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Jun 30, 2021
Element Solutions Q2 2021 Earnings Report
Element Solutions had a record second quarter in top-line, driven by strong organic performance and strategic acquisitions.
Key Takeaways
Element Solutions reported a strong second quarter with a 52% increase in net sales and a significant rise in GAAP diluted EPS to $0.32. The company's performance was driven by growth strategy execution, strong organic performance, and prudent capital deployment.
Net sales increased by 52% to $587 million compared to the second quarter of last year, with organic net sales up by 30%.
GAAP diluted EPS reached $0.32, a significant increase from $0.01 in the same period last year, while adjusted EPS was $0.35, compared to $0.18 in the prior year.
Net income was reported at $79 million, a substantial increase from $2 million in the second quarter of 2020.
The company raised its full-year 2021 guidance, expecting an adjusted EBITDA range of $505 million to $520 million and adjusted EPS of at least $1.35.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Revenue by Segment
Electronics Revenue
CapyFin.comIndustrial & Specialty Revenue
CapyFin.com Forward Guidance
Element Solutions increased its full year 2021 guidance and now expects adjusted EBITDA in the range of $505 million to $520 million, and adjusted EPS of at least $1.35, excluding the potential impact of the Coventya acquisition. The Company expects third quarter 2021 adjusted EBITDA to be between $125 million and $130 million, excluding any potential impact from the Coventya acquisition.
Positive Outlook
- Demand is expected to remain strong through the third quarter in key end markets.
- A return to a more typical second half seasonal pattern is anticipated, with a stronger third quarter.
- Year-to-date pricing actions associated with raw material inflation should help support margins.
- Full year 2021 adjusted EBITDA guidance is raised to a range of $505 million to $520 million.
- Adjusted EPS is expected to be at least $1.35 for the full year, representing a compound annual growth rate of more than 26% from 2018.
Challenges Ahead
- COVID continues to impact the business, as well as those of customers and suppliers.
- Increasing logistics costs will continue into the third quarter.
- A deceleration in the fourth quarter is expected.
- Coventya acquisition impact is not included in the adjusted EBITDA and adjusted EPS guidance.
- Supply chain constraints and raw material shortages are being navigated.
Revenue & Expenses
Visualization of income flow from segment revenue to net income