Element Solutions Inc. Reports Record Third-Quarter 2026 Results, Driven by Strong Electronics Growth
Element Solutions Inc. a global specialty chemicals technology company, has announced record financial results for the third quarter of 2026, ended September 30, 2026. The company reported substantial growth in revenue, net income, and adjusted earnings, supported by strong demand across its Electronics business and contributions from recent acquisitions. Following its continued financial performance, Element Solutions has raised its full-year 2026 adjusted EBITDA guidance to approximately $720 million.
The company’s results reflect increasing demand for advanced materials and specialty chemical technologies used in semiconductor manufacturing, high-performance computing, communications infrastructure, and other high-growth electronics applications. Management also highlighted the company’s investments in innovation, manufacturing capacity, customer relationships, and operational efficiency as important contributors to its performance.
Record Revenue Growth in the Third Quarter
Element Solutions reported third-quarter 2026 net sales of approximately $995 million, representing a 52% increase compared with the same period in 2025. Organic net sales, which exclude the impact of acquisitions, divestitures, and other specified factors, increased 13%, demonstrating continued underlying business growth.
The Electronics segment was the primary contributor to the company’s performance. Revenue from this business increased 68% to approximately $780 million, with acquisitions contributing 30% to the reported growth. Organic sales in the segment increased 18%, reflecting strong demand across its major electronics-related markets.
The Specialties segment also recorded revenue growth. Sales increased 13% to approximately $216 million, including a 12% contribution from acquisitions, net of divestitures. Organic sales in this segment increased 1%, indicating relatively modest underlying growth compared with the Electronics business.
The results highlight the growing importance of electronics-related technologies to Element Solutions’ overall business. As manufacturers continue investing in artificial intelligence infrastructure, advanced computing, and increasingly sophisticated electronic devices, demand for specialized chemicals and materials remains an important growth opportunity.
Higher Earnings and Improved Profitability
The company reported net income of approximately $66 million for the third quarter of 2026, an increase of 67% from $39 million in the corresponding quarter of the previous year. Net income margin improved by 60 basis points to 6.6%, reflecting the company’s stronger financial performance.
Generally accepted accounting principles (GAAP) diluted earnings per share reached $0.27, compared with $0.16 in the third quarter of 2025. Adjusted earnings per share increased to $0.50 from $0.41, indicating improved earnings on an adjusted basis.
Adjusted EBITDA, a measure of operating performance before interest, taxes, depreciation, amortization, and specified adjustments, rose to approximately $191 million from $147 million a year earlier. On a constant-currency basis, adjusted EBITDA increased 29%.
Adjusted EBITDA margin improved by 50 basis points to 28.2%, demonstrating the company’s ability to translate revenue growth into stronger operating profitability.
Electronics Segment Leads Operating Performance
Element Solutions’ Electronics business delivered particularly strong results during the quarter. Adjusted EBITDA for the segment increased 46% to approximately $148 million. On a constant-currency basis, adjusted EBITDA grew 45%.
The company stated that its Micromax business had a positive impact of 19% on constant-currency adjusted EBITDA growth. The segment’s performance reflects strong demand for materials used in high-performance electronics and the company’s efforts to strengthen its position in attractive technology markets.
Management attributed the growth to several years of targeted investments in technology development, customer engagement, manufacturing capacity, and operational excellence. These initiatives have helped the company expand its capabilities in high-value applications where advanced materials play an important role in product performance and manufacturing efficiency.
Element Solutions also plans to continue investing alongside its customers as they expand production capacity and introduce more advanced technologies. The company’s priorities include accelerating innovation, increasing capacity in high-growth product lines, and strengthening strategic supply chain relationships to support future demand.
Specialties Segment Faces Operating Challenges
While the Electronics segment delivered substantial growth, the Specialties business experienced a decline in adjusted EBITDA.
Adjusted EBITDA for the segment totaled approximately $43 million, down 6% from the prior-year period. The decline remained 6% on a constant-currency basis.
The company noted that its EFC Gases & Advanced Materials business had a positive impact of 16% on constant-currency adjusted EBITDA growth within the segment. However, this contribution did not offset the overall decline in the segment’s adjusted EBITDA.
Revenue growth in Specialties was supported largely by acquisitions and portfolio changes, while organic sales increased only 1%. The results demonstrate differing demand and profitability trends across the company’s business segments.
Management Raises Full-Year 2026 Guidance
Chief Executive Officer Benjamin Gliklich expressed confidence in the company’s performance, emphasizing that Element Solutions had achieved another quarter of record results despite uncertainty surrounding the proposed Solstice transaction.
According to Gliklich, the company continues to benefit from favorable electronics market conditions and technological developments that are creating opportunities to expand market share. He also highlighted the importance of continued investment in innovation, customer relationships, and manufacturing capabilities.
Based on its performance and business outlook, Element Solutions now expects full-year 2026 adjusted EBITDA of approximately $720 million. This forecast includes expected contributions from its Micromax and EFC acquisitions and assumes stable foreign exchange rates and metal prices.
The company also expects adjusted earnings per share growth of more than 20% for the full year. Management attributed this outlook to continued momentum in Electronics and contributions from recent acquisitions.
The updated guidance reflects management’s confidence in the company’s standalone business strategy, operational execution, and capital allocation approach. However, actual results may differ depending on market conditions, customer demand, acquisition performance, and other risks.
Solstice Transaction Terminated
Element Solutions also provided an update regarding its proposed transaction with Solstice.
On July 6, 2026, the company entered into an Agreement and Plan of Merger with Solstice. However, on August 27, 2026, both parties entered into a termination agreement and mutually agreed to end the proposed merger.
Under the termination agreement, subject to customary exceptions, the parties mutually released one another from claims of liability relating to the contemplated transaction.
Management stated that the transaction process did not disrupt the company’s operational execution. Following the termination, Element Solutions remains focused on its independent growth strategy, ongoing investments, and disciplined capital allocation.
Upcoming Investor Conference Call
Element Solutions scheduled a conference call to discuss its third-quarter 2026 financial results for October 22, 2026, at 8:30 a.m. Eastern Time. Participants include Chief Executive Officer Benjamin H. Gliklich and Chief Financial Officer Carey J. Dorman.
Investors can access the webcast and additional financial information through the company’s official website at www.elementsolutionsinc.com. A replay of the call will also be available following the live event.
About Element Solutions Inc.
Element Solutions Inc. is a global specialty chemicals technology company that develops solutions designed to enhance the performance of products and manufacturing processes across multiple industries.
Its technologies support semiconductor fabrication, high-performance computing, automotive systems, consumer electronics, power electronics, communications and data storage infrastructure, aerospace and defense, industrial surface finishing, and offshore energy.
Through specialized chemical formulations and advanced materials, the company helps customers address complex manufacturing requirements and improve the performance of products used in everyday life and critical industrial applications.
Forward-Looking Statements
The company’s financial outlook includes forward-looking statements based on management’s current estimates, assumptions, and expectations. These statements involve risks and uncertainties that could cause actual results to differ materially from projected performance.
Potential risks include geopolitical conflicts, changes in trade policies and tariffs, raw material and precious metal costs, inflation, foreign exchange fluctuations, regulatory changes, financing requirements, and global economic conditions. Other uncertainties include acquisition integration, expected synergies, capital allocation decisions, and demand across the company’s end markets.
Investors should consult Element Solutions’ filings with the U.S. Securities and Exchange Commission for further details about these risks. The company has stated that it undertakes no obligation to update forward-looking statements except where required by law.
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