Element Solutions Inc

Second-quarter revenue, adjusted EBITDA, and adjusted EPS were all record highs, though no exact revenue or EPS figure was stated on the call. Organic net sales increased 15% year over year, constant-currency adjusted EBITDA increased 33%, and adjusted EBITDA margin excluding pass-through metals improved 120 basis points to 27.8%. Electronics organic net sales rose 20%, led by semiconductor solutions at 31%, while the Specialty segment grew 3% organically. Adjusted free cash flow was $74 million, CapEx was $28 million in the quarter and is now expected to be roughly $100 million for the full year, and net leverage was 2.9x pro forma at quarter-end. Guidance was raised to full-year adjusted EBITDA of $690 million to $710 million, third-quarter adjusted EBITDA of approximately $180 million, 2026 adjusted EPS growth of approximately 20%, and net leverage of roughly 2.5x by year-end.

Ben Gliklich framed the quarter as evidence that Element Solutions is executing its strategy of focusing on the highest-value, fastest-growing niches in electronics and specialty materials. He emphasized AI infrastructure, advanced packaging, power electronics, and Cuprion as key growth avenues, while also stressing that recent acquisitions are outperforming and that the business is gaining share through technical differentiation and customer intimacy. His tone was upbeat and confident, though he acknowledged disappointment in the stock reaction to the Solstice merger announcement and said integration execution will be closely watched.

Carey Dorman highlighted record quarterly revenue, adjusted EBITDA, and adjusted EPS, along with 15% organic net sales growth and 33% constant-currency adjusted EBITDA growth. He said adjusted EBITDA margins excluding pass-through metals improved to 27.8%, and that margins would have been nearly 30% if above-target incentive compensation accruals were excluded, with that item creating more than a $10 million OpEx headwind. He also noted adjusted free cash flow of $74 million, $28 million of CapEx in the quarter, expected full-year CapEx of roughly $100 million, and pro forma net leverage of 2.9x, which he expects to come down to about 2.5x by year-end.

Analysts pressed on second-half phasing, Micromax durability, advanced packaging, semiconductors, Cuprion capacity, and whether metals inflation or supply constraints could affect results. Management said Q3 should be roughly flat sequentially excluding normal seasonality and Q4 should step down a bit, citing no typical smartphone seasonal ramp, some raw-material/logistics inflation risk, and a modest Micromax softening after outperformance. On Micromax and EFC, management said both are ahead of plan but are relatively new or lumpier businesses, so guidance remains conservative; on Cuprion, they said capacity outlook for year-end 2027 has increased materially and commercialization is progressing, with revenue potential in 2027 described as material but difficult to size precisely.