Element Solutions up 3% after increasing Q2, FY outlook

Shares of Element Solutions (ESI) are up 3% to $24.71 after the company raised its outlook for the second quarter and full year. For its second quarter, the company expects net income in the range of $45M-$55M and adjusted EBITDA to be approximately $135M, up relative to its prior adjusted EBITDA guidance range of $120M-$125M. The company also increased its full year adjusted EBITDA guidance to a range of $530M-$550M from its prior range of $520M-$540M. President and CEO Benjamin Gliklich said, “Our progress penetrating the fastest growing subsegments of our markets is yielding outstanding results, as data center-related customers and advanced foundries propelled our business this quarter. Furthermore, we continue to see new capacity additions in our supply chain to support AI and its associated network infrastructure requirements. This increases our confidence that the strength this quarter is not a product of demand pull forward associated with tariff and trade dynamics. In our more industrially exposed businesses, we have been able to recapture and retain value through strong price, procurement and productivity activities. Currency has also swung materially to our benefit. In that context, we are increasing our adjusted EBITDA guidance for the full year of 2025. Despite an uneven and uncertain economic backdrop, our operating system and highly capable people continue to deliver strong outcomes for our stakeholders.”