Element Solutions Reports Record 2025 Results, Strong Electronics Growth and Positive 2026 Outlook
Element Solutions Inc (NYSE: ESI), a global specialty chemicals technology company, reported its financial results for the fourth quarter and full year ended December 31, 2025, highlighting record performance, strong demand from electronics markets, and a positive outlook for 2026 driven by acquisitions and continued growth in high-performance computing.
Executive Overview: Record Year Driven by Electronics Demand
Chief Executive Officer Benjamin Gliklich described 2025 as a milestone year for the company, with record adjusted EBITDA and strong organic growth in its Electronics segment. According to the company, demand from data center infrastructure and high-performance computing applications played a major role in accelerating growth, particularly in the fourth quarter.
Gliklich emphasized that the company’s strategy of targeting high-value niches in electronics materials is producing tangible results. Over nearly two years, the Electronics segment delivered consistent quarterly organic net sales growth in the high single digits, reflecting strong adoption of advanced materials used in faster and more complex computing systems.
Despite weakness in some western industrial markets and the divestiture of the Graphics business earlier in the year, Element Solutions achieved record adjusted EBITDA in 2025. Management credited operational improvements, targeted commercial investments, and strategic acquisitions for strengthening performance across the portfolio.
Fourth Quarter 2025 Results
For the fourth quarter of 2025, Element Solutions reported net sales of $676 million, representing an 8% increase compared with the same period in 2024. On an organic basis, net sales rose 10%.
Segment Performance
Electronics Segment
- Net sales: $487 million, up 21%
- Organic net sales growth: 13%
- Adjusted EBITDA: $95 million, up 10% (8% on a constant-currency basis)
Growth in this segment was driven by increased demand from high-performance computing, data center infrastructure, and advanced electronics manufacturing.
Specialties Segment
- Net sales: $189 million, down 15%
- Approximately 22% of the decline was due to divestitures
- Organic net sales growth: 4%
- Adjusted EBITDA: $41 million, down 5%
The sale of the MacDermid Graphics Solutions business negatively impacted Specialties segment performance, contributing to a 14% decline in constant-currency adjusted EBITDA growth.
Profitability and Earnings
- GAAP diluted EPS: $0.03, down from $0.23 in Q4 2024
- Adjusted EPS: $0.37, up from $0.35
- Net income: $6 million, down 89% year over year
- Net income margin: 0.9%, down 790 basis points
Adjusted EBITDA for the quarter totaled $136 million, up 5% from $130 million in the prior-year period. On a constant-currency basis, adjusted EBITDA rose 3%.
Adjusted EBITDA margin for the quarter was 20.2%, a decline of 60 basis points year over year.
Full Year 2025 Performance
For the full year, Element Solutions reported net sales of $2.55 billion, an increase of 4% compared with 2024. Organic net sales rose 6%.
Segment Results
Electronics
- Net sales: $1.79 billion, up 14%
- Organic growth: 10%
- Adjusted EBITDA: $382 million, up 6%
Specialties
- Net sales: $765 million, down 15%
- Approximately 16% of the decline due to divestitures
- Organic growth: 1%
- Adjusted EBITDA: $165 million, down 5%
The divestiture of the MacDermid Graphics Solutions business reduced adjusted EBITDA growth in the Specialties segment by approximately 15% on a constant-currency basis.
Full Year Earnings and Margins
- GAAP diluted EPS: $0.79, down from $1.00 in 2024
- Adjusted EPS: $1.49, up from $1.44
- Net income: $191 million, down 22%
- Net income margin: 7.5%, down 250 basis points
Adjusted EBITDA for the year reached $548 million, up 2% from $535 million in 2024. Adjusted EBITDA margin was 21.5%, down 30 basis points year over year.
Strategic Moves in 2025 and Early 2026
Portfolio Optimization
In February 2025, Element Solutions completed the sale of its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $320 million. The transaction generated a gain of $66.5 million and allowed the company to focus more on higher-growth, higher-margin businesses.
Acquisitions to Expand Electronics Footprint
The company completed two major acquisitions aimed at strengthening its position in advanced electronics materials:
EFC Gases & Advanced Materials
- Closed: January 2, 2026
- Purchase price: Approximately $369 million
- Business: High-purity specialty gases and advanced materials
- Potential earn-out: Up to $30 million in cash or shares based on 2026 performance
Micromax
- Closed: February 2, 2026
- Purchase price: Approximately $500 million
- Business: Global supplier of advanced electronics inks and pastes
Management expects both acquisitions to expand the company’s presence in high-value supply chains tied to semiconductor fabrication, electronics manufacturing, and high-performance computing.
Financing and Capital Allocation
To support the Micromax acquisition, the company completed financing transactions in February 2026, including:
- $450 million of add-on term loans
- A new $500 million senior secured revolving credit facility
- Revolver maturity extended to 2031
Shareholder Returns
Element Solutions continued to return capital to shareholders:
- Cash dividends in 2025: Approximately $77.8 million
- Quarterly dividend declared: $0.08 per share, payable March 16, 2026
- Share repurchases: 1.2 million shares for $25 million in 2025
- Remaining repurchase authorization: Approximately $556 million
2026 Outlook
The company expects continued strength in high-performance computing and advanced electronics applications in 2026, while industrial markets are likely to remain slower.
2026 Guidance
- Adjusted EBITDA: $650 million to $670 million
- Adjusted EPS growth: Mid-to-high teens percentage
- Q1 2026 adjusted EBITDA: $140 million to $155 million
The guidance includes expected contributions from the EFC and Micromax acquisitions on a full-year basis.
Management believes the company is positioned for another record year in 2026, with a focus on operational excellence, integration of recent acquisitions, and support for new product introductions. The company also expects to retain the financial and management capacity to pursue additional high-return opportunities as they arise.
Company Profile
Element Solutions is a global specialty chemicals technology company that provides advanced materials and process solutions used in a wide range of industries. Its products support manufacturing processes across:
- Consumer electronics
- Power electronics
- Semiconductor fabrication
- Communications and data storage infrastructure
- Automotive systems
- Industrial surface finishing
- Offshore energy
The company’s solutions are typically developed through complex, multi-step technological processes designed to improve product performance, reliability, and manufacturing efficiency.
