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Mar 31, 2025
Element Solutions Q1 2025 Earnings Report
Element Solutions reported steady earnings growth and improved margins in Q1 2025, driven by strength in the Electronics segment.
Key Takeaways
Element Solutions Inc delivered solid performance in Q1 2025 with net income up 75% year-over-year, aided by strong Electronics revenue growth and strategic debt reduction through asset divestiture.
Net income increased 75% YoY to $98 million.
Electronics segment posted 10% organic net sales growth.
Company prepaid $200 million in debt using asset sale proceeds.
Adjusted EPS remained flat YoY at $0.34 despite margin pressures.
Revenue by Segment
Forward Guidance
Element Solutions expects stable adjusted EBITDA for Q2 2025 and maintains its FY2025 guidance amid tariff risks and FX volatility.
Positive Outlook
- Adjusted EBITDA guidance for FY2025 maintained at $520M–$540M.
- Q2 2025 EBITDA expected to remain steady despite divestiture impact.
- Positioned to benefit from continued investments in data centers.
- Global footprint and local operations help mitigate trade risks.
- Easing FX headwinds could support earnings.
Challenges Ahead
- Tariff escalation risk introduces uncertainty in demand outlook.
- Difficult to assess long-term demand impact from trade actions.
- EBITDA margin slightly declined YoY.
- Industrial & Specialty revenue down due to divestiture.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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