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Jun 30
Element Solutions Q2 2025 Earnings Report
Element Solutions reported strong second quarter 2025 financial results, driven by robust organic growth in its Electronics segment and effective profit management in its Industrial & Specialty businesses.
Key Takeaways
Element Solutions Inc delivered an outstanding second quarter in 2025, with total net sales reaching $625.2 million and diluted EPS of $0.20. The Electronics segment continued its strong performance with high-single digit organic growth, while the Industrial & Specialty segment maintained profitability despite challenging market conditions. The company also increased its full-year 2025 adjusted EBITDA guidance, reflecting confidence in its ability to navigate volatile global trade dynamics and mitigate tariff impacts.
Net sales for the second quarter of 2025 increased to $625.2 million, up from $612.7 million in the prior year.
The Electronics segment achieved a 9% organic net sales growth, marking its fifth consecutive quarter of high-single digit organic growth.
Diluted earnings per share (EPS) for the quarter was $0.20, with adjusted EPS at $0.37.
The company raised its full-year 2025 adjusted EBITDA guidance to a range of $530 million to $550 million, indicating strong expected performance.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Revenue by Segment
Electronics Revenue
CapyFin.comIndustrial & Specialty Revenue
CapyFin.com Forward Guidance
Element Solutions expects full-year 2025 adjusted EBITDA to be between $530 million and $550 million, with third-quarter adjusted EBITDA projected to be in the range of $140 million to $145 million. Free cash flow conversion is anticipated to be comparable to the previous year.
Positive Outlook
- Increased full-year 2025 adjusted EBITDA guidance to $530 million - $550 million, demonstrating confidence in future performance.
- Anticipates favorable foreign exchange impact over the balance of the year.
- Strong balance sheet capacity continues to grow, providing financial flexibility.
- Expects solid cash flow generation to continue.
- Third quarter 2025 adjusted EBITDA guidance of $140 million - $145 million indicates continued strong performance.
Challenges Ahead
- Global trade dynamics remain volatile, posing potential challenges.
- Guidance considers potential demand weakness in the second half of the year, though not yet evident.
- Ongoing tariff environment requires continuous mitigation efforts.
- No specific negative financial guidance provided beyond potential demand weakness.
- Reliance on localized sourcing and manufacturing to minimize tariff impact, which could be a risk if disrupted.
Revenue & Expenses
Visualization of income flow from segment revenue to net income