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Sep 30
Element Solutions Q3 2025 Earnings Report
Element Solutions reported strong third quarter 2025 financial results with record adjusted EBITDA, driven by solid execution in its electronics business and strategic initiatives in the industrial & specialty segment.
Key Takeaways
Element Solutions Inc delivered a strong third quarter in 2025, achieving record adjusted EBITDA despite the divestiture of its Graphics business. The company saw significant organic net sales growth in its Electronics segment, fueled by data center demand and smartphone pre-builds, while the Industrial & Specialty segment maintained stable organic net sales through productivity and portfolio optimization. Overall, the company demonstrated robust performance and narrowed its full-year adjusted EBITDA guidance to the high end of its previous range.
Element Solutions achieved record adjusted EBITDA of $146.9 million in Q3 2025, a 3% increase year-over-year.
The Electronics segment reported its sixth consecutive quarter of high single-digit organic net sales growth at 7%, reaching record revenue.
The Industrial & Specialty segment maintained 0% organic net sales growth despite a sluggish macro environment, supported by procurement and optimization efforts.
The company narrowed its full-year 2025 adjusted EBITDA guidance to between $545 million and $550 million, reflecting continued strong 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 continued strong performance through the end of 2025, narrowing its full-year adjusted EBITDA guidance to the highest end of its prior range. The recently announced Micromax acquisition is anticipated to contribute meaningfully to earnings growth in 2026.
Positive Outlook
- Full year 2025 adjusted EBITDA guidance narrowed to $545 million to $550 million, indicating strong expected performance.
- Adjusted free cash flow expected to be approximately $280 million for full year 2025.
- Micromax acquisition expected to add meaningfully to earnings growth in 2026.
- Consistent execution and underlying market conditions are expected to continue through year-end 2025.
- Diligence in converting further opportunities for earnings growth, including Kuprion commercialization and new product introductions.
Challenges Ahead
- The Micromax acquisition will not contribute to earnings in 2025.
- Certain markets, like power electronics, softened during the quarter.
- The company faces a mixed overall macroeconomic backdrop.
- The Graphics business divestiture resulted in a lost contribution to earnings.
- No specific negative guidance points were explicitly stated for the future beyond the Micromax acquisition not contributing in 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income