Element Solutions Inc Raises Outlook for Q2 and Full Year 2025 Amid Strong Market Performance
Element Solutions Inc (“ESI” or the “Company”), a global diversified specialty chemicals company, today announced an upward revision to both its second quarter and full-year 2025 financial guidance, citing stronger-than-expected performance across key growth markets and favorable macroeconomic trends.
For the second quarter of 2025, the Company now anticipates net income in the range of $45 million to $55 million. Adjusted EBITDA for the quarter is projected to reach approximately $135 million, which represents a significant increase from the previously announced guidance range of $120 million to $125 million. This strong second quarter outlook reflects the Company’s continued operational strength and successful strategic positioning in high-growth sectors.
In tandem with the revised quarterly outlook, ESI has also raised its full-year adjusted EBITDA guidance. The Company now expects adjusted EBITDA for fiscal year 2025 to fall within the range of $530 million to $550 million, up from its earlier projection of $520 million to $540 million. This revision underscores the Company’s growing confidence in the durability and sustainability of its earnings momentum.
CEO Commentary Highlights Resilient Execution and Growth Across Strategic Markets
President and Chief Executive Officer Benjamin Gliklich commented on the updated outlook, stating:
“Our ability to penetrate the fastest-growing subsegments of our markets continues to drive exceptional results. This quarter, our performance was significantly boosted by robust demand from data center customers and advanced semiconductor foundries. These customers, aligned with the accelerating digital transformation and the expansion of artificial intelligence infrastructure, are propelling our growth trajectory.”
Gliklich added that capacity expansions throughout ESI’s global supply chain are enabling the Company to meet increasing customer demand, particularly from sectors tied to AI and data infrastructure development.
“The ongoing investment in new capacity to support AI and network infrastructure gives us strong conviction that our recent gains are rooted in sustainable market demand rather than temporary inventory movements or trade-related distortions. This reinforces our belief that the strength we are seeing is structural, not cyclical.”
He also highlighted the resilience of ESI’s broader portfolio, noting that even in more industrially exposed segments, the Company has been able to preserve and enhance value through effective pricing strategies, strategic procurement, and disciplined productivity initiatives.
“Currency movements have also shifted in our favor this quarter, contributing to our improved outlook. In an environment that remains uncertain and uneven from a macroeconomic perspective, our teams continue to execute with discipline and agility. Our operating model, backed by a talented and experienced workforce, is delivering strong and consistent results for all our stakeholders,” Gliklich said.
Updated Financial Outlook Reflects Strength Across Core Business Areas
The Company’s updated forecast suggests strong performance momentum heading into the second half of 2025. The improved second quarter expectations—highlighting an adjusted EBITDA projection of $135 million—represent a notable increase over the previous forecast and underscore the operational and strategic strides ESI has made.
The decision to raise the full-year adjusted EBITDA guidance by $10 million at the midpoint—from the original range of $520 million to $540 million to a new range of $530 million to $550 million—reflects the Company’s confidence in its long-term value creation initiatives and market positioning.
This guidance increase comes at a time when many global companies are navigating an environment marked by persistent inflationary pressures, evolving trade dynamics, and fluctuating currency conditions. ESI’s performance and revised projections indicate its ability to not only weather such challenges but also thrive amid them.
