Element Solutions (ESI) Company Report

Element Solutions (ESI) is on track for a record year in 2025, driven by strong organic growth, particularly in high-end electronics, and anticipates M&A to contribute approximately $70 million of EBITDA in 2026.
The company recently completed two strategic acquisitions: EFC Gases, a market leader in niche, high-purity gases for semiconductor fabrication and aerospace, and Micromax, which provides market-leading technology in high-value electronics niches and will be integrated into Element's electronics business.
Element Solutions maintains a focus on prudent capital allocation, including M&A, share buybacks, and a modest dividend, with a target to exit 2025 at three turns of leverage.
The electronics business has consistently delivered high single-digit organic revenue growth over the past six quarters, outperforming its end markets, and the company plans to address the impact of metal pass-through on financial reporting, particularly with the addition of Micromax's $200 million in metal sales.
Progress on the Kuprion technology acquisition (mid-2023) shows strong commercial pull, with a mid-scale manufacturing site expected to be operational by the end of 2025 and a large-scale plant in 2027.

Dec 4, 2025, 2:20 PM

Transcript

Element Solutions Reports Record 2025 Performance and Outlines 2026 Growth Strategy

ESI

M&A

Guidance Update

Revenue Acceleration/Inflection

Element Solutions (ESI) anticipates a record year in 2025, driven by strong organic growth and robust performance in high-end electronics, with an outlook for ~$70 million of additional EBITDA in 2026 from M&A and FX tailwinds.
The company completed two significant acquisitions: EFC Gases, a market leader in niche, high-purity gases for semiconductor and aerospace, and Micromax, a high-quality electronics technology business being integrated to accelerate growth in areas like high-performance compute server boards.
ESI's electronics business has achieved high single-digit organic revenue growth for the past six quarters, outpacing end markets through deliberate strategy and innovation, including the scaling of its Kuprion copper technology.
Despite a challenging industrial backdrop, the industrial solutions business has demonstrated resilience, with earnings increasing even as volumes declined over 15% in the past three years, supported by pricing, procurement, and productivity improvements.
The company maintains a focus on prudent capital allocation, aiming to compound EPS in the teens through strong cash flow generation, share buybacks (repurchased 20% of shares outstanding in its first seven years), and a conservative balance sheet with leverage expected to be 3.0x at year-end 2025.

Dec 4, 2025, 2:20 PM

Transcript

ESI Discusses Electronics Growth, Portfolio Shift, and Recent Acquisitions at UBS Conference

ESI

M&A

Revenue Acceleration/Inflection

Guidance Update

Element Solutions Inc (ESI) has experienced six consecutive quarters of high single-digit organic growth in its electronics business, driven by momentum in AI and data centers, with expectations for this trend to continue through 2026.
The company's business mix has shifted, with internet infrastructure and computing revenue share growing to at least 20% of the overall portfolio, while automotive and smartphone units have declined.
ESI recently announced two strategic acquisitions: Micromax, a market leader in electronics inks with over 40% EBITDA margins (excluding precious metals), expected to close in Q1, and EFC Advanced Materials, a specialty rare gases provider with a 15% top-line CAGR and 30% EBITDA margin, expected to close by year-end 2025.
The company aims to compound earnings per share in the teens over the long term, with a growth algorithm of mid-single-digit top-line growth and 1.5x that at EBITDA, anticipating an acceleration in earnings growth in 2026.

Dec 2, 2025, 3:55 PM

Transcript

Element Solutions Inc Reports Strong Electronics Momentum and Details Recent Acquisitions

ESI

M&A

Guidance Update

Revenue Acceleration/Inflection

Element Solutions Inc (ESI) reported a record third quarter driven by momentum in AI, data center, and other fast-growing niches within the electronics market, with this trend continuing into Q4 2025.
The company expects its electronics business to achieve high single-digit organic growth through the cycle, a trend that has held for six consecutive quarters and is anticipated to continue into 2026 despite a mixed overall electronics market.
ESI's revenue mix has evolved, with computing and internet infrastructure now accounting for at least 20% of the business, an increase from sub-20% a few years prior, while smartphone and automotive units have seen declines.
ESI announced two strategic acquisitions: Micromax, a leader in electronics inks with over 40% EBITDA margins (excluding precious metals), expected to close in Q1 2026; and EFC Advanced Materials, specializing in rare gases with a 15% top-line CAGR and 30% EBITDA margin, expected to close in 2025.
The company's long-term financial algorithm aims to compound earnings per share in the teens, supported by mid-single-digit top-line growth and 1.5x that at EBITDA, with an expected acceleration in earnings growth in 2026.

Dec 2, 2025, 3:55 PM

Transcript

Element Solutions Reports Record Q3, Discusses Electronics Growth and Strategic Acquisitions

ESI

Guidance Update

M&A

Revenue Acceleration/Inflection

Element Solutions (ESI) experienced a record third quarter and continued electronics momentum into Q4, driven by AI and data center growth, with its electronics business achieving six consecutive quarters of high single-digit organic growth.
The company's internet infrastructure and computing revenue share has grown to at least 20% of its total business, reflecting a shift in portfolio mix.
ESI recently made two strategic acquisitions: Micromax, a market leader in thick film paste and electronic inks with over 40% EBITDA margins (excluding precious metals), and EFC Advanced Materials, a specialty rare gases provider with a 15% top-line CAGR over 15 years and 30% EBITDA margins, both expected to enhance the portfolio and contribute to growth.
The company's long-term algorithm targets compounding earnings per share in the teens, supported by mid-single-digit top-line growth and 1.5 times EBITDA growth, with strong cash flow generation.
Despite declining volumes, ESI's industrial business has achieved record margins through operational excellence, productivity improvements, and market share gains.

Dec 2, 2025, 3:55 PM

Transcript

Element Solutions Inc. to Acquire EFC Gases & Advanced Materials

ESI

M&A

New Projects/Investments

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.

Nov 6, 2025, 1:00 PM

Press Release

Element Solutions Inc. Announces Q3 2025 Results and Updates Full-Year Guidance

ESI

Earnings

Guidance Update

M&A

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.

Oct 29, 2025, 12:30 PM

Presentation

Element Solutions Inc Reports Q3 2025 Results and Announces Micromax Acquisition

ESI

Earnings

M&A

Guidance Update

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.

Oct 29, 2025, 12:30 PM

Transcript

Element Solutions Inc Reports Record Q3 2025 Results and Announces Micromax Acquisition

ESI

Earnings

M&A

Guidance Update

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.

Oct 29, 2025, 12:30 PM

Transcript

Element Solutions Inc Reports Record Q3 2025 Results and Announces Micromax Acquisition

ESI

Earnings

M&A

Guidance Update

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.

Oct 29, 2025, 12:30 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for Element Solutions.

Q3 2025

Oct 29, 2025

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Q2 2025

Jul 31, 2025

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Q1 2025

Apr 24, 2025

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Element Solutions (ESI)

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