Elementis Beats Profit Expectations as Strategy and Acquisition Lift Margins

Elementis ( (GB:ELM) ) has provided an update.

Elementis reported a resilient 2025 trading performance, with revenue expected to be in line with market consensus and adjusted operating profit marginally ahead, supported by improved operating margins. Management attributed the margin gains to its Elevate Elementis strategy, operational simplification, ongoing cost savings and the bolt‑on acquisition of UK-based Alchemy Ingredients in November 2025, which together are intended to bolster efficiency and future growth. The group continues to generate positive free cash flow, leaving net debt (pre IFRS 16) at about $185m after a £40m share buyback, the sale of its disused Eaglescliffe site and associated environmental liabilities, and the Alchemy purchase, underscoring balance sheet strength and flexibility for future capital allocation. The board also noted that its chair succession process remains underway, with a further update to follow.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £190.00 price target. To see the full list of analyst forecasts on Elementis stock, see the GB:ELM Stock Forecast page.

Spark’s Take on GB:ELM Stock

According to Spark, TipRanks’ AI Analyst, GB:ELM is a Neutral.

Elementis’s overall stock score is driven by strong technical momentum and positive corporate actions like share buybacks and strategic acquisitions. However, financial performance is mixed with strong cash flow but persistent profitability issues, and valuation metrics are weak due to negative earnings.

To see Spark’s full report on GB:ELM stock, click here.

More about Elementis

Elementis is a global specialty chemicals company listed on the London Stock Exchange, employing around 1,000 people across 20 locations. An innovation leader in rheology and formulation solutions, it supplies performance-enhancing and sustainability-focused additives to customers in sectors such as personal care and coatings, underpinned by ownership of one of the largest known commercial high‑grade hectorite mines. The group operates through two high-margin divisions: Personal Care, which produces rheology modifiers and active ingredients for skin care, cosmetics and antiperspirants; and Coatings, which provides rheology modifiers and performance additives for decorative and industrial paints, as well as products for energy, adhesives, sealants and construction.

Average Trading Volume: 1,147,185

Technical Sentiment Signal: Strong Buy

Current Market Cap: £933M

See more data about ELM stock on TipRanks’ Stock Analysis page.