Element Solutions Inc Reports Record Results for Third Quarter 2026
Element Solutions Inc (NYSE:ESI) (“Element Solutions” or the “Company”), a global and diversified specialty chemicals technology company, today announced its financial results for the three an...
- Net sales of $995 million, representing 52% growth on a reported basis and 13% organic growth from the third quarter of 2025
- Reported net income of $66 million, compared to $39 million in the same period last year
- Adjusted EBITDA of $191 million, representing 29% constant currency growth
- Third quarter 2026 Cash flows from operating activities of $159 million and free cash flow of $135 million
- Increasing 2026 Adjusted EBITDA guidance to approximately $720 million
MIAMI: Element Solutions Inc (NYSE:ESI) (“Element Solutions” or the “Company”), a global and diversified specialty chemicals technology company, today announced its financial results for the three and nine months ended September 30, 2026.
Executive Commentary
Chief Executive Officer Benjamin Gliklich commented, “Our team continued to execute exceptionally well and delivered another quarter of record results. We are translating the tailwinds in the Electronics market to profitable growth, and seizing the opportunities created by the pace of technological change to gain market share. Demand across AI infrastructure and other high-performance electronics applications drove broad-based double-digit organic growth in each of our Electronics verticals. This growth is the product of several years of focused investment in technology, customer engagement, capacity expansion and operational excellence, which have strengthened our competitive position in the fastest-growing and highest-value areas of the electronics ecosystem. As our customers continue to build capacity and our supply chain continues to bring forward advanced technologies, we are investing alongside them. We are accelerating our own innovation, adding capacity in high-growth product lines and deepening strategic supply chain relationships to continue delivering for our customers and shareholders."
Mr. Gliklich continued, "I am particularly proud of this quarter's results considering the risk of distraction from the proposed and subsequently terminated Solstice transaction. Our team did not miss a step. Reinforced by yet another consecutive record quarter, we are moving forward with greater focus, urgency and confidence. Our standalone, independent trajectory has only improved, and, as a result, we are raising our 2026 adjusted EBITDA guidance to approximately $720 million. This should translate to adjusted EPS growth in excess of 20% for the full year, driven by sustained momentum in Electronics and meaningful contributions from our recent acquisitions. Our formula of operational excellence and prudent capital allocation continues to deliver.”
Third Quarter 2026 Highlights (compared with third quarter 2025)
- Net sales on a reported basis for the third quarter of 2026 were $995 million, an increase of 52% over the third quarter of 2025. Organic net sales increased 13%.
- Electronics: Net sales increased 68% to $780 million, including 30% from acquisitions. Organic net sales increased 18%.
- Specialties: Net sales increased 13% to $216 million, including 12% from acquisitions net of divestitures. Organic net sales increased 1%.
- Third quarter of 2026 earnings per share (EPS) performance:
- GAAP diluted EPS was $0.27, as compared to $0.16 for the same period last year.
- Adjusted EPS was $0.50, as compared to $0.41 for the same period last year.
- Reported net income for the third quarter of 2026 was $66 million, as compared to $39 million for the third quarter of 2025, an increase of 67%.
- Net income margin increased by 60 basis points to 6.6%.
- Adjusted EBITDA for the third quarter of 2026 was $191 million, as compared to $147 million for the third quarter of 2025. On a constant currency basis, adjusted EBITDA increased 29%.
- Electronics: Adjusted EBITDA was $148 million, an increase of 46%. On a constant currency basis, adjusted EBITDA increased 45%. The Micromax business had a positive impact of 19% on constant currency adjusted EBITDA growth.
- Specialties: Adjusted EBITDA was $43 million, a decrease of 6%. On a constant currency basis, adjusted EBITDA decreased 6%. The EFC Gases & Advanced Materials business had a positive impact of 16% on constant currency adjusted EBITDA growth.
- Adjusted EBITDA margin increased by 50 basis points to 28.2%.
Updated 2026 Guidance
The Company now expects full year 2026 adjusted EBITDA to be approximately $720 million, inclusive of full year contributions from the Micromax and EFC acquisitions and assuming stable exchange rates and metal prices, and an adjusted EPS growth rate of over 20% for the full year.
Recent Developments
Solstice Transaction - On July 6, 2026, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Solstice. On August 27, 2026, the Company and Solstice entered into a Termination Agreement pursuant to which the parties mutually agreed to terminate the Merger Agreement, which, subject to customary exceptions, mutually released the parties from any claims of liability to one another relating to the contemplated merger transaction.
Conference Call
Element Solutions will host a webcast/dial-in conference call to discuss its 2026 third quarter financial results at 8:30 a.m. (Eastern Time) on Thursday, October 22, 2026. Participants on the call will include Chief Executive Officer Benjamin H. Gliklich and Chief Financial Officer Carey J. Dorman.
To listen to the call by telephone, please dial +1 833-461-5787 and provide the Conference ID: 705 163 823. The call will be simultaneously webcast at www.elementsolutionsinc.com. A replay of the call will be available after completion of the live call at www.elementsolutionsinc.com.
About Element Solutions
Element Solutions Inc is a leading global specialty chemicals technology company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in multiple high-value industries, including semiconductor fabrication, high-performance computing, automotive systems, consumer electronics, power electronics, communications and data storage infrastructure, aerospace and defense, industrial surface finishing and offshore energy.
More information about the Company is available at www.elementsolutionsinc.com.
Forward-Looking Statements
This release is intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995 as it contains "forward-looking statements" within the meaning of the federal securities laws. These statements will often contain words such as "expect," "anticipate," "project," "will," "should," "believe," "intend," "plan," "assume," "estimate," "predict," "seek," "continue," "outlook," "may," "might," "aim," "can have," "likely," "potential," "target," "hope," "goal," "priority," "guidance" or "confident" and variations of such words and similar expressions. Examples of forward-looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding the Company's
investments; customer innovation; expected benefits of recent acquisitions, including their contributions to the Company's full year 2026 adjusted EBITDA; metals prices volatility; foreign exchange rate fluctuations; capital deployment; profitability; market trends, conditions and demand expectations; full year 2026 guidance for adjusted EBITDA; and full year 2026 adjusted EPS growth expectations. These projections and statements are based on management's estimates, assumptions or expectations with respect to future events and financial performance, and are believed to be reasonable, though are inherently uncertain and difficult to predict. Such projections and statements are based on the assessment of information available as of the current date, and the Company does not undertake any obligations to provide any further updates. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the war in Ukraine, the Iran conflict and other hostilities in the Middle-East as well as actions in response thereto and their impact on market conditions and the global economy; increases in tariffs and/or imposition of new tariffs and other changes in trade policy, in the U.S. and other countries, and other economic factors that may affect cost structure and demand, including the cost and availability of raw materials and precious metals; capital requirements and need for and availability of financing; the impact of government regulations on our ability to conduct operations; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; inflation and fluctuations in foreign exchange rates; the Company's liquidity, cash flows and capital allocation; funding sources; capital expenditures; outstanding debt and debt leverage ratio; shares repurchases; debt and/or equity issuance or retirement; expected returns to stockholders; and the impact of acquisitions, divestitures, restructurings, refinancings, impairments and other unusual items, including the Company's ability to integrate and obtain the anticipated benefits, results and synergies from these items or other related strategic initiatives. Additional information concerning these and other factors that could cause actual results to vary is, or will be, included in the Company's periodic and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
ELEMENT SOLUTIONS INC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||||||||||
| |||||||||||||||
| Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||||||||||
(dollars in millions, except per share amounts) |
| 2026 |
|
|
| 2025 |
|
|
| 2026 |
|
|
| 2025 |
|
Net sales | $ | 995.3 |
|
| $ | 656.1 |
|
| $ | 2,813.2 |
|
| $ | 1,875.0 |
|
Cost of sales |
| 652.9 |
|
|
| 379.1 |
|
|
| 1,814.1 |
|
|
| 1,081.1 |
|
Gross profit |
| 342.4 |
|
|
| 277.0 |
|
|
| 999.1 |
|
|
| 793.9 |
|
Operating expenses: |
|
|
|
|
|
|
| ||||||||
Selling, technical, general and administrative |
| 205.6 |
|
|
| 158.1 |
|
|
| 597.5 |
|
|
| 471.2 |
|
Research and development |
| 22.9 |
|
|
| 18.1 |
|
|
| 62.6 |
|
|
| 50.2 |
|
Total operating expenses |
| 228.5 |
|
|
| 176.2 |
|
|
| 660.1 |
|
|
| 521.4 |
|
Operating profit |
| 113.9 |
|
|
| 100.8 |
|
|
| 339.0 |
|
|
| 272.5 |
|
Other (expense) income: |
|
|
|
|
|
|
| ||||||||
Interest expense, net |
| (22.8 | ) |
|
| (13.3 | ) |
|
| (68.3 | ) |
|
| (40.5 | ) |
Foreign exchange gains (losses) |
| 6.0 |
|
|
| (11.0 | ) |
|
| 11.8 |
|
|
| (34.4 | ) |
Other (expense) income, net |
| (3.8 | ) |
|
| (14.0 | ) |
|
| 0.6 |
|
|
| (22.6 | ) |
(Loss) gain on divestitures |
| - |
|
|
| (7.0 | ) |
|
| - |
|
|
| 59.6 |
|
Total other expense |
| (20.6 | ) |
|
| (45.3 | ) |
|
| (55.9 | ) |
|
| (37.9 | ) |
Income before income taxes and non-controlling interests |
| 93.3 |
|
|
| 55.5 |
|
|
| 283.1 |
|
|
| 234.6 |
|
Income tax expense |
| (27.6 | ) |
|
| (16.2 | ) |
|
| (84.1 | ) |
|
| (49.8 | ) |
Net income |
| 65.7 |
|
|
| 39.3 |
|
|
| 199.0 |
|
|
| 184.8 |
|
Net income attributable to non-controlling interests |
| - |
|
|
| - |
|
|
| (0.1 | ) |
|
| (0.1 | ) |
Net income attributable to common stockholders | $ | 65.7 |
|
| $ | 39.3 |
|
| $ | 198.9 |
|
| $ | 184.7 |
|
|
|
|
|
|
|
|
| ||||||||
Earnings per share |
|
|
|
|
|
|
| ||||||||
Basic | $ | 0.27 |
|
| $ | 0.16 |
|
| $ | 0.82 |
|
| $ | 0.76 |
|
Diluted | $ | 0.27 |
|
| $ | 0.16 |
|
| $ | 0.82 |
|
| $ | 0.76 |
|
|
|
|
|
|
|
|
| ||||||||
Weighted average common shares outstanding |
|
|
|
|
|
|
| ||||||||
Basic |
| 243.5 |
|
|
| 241.6 |
|
|
| 243.5 |
|
|
| 242.0 |
|
Diluted |
|
If you liked this article and want to stay up to date with news from
InnovationOpenLab.com subscribe to ours
Free newsletter.
Related news
Last NewsRSA at Cybertech Europe 2024Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for… Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurityG11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes How Austria is making its AI ecosystem growAlways keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries Sparkle and Telsy test Quantum Key Distribution in practiceSuccessfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing… Most readNew Data From 3.2 Million Law Firm Calls Reveals What Converts Callers…Smith.ai, the legal tech company changing the front office for law firms, today released The Legal Intake Report, an analysis of over three million law… ServiceNow delivers industry-first personal enterprise agent and policy…NVIDIA GTC — ServiceNow (NYSE: NOW), the Super Intelligence Control Tower for business reinvention, today announced significant updates designed to bring… Wyze Scale Ultra BodyScan Plus Puts Your Full Body Breakdown at Eye LevelWyze, a company dedicated to making smart home technology accessible and safe, today announced the Wyze Scale Ultra BodyScan Plus, launching as part of… TestMu AI Brings Real Device Testing to Kane CLI, Letting Developers Test…#AITesting--TestMu AI (formerly LambdaTest), the Full Stack Agentic AI Quality Engineering platform, announced real device support in Kane CLI. Developers… G11 Media Networks
InnovationOpenLab is a channel of BitCity, a newspaper registered at the court of Como , 
| |||||||||||||