Q4 2024 Element Solutions Inc Earnings Call Transcript
Key Points
- Element Solutions Inc (ESI) delivered record adjusted EBITDA of $535 million in 2024, growing 13% in constant currency.
- The company achieved a record free cash flow of $294 million, converting over 50% of adjusted EBITDA to free cash flow.
- ESI outperformed its markets by penetrating fast-growing niches in the electronics industry, particularly in Semiconductor and Circuitry Solutions.
- The sale of Macdermid Graphics Solutions for $325 million is expected to enhance the company's portfolio and improve growth and margins.
- ESI's balance sheet is strong, with net leverage at 2.8x and no debt maturities until 2028, providing substantial capacity for capital deployment.
- The company faced a $12 million year-on-year headwind to adjusted EBITDA due to foreign exchange translation.
- Industrial and Specialty segment sales declined 1% year-over-year, with soft European industrial end markets impacting performance.
- Higher pass-through metals in the assembly business generated an 80 basis point headwind to company margins.
- The sale of Graphics Solutions is expected to impact adjusted EBITDA by approximately $30 million in 2025.
- Potential tariffs and uncertain global industrial production pose risks to the company's 2025 outlook.
Good morning, ladies and gentlemen, and welcome to the Element Solutions fourth quarter and full year 2024 financial results conference call. (Operator Instructions) I will now turn the call over to Varun Gokarn, Vice President, Strategy & Integration. Please go ahead.
Good morning, and thank you for participating in our fourth quarter and full year 2024 earnings conference call. In accordance with Regulation FD, we are webcasting this conference call. A replay will be made available in the Investors section of the company's website. During today's call, we will make certain forward-looking statements that reflect our current views about the company's future performance and financial results. These statements are based on assumptions and expectations of future events, which are subject to risks and uncertainties.
Please refer to our earnings release, supplemental slides and most recent SEC filings for a discussion of material risk factors that could cause actual results to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
