Element Solutions Reports Record Third-Quarter 2025 Results and Strong Outlook for Full Year
(NYSE: ESI), a leading global specialty chemicals company, today announced record results for the third quarter of 2025, highlighting continued execution on its strategic priorities and consistent earnings growth despite a mixed global macroeconomic environment.
CEO Commentary
Benjamin Gliklich, Chief Executive Officer of Element Solutions Inc, commented on the company’s performance:
Element Solutions’ strong 2025 continued in the third quarter with record adjusted EBITDA, even after the divestiture of our Graphics business. In a mixed macroeconomic backdrop, our like-for-like adjusted EBITDA growth of 10% year-over-year demonstrates the strength of our execution and strategic discipline. The solid implementation of our strategy — to focus on the fastest-growing, highest-value pockets of our markets — continues to pay off for our electronics business, which has now delivered its sixth consecutive quarter of high single-digit organic revenue growth.
Gliklich added that the company’s Electronics segment achieved record revenue this quarter, supported by strong demand for data center infrastructure and seasonal production increases in smartphones.
While certain markets like power electronics softened, demand driven by cloud infrastructure and data-center expansion pushed our Electronics segment to all-time high sales. Meanwhile, our Industrial & Specialty segment grew earnings in a sluggish macro environment through procurement and productivity improvements, portfolio optimization, and the continued outperformance of our Energy Solutions business. Overall, it was an exceptional quarter.
Looking ahead, Gliklich reinforced confidence in the company’s growth trajectory:
The consistent execution and favorable market conditions that drove our third-quarter performance should continue through the end of 2025. We are therefore narrowing our full-year adjusted EBITDA guidance to the top end of our prior range. While the Micromax acquisition announced today will not impact results this year, it will add meaningfully to earnings growth in 2026. In parallel, we continue to pursue opportunities such as Kuprion commercialization, new product launches, and potential bolt-on acquisitions to accelerate growth.
He concluded:
As we celebrate record quarterly results and announce an exciting new strategic addition with Micromax, I want to thank my colleagues around the world for their dedication and excellence. Our ability to balance organic operational strength with disciplined capital allocation speaks to the quality of our team and reinforces my conviction in Element Solutions’ bright future.
Third Quarter 2025 Highlights
Financial Performance:
- Net sales: $656 million, up 2% year-over-year; organic net sales increased 5%.
- Net income: $39 million compared with $40 million in Q3 2024, down 3%.
- Net income margin: 6.0%, down 30 basis points from the prior-year period.
- GAAP diluted EPS: $0.16 (versus $0.17 in Q3 2024).
- Adjusted EPS: $0.41 (up from $0.39 a year earlier).
- Adjusted EBITDA: $147 million (vs. $143 million in Q3 2024); on a constant-currency basis, up 1%.
- Adjusted EBITDA margin: 22.4%, an increase of 30 basis points year-over-year.
Despite headwinds from divestitures and certain soft end-markets, Element Solutions delivered its highest-ever adjusted EBITDA, reflecting disciplined cost management, portfolio focus, and strong underlying demand in core growth segments.
Segment Performance
Electronics Segment
The Electronics segment, which serves customers in semiconductor packaging, circuit board assembly, and other advanced technology markets, achieved record results.
- Net sales: $465 million (up 11% year-over-year).
- Organic net sales: +7%.
- Adjusted EBITDA: $102 million (up 3%).
- On a constant-currency basis, adjusted EBITDA increased 1%.
Growth was fueled by continued strength in demand for electronics used in data-center and cloud-computing infrastructure, along with the seasonal ramp-up in smartphone production. The segment also benefited from new customer programs and favorable product mix.
While some softness was noted in power electronics and certain industrial applications, the electronics business continued to outperform broader industry trends — achieving its sixth consecutive quarter of high single-digit organic revenue growth.
Gliklich highlighted that the segment’s focus on high-value technology solutions and customer partnerships remains a key differentiator:
Our strategy to align with customers in high-growth segments like data centers, next-generation mobile devices, and semiconductor fabrication continues to prove successful. We’re building a portfolio that thrives in the digital transformation era.
Industrial & Specialty Segment
The Industrial & Specialty segment, which includes surface finishing, energy, and industrial process chemicals, reported mixed results as macroeconomic softness persisted in several end-markets.
- Net sales: $191 million (down 16% year-over-year).
- Adjusted EBITDA: $45 million (up 3%).
- On a constant-currency basis, adjusted EBITDA also rose 1%.
The decline in reported sales primarily reflected the divestiture of the MacDermid Graphics Solutions business, which accounted for approximately 17% of the reduction in segment revenue and had a 21% negative impact on constant-currency adjusted EBITDA growth.
Despite lower top-line results, profitability improved as the segment executed on procurement savings, productivity enhancements, and portfolio optimization initiatives. Continued strong performance from the Energy Solutions unit further supported earnings resilience.
Record Profitability and Margin Expansion
Element Solutions achieved record adjusted EBITDA of $147 million in the quarter, underscoring its focus on efficiency, cost control, and strategic mix improvement. On a constant-currency basis, adjusted EBITDA grew 1%, and margins expanded by 30 basis points to 22.4%.
This performance is notable given the absence of contributions from the divested Graphics business and the uneven macro landscape. The results demonstrate the company’s ability to sustain earnings growth even amid shifting end-market dynamics.
Full-Year 2025 Outlook
Building on its strong first nine months, Element Solutions has tightened its full-year 2025 guidance to the top of the previous range:
- Adjusted EBITDA: $545 million – $550 million.
- Adjusted Free Cash Flow: ~$280 million.
The revised outlook reflects management’s confidence in continued execution across both segments, balanced capital deployment, and the integration of recently completed strategic initiatives.
While the newly announced Micromax acquisition will not contribute to earnings in 2025, it is expected to add meaningfully to earnings growth in 2026. The transaction aligns with Element Solutions’ strategy to expand its presence in high-growth specialty chemical niches serving the electronics and communications sectors.
Strategic Growth Initiatives
Element Solutions continues to advance multiple initiatives aimed at long-term growth and innovation:
- Kuprion Commercialization: The company is preparing to scale commercialization of Kuprion, a next-generation materials technology platform offering advanced electrical performance in microelectronics applications.
- Product Innovation: New product launches in semiconductor chemistry, energy solutions, and industrial coatings are expected to support incremental organic growth.
- M&A Discipline: The Micromax acquisition and a pipeline of additional bolt-on opportunities reflect the company’s continued focus on strategic, value-accretive capital allocation.
Gliklich noted that these initiatives strengthen Element Solutions’ foundation for future performance:
Our strategy is designed for sustainable value creation — balancing innovation-driven organic growth with targeted M&A that expands our capabilities in high-margin markets.
About Element Solutions Inc
Element Solutions Inc (NYSE: ESI) is a leading specialty chemicals technology company that formulates and supplies a wide range of high-performance solutions enabling advanced manufacturing processes.
The company’s products enhance performance, reliability, and efficiency in end-markets such as:
- Consumer and Power Electronics
- Semiconductor Fabrication
- Data Storage and Communications Infrastructure
- Automotive and Industrial Systems
- Surface Finishing and Offshore Energy
Through a combination of deep technical expertise, collaborative innovation, and a global manufacturing footprint, Element Solutions delivers tailored chemistries that improve the functionality and sustainability of the world’s most essential technologies.
Headquartered in Miami, Florida, Element Solutions operates across more than 50 countries and serves thousands of customers through its brands including MacDermid Alpha Electronics Solutions, MacDermid Enthone Industrial Solutions, and Enthone Energy Solutions.
This press release contains forward-looking statements regarding Element Solutions’ financial outlook, market expectations, and strategic initiatives, including the anticipated benefits of the Micromax acquisition and other growth programs. These statements are based on management’s current assumptions and are subject to risks and uncertainties that may cause actual results to differ materially. Such factors include changes in macroeconomic conditions, customer demand, foreign exchange rates, and raw material costs. Element Solutions undertakes no obligation to update forward-looking statements except as required by law.
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