Element Solutions Inc · Q2 2023 earnings

Briefing

Element Solutions' financial performance declined compared to the same period last year, but showed sequential adjusted EBITDA growth amidst a severe electronics market downturn.

Element Solutions Inc. reported a decrease in net sales by 13% compared to the second quarter last year, with net sales of $586 million. GAAP diluted EPS was $0.11, and net income was $27 million, both lower than the previous year. Adjusted EPS was $0.31. The company is reducing its full year 2023 adjusted EBITDA guidance to a range of $490 million to $500 million.

• Net sales decreased by 13% to $586 million, or 6% on an organic basis.
• GAAP diluted EPS was $0.11, down from $0.25 in the same period last year.
• Net income decreased to $27 million, compared to $64 million in the same period last year.
• Adjusted EPS was $0.31, compared to $0.38 for the same period last year.

Headline financials

Revenue & EPS history

The Company expects third quarter 2023 adjusted EBITDA of approximately $125 million. For the full-year 2023, the Company now expects adjusted EBITDA to be in the range of $490 million to $500 million. For 2023, the Company expects adjusted EPS of approximately $1.30 and free cash flow of approximately $265 million.