Element Solutions Inc · Q4 2022 earnings

Briefing

Element Solutions reported a decrease in net sales and adjusted EBITDA, but an increase in GAAP diluted EPS and reported net income compared to Q4 2021. Organic net sales increased by 3%.

Element Solutions Inc. announced its Q4 2022 financial results, with net sales decreasing by 11% to $574 million, but organic net sales increased 3%. GAAP diluted EPS was $0.05, up from $0.02 in Q4 2021, while adjusted EPS decreased to $0.29 from $0.32. The company reported a net income of $13 million, compared to $6 million in the same period last year.

• Net sales decreased by 11% to $574 million, but organic net sales increased 3%.
• GAAP diluted EPS increased to $0.05, compared to $0.02 for the same period last year.
• Adjusted EPS decreased to $0.29, as compared to $0.32 for the same period last year.
• Reported net income increased to $13 million, as compared to $6 million for the fourth quarter of 2021.

Headline financials

Revenue & EPS history

The Company expects adjusted EBITDA to be approximately flat compared to full year 2022 on a constant currency basis. For 2023, the Company expects adjusted EPS in the range of $1.40 to $1.43 and free cash flow of approximately $275 million. In addition, the Company expects first quarter 2023 adjusted EBITDA to grow 1% to 3% relative to the fourth quarter of 2022 and adjusted EBITDA for the full year 2023 to be weighted significantly towards the second half of the year.