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ESI Q3 Earnings Beat Estimates on Electronics Strength
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Key Takeaways
ESI's Q3 adjusted EPS rose 22% to 50 cents, beating estimates, while net sales surged 52% to $995.3 million.
Electronics sales jumped 68% to $779.6 million, fueled by 18% organic growth and acquisitions.
ESI raised its 2026 adjusted EBITDA outlook to $720 million and expects adjusted EPS growth of more than 20%.
Element Solutions Inc. (ESI - Free Report) reported adjusted earnings of 50 cents per share for the third quarter of 2026, up 22% from 41 cents a year ago. The figure beat the Zacks Consensus Estimate of 48 cents by 4.2%.
Net sales surged 52% year over year to $995.3 million and topped the consensus estimate of $968 million by 2.8%. Organic sales rose 13%, driven by strong demand across Electronics, acquisitions and higher pass-through metals pricing.
Element Solutions Inc. Price, Consensus and EPS Surprise
Electronics segment sales jumped 68% year over year to $779.6 million in the reported quarter. The figure beat the consensus estimate of $731 million. Organic net sales increased 18%, while acquisitions contributed 30% to reported growth. The segment benefited from $94.4 million of higher pass-through metals pricing and $138 million in sales contributions from acquisitions, including $93.1 million related to pass-through metals. Electronics adjusted EBITDA climbed 46% to $148.3 million.
Specialties segment sales increased 13% year over year to $215.7 million. The figure missed the consensus estimate of $224 million. Organic net sales rose 1%, while acquisitions net of divestitures contributed 12% to reported growth. Acquisitions added $23.4 million to the segment's consolidated revenues during the quarter. Specialties adjusted EBITDA declined 6% to $42.7 million.
Element Solutions' Cash Flow and Financial Position
Element Solutions ended the third quarter with cash and cash equivalents of $224.9 million compared with $189.6 million at the end of the preceding quarter. Total debt stood at $2.09 billion, while net debt was $1.87 billion at September-end.
Cash flows from operating activities increased to $159.2 million from $100.1 million a year ago. Capital expenditures rose to $30.4 million from $16.5 million. Free cash flow improved to $134.5 million from $84.1 million, reflecting stronger quarterly cash generation. The company also repurchased $37.7 million of common stock and paid $19.5 million in dividends during the quarter.
ESI Raises Full-Year 2026 Earnings Outlook
Element Solutions raised its full-year 2026 adjusted EBITDA guidance to approximately $720 million from its previous range of $690-$710 million. The updated projection includes full-year contributions from the Micromax and EFC acquisitions and assumes stable foreign exchange rates and metal prices.
The company now expects adjusted earnings per share to grow more than 20% in 2026. Management attributed the improved outlook to sustained momentum in Electronics and meaningful contributions from recent acquisitions. Continued investment in innovation, capacity expansion and strategic supply-chain relationships remains central to its growth strategy.
ESI’s Price Performance
Shares of Element Solutions have gained 35.4% in a year compared with the 9.1% rise in the industry.
Image Source: Zacks Investment Research
ESI’s Zacks Rank & Other Key Picks
ESIcurrently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 56.2% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.
View the Zacks #1 Rank List
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ESI Q3 Earnings Beat Estimates on Electronics Strength
Key Takeaways
Element Solutions Inc. (ESI - Free Report) reported adjusted earnings of 50 cents per share for the third quarter of 2026, up 22% from 41 cents a year ago. The figure beat the Zacks Consensus Estimate of 48 cents by 4.2%.
Net sales surged 52% year over year to $995.3 million and topped the consensus estimate of $968 million by 2.8%. Organic sales rose 13%, driven by strong demand across Electronics, acquisitions and higher pass-through metals pricing.
Element Solutions Inc. Price, Consensus and EPS Surprise
Element Solutions Inc. price-consensus-eps-surprise-chart | Element Solutions Inc. Quote
ESI's Segment Highlights
Electronics segment sales jumped 68% year over year to $779.6 million in the reported quarter. The figure beat the consensus estimate of $731 million. Organic net sales increased 18%, while acquisitions contributed 30% to reported growth. The segment benefited from $94.4 million of higher pass-through metals pricing and $138 million in sales contributions from acquisitions, including $93.1 million related to pass-through metals. Electronics adjusted EBITDA climbed 46% to $148.3 million.
Specialties segment sales increased 13% year over year to $215.7 million. The figure missed the consensus estimate of $224 million. Organic net sales rose 1%, while acquisitions net of divestitures contributed 12% to reported growth. Acquisitions added $23.4 million to the segment's consolidated revenues during the quarter. Specialties adjusted EBITDA declined 6% to $42.7 million.
Element Solutions' Cash Flow and Financial Position
Element Solutions ended the third quarter with cash and cash equivalents of $224.9 million compared with $189.6 million at the end of the preceding quarter. Total debt stood at $2.09 billion, while net debt was $1.87 billion at September-end.
Cash flows from operating activities increased to $159.2 million from $100.1 million a year ago. Capital expenditures rose to $30.4 million from $16.5 million. Free cash flow improved to $134.5 million from $84.1 million, reflecting stronger quarterly cash generation. The company also repurchased $37.7 million of common stock and paid $19.5 million in dividends during the quarter.
ESI Raises Full-Year 2026 Earnings Outlook
Element Solutions raised its full-year 2026 adjusted EBITDA guidance to approximately $720 million from its previous range of $690-$710 million. The updated projection includes full-year contributions from the Micromax and EFC acquisitions and assumes stable foreign exchange rates and metal prices.
The company now expects adjusted earnings per share to grow more than 20% in 2026. Management attributed the improved outlook to sustained momentum in Electronics and meaningful contributions from recent acquisitions. Continued investment in innovation, capacity expansion and strategic supply-chain relationships remains central to its growth strategy.
ESI’s Price Performance
Shares of Element Solutions have gained 35.4% in a year compared with the 9.1% rise in the industry.
Image Source: Zacks Investment Research
ESI’s Zacks Rank & Other Key Picks
ESIcurrently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the Basic Materials space are Reliance, Inc. (RS - Free Report) , Avino Silver & Gold Mines Ltd. (ASM - Free Report) and Avient Corporation (AVNT - Free Report) .
RS currently sports a Zacks Rank #1 (Strong Buy), while ASM and AVNT carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here
The Zacks Consensus Estimate for RS’ 2026 earnings is pegged at $23.70 per share, indicating a 66.2% year-over-year surge. RSshares have gained 56.2% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 28 cents per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 75%.
The Zacks Consensus Estimate for AVNT’s 2026 earnings is pegged at $3.2 per share, indicating a year-over-year rise of 13.48%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 3.4%.