Abstract

Element Solutions will report its first-quarter 2026 results on April 28, 2026 Post Market; this preview summarizes consensus forecasts for revenue, margins and EPS, reviews last quarter’s results, and highlights what to watch in the core businesses and the most promising segment.

Market Forecast

Consensus for the current quarter points to revenue of 710.73 million US dollars, EBIT of 122.72 million US dollars, and adjusted EPS of 0.382, implying year-over-year growth of 23.25%, 20.54%, and 17.32%, respectively. The company’s guidance framework indicates continued recovery in profitability, with commentary centered on mix improvement and productivity; where available, this translates to expectations for stable-to-improving gross profit margin and better conversion to net income and EPS on a year-over-year basis.

The main business is projected to benefit from steady demand in solutions for electronics manufacturing and industrial applications, with revenue concentration still in electronics-related chemistry and materials. The most promising segment remains electronics, supported by anticipated customer restocking and new program ramps; for context, electronics contributed 1.79 billion US dollars over the last twelve months, representing roughly 70.01% of segment revenue.

Last Quarter Review

In the previous quarter, revenue was 676.20 million US dollars, with a gross profit margin of 40.91%; GAAP net profit attributable to the parent was 6.10 million US dollars, yielding a net profit margin of 0.90%, and adjusted EPS was 0.37, up 5.71% year over year. The quarter-on-quarter change in GAAP net profit was -84.48%, indicating a sharp sequential step-down that management attributed to seasonality and one-off items, though operating metrics were resilient with EBIT of 146.00 million US dollars, up 25.97% year over year and above internal scenarios.

Main business highlights included steadier order patterns in electronics and a supportive pricing environment in industrial and specialty solutions, with the electronics franchise accounting for roughly 1.79 billion US dollars over the last twelve months and the industrial and specialty portfolio at 0.77 billion US dollars, together reflecting a balanced but electronics-led mix.

Current Quarter Outlook (with major analytical insights)

Electronics Solutions momentum and margin trajectory

Electronics-related chemistry remains the central earnings engine, accounting for approximately 70.01% of the company’s trailing revenue base. Into this quarter, analysts expect a combination of restocking across printed circuit board fabrication, advanced packaging chemistries, and specialty plating lines to provide incremental revenue support. The year-over-year revenue growth forecast of 23.25%, alongside an EBIT increase of 20.54%, implies disciplined cost control and a favorable product mix. If high-value consumables tied to advanced node packaging and 5G infrastructure maintain volume, gross profit margin should be stable to modestly higher on a year-over-year basis, even if sequential price normalization persists. Watch-through indicators include utilization trends in Asian substrate makers and North American OEM new program launches, both of which typically influence Element Solutions’s consumables pull-through within one to two quarters.

Industrial and Specialty resilience and cash conversion

Industrial and specialty end-markets contribute roughly 29.99% of revenue and can provide ballast when electronics demand is choppy. The prior quarter’s EBIT outperformance against historical seasonality suggests operating leverage from productivity initiatives is tracking ahead of plan. This quarter’s expanded revenue forecast, paired with an EPS estimate that grows faster than revenue on a multi-quarter view, indicates improved conversion of gross profit to net income, assuming overhead absorption continues and freight and input costs remain contained. A sustained mix of stable automotive, construction-adjacent coatings, and general industrial chemistries could support cash generation, enabling continued deleveraging and return of capital while funding targeted R&D for higher-growth electronics applications.

What may move the stock this quarter

- Guidance cadence versus consensus: With revenue estimated at 710.73 million US dollars and EPS at 0.382, the market will focus on whether management’s qualitative guidance brackets imply continued double-digit year-over-year growth into the second quarter. A reiteration or tightening around the midpoints above current consensus would likely be received positively. - Margin signals: Investors will scrutinize gross margin progression relative to last quarter’s 40.91%. Even modest year-over-year expansion can validate the mix thesis; conversely, any compression larger than expected could challenge the EPS bridge. - Electronics order momentum: Commentary on orders, lead times, and utilization in advanced packaging and PCB customers will be read as a proxy for the durability of demand. Sequential trends matter, given the sharp quarter-on-quarter drop in GAAP net income last quarter driven by non-operational factors; a return to normalized conversion would reinforce confidence in the forecasted EPS trajectory.

Analyst Opinions

Across recent previews, the majority opinion is bullish, emphasizing positive operating leverage and recovery in electronics demand. Institutional commentary highlights that consensus revenue of 710.73 million US dollars with 23.25% year-over-year growth and EPS of 0.382 with 17.32% growth are achievable given last quarter’s EBIT outperformance and ongoing cost discipline. Analysts point out that inventory normalization across the electronics supply chain is tracking favorably and that the company’s consumables exposure should convert incremental volume into margin at a consistent rate. The bullish camp also underscores that the prior quarter’s net income volatility was disproportionately affected by non-operational factors relative to the strong EBIT print, suggesting less risk to the underlying run-rate earnings power.

In evaluating the setup, supportive factors include the breadth of electronics programs ramping in high-reliability markets and resilient industrial demand that limits downside to the consolidated top line. From a valuation context, previews note that upside risk could materialize if management outlines continuing margin recovery into midyear and maintains discipline on opex. Overall, the preponderance of commentary leans positive, with bullish views outnumbering bearish takes by a clear margin, and the constructive stance is anchored in better year-over-year growth, stabilizing margins, and healthy cash conversion signals heading into the report.