Element Solutions Stock Earnings Reports

Element Solutions reported a strong Q3 2025 with record adjusted EBITDA of $147 million, exceeding guidance, driven by continued electronics momentum (sixth consecutive quarter of high single‑digit organic growth in Electronics) and industrial margin improvement. Management announced the acquisition of Micromax (expected close Q1 2026), which will add roughly $40 million of adjusted EBITDA on a full‑year basis and is expected to be more than 5% accretive to adjusted EPS. Full‑year 2025 adjusted EBITDA guidance was reiterated at the high end to $545–$550 million (implying Q4 EBITDA of ~$135–$140 million). Cash flow was healthy with $84 million of adjusted free cash flow in Q3; capex remains ~ $65 million for the year. Net leverage was 1.9x at quarter end and is expected to be ~2.5x pro forma for Micromax at year‑end, well below the 3.5x long‑term ceiling, leaving capacity for further disciplined M&A. Kuprion commercialization and a mid‑scale manufacturing site are on track to contribute in 2026. Management highlighted ex‑metals margins of ~28% (approx. 100 bps improvement year‑over‑year) and noted that metals pass‑through (~$125 million in the quarter) adds volatility to reported revenue but not to underlying profitability. Key investor takeaways: record profitability, strategic, accretive M&A (Micromax) that materially scales the Electronics business (> $2B), strong balance sheet and cash generation, continued investment in high‑value product launches and Kuprion commercialization for 2026, and margin expansion opportunity ex metals.