Alekski Ufremo's questions to Element Solutions Inc (ESI) leadership • Q2 2025
Question
On behalf of Alekski Ufremo from KeyBanc Capital Markets, a question was asked about whether an end to China's EV price wars could benefit the ArgoMax business and for an explanation of the year-over-year decline in Electronics EBITDA margins, excluding metal pass-throughs.
Answer
President & CEO Benjamin Gliklich responded that while a shift to higher-quality EVs would be a positive, ArgoMax's value is not heavily tied to vehicle price. EVP & CFO Carey Dorman explained the margin decline was driven by a shift in corporate cost allocation after the Graphics divestiture and incremental OpEx for R&D, which should normalize sequentially in the second half.