Element Solutions Inc Financials
This page shows Element Solutions Inc (ESI) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 14 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Element Solutions’ core margins stayed resilient, but working-capital expansion muted cash generation while the balance sheet deleveraged.
From FY2024 to FY2025, gross margin stayed near42.0% and operating income held around$342M . Yet operating cash flow fell to$289.8M while receivables plus inventory rose by$126.6M , implying more profit was tied up in working capital instead of arriving as cash.
Balance-sheet posture improved even in a softer cash-conversion year: cash climbed to
The earnings recovery came mostly from margin structure, not from a dramatic sales surge: operating margin moved from
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Element Solutions Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Element Solutions Inc has an operating margin of 13.4%, meaning the company retains $13 of operating profit per $100 of revenue. This strong profitability earns a score of 74/100, reflecting efficient cost management and pricing power. This is down from 14.0% the prior year.
Element Solutions Inc's revenue grew a modest 3.8% year-over-year to $2.6B. This slow but positive growth earns a score of 49/100.
Element Solutions Inc has a moderate D/E ratio of 0.61. This balance of debt and equity financing earns a leverage score of 30/100.
With a current ratio of 3.68, Element Solutions Inc holds $3.68 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 84/100.
Element Solutions Inc converts 8.9% of revenue into free cash flow ($227.6M). This strong cash generation earns a score of 69/100.
Element Solutions Inc's ROE of 7.1% shows moderate profitability relative to equity, earning a score of 63/100. This is down from 10.3% the prior year.
Element Solutions Inc scores 3.20, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($9.9B) relative to total liabilities ($2.4B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Element Solutions Inc passes 5 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.
For every $1 of reported earnings, Element Solutions Inc generates $1.52 in operating cash flow ($289.8M OCF vs $190.8M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Element Solutions Inc earns $6.4 in operating income for every $1 of interest expense ($342.2M vs $53.4M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Element Solutions Inc generated $2.6B in revenue in fiscal year 2025. This represents an increase of 3.8% from the prior year.
Element Solutions Inc's EBITDA was $493.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 1.6% from the prior year.
Element Solutions Inc reported $190.8M in net income in fiscal year 2025. This represents a decrease of 21.9% from the prior year.
Element Solutions Inc earned $0.79 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 21.8% from the prior year.
Cash & Balance Sheet
Element Solutions Inc generated $227.6M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 22.5% from the prior year.
Element Solutions Inc held $626.5M in cash against $1.6B in long-term debt as of fiscal year 2025.
Element Solutions Inc paid $0.32 per share in dividends in fiscal year 2025. This represents an increase of 0.0% from the prior year.
Element Solutions Inc had 244M shares outstanding in fiscal year 2025. This represents an increase of 0.5% from the prior year.
Margins & Returns
Element Solutions Inc's gross margin was 42.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 0.2 percentage points from the prior year.
Element Solutions Inc's operating margin was 13.4% in fiscal year 2025, reflecting core business profitability. This is down 0.6 percentage points from the prior year.
Element Solutions Inc's net profit margin was 7.5% in fiscal year 2025, showing the share of revenue converted to profit. This is down 2.5 percentage points from the prior year.
Element Solutions Inc's ROE was 7.1% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 3.1 percentage points from the prior year.
Capital Allocation
Element Solutions Inc invested $67.6M in research and development in fiscal year 2025. This represents an increase of 7.3% from the prior year.
Element Solutions Inc spent $25.0M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding.
Element Solutions Inc invested $62.2M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 9.1% from the prior year.
ESI Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $840.0M+24.2% | $676.2M+3.1% | $656.1M+4.9% | $625.2M+5.3% | $593.7M-4.9% | $624.2M-3.2% | $645.0M+5.3% | $612.7M |
| Cost of Revenue | $517.3M+29.5% | $399.6M+5.4% | $379.1M+5.7% | $358.8M+4.5% | $343.2M-6.8% | $368.2M-2.5% | $377.5M+9.3% | $345.5M |
| Gross Profit | $322.7M+16.7% | $276.6M-0.1% | $277.0M+4.0% | $266.4M+6.3% | $250.5M-2.1% | $256.0M-4.3% | $267.5M+0.1% | $267.2M |
| R&D Expenses | $20.2M+16.1% | $17.4M-3.9% | $18.1M+11.7% | $16.2M+1.9% | $15.9M+10.4% | $14.4M-3.4% | $14.9M-4.5% | $15.6M |
| SG&A Expenses | $191.1M+0.8% | $189.5M+19.9% | $158.1M+1.4% | $155.9M-0.8% | $157.2M-5.7% | $166.7M+5.8% | $157.6M+1.4% | $155.4M |
| Operating Income | $111.4M+59.8% | $69.7M-30.9% | $100.8M+6.9% | $94.3M+21.8% | $77.4M+3.3% | $74.9M-21.2% | $95.0M-1.2% | $96.2M |
| Interest Expense | -$21.5M-66.7% | -$12.9M+3.0% | -$13.3M-3.1% | -$12.9M+9.8% | -$14.3M-2.9% | -$13.9M+2.1% | -$14.2M+0.7% | -$14.3M |
| Income Tax | $26.7M+7.7% | $24.8M+53.1% | $16.2M+2.5% | $15.8M-11.2% | $17.8M+48.3% | $12.0M-67.4% | $36.8M+310.3% | -$17.5M |
| Net Income | $55.9M+816.4% | $6.1M-84.5% | $39.3M-17.1% | $47.4M-51.6% | $98.0M+79.2% | $54.7M+35.7% | $40.3M-56.8% | $93.2M |
| EPS (Diluted) | $0.23 | N/A | $0.16-20.0% | $0.20-50.0% | $0.40 | N/A | $0.17-56.4% | $0.39 |
ESI Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $5.7B+12.5% | $5.1B+1.1% | $5.0B+0.8% | $5.0B+4.3% | $4.8B-1.6% | $4.9B-4.4% | $5.1B+2.3% | $5.0B |
| Current Assets | $1.5B-7.8% | $1.6B+3.7% | $1.5B+5.0% | $1.5B+6.9% | $1.4B+7.1% | $1.3B-6.0% | $1.4B+3.8% | $1.3B |
| Cash & Equivalents | $177.3M-71.7% | $626.5M+5.4% | $594.3M+12.2% | $529.9M+6.1% | $499.2M+38.9% | $359.4M-4.4% | $376.0M+21.6% | $309.3M |
| Inventory | $421.6M+43.1% | $294.7M+1.3% | $290.9M+2.5% | $283.8M+5.2% | $269.9M+9.6% | $246.2M-13.8% | $285.7M-14.8% | $335.4M |
| Accounts Receivable | $676.9M+30.8% | $517.7M+3.1% | $502.2M+1.1% | $496.7M+9.2% | $454.7M+3.4% | $439.6M-7.4% | $474.9M-1.2% | $480.7M |
| Goodwill | $2.5B+13.1% | $2.2B+0.3% | $2.2B-0.3% | $2.2B+3.7% | $2.2B+1.4% | $2.1B-4.0% | $2.2B-2.9% | $2.3B |
| Total Liabilities | $3.0B+23.9% | $2.4B+1.5% | $2.4B+0.6% | $2.4B+4.5% | $2.3B-8.7% | $2.5B-6.4% | $2.6B+1.9% | $2.6B |
| Current Liabilities | $543.6M+26.4% | $429.9M+14.1% | $376.7M+6.1% | $354.9M+3.0% | $344.6M-9.2% | $379.7M-1.1% | $384.0M+3.2% | $372.2M |
| Long-Term Debt | $2.1B+25.8% | $1.6B+0.7% | $1.6B0.0% | $1.6B0.0% | $1.6B-11.7% | $1.8B-4.0% | $1.9B-0.1% | $1.9B |
| Total Equity | $2.7B+2.3% | $2.7B+0.8% | $2.7B+1.0% | $2.6B+4.2% | $2.5B+5.7% | $2.4B-2.3% | $2.4B+2.8% | $2.4B |
| Retained Earnings | -$868.5M+4.0% | -$904.6M-1.5% | -$891.1M+2.2% | -$910.9M+3.0% | -$938.6M+7.7% | -$1.0B+3.4% | -$1.1B+1.9% | -$1.1B |
ESI Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$66.6M-173.1% | $91.1M-9.0% | $100.1M+37.9% | $72.6M+179.2% | $26.0M-81.3% | $138.7M+40.8% | $98.5M+47.9% | $66.6M |
| Capital Expenditures | $25.1M+47.6% | $17.0M+3.0% | $16.5M-6.8% | $17.7M+60.9% | $11.0M-50.7% | $22.3M+77.0% | $12.6M-13.1% | $14.5M |
| Free Cash Flow | -$91.7M-223.8% | $74.1M-11.4% | $83.6M+52.3% | $54.9M+266.0% | $15.0M-87.1% | $116.4M+35.5% | $85.9M+64.9% | $52.1M |
| Investing Cash Flow | -$889.3M-4630.3% | -$18.8M-3.3% | -$18.2M-25.5% | -$14.5M-104.3% | $337.6M+2040.2% | -$17.4M-38.1% | -$12.6M+39.7% | -$20.9M |
| Financing Cash Flow | $507.8M+1392.1% | -$39.3M-160.3% | -$15.1M+61.0% | -$38.7M+83.0% | -$227.3M-82.9% | -$124.3M-340.8% | -$28.2M-31.8% | -$21.4M |
| Dividends Paid | $20.2M+4.1% | $19.4M-0.5% | $19.5M-1.0% | $19.7M-0.5% | $19.8M+2.1% | $19.4M-0.5% | $19.5M-0.5% | $19.6M |
| Share Buybacks | N/A | $5.6M | $0 | N/A | N/A | $0 | $0 | N/A |
ESI Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 38.4%-2.5pp | 40.9%-1.3pp | 42.2%-0.4pp | 42.6%+0.4pp | 42.2%+1.2pp | 41.0%-0.5pp | 41.5%-2.1pp | 43.6% |
| Operating Margin | 13.3%+2.9pp | 10.3%-5.0pp | 15.4%+0.3pp | 15.1%+2.0pp | 13.0%+1.0pp | 12.0%-2.7pp | 14.7%-1.0pp | 15.7% |
| Net Margin | 6.7%+5.8pp | 0.9%-5.1pp | 6.0%-1.6pp | 7.6%-8.9pp | 16.5%+7.8pp | 8.8%+2.5pp | 6.3%-9.0pp | 15.2% |
| Return on Equity | 2.0%+1.8pp | 0.2%-1.3pp | 1.5%-0.3pp | 1.8%-2.1pp | 3.9%+1.6pp | 2.3%+0.6pp | 1.7%-2.3pp | 3.9% |
| Return on Assets | 1.0%+0.9pp | 0.1%-0.7pp | 0.8%-0.2pp | 0.9%-1.1pp | 2.0%+0.9pp | 1.1%+0.3pp | 0.8%-1.1pp | 1.9% |
| Current Ratio | 2.68-1.0 | 3.68-0.4 | 4.05-0.0 | 4.10+0.1 | 3.95+0.6 | 3.34-0.2 | 3.52+0.0 | 3.50 |
| Debt-to-Equity | 0.75+0.1 | 0.610.0 | 0.610.0 | 0.62-0.0 | 0.64-0.1 | 0.77-0.0 | 0.78-0.0 | 0.81 |
| FCF Margin | -10.9%-21.9pp | 11.0%-1.8pp | 12.7%+4.0pp | 8.8%+6.3pp | 2.5%-16.1pp | 18.6%+5.3pp | 13.3%+4.8pp | 8.5% |
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Frequently Asked Questions
What is Element Solutions Inc's annual revenue?
Element Solutions Inc (ESI) reported $2.6B in total revenue for fiscal year 2025. This represents a 3.8% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Element Solutions Inc's revenue growing?
Element Solutions Inc (ESI) revenue grew by 3.8% year-over-year, from $2.5B to $2.6B in fiscal year 2025.
Is Element Solutions Inc profitable?
Yes, Element Solutions Inc (ESI) reported a net income of $190.8M in fiscal year 2025, with a net profit margin of 7.5%.
What is Element Solutions Inc's EBITDA?
Element Solutions Inc (ESI) had EBITDA of $493.4M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Element Solutions Inc have?
As of fiscal year 2025, Element Solutions Inc (ESI) had $626.5M in cash and equivalents against $1.6B in long-term debt.
What is Element Solutions Inc's gross margin?
Element Solutions Inc (ESI) had a gross margin of 42.0% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Element Solutions Inc's operating margin?
Element Solutions Inc (ESI) had an operating margin of 13.4% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Element Solutions Inc's net profit margin?
Element Solutions Inc (ESI) had a net profit margin of 7.5% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Element Solutions Inc pay dividends?
Yes, Element Solutions Inc (ESI) paid $0.32 per share in dividends during fiscal year 2025.
What is Element Solutions Inc's return on equity (ROE)?
Element Solutions Inc (ESI) has a return on equity of 7.1% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Element Solutions Inc's free cash flow?
Element Solutions Inc (ESI) generated $227.6M in free cash flow during fiscal year 2025. This represents a -22.5% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Element Solutions Inc's operating cash flow?
Element Solutions Inc (ESI) generated $289.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Element Solutions Inc's total assets?
Element Solutions Inc (ESI) had $5.1B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Element Solutions Inc's capital expenditures?
Element Solutions Inc (ESI) invested $62.2M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Element Solutions Inc spend on research and development?
Element Solutions Inc (ESI) invested $67.6M in research and development during fiscal year 2025.
What is Element Solutions Inc's current ratio?
Element Solutions Inc (ESI) had a current ratio of 3.68 as of fiscal year 2025, which is generally considered healthy.
What is Element Solutions Inc's debt-to-equity ratio?
Element Solutions Inc (ESI) had a debt-to-equity ratio of 0.61 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Element Solutions Inc's return on assets (ROA)?
Element Solutions Inc (ESI) had a return on assets of 3.7% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Element Solutions Inc's Altman Z-Score?
Element Solutions Inc (ESI) has an Altman Z-Score of 3.20, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Element Solutions Inc's Piotroski F-Score?
Element Solutions Inc (ESI) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Element Solutions Inc's earnings high quality?
Element Solutions Inc (ESI) has an earnings quality ratio of 1.52x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Element Solutions Inc cover its interest payments?
Element Solutions Inc (ESI) has an interest coverage ratio of 6.4x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Element Solutions Inc?
Element Solutions Inc (ESI) scores 62 out of 100 on our Financial Health Score, indicating moderate standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.