REG - Elementis PLC - Third Quarter Trading Update

ElementisAnnouncement

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RNS Number : 1991F  Elementis PLC  29 October 2025

29 October 2025

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 of 16 April 2014 which forms part of
domestic law by virtue of the European Union (Withdrawal) Act 2018.

 

Elementis plc

Third Quarter Trading Update

 

Resilient performance, full year guidance maintained

 

Elementis plc ("Elementis" or the "Group"), a global specialty chemicals
company, today issues its scheduled trading update for the three months ended
30 September 2025 ("the quarter").

Despite the ongoing weak market conditions, the Group is on track to deliver
full year financial performance in line with market expectations(1), supported
by our Elevate Elementis strategy and the positive changes being implemented
across the Group.

Business performance

The Group delivered a resilient performance in the quarter, with revenue(3) of
c.$152m, up c.2% compared to the prior period. On a constant currency basis(2)
revenue was flat reflecting the impact of the weaker dollar.

Adjusted operating profit(3) improved against the prior year, driven by
self-help and cost-control actions.  Year-to-date adjusted operating
margins(3) are consistent with the H1 performance.

Personal Care sales were flat on constant currency basis with positive price
and volume impacts helping to offset the negative impact of mix in the period.

Coatings sales were flat on a constant currency basis due to volume and mix
weakness in the Americas. This was offset partially by price improvements. The
energy business continues to perform strongly with volumes, pricing and mix
higher than the prior year period.

We are on track to deliver $12m in cost savings by end of this year that
completes the $30m of cost savings announced in November 2023 for delivery by
the end of 2025. In addition, as we drive simplification and agility across
the business, we continue to expect around $5m of further savings this year.
This is part of the $10m of additional savings to 2026 (net of additional
R&D spend) that we announced in July with our Elevate Elementis strategy.

Eaglescliffe

On 14 October 2025, Elementis completed the sale of the disused manufacturing
site at Eaglescliffe in the UK to Flacks Group resulting in a cash outflow of
c.$11m. This follows recently obtained UK Environment Agency consent to the
transfer of all operating permits to the buyer. This completes the exit for
the Group from the Eaglescliffe site and the removal of c.$20m environmental
liabilities from the balance sheet.

Directorate changes

Following the successful completion of several significant milestones for the
Group in his time as chair including the sale of the Chromium and Talc
businesses, the appointment of Luc van Ravenstein as CEO and the launch of the
new Elevate Elementis strategy in July, the Group's Chair, John O'Higgins, has
informed the Board that he will not seek re-election at the Company's AGM on
29 April 2026 and will step down as Chair and NED immediately following the
AGM. Further details on the Chair succession plan will be provided in due
course.

 

In recognition of the need to transition to a Board that is more reflective of
the reduced size of the business, the Group also announces today that Heejae
Chae will be stepping down as NED at the end of this year.

 

On 30 September 2025, we announced that Ralph Hewins, CFO, would be retiring
from the company after nine years in the role and will step down from his
position at the end of 2025. The company also announced that Kath
Kearney-Croft, had been appointed to succeed Ralph and will join as CFO
designate on 3 November 2025 before becoming CFO and a member of the Elementis
Board on 1 January 2026. Kath has been CFO of Learning Technologies Group
since 2021, and prior to this has over 20 years of experience in a range of
CFO and senior finance roles in the UK and US with SIG plc, The Vitec Group
plc, Rexam PLC, and BOC Group.

 

Luc van Ravenstein, CEO of Elementis, said:

"I am pleased to report that we have delivered a resilient third quarter
performance, despite the continued softness in the coatings markets,
demonstrating the strength and quality of our business and our commitment to
delivering outstanding value for our customers. While revenue was broadly
stable on the prior year period, our margins remain healthy due to the
benefits of our proactive operational efficiency initiatives as we create a
simpler, leaner Elementis. With market demand in coatings likely to remain
soft, we remain focused on executing our Elevate Elementis strategy - designed
to accelerate sustainable growth and deliver attractive returns."

 

John O'Higgins, Chair of Elementis, said:

"It's been an honour to serve as Chair of Elementis. The Company has navigated
significant transformation during this time, and I'm incredibly proud of what
we've achieved together in creating a more resilient and focused business.
Following the successful completion of several milestones, now is the right
time for me to step down and I look forward to continuing to support Luc and
the rest of the Board until the next AGM. On behalf of the Board, I would also
like to thank Heejae for his valuable contribution to the Board and its
Committees during his tenure."

 

The person responsible for the release of this announcement on behalf of
Elementis plc is Hannah Constantine, Group General Counsel and Company
Secretary.

 

Enquiries

Investors:          Zeeshan Maqbool, Elementis plc
          Tel: +44 7553 340380

Press:               Martin Robinson/Giles Kernick,
Teneo                Tel: +44 (0) 20 7353 4200

 

 

 

 Notes:

1.   Based on company compiled consensus dated 28 October 2025, the mean
adjusted operating profit for the year ended 31 December 2025 is $125m (range
$123-127m).

2.   Constant currency rates are determined as the reported rates excluding
the impact of changes in the average translation exchange rates during the
period.

3.   Continuing operations basis.

 

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