Element Solutions Q2 Earnings and Revenues Beat Estimates

Element Solutions Inc. ESI recorded earnings of 20 cents per share for second-quarter 2025 compared with 39 cents in the year-ago quarter.

Barring one-time items, earnings were 37 cents per share. The figure beat the Zacks Consensus Estimate of 36 cents.

The company generated net sales of $625.2 million, up 2% year over year. The figure beat the Zacks Consensus Estimate of $605 million. Organic net sales rose 6%.

Strong growth in the electronics segment sales in the quarter was offset by the declines in the industrial business.

Element Solutions Inc. Price, Consensus and EPS Surprise

Element Solutions Inc. price-consensus-eps-surprise-chart | Element Solutions Inc. Quote

ESI’s Segment Highlights

Net sales in the Electronics segment rose 12% year over year to $439 million in the reported quarter. Organic net sales were up 9% from the year-ago number. The figure beat the consensus estimate of $426 million.

In the Industrial & Specialty segment, net sales declined 16% year over year to $186 million, with organic net sales up 1%. However, the figure beat the consensus estimate of $179 million.

ESI’s Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $529.9 million, up around 47.4% from the prior quarter. Long-term debt was $1,624.5 million at the end of the quarter, up modestly from $1,623.8 million in the prior quarter.

Cash from operating activities was $72.6 million while free cash flow was $58.8 million for the reported quarter.

ESI’s Outlook

The company anticipates adjusted EBITDA for 2025 to be between $530 million and $550 million, with free cash flow conversion comparable to the previous year. The company forecasts adjusted EBITDA for the third quarter of 2025 to be between $140 million and $145 million.

ESI’s Price Performance

Shares of Element Solutions have lost 1.6% in a year against a 1.3% rise in the industry.

ESI’s Zacks Rank & Other Key Picks

ESI currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks worth a look in the basic materials space include Avino Silver & Gold Mines Ltd. (ASM), Lithium Americas Corp. LAC and MAG SilverCorp. MAG.

Avino Silver is slated to report second-quarter results on Aug. 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. ASM’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 104.17%. Avino Silver flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lithium Americas is expected to report second-quarter results on Aug. 12. The Zacks Consensus Estimate for LAC’s second-quarter earnings is pegged at a loss of 4 cents per share, indicating year-over-year growth of 20%. Lithium Americas’ earnings beat the Zacks Consensus Estimate in one of the last four quarters but missed it in the rest. LAC currently carries a Zacks Rank #2.

MAG Silver is slated to report second-quarter results on Aug. 11. The consensus estimate for MAG’s earnings is pegged at 26 cents per share. MAG carries a Zacks Rank #2 at present. MAG Silver’s earnings beat the consensus estimate in three of the last four quarters, while missing it in one, with the average surprise being 2.01%.

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This article originally published on Zacks Investment Research (zacks.com).

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