Element Solutions Inc · Q1 2021 earnings

Briefing

Element Solutions had an outstanding first quarter, with robust demand and effective navigation of supply chain disruptions, resulting in record adjusted EBITDA and EPS.

Element Solutions Inc. reported a strong first quarter in 2021, with net sales of $550 million, a 22% increase from the previous year. GAAP diluted EPS was $0.33, and adjusted EPS reached a record $0.37. The company's net income was $82 million, a significant increase from $8 million in the same period last year. The company is raising its full year outlook.

• Net sales increased by 22% to $550 million, with organic net sales up 11%.
• GAAP diluted EPS was $0.33, while adjusted EPS reached a record $0.37.
• Net income was reported at $82 million, a substantial increase from $8 million year-over-year.
• Adjusted EBITDA increased by 25% to $138 million.
• Full year adjusted EBITDA guidance increased to a range of $500 million to $510 million, representing year-on-year growth of approximately 20%.
• Full year 2021 adjusted EPS guidance increased to greater than $1.30, up from a range of $1.10 to $1.15

Headline financials

Revenue & EPS history

The Company increased its full year 2021 guidance and now expects adjusted EBITDA in the range of $500 million to $510 million, adjusted EPS of at least $1.30 and free cash flow of $285 million. In addition, the Company expects second quarter 2021 adjusted EBITDA to be between $125 million and $130 million.