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MIAMI - Element Solutions Inc (NYSE:ESI), a $5.8 billion specialty chemicals technology company with a "GREAT" financial health rating according to InvestingPro, has increased its full year 2025 adjusted EBITDA guidance to between $530 million and $550 million, up from its previous range of $520 million to $540 million, the specialty chemicals technology company announced Monday.
For the second quarter, the company now expects net income of $45 million to $55 million and adjusted EBITDA of approximately $135 million, exceeding its prior adjusted EBITDA guidance of $120 million to $125 million. The company’s strong liquidity position is evidenced by a current ratio of 3.95, with liquid assets well exceeding short-term obligations.
The improved outlook comes as Element Solutions reports strong performance in data center-related customers and advanced foundries. The company also cited favorable currency movements as contributing to the positive revision.
"Our progress penetrating the fastest growing subsegments of our markets is yielding outstanding results," said Benjamin Gliklich, President and Chief Executive Officer, in a press release statement. He noted that new capacity additions in the supply chain to support AI and network infrastructure requirements have increased confidence that current strength is not merely related to tariff and trade dynamics.
Element Solutions provides specialty chemicals used in various industries including consumer electronics, semiconductor fabrication, communications infrastructure, and automotive systems. With a gross profit margin of 42% and strong returns on equity, InvestingPro analysis reveals 6 additional key insights about the company’s performance and potential. Access the comprehensive Pro Research Report for detailed analysis of what really matters about ESI and 1,400+ other top stocks.
The company indicated that despite what it describes as "an uneven and uncertain economic backdrop," its operational systems have continued to deliver strong outcomes. Currently trading near its InvestingPro Fair Value, the stock has shown resilience with a strong return over the last three months.
The updated financial expectations remain subject to completion of the company’s quarter-end financial close process.
In other recent news, Element Solutions Inc reported its first-quarter 2025 financial results, surpassing analyst expectations with an earnings per share (EPS) of $0.34, compared to the forecasted $0.33. The company also reported revenue of $594 million, exceeding the anticipated $574.2 million. Mizuho raised its price target for Element Solutions to $24.00 from $23.00, maintaining an Outperform rating, citing strong performance in the electronics segment. The electronics segment continued to show robust growth, offsetting softness in the industrial segment, and recorded a 10% organic growth. Mizuho maintained its quarterly estimates of $124 million in EBITDA and $0.33 earnings per share for the second quarter of 2025. For the full year, estimates remain at $526 million in EBITDA and $1.40 earnings per share. The firm noted that the unfavorable foreign exchange impacts on Element Solutions are diminishing, potentially providing a modest tailwind. Element Solutions also maintained its full-year adjusted EBITDA guidance of $520-$540 million despite potential tariff uncertainties.
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