Element Solutions Inc (ESI) is a global specialty chemicals company that develops and supplies advanced chemical solutions integral to the manufacturing processes of various industries. The company focuses on enhancing the performance and functionality of products used in everyday life, serving sectors such as electronics, automotive, aerospace, and energy. ESI's offerings include specialty chemicals and material process technologies that are consumed by customers during production, ensuring recurring revenue streams.
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Electronics - Provides specialty chemicals and material process technologies for electronics hardware, including complex printed circuit board designs and advanced semiconductor packaging. Operates through sub-segments:
- Assembly Solutions - Offers surface mount technologies, pastes, fluxes, and adhesives for joining circuitry pathways.
- Circuitry Solutions - Supplies wet chemistries for metallization, surface treatments, and solderable finishes.
- Semiconductor Solutions - Delivers advanced materials for semiconductor fabrication and packaging.
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Industrial & Specialty - Delivers specialty chemicals and material process technologies that enhance surfaces or improve industrial processes across sectors like automotive, aerospace, and energy. Operates through sub-segments:
- Industrial Solutions - Provides chemical systems for protecting and decorating metal and plastic surfaces.
- Graphics Solutions - Supplies consumable chemicals for printing image transfer on flexible packaging materials.
- Energy Solutions - Offers chemistries used in water-based hydraulic control fluids for offshore energy production.
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- With adjusted EBITDA margins experiencing a 30 basis points decline due to pass-through metal pricing, what additional cost management strategies are you planning to implement to protect margins in a persistently volatile environment?
- Given the strong electronics growth despite a challenging macro backdrop, how sustainable is this performance, and what are the key risks that could derail this momentum going forward?
- Your Q2 guidance is flat sequentially after the graphics sale; how would you adjust your cost structure and operational strategy if a significant demand drop emerged in the second half of 2025?
- In light of the recent tariff actions, could you provide more granular details on how much of your supply chain has been successfully localized, and what percentage of your cost exposure remains vulnerable to further tariff-induced increases?
- With a robust balance sheet and $500 million in cash, what specific criteria will you use to evaluate potential M&A opportunities versus share buybacks, and are there any target areas that you believe offer the most value-add?
Research analysts who have asked questions during Element Solutions earnings calls.
Bhavesh Lodaya
BMO Capital Markets
7 questions for ESI
John Ezekiel Roberts
Mizuho Securities
7 questions for ESI
Christopher Parkinson
Wolfe Research
5 questions for ESI
Michael Harrison
Seaport Research Partners
5 questions for ESI
Josh Spector
UBS Group
4 questions for ESI
Peter Osterland
Truist Securities
4 questions for ESI
David Silver
CL King & Associates
3 questions for ESI
Jonathan Tanwanteng
CJS Securities
3 questions for ESI
Alexi Misconish
KeyBanc Capital Markets
2 questions for ESI
Chris Parkinson
Wolfe Research, LLC
2 questions for ESI
Fran Mitsch
Fermium Research
2 questions for ESI
Jon Tanwanteng
CJS Securities
2 questions for ESI
Joshua Spector
UBS
2 questions for ESI
Pete Osterland
Truist Securities
2 questions for ESI
Rock Hoffman Blasko
Bank of America
2 questions for ESI
Alekski Ufremo
KeyBanc Capital Markets
1 question for ESI
Duffy Fischer
Goldman Sachs
1 question for ESI
Hakim Stample
Bank of America
1 question for ESI
James Cannon
UBS Securities
1 question for ESI
John Quentin
CJS Securities
1 question for ESI
Matthew Deo
Bank of America
1 question for ESI
Michael Leithead
Barclays
1 question for ESI
Steve Byrne
Bank of America
1 question for ESI
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
This competitor is significant in the specialty chemicals industry, competing with the Electronics segment of the company, which provides a broad line of proprietary chemical compounds and supporting services. | |
This competitor is significant in both the Electronics and Industrial & Specialty segments, competing within the specialty chemicals industry. | |
Henkel Corporation | This competitor is significant in the specialty chemicals industry, competing with the Electronics segment of the company. |
Senju Metal Industry Co. | This competitor is significant in the specialty chemicals industry, competing with the Electronics segment of the company. |
Uyemura International | This competitor is significant in the specialty chemicals industry, competing with the Electronics segment of the company. |
This competitor is significant in the Industrial & Specialty segment, competing within the specialty chemicals industry. | |
Miraclon Corp. | This competitor is significant in the Industrial & Specialty segment, competing within the specialty chemicals industry. |
XSYS Global | This competitor is significant in the Industrial & Specialty segment, competing within the specialty chemicals industry. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Kuprion, Inc. | 2023 | The acquisition was completed on May 19, 2023 with an initial purchase price of $15.9 million and potential milestone-based payments up to $259 million, aimed at enhancing the company’s next-generation nano-copper technology for semiconductor and electronics assembly markets; the deal also involved expensing $15.7 million in R&D due to the technology being in development. |
HSO group | 2022 | Completed on January 26, 2022 for approximately $23 million net of cash, the acquisition strategically fits within the Industrial Solutions business line by adding sustainable technology and chemistry for decorative and functional surface finishing, and it included recording about $11.7 million in finite-lived intangible assets primarily for customer relationships. |
Recent press releases and 8-K filings for ESI.
- Element Solutions Inc. (NYSE:ESI) has entered into a definitive agreement to acquire EFC Gases & Advanced Materials.
- EFC Gases & Advanced Materials is a leading supplier of high-purity specialty gases and advanced materials, serving industries such as semiconductor manufacturing, aerospace, and electrical infrastructure.
- The transaction is expected to close by the end of 2025, subject to regulatory approvals and customary closing conditions.
- Following the acquisition, EFC will continue to operate under its existing name as a distinct business within Element Solutions, leveraging Element's global infrastructure and technology platforms to accelerate growth.
- Element Solutions Inc. reported record quarterly adjusted EBITDA of $147 million in Q3 2025, a 3% increase year-over-year, with adjusted EPS growing 5% to $0.41.
- The company achieved 5% organic net sales growth in Q3 2025, primarily driven by 7% organic growth in the Electronics segment. Excluding the Graphics divestiture, adjusted EBITDA growth would have been 10%.
- Adjusted Free Cash Flow for Q3 2025 was $84 million, and the net debt to adjusted EBITDA ratio stood at 1.9x as of September 30, 2025.
- Element Solutions Inc. updated its full-year 2025 guidance, expecting Adjusted EBITDA between $545 million and $550 million, Adjusted EPS of approximately $1.45, and Free Cash Flow of approximately $280 million.
- The company announced the acquisition of a Micromax Electronics paste and inks business, which is projected to contribute ~$40 million to ESI's adjusted EBITDA based on projected 2025 results and is expected to close in Q1 2026.
- Element Solutions Inc reported record adjusted EBITDA of $147 million for Q3 2025, alongside 5% organic sales growth.
- The company announced the acquisition of Micromax, an electronics inks and pastes business, anticipated to be more than 5% accretive to adjusted EPS and contribute approximately $40 million of adjusted EBITDA on a full-year basis based on projected 2025 results.
- Full-year 2025 adjusted EBITDA guidance was raised to between $545 million and $550 million.
- The electronics segment achieved 7% organic growth in Q3 2025, driven by strong performance in semi and assembly, and exceptional volume growth in circuitry solutions, benefiting from AI-related investment.
- Pro forma net leverage at year-end 2025 is projected to be approximately 2.5 times, comfortably below the 3.5 times long-term target ceiling, indicating financial flexibility for future capital deployment.
- Element Solutions Inc (ESI) reported record Q3 2025 adjusted EBITDA, the highest since its inception, with the electronics segment achieving its sixth consecutive quarter of high single-digit organic growth and record revenue.
- The company announced the acquisition of Micromax, a strategic transaction expected to be more than 5% accretive to adjusted EPS and contribute approximately $40 million of adjusted EBITDA on a full-year basis based on projected 2025 results, with closing anticipated in Q1 2026.
- ESI updated its full-year 2025 adjusted EBITDA guidance to between $545 million and $550 million, representing the high end of its previous range, with Q4 adjusted EBITDA expected to be $135 million to $140 million.
- The net leverage ratio at the end of Q3 2025 was 1.9 times, and pro forma net leverage at year-end, including the Micromax acquisition, is projected to be approximately 2.5 times, well below the long-term target ceiling of 3.5 times.
- Element Solutions Inc reported record adjusted EBITDA of $147 million for Q3 2025, surpassing its initial guidance, and achieved 5% organic sales growth. The electronics segment posted its sixth consecutive quarter of high single-digit organic growth and record revenue.
- The company announced the acquisition of Micromax, an electronics inks and pastes business, which is projected to be more than 5% accretive to adjusted EPS and contribute approximately $40 million of adjusted EBITDA on a full-year basis based on its projected 2025 results. The transaction is expected to close in Q1 2026.
- Element Solutions Inc raised its full-year 2025 adjusted EBITDA guidance to between $545 million and $550 million, reaching the high end of its previous range.
- The company generated $84 million of adjusted free cash flow in Q3 2025, ending the quarter with a net leverage ratio of 1.9 times. Pro forma net leverage at year-end, after funding the Micromax acquisition, is expected to be approximately 2.5 times.
- Element Solutions Inc. (ESI) has agreed to acquire Micromax, a business unit of Celanese Corporation, for approximately $500 million in cash.
- The acquisition is expected to close in the first quarter of 2026 and will be integrated into Element Solutions' MacDermid Alpha Electronics Solutions business.
- The deal is projected to be accretive to adjusted per-share earnings by over 5% based on projected 2025 results and is expected to add $40 million in EBITDA by 2026.
- Micromax specializes in advanced electronic inks and pastes used in high-performance applications across sectors such as aerospace, defense, healthcare, electric vehicles, and data centers.
- Celanese Corporation plans to use the proceeds from the sale to aggressively pay down debt and deleverage its balance sheet.
- Element Solutions Inc reported record adjusted EBITDA of $147 million in the third quarter of 2025, an increase of 3% on a reported basis compared to the same period last year, with net sales reaching $656 million, up 2% on a reported basis or 5% organically.
- The Electronics segment's net sales increased 11% to $465 million (7% organic), marking its 6th consecutive quarter of high single-digit organic revenue growth, driven by data center demand and smartphone pre-builds. The Industrial & Specialty segment's net sales decreased 16% to $191 million, though organic net sales remained relatively flat.
- Reported net income for Q3 2025 was $39 million, a 3% decrease from the prior year, while adjusted EPS increased to $0.41 from $0.39 in Q3 2024. The company generated $100 million in cash flows from operating activities and $84 million in adjusted free cash flow during the quarter.
- Element Solutions Inc narrowed its full year 2025 adjusted EBITDA guidance to between $545 million and $550 million and expects adjusted free cash flow to be approximately $280 million. The company also announced the Micromax acquisition, which is anticipated to contribute meaningfully to earnings growth in 2026.
- Element Solutions Inc reported record adjusted EBITDA of $147 million for the third quarter of 2025, a 3% increase year-over-year, on net sales of $656 million, which grew 2% on a reported basis and 5% organically.
- The Electronics segment achieved its sixth consecutive quarter of high single-digit organic revenue growth, driven by data center demand and smartphone pre-builds, leading to record segment revenue.
- The company narrowed its full-year 2025 adjusted EBITDA guidance to between $545 million and $550 million and anticipates approximately $280 million in adjusted free cash flow.
- Element Solutions announced the acquisition of Micromax, which is projected to meaningfully add to earnings growth in 2026.
- Element Solutions Inc announced an increase to its full year 2025 and second quarter outlook.
- For the second quarter of 2025, the company expects net income in the range of $45 million to $55 million and adjusted EBITDA to be approximately $135 million.
- The full year 2025 adjusted EBITDA guidance has been raised to a range of $530 million to $550 million, up from the prior range of $520 million to $540 million.
- This increased confidence is driven by strong performance from data center-related customers and advanced foundries, as well as new capacity additions in the supply chain to support AI.