Element Solutions Inc

Latest Results (02.04.2026):

Element Solutions Inc — results for the fourth quarter and full year ended December 31, 2025: the company reported a record year overall with full‑year 2025 net sales of $2.55 billion (up 4% reported, 6% organic), reported net income of $191 million (GAAP diluted EPS $0.79) and adjusted EBITDA of $548 million (adjusted EPS $1.49). For Q4 2025, net sales were $676 million (up 8% reported, 10% organic), reported net income was $6 million (GAAP diluted EPS $0.03) and adjusted EBITDA was $136 million (adjusted EPS $0.37). Management introduced 2026 guidance of $650–$670 million for full‑year adjusted EBITDA and first‑quarter 2026 adjusted EBITDA of $140–$155 million.

Top‑line & organic growth

Q4 2025 net sales were $676.2M (+8% reported, +10% organic). Full‑year 2025 net sales were $2.551B (+4% reported, +6% organic). Electronics was the growth engine: FY Electronics sales $1.786B (+14% reported, +10% organic); Q4 Electronics sales $487.3M (+21% reported, +13% organic). Specialties declined on a reported basis (FY $765.0M, -15%) largely due to divestitures, while organic Specialties sales were up ~1% for the year.

Profitability & EPS

Full‑year 2025 reported net income was $191M (GAAP diluted EPS $0.79) versus $245M and $1.00 in 2024. Adjusted net income produced adjusted EPS of $1.49 for 2025 (vs. $1.44 in 2024). Q4 saw a sharp drop in reported net income to $6M (Q4 2024: $55M), producing GAAP EPS $0.03, while Q4 adjusted EPS was $0.37 (slightly above prior year $0.35).

Adjusted EBITDA & margins

Adjusted EBITDA was $547.6M for FY 2025 (+2% vs. 2024) and $136.3M in Q4 (+5% vs. Q4 2024). Adjusted EBITDA margin was 21.5% for the year (down 30 bps) and 20.2% in Q4 (down 60 bps). Electronics adjusted EBITDA was $382.2M for the year (+6%) and $95.3M in Q4 (+10%); Specialties adjusted EBITDA was $165.4M for the year (-5%) and $41.0M in Q4 (-5%), with the sale of MacDermid Graphics Solutions weighing on Specialty results.

Segments — Electronics strength

Electronics delivered double‑digit reported growth and consistent organic gains (nearly two years of high‑single‑digit quarterly organic growth per management). Management cited datacenter and high‑performance computing demand as drivers. Electronics accounted for roughly 70% of FY sales and the majority of adjusted EBITDA growth.

Balance sheet and cash flow

Cash and cash equivalents were $626.5M at year‑end 2025. Total debt was ~$1.64B (net debt ~$1.01B). Operating cash flow for FY 2025 was $289.8M; free cash flow was $255.8M after capex of $62.2M. The company repurchased 1.2M shares for $25M in 2025 and returned ~$77.8M in dividends for the year.

Capital allocation & recent financing

Element completed the sale of MacDermid Graphics Solutions in Feb 2025 (~$320M net proceeds, $66.5M gain), repurchased shares and paid dividends in 2025, and in early 2026 closed the EFC (Jan 2) and Micromax (Feb 2) acquisitions (~$369M and ~$500M purchase prices, respectively). To fund Micromax, the company syndicated $450M of add‑on term loans and upsized/extended its revolver to $500M (maturity extended to 2031).

2026 outlook

Management expects full‑year 2026 adjusted EBITDA of $650–$670M (inclusive of Micromax and EFC contributions at current FX and metal prices) and adjusted EPS growth in the mid‑to‑high teens. Q1 2026 adjusted EBITDA guidance is $140–$155M. Management characterizes 2026 market conditions as similar to late 2025 — stronger in high‑performance computing and datacenter end markets, weaker in industrial end markets.