Element Solutions (ESI) FY Conference June 17, 2025 12:55 PM ET Speaker0 Awesome. Next up, we have the CEO of Element Solutions, ESI. We have the president and CEO, Ben Gluklich, who I've had the pleasure of knowing for over a decade now. It's making us feel both a lot old. You know? So it's been fantastic. And speaking of, you know, that time frame, you've been fairly integral to the evolution of what now stands as Elements portfolio going back many, many years. There's been a lot going on even in the last ...

It has been about a month since the last earnings report for Element Solutions (ESI) . Shares have added about 5.2% in that time frame, underperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.How Have Estimates Been Moving Si ...

Core Insights - MacDermid Enthone Industrial Solutions is making a strategic investment in RM Plating, reinforcing its commitment to innovation and excellence in surface finishing technology [1][3] - The partnership with Recubrimientos Metalicos de Mexico, a leading electroplating company, is built on a 50-year relationship and aims to advance the future of metal finishing [1][4] Company Overview - MacDermid Enthone Industrial Solutions, established in 1922, specializes in manufacturing chemical compounds for surface finishing applications and focuses on sustainable technologies [5][6] - Recubrimientos Metalicos de Mexico, founded in 1954, is recognized as Mexico's leading plating supplier and has a history of innovation, including being the first to automate zinc plating in Latin America [6] Investment Details - The RM Plating facility in Irapuato, Guanajuato, offers high-performance plating solutions for various industries, including automotive and construction, with production starting in February 2025 [2][6] - MacDermid Enthone's investment includes advanced plating equipment and technical expertise to enhance efficiency and quality at RM Plating [3][4] Leadership and Vision - Glen Breault, Vice President of North America at MacDermid Enthone, emphasizes the integration of chemistry and process expertise to shape the future of metal finishing [4] - Ricardo Cielak, Director at RM Plating, highlights the commitment to raising standards in quality, efficiency, and innovation through this partnership [5]

Core Viewpoint - Element Solutions Inc. (ESI) reported a significant increase in earnings and net sales for the first quarter of 2025, driven by strong performance in the electronics segment, despite a decline in the industrial business. Financial Performance - ESI recorded earnings of 40 cents per share for Q1 2025, up from 23 cents in the same quarter last year, and beat the Zacks Consensus Estimate of 33 cents [1] - The company generated net sales of $593.7 million, a 3.3% increase year over year, surpassing the Zacks Consensus Estimate of $584.6 million [1] - Organic net sales rose by 5% [1] Segment Performance - The Electronics segment saw net sales rise by 12.9% year over year to $394.3 million, with organic net sales increasing by 10%, exceeding the consensus estimate of $385.5 million [2] - In contrast, the Industrial & Specialty segment experienced a 12% decline in net sales to $199.4 million, with organic net sales down by 2%, but still marginally beating the consensus estimate of $199 million [3] Financial Position - ESI ended the quarter with cash and cash equivalents of $499.2 million, a 39% increase from the prior quarter [4] - Long-term debt decreased by approximately 10% sequentially to $1,623.8 million [4] - Cash from operating activities was $26 million, while free cash flow was $30 million for the reported quarter [4] Outlook - The company anticipates adjusted EBITDA for 2025 to be between $520 million and $540 million, with free cash flow conversion expected to be comparable to the previous year [5] - For Q2 2025, adjusted EBITDA is forecasted to be between $120 million and $125 million, indicating flat sequential performance [5] Price Performance - ESI's shares have declined by 17% over the past year, compared to a 4.3% decline in the industry [6]

First Quarter 2025 Earnings Presentation Enabling Technology. Growing Sustainably. Legal Notices NON-GAAP FINANCIAL MEASURES To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company presents in this presentation the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted EBITDA growth (including growth excluding the MacDermid Graphics Solutions business) adjusted EBITDA margin (including margin exclu ...

Core Insights - Element Solutions reported strong Q1 2025 results with a 5% year-over-year organic sales growth, driven by a 10% growth in the Electronics segment [2][3] - The company maintained its full-year 2025 adjusted EBITDA guidance at $520 million to $540 million, despite macroeconomic uncertainties [10][9] - The net leverage ratio reached 2.1x, the lowest in the company's history, indicating a strong balance sheet [9][10] Financial Performance - Q1 2025 adjusted EBITDA was $128 million, exceeding guidance [2][9] - Wafer-Level Packaging sales grew over 20%, supported by high bandwidth memory applications [2][4] - The Electronics segment's organic growth was broad-based, with significant contributions from circuitry, semiconductor, and assembly materials [4][7] Market Dynamics - The Industrial and Specialty segment experienced a 2% decline in organic sales, primarily due to weakness in Europe [4][8] - Data center exposure across business units is projected to approach $200 million in 2025 [4][15] - The company is focused on new product launches in wafer-level packaging expected later in 2025 [4][19] Strategic Initiatives - The company emphasized its ability to mitigate potential tariff impacts through a diversified manufacturing footprint [4][10] - There is a strong focus on capital deployment to drive long-term shareholder value, with substantial capacity available for investments [4][10] - The company is actively localizing sourcing and manufacturing to adapt to changing trade dynamics [10][41] Growth Opportunities - The Electronics segment is expected to continue benefiting from trends in AI, advanced packaging, and data center markets [3][7] - The company is seeing strong demand in high-performance computing and electric vehicle applications, particularly in Asia [7][8] - The transition towards B2B end markets is anticipated to reduce quarterly seasonality and cyclicality over time [9][10]

Financial Performance - Net sales for Q1 2025 were $593.7 million, an increase of 3.7% from $575.0 million in Q1 2024[15] - Gross profit for Q1 2025 was $250.5 million, up from $245.0 million in Q1 2024, reflecting a gross margin of 42.2%[15] - Net income for Q1 2025 increased to $98.0 million, compared to $56.0 million in Q1 2024, representing a growth of 75.0%[16] - Earnings per share (EPS) for Q1 2025 were $0.40, compared to $0.23 in Q1 2024, marking a 73.9% increase[15] - The company reported a comprehensive income of $155.5 million for Q1 2025, significantly higher than $17.7 million in Q1 2024[16] - Operating profit for Q1 2025 was $77.4 million, slightly down from $77.8 million in Q1 2024[15] - Adjusted EBITDA for the three months ended March 31, 2025, was $128.4 million, slightly up from $127.0 million in 2024[92] - Total adjusted EBITDA for the company was $128.4 million in Q1 2025, slightly up from $127.0 million in Q1 2024, reflecting a 1.1% increase[93] Assets and Liabilities - Total assets as of March 31, 2025, were $4,794.6 million, a decrease from $4,873.9 million as of December 31, 2024[18] - Total liabilities decreased to $2,259.6 million as of March 31, 2025, from $2,475.5 million at the end of 2024[18] - The balance of accumulated deficit decreased to $(938.6) million as of March 31, 2025, from $(1,017.1) million at December 31, 2024, showing an improvement of 7.7%[22] - The company’s total stockholders' equity increased to $2,535.0 million as of March 31, 2025, compared to $2,398.4 million at December 31, 2024, reflecting a growth of 5.7%[22] - The total debt as of March 31, 2025, was $1,623.8 million, a decrease from $1,824.0 million as of December 31, 2024[45] - The carrying value of the Company's long-term debt was $1.62 billion as of March 31, 2025, down from $1.82 billion at December 31, 2024[73] - The estimated fair value of long-term debt was $1.59 billion at March 31, 2025, compared to $1.81 billion at December 31, 2024[73] Inventory and Expenses - The total inventories increased to $269.9 million as of March 31, 2025, up from $246.2 million at December 31, 2024, reflecting a 9.5% growth[38] - The company’s finished goods inventory increased to $146.9 million as of March 31, 2025, up from $137.4 million at December 31, 2024, representing a 6.4% increase[38] - Research and development expenses increased to $15.3 million in Q1 2025 from $13.6 million in Q1 2024, marking a 12.5% rise[93] - Selling, technical, general, and administrative expenses totaled $117.2 million in Q1 2025, up from $113.8 million in Q1 2024, reflecting a 3.0% increase[93] Segment Performance - The Electronics segment reported net sales of $394.3 million for the three months ended March 31, 2025, an increase from $349.2 million in 2024[90] - The Industrial & Specialty segment's net sales decreased to $199.4 million in the three months ended March 31, 2025, from $225.8 million in 2024, a decline of 11.7%[90] - Net sales for the Electronics segment reached $394.3 million in Q1 2025, up from $349.2 million in Q1 2024, representing a 12.4% increase[93] - The Industrial & Specialty segment reported net sales of $199.4 million in Q1 2025, compared to $225.8 million in Q1 2024, indicating a decline of 11.7%[93] Cash Flow and Financing - Cash and cash equivalents increased to $499.2 million as of March 31, 2025, up from $359.4 million at the end of 2024[18] - The Company prepaid $200 million of its term loans B-3, reducing the principal outstanding from $1.04 billion to $836 million[48] - The Company has a revolving credit facility of $375 million, maturing in 2027, with full availability of its unused borrowing capacity of $368 million as of March 31, 2025[52] Market and Strategic Initiatives - The company continues to focus on market expansion and new product development as part of its strategic initiatives[93] - There have been no material changes in the quantitative and qualitative disclosures about market risk since the 2024 Annual Report[145]

Element Solutions Inc (NYSE:ESI) Q1 2025 Earnings Conference Call April 24, 2025 8:30 AM ET Company Participants Varun Gokarn - Vice President, Strategy and Integration Ben Gliklich - President and Chief Executive Officer Carey Dorman - Chief Financial Officer Sir Martin Franklin - Executive Chairman Conference Call Participants James Cannon - UBS Bhavesh Lodaya - BMO Capital Markets Mike Harrison - Seaport Research Partners Rock Hoffman - Bank of America Chris Parkinson - Wolfe Research Pete Osterland - Tr ...

Element Solutions (ESI) Q1 2025 Earnings Call April 25, 2025 12:45 AM ET Company Participants Varun Gokarn - Vice President - Strategy and IntegrationBenjamin Gliklich - President and CEOBhavesh Lodaya - US Chemicals Equity ResearchSir Martin Franklin - Executive ChairmanRock Hoffman - Equity Research AssociateChristopher Parkinson - Managing DirectorCarey Dorman - EVP and CFOJohn Roberts - Managing DirectorJonathan Tanwanteng - Managing DirectorRyan Weis - Equity Research Associate Conference Call Particip ...

For the quarter ended March 2025, Element Solutions (ESI) reported revenue of $593.7 million, up 3.3% over the same period last year. EPS came in at $0.34, compared to $0.34 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $584.63 million, representing a surprise of +1.55%. The company delivered an EPS surprise of +3.03%, with the consensus EPS estimate being $0.33.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...