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Posted by Defense World Staff on Jul 22nd, 2026

Bank of New York Mellon Corp boosted its position in Element Solutions Inc. (NYSE:ESI – Free Report) by 30.8% in the 1st quarter, according to its most recent filing with the SEC. The firm owned 2,650,802 shares of the company’s stock after acquiring an additional 624,759 shares during the period. Bank of New York Mellon Corp owned about 1.09% of Element Solutions worth $90,498,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the business. Los Angeles Capital Management LLC purchased a new position in shares of Element Solutions during the 4th quarter worth $28,000. Johnson Financial Group Inc. acquired a new position in Element Solutions in the third quarter valued at $47,000. Measured Wealth Private Client Group LLC acquired a new position in Element Solutions in the third quarter valued at $49,000. Quarry LP increased its stake in Element Solutions by 27.3% in the third quarter. Quarry LP now owns 2,011 shares of the company’s stock valued at $51,000 after purchasing an additional 431 shares during the last quarter. Finally, Parallel Advisors LLC lifted its position in Element Solutions by 38.6% during the third quarter. Parallel Advisors LLC now owns 2,110 shares of the company’s stock worth $53,000 after buying an additional 588 shares during the period. 92.32% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades A number of analysts have issued reports on the company. Truist Financial raised their price target on Element Solutions from $47.00 to $48.00 and gave the stock a “buy” rating in a research note on Thursday, July 9th. Wall Street Zen upgraded shares of Element Solutions from a “hold” rating to a “buy” rating in a report on Monday, April 20th. UBS Group raised their target price on shares of Element Solutions to $52.00 and gave the stock a “buy” rating in a research report on Thursday, April 30th. Freedom Capital upgraded shares of Element Solutions to a “strong-buy” rating in a report on Friday, March 27th. Finally, Mizuho reaffirmed a “neutral” rating and set a $45.00 price target (down from $54.00) on shares of Element Solutions in a research report on Tuesday, July 14th. Three analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $43.00.

Get Our Latest Research Report on Element Solutions

Element Solutions Price Performance Shares of Element Solutions stock opened at $38.18 on Wednesday. The business’s fifty day moving average price is $42.35 and its 200 day moving average price is $36.70. Element Solutions Inc. has a twelve month low of $22.63 and a twelve month high of $49.25. The company has a current ratio of 2.68, a quick ratio of 1.91 and a debt-to-equity ratio of 0.75. The stock has a market capitalization of $9.30 billion, a P/E ratio of 61.58, a PEG ratio of 1.27 and a beta of 1.23.

Element Solutions (NYSE:ESI – Get Free Report) last released its quarterly earnings data on Tuesday, April 28th. The company reported $0.41 EPS for the quarter, topping analysts’ consensus estimates of $0.38 by $0.03. The company had revenue of $840.00 million for the quarter, compared to the consensus estimate of $710.51 million. Element Solutions had a return on equity of 14.19% and a net margin of 5.32%.The company’s quarterly revenue was up 41.5% compared to the same quarter last year. During the same period last year, the business posted $0.34 EPS. As a group, research analysts anticipate that Element Solutions Inc. will post 1.79 earnings per share for the current year.

Element Solutions Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Monday, June 1st. Element Solutions’s dividend payout ratio is 51.61%.

Element Solutions Company Profile (Free Report)

Element Solutions Inc is a global specialty chemicals company that develops and supplies highly engineered chemistries to performance-driven end markets. The company’s solutions serve customers across the electronics, energy, transportation, consumer and industrial sectors, with a particular emphasis on electronics chemicals, metal plating, and industrial coatings additives.

In the electronics market, Element Solutions provides a range of plating and surface-treatment chemistries used in the manufacture of printed circuit boards, semiconductor devices, and advanced display technologies.

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BALA CYNWYD, Pa., July 21, 2026 (GLOBE NEWSWIRE) -- Brodsky & Smith reminds investors of the following investigations. If you own shares and wish to discuss the investigation, contact Jason Brodsky ([email protected]) or Marc Ackerman ([email protected]) at 855-576-4847. There is no cost or financial obligation to you.

The market expects Element Solutions (ESI - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 27, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis specialty chemical and printing products is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of +16.2%.

Revenues are expected to be $877.3 million, up 40.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Element Solutions?For Element Solutions, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.54%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination indicates that Element Solutions will most likely beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Element Solutions would post earnings of $0.38 per share when it actually produced earnings of $0.41, delivering a surprise of +7.89%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Element Solutions appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Expected Results of an Industry PlayerAmong the stocks in the Zacks Chemical - Specialty industry, RPM International (RPM - Free Report) , is soon expected to post earnings of $1.84 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +7%. This quarter's revenue is expected to be $2.19 billion, up 5% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for RPM International has been revised 1.3% down to the current level. Nevertheless, the company now has an Earnings ESP of +1.71%, reflecting a higher Most Accurate Estimate.

This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that RPM International will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE:ESI) ("Element Solutions") announced today that it intends to release its 2026 second quarter financial results after the market close on Monday, July 27, 2026.

Element Solutions will host a webcast/dial-in conference call to discuss its financial results at 8:30 a.m. (Eastern Time) on Tuesday, July 28, 2026. Participants on the call will include Chief Executive Officer Benjamin Gliklich and Chief Financial Officer Carey J. Dorman.

To listen to the call by telephone, please dial +1 833-461-5787 and provide the Meeting ID: 944 148 357. The call will be simultaneously webcast at www.elementsolutionsinc.com.

A replay of the call will be available shortly after completion of the live call at www.elementsolutionsinc.com.

About Element Solutions Inc

Element Solutions is a leading global specialty chemicals technology company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in multiple high-value industries, including 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. More information about the Company is available at www.elementsolutionsinc.com.

More News From Element Solutions Inc

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BALA CYNWYD, Pa., July 14, 2026 (GLOBE NEWSWIRE) -- Brodsky & Smith reminds investors of the following investigations. If you own shares and wish to discuss the investigation, contact Jason Brodsky ([email protected]) or Marc Ackerman ([email protected]) at 855-576-4847. There is no cost or financial obligation to you.

Element Solutions (ESI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Element Solutions basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Element Solutions, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Element SolutionsFor the fiscal year ending December 2026, this specialty chemical and printing products is expected to earn $1.79 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Element Solutions. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Element Solutions to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways ESI to be acquired by Solstice in a $14.5B cash-and-stock deal, with expected closing in H1 2027. The combined company is expected to generate more than $180M in annual cost synergies within three years. Element Solutions holders get $10.00 cash plus 0.500 Solstice shares per ESI share, a 15% premium. Element Solutions Inc. (ESI - Free Report) has agreed to be acquired by Solstice Advanced Materials in a cash-and-stock transaction valued at approximately $14.5 billion, including assumed net debt.  

The combination will create a leading advanced materials platform with a stronger presence in high-growth end markets such as semiconductors, electronics, AI infrastructure, data centers and industrial technologies. The companies expect the transaction to close in the first half of 2027, subject to shareholder and regulatory approvals. 

Transaction OverviewPer the deal terms, Element Solutions’ shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock for each ESI share they own. The consideration values Element Solutions at approximately $50.10 per share, representing a premium of about 15% to its closing price as of July 2, 2026. Following the completion of the deal, existing Element shareholders are expected to own roughly 44% of the combined company. 

Strategic Benefits of the DealThe acquisition significantly expands Solstice's exposure to secular growth markets where demand for high-performance materials continues to increase. With the combination of Solstice's portfolio of electronic materials, thermal management, refrigerants and specialty materials with Element Solutions' expertise in specialty chemicals for semiconductor fabrication, electronics assembly and surface treatment, the deal will create a broader advanced materials platform. 

The combined company will offer a more comprehensive portfolio of advanced materials and process technologies. It is also expected to strengthen customer relationships across the semiconductor value chain, enhance innovation capabilities and support the growing demand for AI-driven computing and data center applications. 

Financially, the transaction is expected to strengthen Solstice's long-term growth profile and shareholder returns. The combined company targets mid-to-high single-digit CAGR (compound annual growth rate) revenue growth, high single-digit to low double-digit CAGR adjusted EBITDA growth and cash conversion of approximately 75% over the medium term. 

The combination is projected to deliver more than $180 million in net cost synergies within three years of closing. The acquisition is expected to be accretive to adjusted earnings per share in the first year after closing, reflecting anticipated operating synergies and improved scale. 

At closing, the combined company expects net leverage of approximately 3.5x adjusted EBITDA and plans to reduce this to below 3x within 18 months. Over the longer term, the integrated company intends to maintain a target net leverage of 2x-3x adjusted EBITDA while preserving a strong sub-investment-grade credit profile.  

The company also expects to continue its policy of maintaining and steadily increasing its quarterly dividend over time, underscoring its commitment to delivering sustainable value to shareholders. 

Deal FinancingSolstice intends to finance the acquisition through a combination of existing cash and debt financing. The company has secured a $4.7 billion committed bridge financing facility from Goldman Sachs to fund the cash portion of the transaction while maintaining financial flexibility. 

Shares of ESI fell roughly 3% yesterday to close at $42.32. The stock is up 73.5% over the past year compared with the industry’s 8% rise. 

Image Source: Zacks Investment Research

ESI’s Zacks Rank & Key PicksESI carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks in the Basic Materials space are CSW Industrials, Inc. (CSW - Free Report) , Idaho Strategic Resources, Inc. (IDR - Free Report)  and Albemarle Corporation (ALB - Free Report) . CSW, IDR and ALB carry a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for CSW’s current-year earnings stands at $12.52 per share, implying a 20.6% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%. 

The Zacks Consensus Estimate for IDR’s current-year earnings is pegged at $1.52 per share, implying a 33.3% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 68.7%. 

The Zacks Consensus Estimate for ALB’s current-year earnings is pegged at $12.98 per share, indicating a 1,743% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 74.5%. 

Element Solutions Inc (ESI) M&A Call July 6, 2026 8:30 AM EDT

Company Participants

Michael Leithead - VP of Investor Relations
David Sewell - CEO, President & Director
Benjamin Gliklich - CEO & Director
Tina Pierce - Senior VP & CFO

Conference Call Participants

John McNulty - BMO Capital Markets Equity Research
Joshua Spector - UBS Investment Bank, Research Division
Christopher Parkinson - Wolfe Research, LLC
Kevin McCarthy - Vertical Research Partners, LLC
Edlain Rodriguez - Mizuho Securities USA LLC, Research Division
Frank Mitsch - Fermium Research, LLC
Michael Harrison - Seaport Research Partners
Jonathan Tanwanteng - CJS Securities, Inc.

Presentation

Operator

Greetings. Welcome to Solstice Advanced Materials' Acquisition of Element Solutions Call.

[Operator Instructions] Please note that this conference is being recorded.

I'll now turn the conference over to Mike Leithead, Vice President, Investor Relations. Thank you. You may begin.

Michael Leithead
VP of Investor Relations

Great. Thank you, Rob, and good morning, everybody. My name is Mike Leithead, Vice President of Investor Relations at Solstice, and thank you for joining us on short notice here this morning. As you may have seen, this morning we announced an agreement for Solstice to acquire Element Solutions. And we're looking forward to walking you through why we're so excited about this transaction.

The slides we'll be using for this webcast are posted to the Investor Relations sections of both companies' websites. Following our prepared remarks, we will open the line for your questions.

Before we begin, please turn to Slide 3. Today's discussion includes forward-looking statements that are subject to risks and uncertainties and our actual results can differ materially from what we describe today. Please review the cautionary language on Slide 3 and in this morning's press release and in both companies' filings with the SEC. We will also reference certain combined and/or non-GAAP financial measures. You will find descriptions in the forward-looking statements

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Ademi LLP is investigating Element Solutions (NYSE: ESI) for possible breaches of fiduciary duty and other violations of law in its recently announced transaction with Solstice Advanced Materials.

Click here to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you.

Element Solutions shareholders will receive $10.00 in cash and 0.500 shares of Solstice common stock, representing implied consideration of approximately $50.10 per Element share. Upon closing, Element shareholders are expected to own approximately 44% of the combined company.
Element Solutions insiders will receive substantial benefits as part of change of control arrangements.

The transaction agreement unreasonably limits competing transactions for Element Solutions by imposing a significant penalty if Element Solutions accepts a competing bid. We are investigating the conduct of the Element Solutions board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.

We specialize in shareholder litigation involving buyouts, mergers, and individual shareholder rights. For more information, please feel free to call us. Attorney advertising. Prior results do not guarantee similar outcomes.

Contacts

Ademi LLP
Guri Ademi
Toll Free: (866) 264-3995
Fax: (414) 482-8001

SOURCE Ademi LLP

Also from this source

Solstice Advanced Materials (Nasdaq: SOLS) shares fell nearly 15% on Monday after the company announced a $14.5 billion cash-and-stock agreement to acquire Element Solutions (NYSE: ESI), in a deal aimed at expanding its footprint in advanced materials for electronics and AI infrastructure.

The transaction, which includes the assumption of net debt, will see Solstice acquire Element in a combination of $10.00 in cash and 0.500 shares of Solstice common stock for each Element share. The offer implies a value of approximately $50.10 per Element share and represents a premium of about 15% to Element’s closing price on July 2, 2026. Upon completion, Element shareholders are expected to own roughly 44% of the combined company.

The companies said the deal would accelerate Solstice’s strategy of building a scaled advanced materials platform with greater exposure to high-growth end markets including electronics, AI infrastructure, thermal management and data center applications.

On a combined basis, Solstice and Element are projected to generate approximately $6.8 billion in full-year 2025 net sales, with an adjusted EBITDA margin of 26% including expected synergies. Solstice said the deal would broaden its electronics capabilities, adding Element’s formulation expertise, technical services and customer relationships to its existing chemistry and materials portfolio.

“Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets,” said Solstice President and CEO David Sewell. He added that Element’s technical service model and customer relationships would expand Solstice’s ability to support clients from early-stage development through high-volume manufacturing.

Element Solutions CEO Ben Gliklich said the transaction brings together two complementary businesses with strong market positions and technical expertise, adding that the combined company would be better positioned to address emerging requirements in advanced electronics and related markets.

Strategically, Solstice said the acquisition would enhance its exposure to AI infrastructure by linking electronics and packaging capabilities with data center cooling and refrigerant application solutions. The company also highlighted its continued involvement in specialty markets, including nuclear fuel cycle-related uranium conversion services.

Financially, Solstice expects the combined company to deliver mid-to-high single-digit annual revenue growth and high single-digit to low double-digit adjusted EBITDA growth over the medium term, along with approximately $180 million in net synergies by the third year following closing. The company also anticipates around 75% cash conversion.

The deal is expected to be accretive to adjusted earnings per share in the first year after closing. Solstice projects net leverage of approximately 3.5x at completion, with a target of reducing leverage below 3x within 18 months. The company reaffirmed its commitment to maintaining a sub-investment grade credit profile and continuing dividend growth over time.

The transaction has been unanimously approved by both companies’ boards and is expected to close in the first half of 2027, subject to regulatory approvals and shareholder votes.

Solstice has secured a $4.7 billion bridge financing commitment from Goldman Sachs and plans to replace it with permanent debt financing, alongside cash on hand, to fund the cash portion of the deal.

Shares of Element Solutions were down almost 3% on the news.

Accelerates Solstice's strategy by deepening exposure to high-growth markets where materials innovation, performance and reliability are increasingly critical Creates a leading, integrated electronics platform spanning semiconductor fabrication, packaging and assembly, while expanding thermal management for chip and data center cooling Enhances R&D, technical-service and commercial capabilities with a focus on customer co-innovation as requirements across electronics and AI infrastructure become more complex and mission-critical Expected to strengthen Solstice's long-term financial profile, with the goal of delivering faster growth while sustaining top-tier margins and strong free cash flow Transaction expected to be accretive to sales growth and adjusted EPS in year one Solstice and Element Solutions to hold conference call today at 8:30AM ET , /PRNewswire/ -- Solstice Advanced Materials (Nasdaq: SOLS) ("Solstice" or the "Company") and Element Solutions (NYSE: ESI) ("Element") today announced that they have entered into a definitive agreement for Solstice to acquire Element in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt. The transaction represents a significant acceleration of Solstice's strategy to build an industry-leading advanced materials platform with increased exposure to high-growth electronics, AI infrastructure and other attractive end markets.

On a combined basis, Solstice and Element would have full year 2025 net sales of approximately $6.8 billion and a 26% adjusted EBITDA margin including run-rate synergies. The combined company is expected to benefit from greater scale, a full suite of offerings for electronics customers, and an attractive set of specialty material businesses serving numerous attractive end markets. Element adds focused electronics, formulation, and technical service capabilities and a robust technology portfolio that complement Solstice's strengths in chemistry, application development, refrigerant application solutions, and high-performance materials.

"Overall, we believe the combined company will be very well-positioned to benefit from generational tailwinds in high-growth end markets," said David Sewell, President and CEO of Solstice. "Element brings highly complementary capabilities, deep customer relationships and a technical service-led model that expands how we support customers from early-stage development through high-volume manufacturing. This high-performing team brings with it inimitable domain expertise and customer process know-how in addition to a compelling track-record of value creation for shareholders. Together, we expect Element and Solstice to be extremely well positioned to deliver on our customers' growing requirements for signal integrity, thermal management, reliability and performance."

Sewell added, "Both companies have strong cultures grounded in integrity, innovation, teamwork and customer focus, with comprehensive patent portfolios and highly talented employees who are at the top of their profession. We intend to blend the best of our talents and cultures to build an organization with a broader technology platform and a stronger ability to co-innovate with customers to develop unique solutions addressing emerging, complex requirements from our combined customer base."

Ben Gliklich, Chief Executive Officer of Element Solutions, said, "Since Element's founding in 2019, we have delivered a strategy balancing operational excellence and prudent capital allocation to cement our position in the fastest growing, highest value niches of our markets. This transaction recognizes that achievement and brings together two great companies with shared attributes – strong market positions, attractive margins, deep technical know-how and excellent people – to accelerate their combined growth. We are creating a scaled advanced materials platform with complementary capabilities to broaden our offerings in our core electronics markets and deliver differentiated solutions to customers. We believe that the breadth of the combined portfolio along with enhanced innovation and manufacturing capabilities will allow us to better solve the pain points emerging in the leading edge of the electronics industry. This is an exciting opportunity for our people and shareholders, both of whom are expected to participate in the anticipated long-term upside of the combined company."

Strategic and Financial Rationale

The transaction is expected to create several strategic and financial benefits, including:

Creates Industry-Leading Advanced Materials Portfolio, Accelerating Solstice's Existing Strategy. The combination advances Solstice's strategy to build a scaled advanced materials platform with greater exposure to electronics, AI infrastructure, thermal management, data center cooling applications and other attractive specialty markets. Strengthens Solstice's Electronics Platform with Complementary Innovation and Customer Capabilities. Element Solutions brings capabilities that are directly aligned with Solstice's electronics growth strategy, including formulation expertise, R&D, technical service and deep customer relationships. Together, the companies will be better positioned to serve customers across semiconductor fabrication, advanced packaging and assembly, supporting them from early-stage development through qualification and high-volume production. The combination is expected to create a broader platform for customer-led innovation as electronics customers increasingly need cutting edge materials technology to address the inherent challenges associated with advanced electronics. The combined company's enhanced scale is also expected to accelerate Element's high-growth technologies, such as Kuprion ActiveCopper. Broadens Solstice's Role Across AI Infrastructure and Other Secular Growth Markets. The transaction is expected to strengthen Solstice's exposure to AI infrastructure by connecting its electronics, packaging and thermal management capabilities with data center cooling and refrigerant application solutions. This broader platform will position the combined company to support customers across key parts of the advanced computing ecosystem, from higher-performance chips and packaging architectures to cooling solutions that improve efficiency and reliability. The combined company is expected to also retain attractive specialty positions, including serving as the sole U.S. supplier of uranium conversion services that support the nuclear fuel cycle. Strengthens Solstice's Long-Term Growth, Margin and Cash Flow Profile. The combined company is expected to deliver faster growth while maintaining best-in-class margins and strong cash flow conversion. On a combined company basis, Solstice expects to deliver mid-to-high single-digit CAGR revenue growth, high single-digit to low double-digit CAGR Adjusted EBITDA growth, and cash conversion of approximately 75% over the medium term. Solstice expects to realize more than $180 million of net synergies by the third year following close, driven by procurement efficiencies, manufacturing optimization, supply chain optimization, operational efficiencies and SG&A savings. The combined company also expects additional significant benefits from revenue synergy opportunities over time. Accretive in Year One, with Rapid De-leveraging. The transaction is expected to be accretive to Adjusted EPS in year one after close. Additionally, the combined company is expected to have net leverage of approximately 3.5x at close and anticipates de-levering to below 3x Adjusted EBITDA within 18 months of close. The combined company will remain committed to maintaining a strong sub-investment grade credit rating with a target net leverage ratio of 2.0 – 3.0x Adjusted EBITDA. Further, the combined company expects to continue its policy of maintaining and growing its quarterly dividend over time.   "This transaction allows us to amplify our transformational growth in electronics while building on the strength of Solstice's existing businesses," Sewell said. "Our refrigerant application solutions platform, including data center cooling, and our specialty exposures such as nuclear fuel remain core to the combined company's value proposition and central to helping customers improve efficiency, resilience and performance. Together, we aim to create a higher growth, higher margin advanced materials leader with greater global reach. I am confident we will successfully integrate our teams by taking a best-of-both approach, building on our respective strengths, and creating an even stronger organization."

Transaction Details

Under the terms of the agreement, Element Solutions shareholders will receive, for each share of Element common stock, $10.00 in cash and 0.500 shares of Solstice common stock, representing implied consideration of approximately $50.10 per Element share and a premium of approximately 15% over Element's closing share price on July 2, 2026. Upon closing, Element shareholders are expected to own approximately 44% of the combined company.

The transaction has been unanimously approved by the respective Boards of Directors of both companies and is expected to close in the first half of 2027, subject to customary closing conditions, including receipt of required regulatory approvals and approval by Solstice and Element shareholders, as applicable.

Upon closing, the combined company will operate as Solstice. David Sewell will serve as President and Chief Executive Officer of the combined company. Solstice expects to maintain a strong operating presence across both companies' existing major sites and build a leadership team with strong representation from both organizations to drive our shared success.

Upon closing, Solstice's Board of Directors will be comprised of 11 directors, including Element Solutions CEO Ben Gliklich and two other designees from the Element board, subject to standard governance procedures.

Financing

Solstice has secured fully committed financing for the transaction in the form of an initial $4.7 billion bridge commitment from Goldman Sachs, which it plans to replace with permanent debt financing, which it intends to use in addition to cash from its balance sheet to fund the cash consideration payable at closing of the transaction. Solstice remains focused on maintaining a consistently strong balance sheet and expects to continue managing its disciplined capital structure.

Conference Call and Additional Materials

Solstice and Element Solutions will host a joint investor conference call and webcast today at 8:30 am Eastern Time to discuss the transaction.

The live webcast and accompanying investor presentation will be available on the investor relations sections of Solstice's and Element's websites at investor.solstice.com and www.elementsolutionsinc.com. A replay of the webcast will be available following the call.

Advisors

Goldman Sachs is serving as lead financial advisor to Solstice alongside PJT Partners. Consello also provided advisory services to Solstice. Davis Polk & Wardwell LLP and Hogan Lovells Cadwalader LLP are serving as M&A counsel and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel with respect to acquisition financing. Wilkie Farr & Gallagher LLP is serving as legal counsel to Goldman Sachs as a committed financing source in connection with the acquisition financing.

BofA Securities, Inc. is serving as financial advisor to Element Solutions, Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel and Collected Strategies, LLC is serving as strategic communications advisor.

About Solstice

Solstice is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more. Solstice is recognized for developing next-generation materials through some of the industry's most renowned brands such as Solstice®, Genetron®, Aclar®, Spectra®, Fluka™ and Hydranal™. Partnering with over 3,000 customers across more than 120 countries and territories and supported by a robust portfolio of over 5,700 patents and pending applications, Solstice's approximately 4,000 employees worldwide drive innovation in materials science. For more information, visit www.solstice.com. 

About Element Solutions

Element Solutions is a leading global specialty chemicals technology company whose businesses supply a broad range of solutions that enhance the performance of products people use every day. Developed in multi-step technological processes, these innovative solutions enable customers' manufacturing processes in multiple high-value industries, including 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. More information about the Company is available at www.elementsolutionsinc.com. 

Cautionary Statement Regarding Forward-Looking Statements

This communication contains certain forward-looking statements within the meaning of the federal securities laws made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 with respect to the proposed transaction between Solstice and Element Solutions, that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, but rather are based on current expectations, estimates, assumptions and projections regarding, among other things, the anticipated benefits and timing of the proposed transaction, synergies, expected future financial position, total addressable market, position in specialty chemicals and advanced materials verticals and the industry, business and financial results of each company and the combined company, including the combined company's expected Adjusted EBITDA and Adjusted EBITDA margin, expected synergies, net debt and net leverage, anticipated de-leveraging, expected accretion to Adjusted EPS and expected growth, margins and free cash flow. Forward-looking statements often include words such as "anticipates," "estimates," "expects," "positioned," "projects," "forecasts," "intends," "plans," "continues," "could," "believes," "may," "will," "would," "should," "goals," "pro forma" and words and terms of similar substance in connection with discussions of the proposed transaction and the future operating or financial performance of the combined company. As with any projection or forecast, forward-looking statements are inherently susceptible to uncertainty and changes in circumstances. Solstice's, Element Solutions' or the combined company's actual results may vary materially from those expressed or implied in the forward-looking statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by Solstice or on its behalf. Although Solstice and Element Solutions believe that the forward-looking statements contained in this communication are based on reasonable assumptions, you should be aware that a variety of factors, many of which are difficult to predict and outside of Solstice's or Element Solutions' control, could affect Solstice's, Element Solutions' or the combined company's actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including, but not limited to: the completion of the proposed transaction on the anticipated terms and timing, including obtaining stockholder, regulatory and other approvals, anticipated tax treatment, unforeseen liabilities, future capital expenditures, revenues, expenses, earnings, synergies, economic performance, indebtedness, financial condition, future prospects, business and management strategies, expansion and growth of Solstice's and Element Solutions' businesses and other conditions to the completion of the proposed transaction; failure to realize the anticipated benefits of the proposed transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of delay in completing the proposed transaction, Solstice's ability to integrate Element Solutions' operations and product lines or due to unexpected costs, liabilities or delays; the ability of the parties to obtain or consummate financing related to the proposed transaction upon acceptable terms or at all; the dilution caused by Solstice's issuance of additional shares of its common stock in connection with the consummation of the proposed transaction; the risk of a downgrade of the credit rating of Solstice's indebtedness; a material adverse change in the financial condition of Solstice, Element Solutions or the combined company; potential litigation relating to the proposed transaction that could be instituted against Solstice, Element Solutions or their respective directors; Solstice's and Element Solutions' ability to implement their business strategies; the risk that disruptions from the proposed transaction will harm Solstice's or Element Solutions' respective businesses, including current plans and operations; the ability of Solstice or Element Solutions to retain and hire key personnel; potential adverse reactions or changes to business relationships resulting from the announcement or completion of the proposed transaction; uncertainty as to the long-term value of Solstice's common stock; risks associated with third party contracts containing consent and/or other provisions triggered by the proposed transaction; legislative, regulatory, political and economic developments affecting Solstice's, Element Solutions' or the combined company's respective businesses; the evolving legal, regulatory and tax regimes under which Solstice and Element Solutions operate; potential business uncertainty, including changes to existing business relationships, during the pendency of the proposed transaction that could affect Solstice's and/or Element Solutions' financial performance; restrictions during the pendency of the proposed transaction that may impact Solstice's or Element Solutions' ability to pursue certain business opportunities or strategic transactions; an overall decline in the health of the economy and the industries in which Solstice and Element Solutions operate, including as a result of inflation, tariffs and other trade barriers and restrictions, market volatility, geopolitical instability and social unrest, the possibility of an economic downturn or recession or other macroeconomic factors; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, as well as Solstice's and Element Solutions' response to any of the aforementioned factors; failure to receive the approval of the stockholders of Solstice and/or Element Solutions; and the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the businesses of Solstice and Element Solutions described in the "Risk Factors" section of their respective Annual Reports on Form 10-K for the year ended December 31, 2025, Quarterly Reports on Form 10-Q and other documents filed by either of them from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those implied by forward-looking statements in this communication. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Solstice and Element Solutions assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by securities or other applicable law. Neither Solstice nor Element Solutions gives any assurance that either Solstice or Element Solutions will achieve its expectations.

Important Information and Where to Find It

In connection with the proposed transaction, Solstice intends to file with the SEC a registration statement on Form S-4 (the "Registration Statement"), which will include a prospectus with respect to the shares of Solstice's common stock to be issued in the proposed transaction and a joint proxy statement for Solstice's and Element Solutions' respective stockholders (the "Joint Proxy Statement/Prospectus"). The definitive Joint Proxy Statement/Prospectus (if and when available) will be mailed to stockholders of Solstice and Element Solutions after it is declared effective. Each of Solstice and Element Solutions may also file with or furnish to the SEC other relevant documents regarding the proposed transaction. This communication is not a substitute for the Registration Statement, the Joint Proxy Statement/Prospectus or any other document that Solstice or Element Solutions may mail to their respective stockholders in connection with the proposed transaction.

INVESTORS AND SECURITY HOLDERS OF SOLSTICE AND ELEMENT SOLUTIONS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE, AS WELL AS ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE REGISTRATION STATEMENT AND THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO), BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION REGARDING SOLSTICE, ELEMENT SOLUTIONS, THE PROPOSED TRANSACTION AND RELATED MATTERS.

Investors and security holders may obtain free copies of the Joint Proxy Statement/Prospectus and other documents filed with the SEC by Solstice or Element Solutions through the website maintained by the SEC at http://www.sec.gov or from Solstice at its website, https://www.solstice.com, or from Element Solutions at its website, https://www.elementsolutionsinc.com (information included on or accessible through the SEC website or either of Solstice's or Element Solutions' website is not incorporated by reference into this communication).

Participants in Solicitation

Solstice and Element Solutions and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Solstice and Element Solutions in connection with the proposed transaction.

Information about the interests of the directors and executive officers of Solstice and Element Solutions and other persons who may be deemed to be participants in the solicitation of stockholders of Solstice and Element Solutions in connection with the proposed transaction and a description of their direct and indirect interests, by security holdings or otherwise, will be included in the Joint Proxy Statement/Prospectus, which will be filed with the SEC.

Information about Solstice's directors and executive officers and their ownership of Solstice's common stock is set forth in Solstice's proxy statement for its 2026 Annual Meeting of Stockholders on Schedule 14A filed with the SEC on April 2, 2026 under the headings "Director Compensation," "Compensation Discussion and Analysis," "Executive Compensation Tables" and "Stock Ownership Information." To the extent that holdings of Solstice's securities have changed since the amounts printed in Solstice's proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 and Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC.

Information about Element Solutions' directors and executive officers and their ownership of Element Solutions' common stock is set forth in Element Solutions' proxy statement for its 2026 Annual Meeting of Stockholders on Schedule 14A filed with the SEC on March 23, 2026 under the headings "Director Compensation," "Executive Compensation" and "Security Ownership." To the extent that holdings of Element Solutions' securities have changed since the amounts printed in Element Solutions' proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 and Statements of Changes in Beneficial Ownership on Form 4 filed with the SEC.

The information regarding the direct and indirect interests of those persons and other persons who may be deemed participants in the proposed transaction may be obtained by reading the Joint Proxy Statement/Prospectus regarding the proposed transaction when it becomes available. Free copies of these documents may be obtained as described above.

No Offer or Solicitation

This communication is not intended to and shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the "Securities Act"), and/or offered pursuant to an exemption from the registration requirements of the Securities Act, and otherwise in accordance with applicable law.

Important Note about Combined and Non-GAAP Financial Information

The financial information for the combined businesses of Solstice and Element Solutions is based on management's estimates, assumptions and projections and has not been prepared in conformance with the applicable requirements of Regulation S-X relating to pro forma financial information, and the required pro forma adjustments have not been applied and are not reflected therein. This information is provided for illustrative purposes only and should not be considered in isolation from, or as a substitute for, the historical financial statements of Solstice and Element Solutions. These measures are provided for illustrative purposes and are based on an arithmetic sum of the relevant historical financial measures of Solstice and Element Solutions. Combined Adjusted EBITDA is the arithmetic sum of Solstice's Adjusted Standalone EBITDA and Element Solutions' Pro Forma Adjusted EBITDA, inclusive of expected net synergies. Combined Adjusted EBITDA Margin is inclusive of expected net synergies. These measures do not reflect what the combined company's financial condition or results of operations would have been had the proposed transaction occurred on or prior to the dates indicated. Such illustrative information may differ materially from pro forma information included in SEC filings. Various factors could cause actual future results to differ materially from those currently estimated by management, including, but not limited to, the risks described above and in each of Solstice's and Element Solutions' respective filings with the SEC.

This communication also includes certain financial measures not calculated in accordance with U.S. generally accepted accounting principles ("GAAP"), such as adjusted standalone EBITDA, pro forma adjusted EBITDA, combined adjusted EBITDA, combined adjusted EBITDA margin, combined sales, synergies, integration benefits, free cash flow, net debt and net leverage. Non-GAAP financial measures have limitations as an analytical tool and are not meant to be considered in isolation from, or as a substitute for, the comparable GAAP measures. There are limitations to non-GAAP financial measures because they are not prepared in accordance with GAAP and may not be comparable to similarly titled measures of other companies due to potential differences in methods of calculation and items being excluded. Solstice and Element Solutions caution you not to place undue reliance on these non-GAAP financial measures.

For a definition of Solstice's adjusted standalone EBITDA and Element Solutions' adjusted EBITDA and a reconciliation of adjusted standalone EBITDA and adjusted EBITDA to the most comparable GAAP financial measure for 2025, please see Solstice's Current Report on Form 8-K furnished with the SEC on February 11, 2026 and Element Solutions' Current Report on Form 8-K furnished with the SEC on February 17, 2026 and Element Solutions' 2026 Investor Day presentation at its website at https://www.elementsolutionsinc.com (information included on or accessible through Element Solutions' website is not incorporated by reference into this communication). Element Solutions' pro forma Adjusted EBITDA for fiscal year 2025 is from Element Solutions' 2026 Investor Day presentation and is Element Solutions' Adjusted EBITDA inclusive of a pro forma adjustment of $61 million from the impact of the acquisitions of Micromax and EFC Gases. Combined Adjusted EBITDA and Combined Adjusted EBITDA margin includes expected synergies.

Investor Relations
Mike Leithead
(973) 370-8188
[email protected] 

Media           
Amy Schneiderman  
(201) 218-2302                         
[email protected] 

Contacts for Element Solutions

Investor Relations
Varun Gokarn
Vice President, Strategy and Integration
Element Solutions Inc
1-203-952-0369
[email protected] 

Media
Ed Hammond / Tali Epstein
Collected Strategies
1-212-379-2072
[email protected] 

SOURCE Solstice Advanced Materials US, Inc.

SummaryCompaniesDeal could come together as soon as this week, FT reportsMerger likely to be mostly stock-based with some cash, FT reportsJuly 6 (Reuters) - Honeywell (HON.O), opens new tab spinoff Solstice Advanced Materials (SOLS.O), opens new tab is in ‌talks to merge with Element Solutions (ESI.N), opens new tab in a deal that could create a chemicals company valued at about $27 billion including debt, the Financial Times reported ​on Monday.

The talks happen as both companies seek to capitalize ​on growing demand for specialty chemicals used in AI ⁠data centers and semiconductor manufacturing.

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Solstice and Element Solutions are discussing a ​merger of equals and a deal, likely to be mostly stock ​with some cash, could come together as soon as this week, the FT report said, citing people familiar with the talks.

No formal agreement had been reached ​and the discussions could still fall apart, the report said.

Neither company ​responded to Reuters requests for comment outside regular business hours.

Solstice, which was spun ‌off ⁠from Honeywell last year, makes specialty chemicals and materials used in industries, including semiconductor, refrigeration, nuclear power and healthcare.

The company said in May that increasing demand for its thermal management and refrigerant products in ​AI-driven data centers, as ​well as ⁠the growing need for advanced computing solutions in semiconductor electronic materials, was helping growth.

Element Solutions, which primarily ​supplies specialty chemicals for electronics manufacturing, reported more ​than 40% ⁠growth in first-quarter revenue this year, driven mainly by AI-related demand.

Solstice has a market value of about $12.73 billion, while Element Solutions is valued ⁠at $10.63 ​billion, according to LSEG data.

Their shares have ​risen sharply this year, with Element Solutions up nearly 75% and Solstice up about ​65%.

Reporting by Sumedha Mukherjee and Shubham Kalia in Bengaluru; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Element Solutions Inc (ESI) Presents at 3rd Annual Materials of the Future Conference Transcript

MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE:ESI) (“Element Solutions” or the “Company”), a global and diversified specialty chemicals technology company, today announced that Sir Martin E. Franklin, Executive Chairman of the Board, plans to step down from the Board and will not seek re-election at the upcoming 2026 Annual Meeting of Stockholders. Ian G.H. Ashken, a founding Board director since 2013 and Chair of the Board's Nominating and Policies Committee, has been appointed Non-Execu.

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Element Solutions (ESI - Free Report) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.

Element Solutions is one of 248 individual stocks in the Basic Materials sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Element Solutions is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for ESI's full-year earnings has moved 3.8% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, ESI has gained about 52.1% so far this year. At the same time, Basic Materials stocks have gained an average of 19.6%. This shows that Element Solutions is outperforming its peers so far this year.

Teck Resources Ltd (TECK - Free Report) is another Basic Materials stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.9%.

For Teck Resources Ltd, the consensus EPS estimate for the current year has increased 50.1% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Element Solutions is a member of the Chemical - Specialty industry, which includes 44 individual companies and currently sits at #171 in the Zacks Industry Rank. This group has gained an average of 13.1% so far this year, so ESI is performing better in this area.

On the other hand, Teck Resources Ltd belongs to the Mining - Miscellaneous industry. This 72-stock industry is currently ranked #145. The industry has moved +21.8% year to date.

Investors interested in the Basic Materials sector may want to keep a close eye on Element Solutions and Teck Resources Ltd as they attempt to continue their solid performance.

MIAMI--(BUSINESS WIRE)--Element Solutions Inc (NYSE:ESI) (“Element Solutions” or the “Company”), a global and diversified specialty chemicals technology company, today announced its financial results for the three months ended March 31, 2026. Executive Commentary Chief Executive Officer Benjamin Gliklich commented, “Element Solutions had an outstanding start to the year. We delivered double-digit organic net sales growth and strong margin expansion while ramping our investments to keep pace wit.

Key Takeaways ESI posted Q1 adjusted EPS of 41 cents, topping the Zacks Consensus Estimate of 38 cents. Net sales surged 41% year over year to $840 million, beating the consensus mark of $744.4 million. The company raised its 2026 adjusted EBITDA outlook to $665 million-$685 million. Element Solutions Inc. (ESI - Free Report) recorded earnings of 23 cents per share for the first quarter of 2026 compared with 40 cents in the year-ago quarter. Reported net income was $56 million, down 43% year over year, primarily due to a gain on the Graphics Solutions divestiture in the prior-year period.  

Barring one-time items, earnings were 41 cents per share, up from 34 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 38 cents. 

The company generated net sales of $840 million, up 41% year over year from $593.7 million. The figure beat the Zacks Consensus Estimate of $744.4 million. Organic net sales rose 10%.  

ESI benefited from strong momentum in its Electronics business, aided by robust demand tied to AI infrastructure, high-performance electronics, advanced packaging and thermal management applications. Acquisitions also contributed to reported growth in the quarter. 

Element Solutions Inc. Price, Consensus and EPS SurpriseESI’s Segment HighlightsNet sales in the Electronics segment rose 61% year over year to $633.5 million in the reported quarter. The figure beat the consensus estimate of $532 million. Organic net sales increased 15%. Adjusted EBITDA for the segment increased 34% year over year to $119.1 million.  

In the Specialties segment, net sales increased 4% year over year to $206.5 million. Organic net sales rose 1%. The figure missed the consensus estimate of $207 million. Adjusted EBITDA for the segment rose 9% year over year to $43.2 million.  

ESI’s Financial PositionElement Solutions ended the quarter with cash and cash equivalents of $177.3 million, down from $626.5 million at the end of 2025. Debt was $2,058.7 million at the end of the quarter compared with $1,625.9 million as of Dec. 31, 2025.  

Cash used in operating activities was $66.6 million against cash provided by operating activities of $26 million in the year-ago quarter. Free cash flow was negative $74.2 million against a positive free cash flow of $30.1 million in the prior-year quarter.  

ESI’s OutlookThe company now expects full-year 2026 adjusted EBITDA in the range of $665 million to $685 million, up from its earlier outlook of $650 million to $670 million. For the second quarter of 2026, ESI expects adjusted EBITDA between $155 million and $170 million.  

ESI’s Price PerformanceShares of Element Solutions have gained 91.7% in a year compared with a 9.8% rise in the ndustry. 

Image Source: Zacks Investment Research

ESI’s Zacks Rank & Key PicksESI currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth a look in the basic materials space are CF Industries Holdings, Inc. (CF - Free Report) , Galiano Gold Inc. (GAU - Free Report)  and Nexa Resources S.A. (NEXA - Free Report) .

CF Industries is slated to report first-quarter 2026 results on May 6. The Zacks Consensus Estimate for earnings is pegged at $2.35 per share, indicating 27.03% year-over-year growth. CF sports a Zacks Rank #1 (Strong Buy) at present.  

Galiano is slated to report quarterly results on May 13. The Zacks Consensus Estimate for earnings is pegged at 17 cents per share. GAU has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NEXA is scheduled to report first-quarter results on May 6. The Zacks Consensus Estimate for NEXA’s first-quarter earnings is pegged at 61 cents per share. NEXA currently has a Zacks Rank #2. 

The Zacks Chemicals Specialty industry is facing headwinds from weak demand amid sluggish conditions in Europe, a slow recovery in China and tariff-related disruptions. Profit margins across the sector also remain strained due to persistently high input, supply chain and logistics costs.

Industry players, such as Element Solutions Inc (ESI - Free Report) , Perimeter Solutions, Inc. (PRM - Free Report) and Hawkins, Inc. (HWKN - Free Report) are banking on strategic measures, including operating cost reductions, to tide over a persistently challenging environment.

About the Industry The Zacks Chemicals Specialty industry consists of manufacturers of specialty chemical products for a host of end-use markets such as textile, paper, automotive, electronics, personal care, energy, construction, food & beverages and agriculture. These chemicals (including catalysts, surfactants, specialty polymers, coating additives, pesticides and oilfield chemicals) are used based on their performance and have a specific purpose. Specialty chemicals can be single molecules or a combination of molecules referred to as formulations, and they provide a vast range of effects upon which various industries rely. Their compositions significantly influence the performance of the finished products. Specialty chemicals have applications in the manufacturing process of a vast range of products, including paints and coatings, cosmetics, petroleum products, inks and plastics. 

What's Shaping the Future of the Chemical Specialty Industry? Demand Softness Pose Headwinds: Companies in the chemical specialty space are facing headwinds from weak demand in building and construction as well as industrial end markets, especially in Europe and China, due to economic slowdown. Elevated borrowing costs and inflation have taken a bite out of the residential construction industry. Manufacturing activities have also weakened amid softer demand for goods and higher borrowing costs. A slower recovery in economic activities in China is hurting demand in that country. Low consumer confidence and high inflation have also dampened demand in Europe. While customer inventory de-stocking is essentially complete, some lingering impacts of the same in certain markets are expected to continue over the near term. The imposition of hefty tariffs has also introduced significant headwinds for the chemical specialty industry. The soft demand conditions, exacerbated by the weak macroeconomic environment and tariff-induced impacts, are likely to weigh on the volumes of chemical specialty companies.

Cost Pressure Still a Worry: Specialty chemical makers are facing headwinds from raw-material and energy-cost inflation and supply-chain and freight-transportation disruptions. Some companies are exposed to challenges from elevated logistics and labor costs. Tariffs have led to increased costs for raw materials, resulting in higher production expenses for the industry players. The impacts of inflationary pressures are expected to continue over the short term and weigh on the margins of chemical specialty companies.

Strategic Actions to Aid Results: The companies in this space are executing a raft of self-help measures — including cost-cutting and productivity improvement, expansion into high-growth markets, restructuring, operational efficiency improvement, and actions to strengthen the balance sheet and boost cash flows — in a bid to stay afloat despite the prevailing headwinds. The industry participants are aggressively implementing actions to cut costs. The measures are likely to help companies sail through the ongoing challenges.

Zacks Industry Rank Indicates Downbeat Prospects The Zacks Chemicals Specialty industry is part of the broader Zacks Basic Materials sector. It carries a Zacks Industry Rank #180, which places it in the bottom 27% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates a bleak near-term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Underperforms Sector & S&P 500 The Zacks Chemicals Specialty industry has underperformed the Zacks S&P 500 composite and the broader Zacks Basic Materials sector over the past year.

The industry has gained 5.9% over this period compared with the S&P 500’s rise of 32.8% and the broader sector’s increase of 40.5%.

One-Year Price Performance

Industry's Current Valuation On the basis of the trailing 12-month enterprise value-to EBITDA (EV/EBITDA) ratio, which is a commonly used multiple for valuing chemical stocks, the industry is currently trading at 11.69, below the S&P 500’s 17.69 and the sector’s 14.47.

Over the past three years, the industry has traded as high as 13.12X, as low as 10.56X, with a median of 11.94X, as the chart below shows.

Enterprise Value/EBITDA (EV/EBITDA) Ratio

Enterprise Value/EBITDA (EV/EBITDA) Ratio 

3 Chemical Specialty Stocks to Keep a Close Eye on Element Solutions: Florida-based Element Solutions is a leading specialty chemicals provider, offering innovative and differentiated solutions to its customers across a vast spectrum of industries. ESI is poised for growth, driven by strong execution and strategic positioning in the electronics sector, which underpins its robust long-term growth outlook. The company is benefiting from strength in the electronics market. It is seeing strong organic growth in its Electronics segment. High-value end markets are contributing to a favorable product mix, while the ongoing pricing and productivity initiatives are boosting margins. The Micromax acquisition has strengthened its position to build an industry-leading Electronics portfolio. The acquisition of EFC Gases & Advanced Materials also added higher value and differentiated offerings in specialty and rare gases, along with advanced materials.

ESI has an expected earnings growth of 19.5% for 2026. The Zacks Consensus Estimate for Element Solutions’ 2026 earnings has moved 2.9% upward over the last 60 days. ESI surpassed the Zacks Consensus Estimate in each of the trailing four quarters at an average of roughly 4.7%. ESI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Price and Consensus: ESI

Perimeter Solutions: Missouri-based Perimeter Solutions is a leading provider of solutions for the fire safety and specialty products industries. It is expected to benefit from the recovery of major end markets. Favorable industry trends are expected to continue to drive demand for fire-retardant products. The company remains focused on expanding its fire prevention and protection business. Its Specialty Products segment is seeing sales growth aided by a recovery from de-stocking activities and an increase in purchases by high-quality specialty chemicals customers. PRM’s strong balance sheet also offers adequate liquidity for growth investments and M&A opportunities.

Perimeter Solutions currently carries a Zacks Rank #2. It has expected earnings growth of 9.7% for 2026. The Zacks Consensus Estimate for PRM’s 2026 earnings has moved up 19.5% over the last 60 days.

Price and Consensus: PRM

Hawkins: Minnesota-based Hawkins is a leading specialty chemical and ingredients company that formulates, distributes, blends and manufactures products for its customers. Hawkins is seeing strong growth in its Water Treatment segment, reflecting its strategic emphasis on the water treatment sector, including the successful integration of recent acquisitions. The acquisition of Industrial Research Corporation aligns with Hawkins’ growth strategy in central and northern Louisiana, eastern Texas and southern Arkansas, complementing its existing operations and enhancing its market presence. The Wofford Water Service buyout also extended HWKN’s reach in Mississippi and supported its expansion in the southern United States, where its Water Treatment business had been limited previously. The Amerochem assets and WaterSurplus acquisitions further strengthened its Water Treatment footprint. HWKN’s judicious pricing strategy to counter cost inflation is also supporting results. It also remains committed to enhancing shareholders’ value.

The Zacks Consensus Estimate for Hawkins’ fiscal 2026 earnings has moved up 0.3% over the last 60 days. Hawkins, carrying a Zacks Rank #2, has an expected long-term earnings per share growth rate of 12%.

Price and Consensus: HWKN
 

Ensign Energy Services Inc. (ESI:CA) Q1 2026 Earnings Call Transcript

Element Solutions Inc (ESI) Analyst/Investor Day Transcript

For those looking to find strong Basic Materials stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Element Solutions (ESI - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Basic Materials sector should help us answer this question.

Element Solutions is a member of our Basic Materials group, which includes 248 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Element Solutions is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for ESI's full-year earnings has moved 3% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.

Our latest available data shows that ESI has returned about 62.3% since the start of the calendar year. Meanwhile, the Basic Materials sector has returned an average of 12.7% on a year-to-date basis. This means that Element Solutions is performing better than its sector in terms of year-to-date returns.

One other Basic Materials stock that has outperformed the sector so far this year is Reliance (RS - Free Report) . The stock is up 25.4% year-to-date.

The consensus estimate for Reliance's current year EPS has increased 3.9% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Element Solutions is a member of the Chemical - Specialty industry, which includes 44 individual companies and currently sits at #90 in the Zacks Industry Rank. Stocks in this group have gained about 9.1% so far this year, so ESI is performing better this group in terms of year-to-date returns.

On the other hand, Reliance belongs to the Mining - Miscellaneous industry. This 72-stock industry is currently ranked #162. The industry has moved +22.2% year to date.

Element Solutions and Reliance could continue their solid performance, so investors interested in Basic Materials stocks should continue to pay close attention to these stocks.

A month has gone by since the last earnings report for Element Solutions (ESI - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Element Solutions due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Element Solutions Inc. before we dive into how investors and analysts have reacted as of late.

Element Solutions Tops Earnings and Revenue Estimates in Q1Element Solutions recorded earnings of 23 cents per share for the first quarter of 2026 compared with 40 cents in the year-ago quarter. Reported net income was $56 million, down 43% year over year, primarily due to a gain on the Graphics Solutions divestiture in the prior-year period.  

Barring one-time items, earnings were 41 cents per share, up from 34 cents in the year-ago quarter. The figure beat the Zacks Consensus Estimate of 38 cents. 

The company generated net sales of $840 million, up 41% year over year from $593.7 million. The figure beat the Zacks Consensus Estimate of $744.4 million. Organic net sales rose 10%.  

Element Solutions benefited from strong momentum in its Electronics business, aided by robust demand tied to AI infrastructure, high-performance electronics, advanced packaging and thermal management applications. Acquisitions also contributed to reported growth in the quarter.

Segment HighlightsNet sales in the Electronics segment rose 61% year over year to $633.5 million in the reported quarter. The figure beat the consensus estimate of $532 million. Organic net sales increased 15%. Adjusted EBITDA for the segment increased 34% year over year to $119.1 million.  

In the Specialties segment, net sales increased 4% year over year to $206.5 million. Organic net sales rose 1%. The figure missed the consensus estimate of $207 million. Adjusted EBITDA for the segment rose 9% year over year to $43.2 million.  

Financial PositionElement Solutions ended the quarter with cash and cash equivalents of $177.3 million, down from $626.5 million at the end of 2025. Debt was $2,058.7 million at the end of the quarter compared with $1,625.9 million as of Dec. 31, 2025.  

Cash used in operating activities was $66.6 million against cash provided by operating activities of $26 million in the year-ago quarter. Free cash flow was negative $74.2 million against a positive free cash flow of $30.1 million in the prior-year quarter.  

OutlookThe company now expects full-year 2026 adjusted EBITDA in the range of $665 million to $685 million, up from its earlier outlook of $650 million to $670 million. For the second quarter of 2026, ESI expects adjusted EBITDA between $155 million and $170 million.  

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM ScoresCurrently, Element Solutions has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Element Solutions has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.