Element Solutions Announces 2025 Q4 and Full Year Financial Results

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Element Solutions Inc, a global and diversified specialty chemicals technology company, 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.