Element Solutions (ESI) Ups View, Sees Record EBITDA in FY24

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]