Element Solutions Inc. Q2 2026 Financial Performance
Element Solutions Inc (NYSE:ESI) announced second‑quarter 2026 results that substantially exceeded analyst expectations. Revenue reached $978 million, a 56% year‑over‑year increase from $627 million in Q2 2025 and $119 million above the consensus estimate of $859 million. Adjusted earnings per share were $0.47, beating the consensus of $0.43 by $0.04. The company’s adjusted EBITDA totaled $184 million, up 35% from $136 million in the comparable quarter of 2025, and the adjusted EBITDA margin expanded to 27.8% from 26.6%.
The strong results were driven primarily by the Electronics segment, which posted net sales of $767 million, a 75% surge versus the prior year, including 20% organic growth. The Specialties segment contributed $211 million in net sales, a 14% increase, and generated adjusted EBITDA of $42 million, up 7% YoY. GAAP diluted EPS for the quarter was $0.32, compared with $0.20 in Q2 2025, while net income rose to $77 million, a 63% increase from $48 million a year earlier. Operating cash flow amounted to $100 million, and free cash flow was $74 million.
Following the release, Element Solutions’ shares rose 0.8%. The company also raised its full‑year 2026 adjusted EBITDA guidance to a range of $690 million to $710 million, with a midpoint of $700 million, and projected third‑quarter adjusted EBITDA of approximately $180 million. Full‑year adjusted EPS is expected to grow by roughly 20%.
In a strategic move, Element Solutions entered into a merger agreement with Solstice on July 6, 2026. Under the terms, Element Solutions shareholders will receive 0.5 shares of Solstice common stock plus $10.00 cash per share. The transaction is slated to close in the first half of 2027.
Chief Executive Officer Benjamin Gliklich commented that the quarter was a “record quarter of revenue, adjusted EBITDA and adjusted EPS,” emphasizing the company’s focus on operational excellence and prudent capital allocation.