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Mar 31, 2022

Element Solutions Q1 2022 Earnings Report

Element Solutions' financial performance for Q1 2022 was announced, demonstrating revenue growth and adjusted EPS increase amidst a complex business environment.

Key Takeaways

Element Solutions reported a 24% increase in net sales to $680 million, with organic sales up by 7%. Adjusted EPS rose to $0.38 from $0.37 year-over-year, while GAAP diluted EPS decreased to $0.23 from $0.33. The company reaffirmed its full-year adjusted EPS guidance and increased the bottom end of its adjusted EBITDA guidance.

Net sales increased by 24% to $680 million, or 7% on an organic basis.

GAAP diluted EPS was $0.23, while adjusted EPS was $0.38.

Net income was reported at $56 million.

Adjusted EBITDA increased by 9% on a constant currency basis to $145 million.

Total Revenue
$680M
Previous year: $550M
+23.7%
EPS
$0.38
Previous year: $0.37
+2.7%
Electronics Organic Growth
8%
Previous year: 18%
-55.6%
Total Organic Sales Growth
7%
Previous year: 11%
-36.4%
Gross Profit
$263M
Previous year: $241M
+9.1%
Cash and Equivalents
$219M
Previous year: $318M
-31.1%
Free Cash Flow
-$15.1M
Previous year: $24M
-162.9%
Total Assets
$5.13B
Previous year: $4.48B
+14.6%

Element Solutions

Element Solutions

Element Solutions Revenue by Segment

Forward Guidance

The company increased the bottom-end of its financial guidance for adjusted EBITDA to a range of $580 million to $590 million and reaffirmed its full-year 2022 financial guidance for adjusted EPS of $1.55 to $1.60 and free cash flow of $310 million to $325 million. For the second quarter of 2022, adjusted EBITDA is expected to be approximately $140 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income