Element Solutions Q2 sales beat estimates on electronics segment strength

Element Solutions

27/07/2026 21:27

Overview
US specialty chemicals firm's Q2 net sales rose 56%, beating analyst expectations
Adjusted EPS for Q2 increased to $0.47 from $0.37 yr/yr
Company to be acquired by Solstice in deal expected to close H1 2027

Outlook
Element Solutions raises full-year 2026 adjusted EBITDA guidance to $690 mln-$710 mln
Company expects Q3 2026 adjusted EBITDA of about $180 mln
Element Solutions says core markets remain healthy and customer engagement is accelerating

Result Drivers
ELECTRONICS SEGMENT - Electronics sales rose 75%, with 29% of growth from acquisitions and 20% organic growth
MICROMAX INTEGRATION - Micromax business contributed 31% to constant currency adjusted EBITDA growth in Electronics
SPECIALTIES SEGMENT - Specialties sales rose 14%, with 9% from acquisitions net of divestitures and 3% organic growth; EFC Gases & Advanced Materials business contributed 10% to constant currency adjusted EBITDA growth

Company press release: ID:nBw4v51jxa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$977.90 mln
$871.65 mln (9 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialty chemicals peer group is "buy"
Wall Street's median 12-month price target for Element Solutions Inc is $47.50, about 26.9% above its July 24 closing price of $37.44
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)