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Element Solutions (ESI) Down 2% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for Element Solutions (ESI - Free Report) . Shares have lost about 2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Element Solutions due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Element Solutions Inc. before we dive into how investors and analysts have reacted as of late.

Element Solutions’ Earnings and Revenues Surpass Estimates in Q3

Element Solutions recorded earnings of 16 cents per share for the third quarter of 2025 compared with 17 cents in the year-ago quarter. 

Barring one-time items, earnings were 41 cents per share. The figure beat the Zacks Consensus Estimate of 39 cents. 

The company generated net sales of $656.1 million, up roughly 2% year over year. The figure beat the Zacks Consensus Estimate of $646.4 million. Organic net sales rose 5%. 

The divestitures partly offset strong growth in the electronics segment sales in the quarter. 

Segment Highlights

Net sales in the Electronics segment rose 11% year over year to $465 million in the reported quarter. Organic net sales were up 7% from the year-ago number. The figure beat the consensus estimate of $457 million. 

In the Industrial & Specialty segment, net sales declined 16% year over year to $191 million, with organic net sales remained relatively flat. However, the figure beat the consensus estimate of $190 million. 

Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $594.3 million, up around 58% from the year-ago quarter. Long-term debt was $1,625.2 million at the end of the quarter, down from $1,914.7 million in the year-ago quarter. 

Cash from operating activities was $100.1 million, while free cash flow was $84 million for the reported quarter. 

Outlook

The company now anticipates full-year 2025 adjusted EBITDA in the range of $545 million to $550 million and expects adjusted free cash flow to be around $280 million. 

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, Element Solutions has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Element Solutions has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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