Element Solutions Inc Announces Record Financial Results in 2024
Element Solutions Inc, a global and diversified specialty chemicals company, has released its financial results for the year ending December 31, 2024. The company reported record financial performance, showcasing significant growth across various metrics.
Financial Highlights
Element Solutions Inc reported net sales of $2.46 billion for the full year 2024, marking a 5% increase over the previous year. On an organic basis, net sales grew by 4%. The company achieved a record adjusted EBITDA of $535 million, an 11% increase from 2023, and a 13% increase on a constant currency basis. Reported net income more than doubled to $245 million, up from $118 million in 2023. The company also generated a record free cash flow of $294 million.
Business and Operational Highlights
In the fourth quarter of 2024, Element Solutions Inc saw net sales of $624 million, a 9% increase compared to the same period in 2023. The Electronics segment experienced a 14% increase in net sales, while the Industrial & Specialty segment saw a modest 1% increase. The company’s adjusted EBITDA for the fourth quarter was $130 million, an 8% increase from the previous year.
Strategic Initiatives and Corporate Developments
Element Solutions Inc has been actively optimizing its portfolio. In September 2024, the company entered into an agreement to sell its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $325 million. This transaction is expected to close in the first quarter of 2025. Additionally, the company completed the syndication of $1.04 billion of new term loans in October 2024, resulting in an interest rate reduction and a $100 million reduction in borrowing under its credit agreement.
Management's Perspective
President and Chief Executive Officer Benjamin Gliklich commented on the company's performance, stating, "Element Solutions had an outstanding year in 2024. We produced record results, improved our portfolio, and positioned the company for longer-term outperformance. Against an inconsistent macro backdrop, we delivered 13% constant currency adjusted EBITDA growth, significantly outpacing our end-markets."
Future Outlook
Looking ahead to 2025, Element Solutions Inc has provided guidance for adjusted EBITDA in the range of $520 million to $540 million. The company expects the first quarter of 2025 adjusted EBITDA to be approximately $125 million. Management anticipates a demand environment similar to 2024, with growth niches within their markets and continued execution driving performance.
SEC Filing: Element Solutions Inc [ ESI ] - 8-K - Feb. 18, 2025