Elementis raises 2026 profit outlook to $135 million after 7% revenue growth
Key Facts
The company-compiled market consensus for profit was $134.7 million, within a range of $132.0 million to $140.1 million. Elementis attributed the higher outlook to continued commercial progress amid mixed market conditions. The update followed revenue growth in the first nine months of the year, driven particularly by personal care, continued momentum in Asia and improved performance in the Americas. Alliance News reported that the shares rose 1.3% to 187.40 pence in London on the day of the announcement.
Elementis revenue for the nine months ended 30 September was $479 million, up 7% on an organic basis and excluding the impact of currency movements. The company said growth in personal care was particularly strong, alongside continued momentum in Asia and improved performance in the Americas. Personal care revenue growth also accelerated across all regions compared with the weaker base period a year earlier. The business benefited from favourable order timing in September, with further improvement in the Americas. The performance breakdown presented by the company indicates that revenue growth came from more than one region and business, despite varying end-market conditions.
In coatings, the energy business continued to perform strongly, benefiting from further operational improvements at the St Louis plant and a favourable demand environment, the company said. Coatings performance in the Americas improved after a weak first half, while continued performance in Asia helped offset weaker results in Europe, the Middle East and Africa during the quarter. The picture highlights differences between regions within the business, with improvement not uniform across all markets. The company said personal care growth accelerated across all regions, while coatings in the Americas was recovering from a weak first half. At group level, management described market conditions as mixed, with commercial progress continuing.
The current year's results follow Elementis reporting adjusted operating profit of $126.7 million in 2025, compared with $119.2 million in 2024, an increase of 4.6% on a constant-currency basis. In the same year, personal care revenue rose 2.4% on a constant-currency basis, while coatings revenue fell 4.3%. Chief Executive Luc van Ravenstein said at the time that the company had delivered resilient performance and strong growth in profitability and margins despite a challenging market environment. In the October update, he said the Elevate Elementis strategy was progressing well despite varied end-market conditions. He added that the company looked forward to showcasing innovations supporting growth and differentiation at an innovation day scheduled for the week after the announcement.
Elementis expects fourth-quarter revenue to be lower than in the third quarter, which this year benefited from fulfilling customer orders earlier than expected, as well as the usual seasonality of the business. The company said it remained on track to make further progress in the second half of the year. It also expects coatings growth to slow in the fourth quarter, reflecting a stronger year-on-year comparison in Asia. The guidance puts the higher profit outlook alongside an expected quarterly slowdown in revenue, after the third quarter benefited from order timing. Management is due to present its innovations at an innovation day during the week after the 28 October announcement.