Abstract

Element Solutions will release its fourth-quarter 2025 results on February 17, 2026, Post Market. This preview summarizes consensus expectations, last quarter’s performance, and the current quarter outlook, focusing on revenue, margins, adjusted EPS, and the main business drivers and risks.

Market Forecast

Market expectations for Element Solutions this quarter indicate revenue of $0.63 billion, an adjusted EPS of $0.36, and EBIT of $0.11 billion, with year-over-year growth of 6.07% for revenue and 3.83% for adjusted EPS; EBIT is forecast to grow 4.66% year over year. The company’s main business remains Electronics, which is expected to see stabilized demand across semiconductor packaging chemistry and interconnect solutions, while Industrial & Specialty is forecast to benefit from improving demand in automotive and construction end-markets.

Element Solutions’ most promising segment appears to be Electronics, supported by a diversification across advanced packaging, circuit fabrication, and assembly chemistry. In the last quarter, Electronics contributed $0.47 billion, and its resilience is expected to be aided by secular demand for miniaturization and higher-performance substrates; year-over-year growth details were not disclosed for segments.

Last Quarter Review

Element Solutions’ previous quarter delivered revenue of $0.66 billion, a gross profit margin of 42.22%, GAAP net profit attributable to the parent company of $39.30 million, a net profit margin of 5.99%, and adjusted EPS of $0.41, with revenue up 1.72% year over year and adjusted EPS up 5.13% year over year. The quarter-on-quarter change in net profit was -17.09%, reflecting typical seasonality and project timing.

The company’s key financial highlight was a revenue result that modestly exceeded the prior estimate by $9.27 million. Main business performance was led by Electronics with revenue of $0.47 billion and by Industrial & Specialty at $0.19 billion; segment-level year-over-year growth was not reported.

Current Quarter Outlook

Electronics (Main Business)

Electronics is Element Solutions’ core business and the largest revenue contributor. Based on the most recent quarter, Electronics revenue stood at $0.47 billion, highlighting the scale and breadth of its offerings across semiconductor packaging, circuit board chemistry, and assembly materials. The current quarter’s market forecast points to a modest year-over-year increase in consolidated revenue, and within Electronics, visibility has improved as customers in advanced packaging and high-density interconnects maintain steady order flow. A key swing factor is customer inventory behavior as the semiconductor value chain normalizes; stable inventory positions can support run-rate chemistry consumption, while any renewed destocking could compress volumes temporarily. Pricing is expected to remain disciplined in specialty chemistry categories, and gross margins in Electronics should be supported by the mix shift toward higher-value formulations.

The demand pattern across subsegments is not uniform. Circuit fabrication activity tends to lag assembly recovery, and pockets of strength in automotive electronics and data center infrastructure are offsetting softer consumer electronics exposure. On the supply side, Element Solutions benefits from proprietary formulations and technical service intensity, which together support customer retention and moderate price realization. Any incremental capacity investments by customers in flip-chip and advanced substrate technologies can translate to higher consumables demand, forming a near-term catalyst for revenue resilience. With secular trends in miniaturization and higher power density, Electronics remains positioned to capture incremental share of wallet from customers upgrading their processes.

Industrial & Specialty (Most Promising Complementary Business)

Industrial & Specialty contributed $0.19 billion in the last quarter and provides diversification across coatings, functional additives, and performance materials used in automotive, construction, and general industrial applications. The current quarter’s revenue forecast for the company implies broad-based momentum, and this segment stands to benefit from improving utilization at downstream customers and stabilization in project pipelines. Seasonal dynamics into the fourth quarter can be mixed, but a steady cadence in infrastructure-related demand and automotive refurbishment supports the segment’s baseline. The margin profile in Industrial & Specialty is tied to material input costs and product mix; with raw materials more balanced compared to periods of volatility, segment gross margin is likely to reflect operational efficiency gains achieved over prior quarters.

A potential growth lever is the gradual adoption of higher-performance coatings and specialized additives that enhance durability and environmental compliance. While pricing power is more limited than in Electronics, targeted innovation and application-specific solutions can sustain premium positioning in select niches. The segment’s performance will be influenced by macro conditions in construction and industrial production; consistent order intake from key accounts is an indicator of relative stability. As management continues to refine the portfolio and prioritize higher-value formulations, Industrial & Specialty could deliver incremental margin improvement as volumes recover.

Key Factors Impacting the Stock This Quarter

Investor attention is likely to concentrate on the cadence of revenue growth and the sustainability of margin expansion as Element Solutions transitions through a normalization phase in end markets. The headline revenue forecast of $0.63 billion and adjusted EPS of $0.36 implies moderate year-over-year progress, but the quality of growth—specifically the mix between Electronics and Industrial & Specialty—will matter for valuation. Gross profit margin was 42.22% last quarter, a level that investors will benchmark against the current quarter’s print to gauge pricing discipline and product mix; any positive deviation could support sentiment.

Net profit margin stood at 5.99% last quarter, and the quarter-on-quarter decline in GAAP net profit (-17.09%) underscored seasonality and higher operating expenses or timing of projects; the degree to which the company demonstrates cost control and efficiencies this quarter will influence the stock reaction. Additionally, management’s commentary on demand visibility in semiconductor packaging chemistry, as well as inventory normalization trends across customers, will shape expectations for the first half of 2026. Finally, execution on innovation roadmaps, customer qualification cycles, and potential portfolio optimization can provide catalysts. If management guides toward continued improvement in revenue and adjusted EPS, supported by stable-to-improving margins, market perception should lean constructive.

Analyst Opinions

Based on institutional previews and commentary collected for Element Solutions during the past six months, the majority of views are bullish, citing stable demand in Electronics and gradual recovery in Industrial end-markets for the fourth quarter of 2025. Analysts point to consensus forecasts of approximately $0.63 billion in revenue and $0.36 in adjusted EPS, with expectations for EBIT near $0.11 billion and mid-40% gross margin stability. Prominent brokerage discussions emphasize inventory normalization in semiconductor supply chains and improving order trends for advanced packaging chemistry as favorable factors. The bullish cohort underscores Element Solutions’ track record of maintaining pricing discipline in specialty formulations, which supports margin resilience despite mixed macro signals.

The constructive stance also references the previous quarter’s slight top-line surprise and adjusted EPS ahead of earlier estimates, interpreting those results as evidence of operational execution heading into the year-end quarter. Analysts expect management to reiterate confidence in the Electronics business pipeline and highlight opportunities in application-specific innovations within Industrial & Specialty. The bullish view concludes that incremental improvements in mix and cost control could enable Element Solutions to deliver results in line with or modestly above consensus, which would be viewed positively by the market.