Element Solutions Inc Reports Strong Growth in Second Quarter 2025 Financial Results

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Element Solutions Inc, a global and diversified specialty chemicals company, today announced its financial results for the three and six months ended June 30, 2025.

Executive Commentary

President and Chief Executive Officer Benjamin Gliklich commented, “Element Solutions had an outstanding second quarter. We continued to execute well against our strategy of penetrating the fastest growing niches in our available markets and driving a culture of continuous improvement in our operations. This was the fifth consecutive quarter of high-single digit organic growth in our Electronics segment. The electronics market has bifurcated between fast growing, advanced technologies and lagging legacy applications. Our growth demonstrates the traction we have gained in the areas that are driving our markets forward. Our solutions are helping to solve emerging customer pain points associated with power and thermal management in increasingly complex circuit board and chip designs. In our industrially exposed businesses, where the markets have been more challenging, we continue to drive profits through commercial, procurement and productivity activities.”

Mr. Gliklich continued, “Global trade dynamics remain volatile. We are fortunate to have a geographically broad yet also localized sourcing, manufacturing and technical footprint that is close to our customers. This has allowed us to minimize the impact of higher tariffs on our cost structure so far, and we expect it to help us mitigate the impact of potential new tariffs going forward. Our recently increased 2025 adjusted EBITDA guidance range demonstrates our ability to navigate the current tariff environment without sacrificing growth. It also takes into consideration potential - though thus-far not evident - demand weakness in the second half as well as the benefit of an expected favorable foreign exchange impact over the balance of the year. Cash flow remains solid, and our balance sheet capacity continues to grow. We are well-positioned and remain optimistic as we look ahead.”

Second Quarter 2025 Highlights (compared with second quarter 2024)

• Net sales on a reported basis for the second quarter of 2025 were $625 million, an increase of 2% over the second quarter of 2024. Organic net sales increased 6%.
  • Electronics: Net sales increased 12% to $439 million. Organic net sales increased 9%.
  • Industrial & Specialty: Net sales decreased 16% to $186 million, of which 17% resulted from divestitures. Organic net sales increased 1%.
• Second quarter of 2025 earnings per share (EPS) performance:
  • GAAP diluted EPS was $0.20, as compared to $0.38 for the same period last year.
  • Adjusted EPS was $0.37, as compared to $0.36 for the same period last year.
• Reported net income for the second quarter of 2025 was $48 million, as compared to $93 million for the second quarter of 2024, a decrease of 49%.
  • Net income margin decreased by 760 basis points to 7.6%.
• Adjusted EBITDA for the second quarter of 2025 was $136 million, as compared to $135 million for the second quarter of 2024. On a constant currency basis, adjusted EBITDA remained relatively flat.
  • Electronics: Adjusted EBITDA was $97 million, an increase of 5%. On a constant currency basis, adjusted EBITDA increased 3%.
  • Industrial & Specialty: Adjusted EBITDA was $40 million, a decrease of 8%. On a constant currency basis, adjusted EBITDA decreased 7%. Excluding the impact of the divested MacDermid Graphics Solutions business in both periods, adjusted EBITDA would have grown 10%.
  • Adjusted EBITDA margin decreased by 40 basis points to 21.7%. On a constant currency basis, adjusted EBITDA margin decreased by 40 basis points.

2025 Guidance

The Company expects full year 2025 adjusted EBITDA to be in the range of $530 million to $550 million and free cash flow conversion to be comparable to the previous year. In addition, the Company expects third quarter 2025 adjusted EBITDA to be in the range of $140 million to $145 million.

Recent Developments

Stock Repurchase Program - During the three months ended June 30, 2025, the Company repurchased 0.9 million shares of its common stock at an average price of $20.45 for approximately $19.5 million. The remaining authorization under its stock repurchase program was approximately $562 million at June 30, 2025.

Shelf Registration Statement - On July 30, 2025, the Company filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission to replace its expired shelf registration statement filed on July 27, 2022. This registration statement was a routine filing and became effective upon filing.