Adjusted EPS Beat and Guidance
Reported adjusted EPS of $0.83 for Q1, modestly ahead of expectations; Q2 adjusted EPS outlook of $0.89. Full-year adjusted EPS guidance of $2.93 to $3.17, implying 4% to 12% growth versus prior year.
Margin Expansion and Productivity
Company-wide adjusted EBITDA margins expanded ~20 basis points in Q1 driven by productivity and pricing actions. Color, Additives & Inks achieved a 40 bps EBITDA margin improvement. Management highlighted prior-year productivity (~$40M) with ~$20M carryover helping offset wage inflation.
Free Cash Flow and Balance Sheet Strength
Company expects to generate more than $200 million of free cash flow in 2026, following a focus on cash and debt reduction in 2025 which contributed favorably to EPS.
Packaging End Market Strength
Packaging (~23% of company revenue) showed resilience: finished Q1 up low-single-digits versus strong prior-year comps (~7% growth in Q1 2025). Management expects mid- to high-single-digit growth in packaging for Q2, with Asia packaging up ~8% in Q1 and U.S. packaging roughly +1%.
Electronics / High-Performance Computing Momentum
Targeted growth vector in electronics and high-performance computing expected to exceed $40M in sales this year, adding roughly $10M in 2026 and having doubled over the last three years. Company is winning projects across wafer handling, connectors, and cable insulation.
Net Price Positive and Supply Actions
Management reported being net price positive each quarter during recent volatile periods and expects price/mix to be low-single-digits for the year. For Q2, the company has secured supply for the vast majority of raw materials and is largely hedged on energy.
Regional Growth & Share Gains
Asia grew ~2% in Q1 driven by packaging and telecommunications and secular electronics demand; building & construction finished Q1 up mid-single digits with share gains in commercial and data center infrastructure.
Maintained Full-Year EBITDA Guidance
Maintained adjusted EBITDA guidance of $555M to $585M, representing 2% to 7% growth year-over-year, indicating management confidence in ability to offset inflation and deliver earnings growth.