Element Solutions Inc. ESI recorded earnings of 23 cents per share from continuing operations in fourth-quarter 2024 compared with 32 cents in the year-ago quarter. 

Barring one-time items, adjusted earnings per share were 35 cents. The bottom line met the Zacks Consensus Estimate of 35 cents.

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The company generated net sales of $624.2 million, up 8.9% year over year. The figure beat the Zacks Consensus Estimate of $603.9 million. 

ESI also delivered adjusted EBITDA growth of 8% in the quarter.

ESI’s Segment Highlights

Net sales in the Electronics segment rose 14% year over year to $401.4 million in the quarter. Organic net sales were up 7% from the previous year's reported figure. The figure was ahead of the consensus estimate of $388.8 million.

In the Industrial & Specialty segment, net sales increased 1% year over year to $222.8 million, with organic net sales increasing 3%. The figure was above the consensus estimate of $214.9 million.

ESI’s FY24 Results

Earnings for full-year 2024 from continuing operations were $1 per share, up from 48 cents a year ago. Net sales rose around 5.3% year over year to $2,456.9 million.

Element’s Financial Position

Element ended 2024 with cash and cash equivalents of $359.4 million, up around 24.2% year over year. Long-term debt was $1,813.6 million at the end of the quarter, down around 5.6% year over year.

Cash from operating activities was $362 million in 2024. Free cash flow was $294 million for the year.

ESI’s Outlook

For the full-year 2025, the company expects adjusted EBITDA to be in the range of $520-$540 million and free cash flow conversion to be comparable year over year. It also expects first-quarter 2025 adjusted EBITDA to be approximately $125 million.

ESI’s Price Performance

Shares of Element have gained 13.4% in a year against the industry’s 20.6% decline.

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ESI’s Zacks Rank & Key Picks

ESI currently carries a Zacks Rank #4 (Sell).

Better-ranked stocks worth a look in the basic materials space are ICL Group Ltd.  ICL, Fortuna Mining Corp. FSM and Kronos Worldwide KRO.

ICL is slated to report fourth-quarter results on Feb. 26. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at six cents per share. ICL beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 18.1%. ICL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fortuna is scheduled to release fourth-quarter results on March 5. The Zacks Consensus Estimate for FSM’s fourth-quarter earnings is pegged at 16 cents per share. FSM, a Zacks Rank #2 stock, has gained around 64.6% in the past year. FSM beat the consensus estimate in two of the last four quarters while missing twice, with the average earnings surprise being 53.5%.

Kronos is expected to report fourth-quarter results on March 5. The consensus estimate for KRO’s fourth-quarter earnings is pegged at 11 cents per share. KRO, carrying a Zacks Rank of 2 at present, beat the consensus estimate in three of the last four quarters while missing once, with the average earnings surprise being 41.7%. 

 

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Element Solutions Inc. (ESI) : Free Stock Analysis Report

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