Element Solutions, the global specialty chemicals company, has reported solid second-quarter results, fueled by robust performance in its electronics business.

 

President and CEO Benjamin Gliklich said, “Element Solutions had an outstanding second quarter. We continued to execute well against our strategy of penetrating the fastest growing niches in our available markets and driving a culture of continuous improvement in our operations. This was the fifth consecutive quarter of high-single digit organic growth in our Electronics segment. 

 

"The electronics market has bifurcated between fast growing, advanced technologies and lagging legacy applications. Our growth demonstrates the traction we have gained in the areas that are driving our markets forward. Our solutions are helping to solve emerging customer pain points associated with power and thermal management in increasingly complex circuit board and chip designs. In our industrially exposed businesses, where the markets have been more challenging, we continue to drive profits through commercial, procurement and productivity activities.”

 

Gliklich also addressed global trade volatility, noting the company’s strategic positioning. “Global trade dynamics remain volatile. We are fortunate to have a geographically broad yet also localized sourcing, manufacturing and technical footprint that is close to our customers."

 

"This has allowed us to minimize the impact of higher tariffs on our cost structure so far, and we expect it to help us mitigate the impact of potential new tariffs going forward. Our recently increased 2025 adjusted EBITDA guidance range demonstrates our ability to navigate the current tariff environment without sacrificing growth. 

 

"It also takes into consideration potential - though thus-far not evident - demand weakness in the second half as well as the benefit of an expected favorable foreign exchange impact over the balance of the year. Cash flow remains solid, and our balance sheet capacity continues to grow. We are well-positioned and remain optimistic as we look ahead.”

 

Q2 2025 snapshots:

 

Net Sales: $625M, up 2% year-over-year; organic growth 6%

 

Electronics: $439M, up 12%; organic growth 9%.

 

Industrial & Specialty: $186M, down 16% (17% due to divestitures); organic growth 1%.

 

EPS: GAAP diluted $0.20 vs. $0.38; Adjusted $0.37 vs. $0.36.

 

Net Income: $48M, down 49% from $93M last year; margin fell 760 basis points to 7.6%.

 

Adjusted EBITDA: $136M, flat year-over-year; Electronics $97M (+5%), Industrial & Specialty $40M (-8%).

 

Element Solutions raised its full-year 2025 adjusted EBITDA guidance to $530M–$550M, with free cash flow conversion expected to remain in line with 2024. Third-quarter adjusted EBITDA is projected at $140M–$145M.