Element Solutions Inc. · NYSE:ESI
Element Solutions — Q4 2025 Earnings Presentation
19 slides from Element Solutions's earnings presentation, Feb 18, 2026
Slide 1: Fourth Quarter and Full Year 2025 Earnings Presentation
Fourth Quarter and Full Year 2025 Earnings Presentation Enabling Technology. Growing Sustainably.
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: Full Year 2025 Highlights
Full Year 2025 Highlights Operational Excellence Prudent Capital Allocation ▪ New records for net sales, adjusted EBITDA* and adjusted EPS* ▪ 10% Electronics Organic Net Sales Growth* High-performance electronics paste and inks focused on specialty, high-value niches • Outpacing printed circuit boar
Slide 4: Fourth Quarter 2025 Financial Results
Fourth Quarter 2025 Financial Results Constant Currency* Organic* ($ in millions) Q4 2025 Q4 2024 YoY YoY YoY Net Sales $676 $624 8% 6% 10% Electronics 487 401 21% 20% 13% Specialties 189 223 (15%) (18%) 4% Diluted EPS $0.03 $0.23 Adj. EBITDA* $136 $130 5% 3% % margin 20.2% 20.8% (60 bps) (70 bps) E
Slide 5: Full Year 2025 Financial Results
Full Year 2025 Financial Results Constant Currency* Organic* ($ in millions) FY 2025 FY 2024 YoY YoY YoY Net Sales $2,551 $2,457 4% 3% 6% Electronics 1,786 1,561 14% 14% 10% Specialties 765 896 (15%) (15%) 1% Diluted EPS $0.79 $1.00 Adj. EBITDA* $548 $535 2% 2% % margin 21.5% 21.8% (30 bps) (30 bps)
Slide 6: Full Year 2025 Segment Details
Full Year 2025 Segment Details Market Commentary Electronics Net Sales Organic ($ in millions) Growth* Key Drivers Increased consumer electronics demand in Asia and the Americas and strength in high- Assembly $907 8% performance computing end markets Circuitry $528 10% AI and data center investment
Slide 7: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet Management • FY 2025 adjusted free cash flow* of $256 million • Closed EFC acquisition Jan 2, 2026 for $369 million, net of cash1 o Q4 2025 adjusted free cash flow* of $83 million • Closed Micromax acquisition Feb 2, 2026 f
Slide 8: Full Year 2026 Financial Guidance
Full Year 2026 Financial Guidance As of February 2026 Electronics Specialties ▪ Expect continuation of 2025 demand ▪ Continuation of 2025 demand dynamics dynamics ▪ $5M adj. EBITDA* headwind from Graphics FY 2026 ▪ Robust demand in leading-edge applications comparison in Q1 ’26 Considerations for hi
Slide 9: Defining Success for 2026
Defining Success for 2026 Execution and share gain in key growth areas to deliver market outperformance Customer traction and supply chain progress for emerging technologies Successful integrations Mid to high teens adj. EPS* growth * See non-GAAP definitions and reconciliations in the appendix 9
Slide 10: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 11: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) FY 2025 FY 2024 Q4 2025 Q4 2024 (Average) (Average) Basic common shares outstanding 243 242 242 242 Number of shares issuable upon vesting of granted Equity Awards 1 2 2 2 2 Adjusted common shares outstanding 245 245 244 245 Note: Totals
Slide 12: Net Income Reconciliation to Adjusted EBITDA
Net Income Reconciliation to Adjusted EBITDA ($ millions) Q1 2025 Q2 2025 Q3 2025 Q4 2025 FY 2025 Net income $98 $48 $39 $6 $191 Add (subtract): Income tax expense 18 16 16 25 75 Interest expense, net 14 13 13 13 53 Depreciation expense 10 10 10 11 41 Amortization expense 27 29 29 26 110 EBITDA 167
Slide 13: Net Income Reconciliation to Adjusted EBITDA
Net Income Reconciliation to Adjusted EBITDA ($ millions) Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Net income $56 $93 $40 $55 $245 Add (subtract): Income from discontinued operations, net of tax — (2) — — (2) Income tax expense (benefit) 14 (18) 37 12 45 Interest expense, net 14 14 14 14 56 Depreciat
Slide 14: Net Income Reconciliation to Adjusted EPS
Net Income Reconciliation to Adjusted EPS ($ millions, except per share amounts) Q4 2025 Q4 2024 FY 2025 FY 2024 Net income $6 $55 $191 $245 Income from discontinued operations, net of tax — — — (2) Net income attributable to non-controlling interests (0) (0) (0) (0) Reversal of amortization expense
Slide 15: Net Debt to Adjusted EBITDA Ratio Reconciliation
Net Debt to Adjusted EBITDA Ratio Reconciliation ($ millions) FY 2025 Net income $191 Add (subtract): Income tax expense 75 Interest expense, net 53 Depreciation expense 41 Amortization expense 110 EBITDA 470 Adjustments to reconcile to Adjusted EBITDA: Restructuring expense 6 Acquisition, integrati
Slide 16: Quarterly Results Overview
Quarterly Results Overview 2024 2025 ($ millions) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Sales Electronics $349 $392 $419 $401 $394 $439 $465 $487 Specialties 226 221 226 223 199 186 191 189 Total Net Sales $575 $613 $645 $624 $594 $625 $656 $676 Net Income $56 $93 $40 $55 $98 $48 $39 $6 Adjusted EBITDA Electr
Slide 17: Organic Net Sales Reconciliation
Organic Net Sales Reconciliation Three Months Ended December 31, 2025 Change in Pass- Constant Reported Net Sales Impact of Currency Through Metals Divestitures Organic Net Sales Currency Pricing Electronics 21% (2)% 20% (7)% —% 13% Specialties (15)% (2)% (18)% —% 22% 4% Total 8% (2)% 6% (4)% 8% 10%
Slide 18: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation (dollars in millions) Q4 2025 Q4 2024 2025 2024 Cash flows from operating activities $91 $139 $290 $362 Capital expenditures (17) (22) (62) (68) Proceeds from disposal of property, plant and equipment 1 — 2 — Adjustments 8 27 Adjusted free cash flow $83 $116 $2
Slide 19: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period