Core Viewpoint - Element Solutions (ESI) has improved its guidance for Q2'24 and the full year, driven by stronger conditions in its electronics business, particularly in wafer-level packaging and circuitry [13]. Group 1: Business Performance and Outlook - ESI's Q2'24 EBITDA target has been raised to $135 million from $125 million, with a full-year target of $530 million to $545 million, up from $515 million to $530 million [13]. - The electronics segment showed overall revenue growth of 4%, with Circuitry up 8% and Semiconductor up 11% [13]. - Despite challenges in the auto sector, which accounts for about 25% of ESI's business, the company remains well-positioned for long-term growth trends such as vehicle electrification and lightweighting [7][8]. Group 2: Market Challenges - The auto sector is experiencing signs of deceleration, with concerns about weak sales growth in the EV space in Western countries [8]. - Construction and short-cycle industrial markets are weakening, impacting ESI's Industrial & Specialties business, which may not see much growth through Q4'24 [9]. - The overall chip demand remains shaky, although demand for advanced nodes driven by AI is strong, which could benefit ESI's wafer-level packaging segment [13][16]. Group 3: Long-Term Growth Drivers - ESI is expected to achieve around 4% annualized revenue growth, driven by new materials in circuitry, circuit board assembly, and semiconductor packaging [6]. - The company is well-leveraged to increasing complexity in semiconductor and electronics design, which will drive demand for its plating products and advanced materials [16]. - Advanced wafer-level packaging is anticipated to grow, supporting ESI's exposure to both leading-edge chip production and large-volume applications like smartphones and EVs [16]. Group 4: Financial Metrics and Valuation - Operating margins are expected to improve to the low 20% range, with adjusted EBITDA margins reaching 25% over the next three to five years [6]. - Free cash flow margins are projected to move from low double-digits to mid-teens, supporting mid-to-high single-digit annualized free cash flow growth [6]. - The fair value of ESI shares is estimated at $27 to $29 based on an EV/EBITDA approach, reflecting a forward multiple of 15x-16x [6].

Element Solutions Inc's (ESI) shares reached a fresh 52-week high of $27.08 on Jun 13, before closing at $26.75. What's Driving Element Solutions? Despite this, Element Solutions expects to achieve record adjusted EBITDA in 2024, the highest since its inception in 2019, bolstering confidence in its long-term growth potential. The company has increased its 2024 adjusted EBITDA forecast from a range of $515 million to $530 million to a revised range of $530 million to $545 million. The company also projects 2 ...

Element Solutions (ESI) shares ended the last trading session 13.6% higher at $26.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.2% gain over the past four weeks. ESI's stock popped after the company raised its guidance for the second quarter and full-year 2024. The company now anticipates adjusted EBITDA to be approximately $135 million for the second quarter, up from $125 million expected earlier. Despite ...

Core Insights - Element Solutions Inc. (ESI) has revised its guidance upward for both the second quarter and full year of 2024, expecting adjusted EBITDA of approximately $135 million for Q2, an increase from the previous estimate of $125 million [1] - The full-year 2024 adjusted EBITDA forecast has been raised from a range of $515 million to $530 million to a new range of $530 million to $545 million, with adjusted EPS projected to be between $1.40 and $1.46 [2] - Despite a weaker industrial environment, ESI anticipates achieving record adjusted EBITDA in 2024, the highest since the company's inception in 2019, indicating strong long-term growth prospects [3] Financial Performance - ESI's shares have increased by 24.4% over the past year, contrasting with a 13% decline in the industry [4] - In the first quarter of 2024, ESI reported adjusted earnings of 34 cents per share, exceeding the Zacks Consensus Estimate of 32 cents, with net sales of $575 million remaining flat year-over-year [8] Business Segments - The electronics business is performing well, with profitability improving, particularly in the wafer level packaging and circuitry segments, which have seen significant customer growth recently [7]

A month has gone by since the last earnings report for Element Solutions (ESI) . Shares have added about 4.1% 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. Element's Q1 Earnings Surpass Estimat ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36272 Element Solutions Inc (Exact name of Registrant as specified in its charter) Delaware 37-1744899 (State or other jur ...

EXHIBIT 99.1 Element Solutions Inc Announces 2024 First Quarter Financial Results Miami, Fla., April 29, 2024 -- Element Solutions Inc (NYSE:ESI) ("Element Solutions" or the "Company"), a global and diversified specialty chemicals company, today announced its financial results for the three months ended March 31, 2024. Executive Commentary President and Chief Executive Officer Benjamin Gliklich commented, "Element Solutions executed well this quarter in recovering electronics markets. Our ongoing investment ...

A month has gone by since the last earnings report for Element Solutions (ESI) . Shares have added about 6.9% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts. Element's Q4 Earnings in Line, Revenues ...

Financial Data and Key Metrics Changes - The company's top line declined 5% organically in 2023, primarily due to weak demand in Asia and electronics markets, although there was an improvement towards the end of the year [14][28] - Adjusted EBITDA declined 6% year-on-year on a constant currency basis, but margins improved by 20 basis points despite challenges from declining high-end electronics [14][33] - Free cash flow reached a record $282 million for the year, with $95 million generated in Q4, reflecting a release of approximately $15 million in working capital [21][30] Business Line Data and Key Metrics Changes - The semiconductor vertical grew 7% in Q4, tracking shipment growth for global handsets, indicating a positive trend as the company enters 2024 [10] - The assembly business experienced a 2% organic decline for the full year, but it outperformed the circuitry and semiconductor businesses, driven by strength in automotive markets [16][70] - Energy Solutions grew 11% organically, supported by increased offshore drilling activity and pricing actions [13][20] Market Data and Key Metrics Changes - The I&S segment declined 7% organically in Q4, with industrial surface treatment volume softening in Europe and China [12] - The industrial and specialty segment saw organic net sales fall 2% year-over-year, with industrial solutions declining 4% organically [19] - The electronics ecosystem showed signs of improvement, with organic growth declining only 1% compared to earlier high single-digit declines [35] Company Strategy and Development Direction - The company is focused on rebuilding variable costs and incurring additional operational expenses in response to higher demand and customer activity [41] - There is an emphasis on leveraging existing technologies and new offerings across advanced electronics applications to drive growth [48] - The company plans to continue its M&A strategy, having made significant acquisitions in 2023 that strengthen its position in high-end electronics [30][79] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2024, anticipating that the inventory correction in semiconductor and PCB end markets is behind them, with improving activity levels and orders [23][37] - The outlook for global industrial production is modest, with expectations for low single-digit growth in global auto production [40] - The company expects mid-single-digit organic growth in electronics for 2024, driven by improved customer activity [44] Other Important Information - The company reduced gross debt by over $100 million and extended the maturity on remaining term loans to 2030, maintaining a strong balance sheet [7][8] - The effective interest rate on outstanding term loans was 3.3% at year-end, with 80% of the capital structure remaining fixed rate until 2028 [8] Q&A Session Summary Question: What is the outlook for the electronics market in 2024? - Management noted that January was a strong month, and they feel confident in their guidance for Q1, with potential for outperformance based on customer ordering patterns [51][56] Question: Will the industrial and specialty segment see growth in 2024? - The I&S business is expected to grow modestly in 2024, with some customer wins ramping and stronger margins anticipated [62] Question: How does the company view M&A opportunities? - The company remains opportunistic regarding M&A, with strong cash flows allowing for potential acquisitions if the right opportunities arise [63][79] Question: What are the expectations for variable costs in 2024? - The company plans to rebuild incentive compensation, which is a one-time adjustment, while maintaining flexibility in operational costs [66][76] Question: What is the outlook for the company's business in China? - The company expects growth in China in 2024, particularly in the circuit board market and electric vehicle OEMs, despite a challenging year in 2023 [124]

Element Solutions Inc. (ESI) recorded earnings of 32 cents per share in fourth-quarter 2023 compared with earnings of 5 cents in the year-ago quarter. The figure was in line with the Zacks Consensus Estimate.The company generated net sales of $573.4 million, flat year over year. The figure missed the Zacks Consensus Estimate of $588.6 million. Organic net sales fell 3%.The company’s circuitry and semiconductor businesses returned to organic growth in the reported quarter. ESI also delivered adjusted EBITDA ...