tiprankstipranks
Advertisement
Advertisement

Elementis lifts profits and margins as it sharpens focus on specialty chemicals

Story Highlights
  • Elementis grew profits and margins in 2025 despite flat revenue and weak demand.
  • The group sharpened its specialty focus via disposals, Alchemy deal, cost cuts and higher shareholder returns.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Elementis lifts profits and margins as it sharpens focus on specialty chemicals

Claim 55% Off TipRanks

Elementis ( (GB:ELM) ) has issued an announcement.

Elementis reported resilient 2025 results in a weak demand environment, with revenue edging down 1% to $597.5m but adjusted operating profit rising 6.3% to $126.7m and margins improving to 21.2%. Personal Care was the standout, with revenue up 3.3% and operating margins jumping to 32.4%, while Coatings sales declined amid soft demand, though margins remained robust at 18.9%.

The group advanced its Elevate Elementis strategy by completing its transformation into a pure-play specialty chemicals business, delivering $18m of cost savings and boosting innovation-driven revenue to 16.4%. It bought natural skincare specialist Alchemy, agreed to sell its pharmaceutical manufacturing unit to ABF with proceeds earmarked for shareholders, completed a £40m buyback, and lifted the full-year dividend 7.5%, underscoring confidence despite ongoing macro and coatings-market headwinds.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £210.00 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 U.K.-listed specialty chemicals group focused on premium personal care and coatings markets, following its recent exit from the talc business. The company targets high-value applications in skincare, cosmetics, and coatings, supported by innovation-led products and a strategy to become a pure-play specialty chemicals operator with leaner operations and strong customer relationships.

Average Trading Volume: 966,293

Technical Sentiment Signal: Buy

Current Market Cap: £915M

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

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1