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Element Solutions Inc Reports Record Quarterly Results and Increases 2026 Full Year Guidance

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 months ended March 31, 2026.

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Executive Commentary

Chief Executive Officer Benjamin Gliklich commented, “Element Solutions had an outstanding start to the year. We delivered double-digit organic net sales growth and strong margin expansion while ramping our investments to keep pace with customer innovation. The technical requirements in datacenter hardware and other high-performance electronics keep increasing, and our business is providing ever more critical solutions to challenges in thermal management, power density and advanced packaging applications. Along with the pace of innovation, the pace of activity in the electronics supply chain accelerated in Q1 to support AI infrastructure build-out. Customer orders and their go-forward forecasts increased materially, and our Electronics portfolio's net sales grew 15% organically. We are investing to keep up with the supply chain demands, whether that is inventory to support customer volumes, additional capacity in certain product lines or innovation to remain on the leading edge. Across all of these vectors, our investment is customer-led and supporting durable growth trends. Our largest recent investments - the EFC and Micromax acquisitions - closed this quarter, and their results are tracking favorably to our original plans. More importantly, their teams are settling well into our organization and energized by the opportunities our platform will provide them to better serve their customers.”

Mr. Gliklich continued, “Our organic acceleration in the first quarter gives us confidence in a strong year, despite a more complex macro environment than anticipated. We already see inflationary pressure driven by current geopolitical events and expect increased variance in quarterly earnings driven by swings in metals prices, although those benefitted us in Q1. We have a flexible operating model and a demonstrated track-record of agility, whether that relates to sourcing, pricing or cost management. We are already taking action to preserve our profitability and our ability to service customers. At the same time, the underlying demand in the high-end electronics market remains quite strong. Given the strong positions we have established in the fastest-growing, highest-value niches of these markets and our expectation that we can continue to nimbly manage through current supply chain disruptions, we are raising our adjusted EBITDA guidance for the full year.”

1 Adjusted EBITDA margin is now defined as adjusted EBITDA divided by net sales excluding the value of certain pass-through metals. This change in calculation is also reflected in the prior comparison figures.

First Quarter 2026 Highlights (compared with first quarter 2025)

  • Net sales on a reported basis for the first quarter of 2026 were $840 million, an increase of 41% over the first quarter of 2025. Organic net sales increased 10%.
    • Electronics: Net sales increased 61% to $634 million, of which 16% resulted from acquisitions. Organic net sales increased 15%.
    • Specialties: Net sales increased 4% to $207 million, which were negatively impacted by 3% from divestitures net of acquisitions. Organic net sales increased 1%.
  • First quarter of 2026 earnings per share (EPS) performance:
    • GAAP diluted EPS was $0.23, as compared to $0.40 for the same period last year.
    • Adjusted EPS was $0.41, as compared to $0.34 for the same period last year.
  • Reported net income for the first quarter of 2026 was $56 million, as compared to $98 million for the first quarter of 2025, a decrease of 43%.
    • Net income margin decreased by 980 basis points to 6.7%.
  • Adjusted EBITDA for the first quarter of 2026 was $162 million, as compared to $128 million for the first quarter of 2025. On a constant currency basis, adjusted EBITDA increased 21%.
    • Adjusted EBITDA would have been $170 million if the Micromax acquisition had closed on January 1, 2026.
    • Electronics: Adjusted EBITDA was $119 million, an increase of 34%. On a constant currency basis, adjusted EBITDA increased 29%. The Micromax business had a positive impact of 11% on constant currency adjusted EBITDA growth.
    • Specialties: Adjusted EBITDA was $43 million, an increase of 9%. On a constant currency basis, adjusted EBITDA increased 3%. The EFC Gases & Advanced Materials business had a positive impact of 9% on constant currency adjusted EBITDA growth. The MacDermid Graphics Solutions business had a negative impact of 13% on constant currency adjusted EBITDA growth.
    • Adjusted EBITDA margin increased by 170 basis points to 27.8%.

Updated 2026 Guidance

The Company now expects full year 2026 adjusted EBITDA to be in the range of $665 million to $685 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 high teens. In addition, the Company expects second quarter 2026 adjusted EBITDA to be between $155 million and $170 million.

2026 Virtual Investor Day

The Company plans to hold a Virtual Investor Day at 9 a.m. (Eastern Time) on Monday, May 18, 2026. Attendees can register for the event and view the webcast on the Company's Investor Relations website at www.elementsolutionsinc.com. Dial-in details and the slide presentation will be made available closer to the event. An audio replay will be posted on the Company's Investor Relations website following the event.

Recent Developments

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 $493 million, net of cash and subject to adjustments.

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 $367 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 shares of the Company's common stock.

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 $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.

Conference Call

Element Solutions will host a webcast/dial-in conference call to discuss its 2026 first quarter financial results at 8:30 a.m. (Eastern Time) on Wednesday, April 29, 2026. 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 888-715-9871 (domestic) or 646-307-1963 (international) and provide the Conference ID: 5315411. 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 multiple high-value industries, including semiconductor fabrication, high-performance computing, automotive systems, consumer electronics, power electronics, communications and data storage infrastructure, aerospace and defense, 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 investments; customer innovation; expected benefits of recent acquisitions, including their contributions to the Company's full year 2026 adjusted EBITDA; metals prices volatility; capital deployment; profitability; market trends; conditions and demand expectations; second quarter and full year 2026 guidance for adjusted EBITDA; and full year 2026 adjusted EPS growth expectations. 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 Iran 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, 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; the Company's liquidity, cash flows and capital allocation; funding sources; 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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

Three Months Ended March 31,

(dollars in millions, except per share amounts)

 

2026

 

 

 

2025

 

Net sales

840.0

 

 

593.7

 

Cost of sales

 

517.3

 

 

 

343.2

 

Gross profit

 

322.7

 

 

 

250.5

 

Operating expenses:

 

 

 

Selling, technical, general and administrative

 

191.1

 

 

 

157.2

 

Research and development

 

20.2

 

 

 

15.9

 

Total operating expenses

 

211.3

 

 

 

173.1

 

Operating profit

 

111.4

 

 

 

77.4

 

Other (expense) income:

 

 

 

Interest expense, net

 

(21.5

 

 

(14.3

Foreign exchange losses

 

(0.9

 

 

(6.3

Other expense, net

 

(6.3

 

 

(13.1

Gain on divestitures

 

 

 

 

72.1

 

Total other (expense) income

 

(28.7

 

 

38.4

 

Income before income taxes and non-controlling interests

 

82.7

 

 

 

115.8

 

Income tax expense

 

(26.7

 

 

(17.8

Net income

 

56.0

 

 

 

98.0

 

Net income attributable to non-controlling interests

 

(0.1

 

 

 

Net income attributable to common stockholders

55.9

 

 

98.0

 

 

 

 

 

Earnings per share

 

 

 

Basic

0.23

 

 

0.40

 

Diluted

0.23

 

 

0.40

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

Basic

 

243.2

 

 

 

242.4

 

Diluted

 

243.7

 

 

 

243.0

 

ELEMENT SOLUTIONS INC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

March 31,

 

December 31,

(dollars in millions)

 

2026

 

 

 

2025

 

Assets

 

 

 

Cash and cash equivalents

177.3

 

 

626.5

 

Accounts receivable, net of allowance for doubtful accounts of $10.0 and $9.4 at March 31, 2026 and December 31, 2025, respectively

 

676.9

 

 

 

517.7

 

Inventories

 

421.6

 

 

 

294.7

 

Prepaid expenses

 

30.0

 

 

 

28.3

 

Other current assets

 

152.6

 

 

 

115.3

 

Total current assets

 

1,458.4

 

 

 

1,582.5

 

Property, plant and equipment, net

 

403.3

 

 

 

319.6

 

Goodwill

 

2,535.5

 

 

 

2,241.9

 

Intangible assets, net

 

1,029.4

 

 

 

657.2

 

Deferred income tax assets

 

166.0

 

 

 

175.5

 

Other assets

 

145.2

 

 

 

124.7

 

Total assets

5,737.8

 

 

5,101.4

 

Liabilities and stockholders' equity

 

 

 

Accounts payable

180.8

 

 

165.5

 

Current installments of long-term debt and revolving credit facilities

 

97.9

 

 

 

 

Accrued expenses and other current liabilities

 

264.9

 

 

 

264.4

 

Total current liabilities

 

543.6

 

 

 

429.9

 

Debt

 

2,058.7

 

 

 

1,625.9

 

Pension and post-retirement benefits

 

21.5

 

 

 

22.3

 

Deferred income tax liabilities

 

109.8

 

 

 

93.1

 

Other liabilities

 

254.4

 

 

 

240.8

 

Total liabilities

 

2,988.0

 

 

 

2,412.0

 

Stockholders' equity

 

 

 

Common stock: 400.0 shares authorized (2026: 270.5 shares issued; 2025: 269.6 shares issued)

 

2.7

 

 

 

2.7

 

Additional paid-in capital

 

4,287.7

 

 

 

4,279.2

 

Treasury stock (2026: 26.9 shares; 2025: 26.9 shares)

 

(394.0

 

 

(393.9

Accumulated deficit

 

(868.5

 

 

(904.6

Accumulated other comprehensive loss

 

(292.9

 

 

(308.9

Total stockholders' equity

 

2,735.0

 

 

 

2,674.5

 

Non-controlling interests

 

14.8

 

 

 

14.9

 

Total equity

 

2,749.8

 

 

 

2,689.4

 

Total liabilities and stockholders' equity

5,737.8

 

 

5,101.4

 

ELEMENT SOLUTIONS INC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

Three Months Ended

 

March 31,

(dollars in millions)

 

2026

 

 

 

2025

 

Cash flows from operating activities:

 

 

 

Net income

56.0

 

 

98.0

 

Reconciliation of net income to net cash flows (used in) provided by operating activities:

 

 

 

Depreciation and amortization

 

42.5

 

 

 

37.2

 

Deferred income taxes

 

1.7

 

 

 

(4.8

Foreign exchange (gains) losses

 

(0.3

 

 

5.7

 

Incentive stock compensation

 

8.1

 

 

 

5.0

 

Gain on divestitures

 

 

 

 

(72.1

EFC contingent consideration

 

5.9

 

 

 

 

Other, net

 

5.4

 

 

 

4.5

 

Changes in assets and liabilities, net of acquisitions and divestitures:

 

 

 

Accounts receivable

 

(81.8

 

 

(12.8

Inventories

 

(93.2

 

 

(18.3

Accounts payable

 

11.3

 

 

 

19.3

 

Accrued expenses

 

7.0

 

 

 

(44.5

Prepaid expenses and other current assets

 

(11.8

 

 

(4.8

Other assets and liabilities

 

(17.4

 

 

13.6

 

Net cash flows (used in) provided by operating activities

 

(66.6

 

 

26.0

 

Cash flows from investing activities:

 

 

 

Capital expenditures

 

(25.1

 

 

(11.0

Proceeds from disposal of property, plant and equipment

 

 

 

 

0.1

 

Proceeds from divestitures (net of cash of $2.5 million)

 

 

 

 

322.9

 

Acquisitions, net of cash acquired

 

(864.2

 

 

 

Other, net

 

 

 

 

25.6

 

Net cash flows (used in) provided by investing activities

 

(889.3

 

 

337.6

 

Cash flows from financing activities:

 

 

 

Debt proceeds, net of discount

 

449.4

 

 

 

 

Repayments of borrowings

 

 

 

 

(202.6

Changes in lines of credit, net

 

85.0

 

 

 

 

Dividends

 

(20.2

 

 

(19.8

Payment of financing fees

 

(6.1

 

 

 

Other, net

 

(0.3

 

 

(4.9

Net cash flows provided by (used in) financing activities

 

507.8

 

 

 

(227.3

Effect of exchange rate changes on cash and cash equivalents

 

(1.1

 

 

3.5

 

Net (decrease) increase in cash and cash equivalents

 

(449.2

 

 

139.8

 

Cash and cash equivalents at beginning of period

 

626.5

 

 

 

359.4

 

Cash and cash equivalents at end of period

177.3

 

 

499.2

 

ELEMENT SOLUTIONS INC

ADDITIONAL FINANCIAL INFORMATION

(Unaudited)

I. SUMMARY RESULTS

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

(dollars in millions)

 

2026

 

 

2025

 

Reported

 

Constant Currency

 

Organic

Net Sales

Electronics

633.5

 

394.3

 

61

 

57

 

15

Specialties

 

206.5

 

 

199.4

 

4

 

(1

 

1

Total

$

840.0

 

$

593.7

 

41

%

 

37

%

 

10

%

 

 

 

 

 

 

 

 

 

 

Net Income

 

 

 

 

 

 

 

 

 

Total

$

56.0

 

$

98.0

 

(43

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

Electronics

119.1

 

88.9

 

34

 

29

 

 

Specialties

 

43.2

 

 

39.5

 

9

 

3

 

 

Total

$

162.3

 

$

128.4

 

26

%

 

21

%

 

 

 

Three Months Ended March 31,

 

 

2026

 

 

 

2025

 

 

Change

Net Sales ex-Metals

 

 

 

 

 

Electronics

633.5

 

 

394.3

 

 

61

Pass-through Metals

 

255.7

 

 

 

101.3

 

 

152

Electronics ex-Metals

$

377.8

 

 

$

293.0

 

 

29

%

 

 

 

 

 

 

Total Net Sales

840.0

 

 

593.7

 

 

41

Pass-through Metals

 

255.7

 

 

 

101.3

 

 

152

Net Sales ex-Metals

$

584.3

 

 

$

492.4

 

 

19

%

 

 

 

 

 

 

Net Income Margin

 

 

 

 

 

Total

 

6.7

%

 

 

16.5

%

 

(980)bps

 

 

 

 

 

 

Adjusted EBITDA Margin 1

 

 

 

 

 

Electronics

 

31.5

 

 

30.3

 

120bps

Specialties

 

20.9

 

 

19.8

 

110bps

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