Element Solutions Q4 2023 Earnings Report
Key Takeaways
Element Solutions reported relatively flat net sales of $573 million for Q4 2023, while organic net sales decreased by 3%. However, the company saw a significant increase in reported net income to $77 million, and adjusted EBITDA increased by 11% to $120 million. The electronics segment experienced net sales growth, while the industrial & specialty segment saw a decrease.
Net sales were relatively flat at $573 million, with a 3% decrease in organic net sales.
GAAP diluted EPS increased to $0.32 from $0.05 in the same period last year, and adjusted EPS increased to $0.32 from $0.29.
Reported net income increased significantly to $77 million, compared to $13 million in Q4 2022.
Adjusted EBITDA increased by 11% to $120 million.
Element Solutions
Element Solutions
Element Solutions Revenue by Segment
Forward Guidance
Element Solutions anticipates adjusted EBITDA to be between $510 million and $530 million and free cash flow between $280 million and $300 million for the full year 2024.
Positive Outlook
- Adjusted EBITDA is expected to be between $510 million and $530 million.
- Constant currency growth of between 8% and 12% is expected.
- Gross margins have continued to expand as input pressure has eased.
- Free cash flow is expected to be in the range of $280 million to $300 million.
- First quarter 2024 adjusted EBITDA is expected to be in the range of $120 million to $125 million.
Challenges Ahead
- The semiconductor and smartphone markets are forecast to remain below their previous peaks.
- Reversing certain variable cost actions taken in 2023 will create headwinds.
- The war between Russia and Ukraine and the Israel-Hamas conflict and other hostilities in the Middle-East may impact market conditions and the global economy.
- The continuing economic impact of the coronavirus (COVID-19) and its variants on the global economy and supply chains may have negative effects.
- Price volatility and cost environment may present challenges.
Revenue & Expenses
Visualization of income flow from segment revenue to net income