.7 |
|
| $ | 27.3 |
|
|
| $ | 98.8 |
|
|
| $ | 87.2 |
|
ELEMENT SOLUTIONS INC ADDITIONAL FINANCIAL INFORMATION (Unaudited) | |||||||||||||||||||||||
I. SUMMARY RESULTS | |||||||||||||||||||||||
| Three Months Ended December 31, |
| Twelve Months Ended December 31, | ||||||||||||||||||||
(dollars in millions) | 2025 |
| 2024 |
| Reported |
| Constant Currency |
| Organic |
| 2025 |
| 2024 |
| Reported |
| Constant Currency |
| Organic | ||||
Net Sales | |||||||||||||||||||||||
Electronics | $ | 487.3 |
| $ | 401.4 |
| 21% |
| 20% |
| 13% |
| $ | 1,786.2 |
| $ | 1,561.4 |
| 14% |
| 14% |
| 10% |
Specialties |
| 188.9 |
|
| 222.8 |
| (15)% |
| (18)% |
| 4% |
|
| 765.0 |
|
| 895.5 |
| (15)% |
| (15)% |
| 1% |
Total | $ | 676.2 |
| $ | 624.2 |
| 8% |
| 6% |
| 10% |
| $ | 2,551.2 |
| $ | 2,456.9 |
| 4% |
| 3% |
| 6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Income | |||||||||||||||||||||||
Total | $ | 6.2 |
| $ | 54.8 |
| (89)% |
|
|
|
|
| $ | 191.0 |
| $ | 244.5 |
| (22)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Adjusted EBITDA | |||||||||||||||||||||||
Electronics | $ | 95.3 |
| $ | 86.8 |
| 10% |
| 8% |
|
|
| $ | 382.2 |
| $ | 361.5 |
| 6% |
| 5% |
|
|
Specialties |
| 41.0 |
|
| 43.1 |
| (5)% |
| (7)% |
|
|
|
| 165.4 |
|
| 173.2 |
| (5)% |
| (4)% |
|
|
Total | $ | 136.3 |
| $ | 129.9 |
| 5% |
| 3% |
|
|
| $ | 547.6 |
| $ | 534.7 |
| 2% |
| 2% |
|
|
| Three Months Ended December 31, |
| Constant Currency |
| Twelve Months Ended December 31, |
| Constant Currency | ||||||||||||
| 2025 |
| 2024 |
| Change |
| 2025 |
| Change |
| 2025 |
| 2024 |
| Change |
| 2025 |
| Change |
Net Income Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total | 0.9% |
| 8.8% |
| (790)bps |
|
|
|
|
| 7.5% |
| 10.0% |
| (250)bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin | |||||||||||||||||||
Electronics | 19.6% |
| 21.6% |
| (200)bps |
| 19.5% |
| (210)bps |
| 21.4% |
| 23.1% |
| (170)bps |
| 21.3% |
| (180)bps |
Specialties | 21.6% |
| 19.4% |
| 220bps |
| 22.0% |
| 260bps |
| 21.6% |
| 19.3% |
| 230bps |
| 21.8% |
| 250bps |
Total | 20.2% |
| 20.8% |
| (60)bps |
| 20.1% |
| (70)bps |
| 21.5% |
| 21.8% |
| (30)bps |
| 21.5% |
| (30)bps |
II. CAPITAL STRUCTURE | ||||||||
(dollars in millions) |
|
| Maturity |
| Interest Rate |
| December 31, 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 |
|
|
|
|
|
|
| 626.5 |
Net Debt |
|
|
|
|
|
| $ | 1,009.7 |
Adjusted Shares Outstanding | (2) |
|
|
|
|
|
| 244.7 |
Market Capitalization | (3) |
|
|
|
|
| $ | 6,115.1 |
Total Capitalization |
|
|
|
|
|
| $ | 7,124.8 |
(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 December 31, 2025, approximately 100% of the Company's debt was fixed. | |
(2) | See "Adjusted Common Shares Outstanding at December 31, 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 $24.99 at December 31, 2025. |
Contacts
Investor Relations Contact:
Varun Gokarn
Vice President, Strategy and Integration
Element Solutions Inc
1-203-952-0369
IR@elementsolutionsinc.com
Media Contact:
Scott Bisang / Ed Hammond / Tali Epstein
Collected Strategies
1-212-379-2072
esi@collectedstrategies.com
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