Element Solutions (US:ESI)2025-04-24 20:16Financial 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]