BofA warns Fed risks policy mistake with early rate cuts
Investing.com -- Elementis PLC (LON:ELM) on Thursday reported strong first-half 2025 results and raised its medium-term targets, positioning itself firmly in the quality end of the UK Industrials sector.
The specialty chemicals company posted revenue of $308 million, down 1% year-over-year on an organic constant currency basis, compared to analyst expectations of $311 million.
Adjusted EBIT came in at $65 million, in line with consensus estimates of $66.3 million, while diluted adjusted earnings per share reached 6.8 cents.
Elementis’ Personal Care division was a standout performer, with revenue growing 2% organically to $116 million. The segment achieved record-high margins of 33.9%, up 460 basis points, significantly exceeding analyst forecasts of 29.5%.
The Coatings division showed resilience despite challenging industry conditions, with revenue declining 4% organically to $19 million. Adjusted EBITA margins in this segment decreased slightly by 110 basis points to 18.2%.
Net debt excluding pensions and leases stood at $125 million, higher than analyst expectations of $88.7 million, resulting in a net debt to EBITDA ratio of 0.9x, an improvement from 1.0x at the end of fiscal year 2024.
For the full year 2025, Elementis expects EBITA to align with market expectations of £126 million, which is 4% above some analyst forecasts.
The company also announced ambitious new medium-term targets, including mid-single-digit organic constant currency sales growth through the cycle, an EBIT margin target of 23% or higher (up from the previous 19%), a three-year operating cash conversion of 90%, and return on capital employed excluding goodwill above 30% (previously above 20%).
Elementis shares are currently trading at 160.80p, with analysts at Jefferies maintaining a "Buy" rating and a price target of 190.00p, suggesting an 18% upside potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.