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Sep 30, 2021
Element Solutions Q3 2021 Earnings Report
Announced third quarter financial results, demonstrating growth in net sales and adjusted EPS.
Key Takeaways
Element Solutions Inc reported a strong third quarter with net sales of $616 million, a 29% increase year-over-year. Adjusted EPS rose to $0.35 from $0.22 in the prior year period. The company raised its full-year 2021 adjusted EBITDA guidance to a range of $515 million to $525 million and adjusted EPS to greater than $1.35.
Net sales increased by 29% to $616 million, with organic net sales up by 13%.
GAAP diluted EPS was $0.15, while adjusted EPS increased to $0.35.
Net income remained unchanged at $36 million.
Free cash flow was $81 million for the quarter.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Revenue by Segment
Electronics Revenue
CapyFin.comIndustrial & Specialty Revenue
CapyFin.com Forward Guidance
The Company updated its full-year 2021 guidance and now expects adjusted EBITDA in the range of $515 million to $525 million, and adjusted EPS of greater than $1.35. In addition, the Company expects fourth quarter 2021 adjusted EBITDA to be approximately $118 million and full-year 2021 free cash flow of at least $265 million.
Positive Outlook
- Full-year 2021 adjusted EBITDA guidance raised to $515 million to $525 million.
- Full-year 2021 adjusted EPS expected to be greater than $1.35.
- Fourth quarter 2021 adjusted EBITDA expected to be approximately $118 million.
- Full-year 2021 free cash flow expected to be at least $265 million.
- Expectations are for robust growth in 2022.
Challenges Ahead
- Supply chain environment is problematic.
- There is turbulence in the automotive market.
- Fourth quarter is traditionally slower than the third quarter.
- Headwinds from supply chain disruptions are expected.
- Automotive market is weaker.
Revenue & Expenses
Visualization of income flow from segment revenue to net income