Element's Q4 Earnings in Line, Revenues Surpass Estimates

Core Insights - Element Solutions Inc. (ESI) reported earnings of 23 cents per share from continuing operations in Q4 2024, down from 32 cents in the same quarter last year, with adjusted earnings per share meeting the Zacks Consensus Estimate of 35 cents [1][2] Financial Performance - The company generated net sales of $624.2 million in Q4 2024, reflecting an 8.9$603.9 million [2] - Adjusted EBITDA grew by 8% in the quarter [2] - For the full year 2024, earnings from continuing operations were $1 per share, up from 48 cents a year ago, with net sales increasing approximately 5.3$2,456.9 million [4] Segment Performance - In the Electronics segment, net sales rose 14% year over year to $401.4 million, with organic net sales up 7$388.8 million [3] - The Industrial & Specialty segment saw net sales increase by 1% year over year to $222.8 million, with organic net sales up 3$214.9 million [3] Financial Position - ESI ended 2024 with cash and cash equivalents of $359.4 million, a 24.2$1,813.6 million [5] - Cash from operating activities was $362 million in 2024, with free cash flow amounting to$294 million for the year [5] Outlook - For FY 2025, ESI expects adjusted EBITDA to be in the range of $520-$540 million and free cash flow conversion to be comparable year over year, with Q1 2025 adjusted EBITDA projected at approximately $125 million [6] Stock Performance - ESI's shares have gained 13.4% over the past year, contrasting with a 20.6% decline in the industry [7]