Element Solutions Raises 2026 Adjusted EBITDA Outlook to About $720 Million

Key Facts

Element Solutions reported results on October 21 for the three months ended September 30, 2026, and raised its full-year adjusted EBITDA outlook to about $720 million. Chief Executive Benjamin Gliklich said the company is converting supportive trends in the electronics market into profitable growth. He added that the company raised its annual guidance following the quarterly results. The company also expects adjusted EPS growth of more than 20% in 2026. The new outlook puts strong electronics performance alongside weaker growth in the Specialties segment.

Third-quarter diluted GAAP EPS was $0.27, compared with $0.16 in the same period a year earlier. Adjusted EPS was $0.50, versus $0.41 a year earlier. The comparison reflects year-over-year improvement in both measures, while adjusted earnings remain distinct from the GAAP measure. The official release did not provide a comparison with analysts’ results or estimates. This account is therefore limited to the figures reported by the company and their comparison with the third quarter of 2025.

At the segment level, Specialties recorded sales of $215.7 million, up from $190.9 million a year earlier, while organic sales growth was 1%. But the segment’s adjusted EBITDA fell 6% to $42.7 million. By contrast, adjusted EBITDA in the Electronics segment rose 46% to $148.3 million. The divergence between the segments shows that the reported increase in profitability was not uniform across the company’s businesses. The company also said the acquisition of EFC Gases & Advanced Materials contributed 16% to Specialties’ adjusted EBITDA growth on a constant-currency basis.

The company said Micromax contributed positively to Electronics’ adjusted EBITDA growth by 19% on a constant-currency basis. Management cited demand for AI infrastructure and high-performance electronics applications among the drivers of organic growth in the segment. Micromax’s impact is included among the acquisition contributions that will be counted for a full year in the annual outlook. The adjusted EBITDA forecast of about $720 million includes full-year contributions from Micromax and EFC. The outlook also assumes stable foreign-exchange and metal prices.

Cash flow from operating activities was $159.2 million in the third quarter, while free cash flow reached $134.5 million. At the end of September, cash and cash equivalents stood at $224.9 million, compared with $626.5 million on December 31, 2025. These figures show cash flows during the quarter and liquidity at two different dates. In another transaction, the company entered into a proposed merger agreement with Solstice on July 6, 2026. The two companies then mutually terminated the agreement on August 27 of the same year.