Element Solutions Q4 2021 Earnings Report
Key Takeaways
Element Solutions Inc reported a 21% increase in net sales to $647 million for Q4 2021. However, GAAP diluted EPS decreased to $0.02, and net income fell to $6 million, compared to the same period last year. Adjusted EPS remained the same at $0.31.
Net sales increased by 21% compared to Q4 2020, reaching $647 million.
GAAP diluted EPS decreased to $0.02, a significant drop from $0.12 in Q4 2020.
Net income decreased to $6 million, compared to $30 million in the same quarter of the previous year.
Adjusted EPS remained flat at $0.31.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Forward Guidance
Element Solutions anticipates adjusted EBITDA between $575 million and $590 million and adjusted EPS between $1.55 and $1.60 for the full year 2022. The company also expects free cash flow in the range of $310 million to $325 million.
Positive Outlook
- Expects solid organic growth in 2022.
- Contribution from Coventya's synergies to boost adjusted EBITDA.
- Adjusted EBITDA is projected to increase by 13% to 16% on a constant currency basis.
- Adjusted EPS is expected to grow between 12% and 16%.
- Expects full year 2022 free cash flow generation of between $310 million and $325 million.
Challenges Ahead
- First quarter 2022 adjusted EBITDA is expected to be approximately flat year-on-year at constant currency.
- Unusual macro backdrop of record demand.
- Significant disruptions in raw material supply.
- Logistics challenges.
- Labor shortages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income