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Dec 31, 2025
Element Solutions Q4 2025 Earnings Report
Element Solutions reported its financial results for the fourth quarter and full year ended December 31, 2025, highlighting record adjusted EBITDA for the year despite industrial weakness and a divestiture.
Key Takeaways
Element Solutions Inc delivered a record year in 2025, driven by strong double-digit organic growth in its Electronics business, particularly from datacenter infrastructure and high-performance computing markets. The company achieved record adjusted EBITDA for the full year, successfully navigating western industrial weakness and the divestiture of its Graphics business. While overall net income saw a significant decrease in Q4 2025 compared to Q4 2024, the company's strategic focus on high-value niches and operational excellence contributed to profit growth even in weaker end-markets.
Electronics business achieved double-digit organic growth, accelerating in Q4 2025, primarily due to demand from datacenter infrastructure and high-performance computing markets.
The company reported record adjusted EBITDA for the full year 2025, demonstrating resilience despite challenging industrial market conditions and the divestiture of the Graphics business.
Net sales for Q4 2025 increased by 8% year-over-year to $676.2 million, with organic net sales growth reaching 10%.
Net income for Q4 2025 significantly decreased to $6.2 million from $54.8 million in Q4 2024, primarily due to various adjustments and expenses.
Strategic acquisitions of EFC Gases & Advanced Materials and Micromax were completed in early 2026, expanding the company's footprint in high-value supply chains.
Revenue by Segment
Forward Guidance
For the full year 2026, Element Solutions expects adjusted EBITDA to be between $650 million and $670 million, inclusive of contributions from recent acquisitions, and adjusted EPS growth in the mid to high teens. First quarter 2026 adjusted EBITDA is projected to be between $140 million and $155 million.
Positive Outlook
- Expected adjusted EBITDA for 2026 is between $650 million and $670 million, indicating continued growth.
- Anticipated adjusted EPS growth in the mid to high teens for 2026.
- Demand is expected to continue growing in high-performance computing and leading-edge applications.
- Recent acquisitions (EFC and Micromax) are expected to contribute positively to 2026 results.
- Company is positioned for another record year in 2026, building on 2025's performance.
Challenges Ahead
- Industrial markets are expected to remain slower in 2026, similar to latter 2025.
- Initial focus in 2026 will be on operational excellence and integrating recent acquisitions, which may involve transitional challenges.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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