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Dec 31, 2024
Element Solutions Q4 2024 Earnings Report
Element Solutions reported a strong Q4 2024 performance with increased revenue and adjusted EBITDA growth.
Key Takeaways
Element Solutions Inc delivered a robust Q4 2024 with net sales rising 9% to $624 million. The company reported a net income of $55 million, with GAAP EPS at $0.23 and adjusted EPS at $0.35. Adjusted EBITDA grew 8% to $130 million. The Electronics segment led growth with a 14% sales increase, while the Industrial & Specialty segment saw modest growth. Despite a decrease in net income, the company remains optimistic about future performance and expects steady demand in 2025.
Q4 2024 net sales increased 9% year-over-year to $624 million.
Electronics segment sales grew 14% to $401 million, while Industrial & Specialty rose 1% to $223 million.
Net income declined 29% to $55 million, while adjusted EBITDA increased 8% to $130 million.
GAAP EPS was $0.23, and adjusted EPS improved to $0.35.
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 a similar demand environment in 2025, with steady growth in high-value markets like EV and semiconductors. The anticipated sale of its Graphics business is expected to improve long-term growth.
Positive Outlook
- Continued growth in high-performance computing and data storage applications.
- Further penetration into the EV market with differentiated power electronics solutions.
- Expansion in high-value semiconductor markets expected to continue.
- Operational efficiencies expected to maintain strong margins.
- Projected 2025 adjusted EBITDA between $520 million and $540 million.
Challenges Ahead
- Industrial markets are not expected to recover in 2025.
- Overall electronics industry growth remains uncertain.
- Sale of Graphics business will reduce 2025 adjusted EBITDA by approximately $30 million.
- Foreign exchange fluctuations expected to impact profitability.
- Potential challenges from macroeconomic conditions affecting demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income