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Element Solutions Inc, a global and diversified specialty chemicals technology company, announced its financial results for the three and six months ended June 30, 2026.
Executive Commentary
Chief Executive Officer Benjamin Gliklich commented, “Element Solutions delivered a record quarter of revenue, adjusted EBITDA and adjusted EPS. Our strategic execution – marrying operational excellence and prudent capital allocation – continues to generate exceptional profit growth. Core markets remain healthy, and customer engagements continue to accelerate to meet our supply chain’s ever-more challenging technical roadmaps. The organic outlook for the year improved over the course of the second quarter as reflected in our increased full year adjusted EBITDA guidance, while progress against strategic priorities, including the Micromax integration and Kuprion scale up, reinforces our confidence in the long-term trajectory for the Company.”
Mr. Gliklich continued, “Our proposed transaction with Solstice intends to accelerate value creation by forming a stronger, more differentiated electronics portfolio and unlocking compelling synergies. Element Solutions' market leadership positions and strong, entrepreneurial culture complement Solstice's operational expertise and process discipline. Our combined company is poised to create significant long-term value, leading the market in profitability and cash flow generation with many years runway of double digit earnings growth.”
Second Quarter 2026 Highlights (compared with second quarter 2025)
- Net sales on a reported basis for the second quarter of 2026 were $978 million, an increase of 56% over the second quarter of 2025. Organic net sales increased 15%.
- Electronics: Net sales increased 75% to $767 million, including 29% from acquisitions. Organic net sales increased 20%.
- Specialties: Net sales increased 14% to $211 million, including 9% from acquisitions net of divestitures. Organic net sales increased 3%.
- Second quarter of 2026 earnings per share (EPS) performance:
- GAAP diluted EPS was $0.32, as compared to $0.20 for the same period last year.
- Adjusted EPS was $0.47, as compared to $0.37 for the same period last year.
- Reported net income for the second quarter of 2026 was $77 million, as compared to $48 million for the second quarter of 2025, an increase of 63%.
- Net income margin increased by 30 basis points to 7.9%.
- Adjusted EBITDA for the second quarter of 2026 was $184 million, as compared to $136 million for the second quarter of 2025. On a constant currency basis, adjusted EBITDA increased 33%.
- Electronics: Adjusted EBITDA was $142 million, an increase of 47%. On a constant currency basis, adjusted EBITDA increased 44%. The Micromax business had a positive impact of 31% on constant currency adjusted EBITDA growth.
- Specialties: Adjusted EBITDA was $42 million, an increase of 7%. On a constant currency basis, adjusted EBITDA increased 4%. The EFC Gases & Advanced Materials business had a positive impact of 10% on constant currency adjusted EBITDA growth.
- Adjusted EBITDA margin increased by 120 basis points to 27.8%.
Updated 2026 Guidance
The Company now expects full year 2026 adjusted EBITDA to be in the range of $690 million to $710 million, inclusive of expected contributions from the Micromax and EFC acquisitions on a full-year basis and assuming stable exchange rates and metal prices, and an adjusted EPS growth rate of approximately 20%. In addition, the Company expects third quarter 2026 adjusted EBITDA to be approximately $180 million.
Recent Developments
Solstice Transaction - On July 6, 2026, the Company and Solstice entered into an Agreement and Plan of Merger for the acquisition of the Company by Solstice. Upon completion of the merger, each issued and outstanding share of the Company's common stock, except for treasury shares and certain other exceptions, will be exchanged for (i) 0.5 shares of Solstice common stock and (ii) $10.00 in cash, without interest, plus cash in lieu of any fractional shares. The proposed transaction is expected to close in the first half of 2027 and is subject to customary closing conditions and regulatory approvals.
