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Dec 31, 2021
Element Solutions Q4 2021 Earnings Report
Announced financial results for Q4 2021, showing increased net sales but decreased GAAP diluted EPS and net income compared to Q4 2020.
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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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