Element Solutions Q2 Earnings and Revenues Beat Estimates

Core Insights - Element Solutions Inc. (ESI) reported earnings of 20 cents per share for Q2 2025, down from 39 cents in the same quarter last year, but adjusted earnings were 37 cents per share, exceeding the Zacks Consensus Estimate of 36 cents [1][7] - The company achieved net sales of $625.2 million, a 2% increase year over year, surpassing the Zacks Consensus Estimate of $605 million, with organic net sales rising by 6% [1][7] Segment Performance - The Electronics segment saw net sales increase by 12% year over year to $439 million, with organic net sales up 9%, beating the consensus estimate of $426 million [3] - In contrast, the Industrial & Specialty segment experienced a 16% decline in net sales to $186 million, although it still exceeded the consensus estimate of $179 million, with organic net sales increasing by 1% [3] Financial Position - ESI ended the quarter with cash and cash equivalents of $529.9 million, a 47.4% increase from the previous quarter, while long-term debt rose slightly to $1,624.5 million [4] - Cash from operating activities was reported at $72.6 million, and free cash flow was $58.8 million for the quarter [4] Outlook - The company projects adjusted EBITDA for 2025 to be between $530 million and $550 million, with free cash flow conversion expected to be similar to the previous year [5] - For Q3 2025, adjusted EBITDA is forecasted to be between $140 million and $145 million [5] Stock Performance - ESI's shares have decreased by 1.6% over the past year, while the industry has seen a 1.3% increase [6]