Element Solutions (ESI) Q4 2025 earnings summary

Executive summary

• Achieved record net sales of $2.55 billion, adjusted EBITDA of $548 million, and adjusted EPS of $1.49 in 2025, driven by strong electronics demand and operational excellence.

• Electronics segment outpaced market growth with double-digit organic growth in all business verticals, supported by data center and high-performance computing demand.

• Completed acquisitions of EFC Gases & Advanced Materials and Micromax, expanding the electronics technology portfolio to approximately $2 billion.

• Divested graphics business, including MacDermid Graphics Solutions, redeploying capital into electronics-focused adjacencies and realizing a $66.5 million gain.

Financial highlights

• Full-year 2025 net sales were $2.55 billion, up 6% organically and 4% reported; adjusted EBITDA was $548 million, up 7% constant currency, excluding divestitures.

• Adjusted EPS for 2025 was $1.49, up 3% year-over-year; GAAP EPS was $0.79.

• Q4 2025 net sales grew 8% to $676 million; adjusted EBITDA for Q4 was $136 million, up 8% year-over-year.

• Free cash flow for 2025 was $255.8 million; adjusted free cash flow was $256 million.

Outlook and guidance

• 2026 adjusted EBITDA guidance is $650–$670 million, including contributions from EFC and Micromax acquisitions.

• Adjusted EPS for 2026 expected to grow mid to high teens, with guidance of $1.70–$1.75.

• Capital expenditures expected at $75 million in 2026, supporting innovation and capacity expansion.

• Free cash flow conversion targeted at approximately 50% of EBITDA.