Element Solutions Inc. ESI recorded earnings of 23 cents per share for the first quarter of 2026 compared with 40 cents in the year-ago quarter. Reported net income was $56 million, down 43% year over year, primarily due to a gain on the Graphics Solutions divestiture in the prior-year period.
Barring one-time items, earnings were 41 cents per share, up from 34 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 38 cents.
The company generated net sales of $840 million, up 41% year over year from $593.7 million. The figure beat the Zacks Consensus Estimate of $744.4 million. Organic net sales rose 10%.
ESI benefited from strong momentum in its Electronics business, aided by robust demand tied to AI infrastructure, high-performance electronics, advanced packaging and thermal management applications. Acquisitions also contributed to reported growth in the quarter.
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 61% year over year to $633.5 million in the reported quarter. The figure beat the consensus estimate of $532 million. Organic net sales increased 15%. Adjusted EBITDA for the segment increased 34% year over year to $119.1 million.
In the Specialties segment, net sales increased 4% year over year to $206.5 million. Organic net sales rose 1%. The figure missed the consensus estimate of $207 million. Adjusted EBITDA for the segment rose 9% year over year to $43.2 million.
ESI’s Financial Position
Element Solutions ended the quarter with cash and cash equivalents of $177.3 million, down from $626.5 million at the end of 2025. Debt was $2,058.7 million at the end of the quarter compared with $1,625.9 million as of Dec. 31, 2025.
Cash used in operating activities was $66.6 million against cash provided by operating activities of $26 million in the year-ago quarter. Free cash flow was negative $74.2 million against a positive free cash flow of $30.1 million in the prior-year quarter.
ESI’s Outlook
The company now expects full-year 2026 adjusted EBITDA in the range of $665 million to $685 million, up from its earlier outlook of $650 million to $670 million. For the second quarter of 2026, ESI expects adjusted EBITDA between $155 million and $170 million.
ESI’s Price Performance
Shares of Element Solutions have gained 91.7% in a year compared with a 9.8% rise in the ndustry.
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 are CF Industries Holdings, Inc. CF, Galiano Gold Inc. GAU and Nexa Resources S.A. NEXA.
CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.
Galiano is slated to report quarterly results on May 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. GAU has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently has a Zacks Rank #2.
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Element Solutions Inc. (ESI): Free Stock Analysis Report
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