- Element Solutions Inc (ESI, Financial) reports a 3% increase in Q1 2025 net sales, totaling $594 million.
- Reported net income for Q1 2025 surged by 75% to $98 million.
- Full year 2025 adjusted EBITDA guidance confirmed between $520 million and $540 million.
Element Solutions Inc (ESI), a global leader in specialty chemicals, announced its first-quarter financial results for the period ending March 31, 2025. The company reported net sales of $594 million, reflecting a 3% increase on a reported basis and a 5% increase on an organic basis compared to the same period in 2024.
The company's reported net income saw a significant rise, reaching $98 million, which represents a 75% increase from $56 million in the first quarter of the previous year. This was accompanied by an adjusted EBITDA of $128 million, up slightly from $127 million in Q1 2024, with a 5% increase on a constant currency basis.
In the Electronics segment, net sales grew by 13% to $394 million, with an organic increase of 10%. However, the Industrial & Specialty segment experienced a decline in net sales by 12% to $199 million, influenced in part by the divestiture of MacDermid Graphics Solutions in February 2025.
CEO Benjamin Gliklich highlighted that the company continues to execute growth strategies effectively, particularly in high-value electronics sectors such as data centers and AI applications. Despite challenges from recent trade actions and tariffs, the company has managed to mitigate impacts through local operations and a resilient supply chain.
For 2025, Element Solutions anticipates adjusted EBITDA to range from $520 million to $540 million. The company is also prepared to adjust strategies swiftly in response to market fluctuations and potential tariff escalations to maintain profitability.
In addition, Element Solutions has optimized its portfolio by completing the sale of its MacDermid Graphics Solutions business for $323 million, resulting in a gain of $72.1 million, and utilized proceeds to reduce debt by $200 million, lowering its outstanding credit agreement to $836 million.
