It has been about a month since the last earnings report for Element Solutions (ESI Quick QuoteESI - Free Report) . Shares have lost about 2.7% in that time frame, underperforming the S&P 500.

But investors have to be wondering, 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 the most recent earnings report in order to get a better handle on the recent drivers for Element Solutions Inc. before we dive into how investors and analysts have reacted as of late.

Element Solutions’ Q2 Earnings Beat Estimates on Electronics Strength

Element Solutions reported adjusted earnings of 47 cents per share for the second quarter of 2026, up 27% from 37 cents a year ago. The figure beat the Zacks Consensus Estimate of 43 cents. 

Net sales surged 56% year over year to $977.9 million and topped the consensus estimate of $877.3 million by 11.5%. Organic sales rose 15%, driven by strong Electronics demand, acquisitions and higher pass-through metals pricing. 

Segment Highlights

Electronics segment sales jumped 75% year over year to $767 million in the reported quarter. The figure beat the consensus estimate of $695 million. Organic net sales increased 20%, while acquisitions contributed 29% to reported growth. The segment also benefited from $107 million of higher pass-through metals pricing and $129 million in sales contributions from acquisitions. Electronics adjusted EBITDA climbed 47% to $141.5 million. 

Specialties segment sales increased 14% year over year to $210.9 million. The figure missed the consensus estimate of $213 million. Organic net sales rose 3%, while acquisitions net of divestitures added 9% to reported growth. Acquisitions contributed $16.1 million to the segment’s consolidated revenues during the quarter. Specialties adjusted EBITDA advanced 7% to $42 million. 

Financials

Element Solutions ended the second quarter with cash and cash equivalents of $189.6 million. Total debt stood at $2.06 billion. Cash flows from operating activities were $99.6 million in the second quarter. Capital expenditures increased to $27.9 million. Free cash flow rose to $73.7 million, demonstrating stronger quarterly cash generation. 

Outlook

Element Solutions raised its full-year 2026 adjusted EBITDA guidance to a range of $690-$710 million from its previous projection of $665-$685 million. The updated range includes expected full-year contributions from the Micromax and EFC acquisitions and assumes stable foreign exchange rates and metal prices. 

The company also expects adjusted earnings per share to grow approximately 20% in 2026. For the third quarter, management projects adjusted EBITDA of about $180 million. The improved outlook reflects stronger organic expectations, continued progress on the Micromax integration and advancement of the Kuprion scale-up initiative. 

Management said core markets remain healthy and customer engagements are accelerating as customers address increasingly demanding technical roadmaps. The company expects its focus on operational execution and capital allocation to continue supporting profit growth. 

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended upward during the past month.

VGM Scores

At this time, Element Solutions has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Element Solutions has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.