Element Solutions Inc. ESI recorded earnings of 40 cents per share for first-quarter 2025 compared with 23 cents in the year-ago quarter.

Barring one-time items, earnings came in at 34 cents per share. It beat the Zacks Consensus Estimate of 33 cents.

The company generated net sales of $593.7 million, up 3.3% year over year. The figure surpassed the Zacks Consensus Estimate of $584.6 million. Organic net sales rose 5%.

The company saw strong growth in the electronics segment sales in the quarter, offset by the declines in the industrial business.

(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Element Solutions Inc. Price, Consensus and EPS Surprise

Element Solutions Inc. price-consensus-eps-surprise-chart | Element Solutions Inc. Quote

ESI’s Segment Highlights

Net sales in the Electronics segment rose 12.9% year over year to $394.3 million in the reported quarter. Organic net sales were up 10% from the year-ago number. The figure topped the consensus estimate of $385.5 million.

In the Industrial & Specialty segment, net sales declined 12% year over year to $199.4 million, with organic net sales dropping 2%. The figure marginally beat the consensus estimate of $199 million.

ESI’s Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $499.2 million, up around 39% from the prior quarter. Long-term debt was $1,623.8 million at the end of the quarter, down roughly 10% sequentially.

Cash from operating activities was $26 million while free cash flow was $30 million for the reported quarter.

ESI’s Outlook

The company anticipates adjusted EBITDA for 2025 to be between $520 million and $540 million, with free cash flow conversion comparable to the previous year. The company forecasts adjusted EBITDA for the second quarter of 2025 to be between $120 million and $125 million, or essentially flat sequentially, factoring in the sale of MacDermid Graphics and limited impact on demand from announced or potential new or increased tariffs.

ESI’s Price Performance

Shares of Element Solutions have lost 17% in a year against a 4.3% decline of the industry.Zacks Investment Research

Image Source: Zacks Investment Research

ESI’s Zacks Rank & Key Picks

ESI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space include Hawkins, Inc. HWKN, SSR Mining Inc. SSRM and Intrepid Potash, Inc. IPI. While HWKN carries a Zacks Rank #1 (Strong Buy), SSRM and IPI carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hawkins is expected to report fiscal fourth-quarter results on May 21. The consensus estimate for Hawkins’ earnings is pegged at 74 cents. HWKN beat the consensus estimate in one of the last four quarters while missing thrice, with the average earnings surprise being 6.1%. 

SSRM is scheduled to release first-quarter results on May 6. The Zacks Consensus Estimate for SSRM’s first-quarter earnings is pegged at 8 cents. SSRM has a trailing four-quarter earnings surprise of 155.7%, on average. 

Intrepid Potash is slated to release first-quarter results on May 5. The consensus estimate for IPI’s first-quarter loss is pegged at 12 cents, stable over the past 60 days.

Story Continues

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Element Solutions Inc. (ESI):Free Stock Analysis Report

Intrepid Potash, Inc (IPI):Free Stock Analysis Report

Silver Standard Resources Inc. (SSRM):Free Stock Analysis Report

Hawkins, Inc. (HWKN):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments