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Elementis sharpens specialty chemicals focus as profit margins rise in 2025

Story Highlights
  • Elementis delivered higher margins and profits in 2025 despite flat revenue, driven by strong Personal Care performance and tight cost control.
  • The group advanced its Elevate Elementis strategy by exiting non-core businesses, acquiring Alchemy, cutting costs, and planning cash returns to shareholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Elementis sharpens specialty chemicals focus as profit margins rise in 2025

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Elementis ( (GB:ELM) ) just unveiled an update.

Elementis reported resilient 2025 results in a soft demand environment, with revenue slipping 1% to $597.5m but adjusted operating profit rising 4.6% at constant currency to $126.7m and margins improving to 21.2%. Personal Care led growth with revenues up 3.3% and a 32.4% margin, offsetting weaker Coatings demand, while net debt stood at $185.4m, leverage remained low at 1.3x EBITDA, and the dividend increased 7.5% alongside a completed £40m share buyback.

Strategically, the group completed the Talc disposal to become a pure-play specialty chemicals business, launched its Elevate Elementis growth plan, and agreed to sell its pharmaceutical manufacturing unit to Associated British Foods to sharpen its focus and enhance margins. Elementis also acquired Alchemy in fast-growing natural skincare, lifted capacity at its St. Louis site, delivered $18m of cost savings, and signalled it expects to return net cash proceeds from the pharma sale to shareholders while remaining cautiously optimistic amid ongoing weakness in coatings demand and geopolitical uncertainty.

The most recent analyst rating on (GB:ELM) stock is a Buy with a £2.10 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 additives for personal care and coatings markets. Its portfolio includes ingredients for skincare, cosmetics, and industrial coatings, with an increasing emphasis on innovation, natural formulations, and capital-light growth in large, attractive end markets worldwide.

Average Trading Volume: 980,278

Technical Sentiment Signal: Buy

Current Market Cap: £911.6M

Find detailed analytics on ELM stock on TipRanks’ Stock Analysis page.

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