Element Solutions Inc Reports Strong 2025 Performance and Sets Optimistic 2026 Outlook
Overview of 2025 Financial Results
Element Solutions Inc, a global specialty chemicals technology company, released its financial results for both the fourth quarter and full year ending December 31, 2025. The company delivered record operational performance during the year, supported primarily by strong demand in datacenter infrastructure and high-performance computing markets. Growth in its Electronics segment offset continued weakness in certain Western industrial markets and the impact of divestitures completed earlier in the year.
Across 2025, the company achieved record adjusted EBITDA and sustained organic net sales expansion, highlighting the effectiveness of its strategy to focus on high-value, fast-growing technology niches. Strategic acquisitions announced late in the year and finalized in early 2026 are expected to further strengthen its presence in advanced electronics supply chains.
Executive Commentary
Chief Executive Officer Benjamin Gliklich described 2025 as a milestone year marked by operational excellence, disciplined capital allocation, and accelerating demand in advanced electronics markets. He emphasized that double-digit organic growth in the Electronics business—driven by datacenter and high-performance computing applications—demonstrates the company’s ability to support rapid technological innovation and shorter development cycles.
Gliklich also highlighted the company’s balanced approach to portfolio management. During the year, Element Solutions improved productivity within existing businesses, made targeted commercial and technical investments, divested a lower-value graphics unit, and pursued acquisitions that expand exposure to higher-growth categories. Even in weaker end markets, profitability improved.
Looking ahead to 2026, management expects market conditions similar to late 2025: strong demand in leading-edge computing applications alongside slower industrial activity. With contributions from newly acquired businesses, the company forecasts adjusted EBITDA between $650 million and $670 million and adjusted EPS growth in the mid-to-high-teens percentage range—positioning 2026 to potentially surpass the record set in 2025.
Fourth Quarter 2025 Performance
Net sales for the fourth quarter reached $676 million, representing an 8% year-over-year increase, while organic net sales grew 10%. Segment performance varied:
- MacDermid Alpha Electronics Solutions (Electronics):
Revenue rose 21% to $487 million, with organic growth of 13%, reflecting robust demand from advanced computing and semiconductor-related markets. - Element Specialties (Specialties):
Net sales declined 15% to $189 million, largely due to divestitures accounting for 22% of the decrease. However, organic growth remained positive at 4%.
Profitability metrics showed mixed results. GAAP diluted EPS fell to $0.03 from $0.23 in the prior-year quarter, while adjusted EPS improved slightly to $0.37 from $0.35. Reported net income declined sharply to $6 million, reducing the net income margin to 0.9%.
Adjusted EBITDA increased 5% year over year to $136 million, though margin slipped modestly to 20.2%. Electronics generated $95 million of adjusted EBITDA (up 10%), whereas Specialties produced $41 million (down 5%), partly reflecting the divestiture of MacDermid Graphics Solutions.
Full-Year 2025 Results
For the full year, Element Solutions reported net sales of $2.55 billion, a 4% increase from 2024, with organic growth of 6%.
- Electronics:
Revenue climbed 14% to $1.79 billion, with 10% organic growth driven by advanced technology demand. - Specialties:
Sales declined 15% to $765 million due to divestitures, though organic growth remained slightly positive at 1%.
GAAP diluted EPS for 2025 was $0.79, down from $1.00 in 2024, while adjusted EPS rose to $1.49 from $1.44. Net income totaled $191 million, a 22% decrease year over year, and the net income margin declined to 7.5%.
Adjusted EBITDA reached $548 million, up 2% from 2024. Electronics contributed $382 million (up 6%), while Specialties generated $165 million (down 5%), again affected by the graphics business sale. Overall adjusted EBITDA margin edged down to 21.5%.
2026 Financial Guidance
Management projects continued growth in 2026, supported by acquisitions and stable macroeconomic assumptions. Full-year adjusted EBITDA is expected between $650 million and $670 million, assuming current exchange rates and metal prices, and adjusted EPS is forecast to grow in the mid-to-high teens percentage range.
For the first quarter of 2026 alone, adjusted EBITDA is projected between $140 million and $155 million, signaling continued operational momentum entering the new fiscal year.
Strategic Portfolio Actions and Capital Allocation
Divestiture of Graphics Business
On February 28, 2025, the company completed the sale of MacDermid Graphics Solutions for approximately $320 million, net of disposed cash. The transaction generated a gain of $66.5 million and aligned the portfolio more closely with higher-growth electronics markets.
Acquisition of Advanced Materials and Electronics Suppliers
Element Solutions finalized two acquisitions early in 2026:
- EFC Gases & Advanced Materials – Acquired January 2, 2026, for roughly $369 million plus a potential performance-based earn-out. The business provides high-purity specialty gases and advanced materials used in semiconductor and electronics manufacturing.
- Micromax – Acquired February 2, 2026, for about $500 million. Micromax supplies advanced inks and pastes critical to electronics production, further strengthening Element Solutions’ technology portfolio.
To finance part of the Micromax transaction, the company issued $450 million in add-on term loans and expanded its revolving credit facility to $500 million, extending maturity to 2031.
Shareholder Returns
Element Solutions continued returning capital to shareholders through dividends and share repurchases. The board declared a quarterly cash dividend of $0.08 per share payable in March 2026. During 2025, total cash dividends distributed reached approximately $77.8 million.
Additionally, the company repurchased 1.2 million shares for $25 million in 2025, leaving about $556 million authorized for future repurchases at year-end.
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 several key industries, including consumer electronics, power electronics, semiconductor fabrication, communications and data storage infrastructure, automotive systems, industrial surface finishing and offshore energy.
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