Element Solutions (ESI) Down 6.1% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Element Solutions (ESI). Shares have lost about 6.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Element Solutions due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Element Solutions Inc. before we dive into how investors and analysts have reacted as of late.

Element Solutions’ Q4 Earnings & Revenues Surpass Estimates

Element Solutions recorded earnings of 3 cents per share for the fourth quarter of 2025 compared with 23 cents in the year-ago quarter.

Barring one-time items, earnings were 37 cents per share. The figure beat the Zacks Consensus Estimate of 36 cents.

The company generated net sales of $676.2 million, up roughly 8% year over year. The figure beat the Zacks Consensus Estimate of $623.9 million. Organic net sales rose 10%.

Element Solutions saw strong growth in the electronics business. The divestitures impacted the Specialties segment sales in the quarter.

Segment Highlights

Net sales in the Electronics segment rose 21% year over year to $487.3 million in the reported quarter. Organic net sales were up 13% from the year-ago number. The figure beat the consensus estimate of $436 million.

In the Specialties segment, net sales declined 15% year over year to $188.9 million, with organic net sales increasing by 4%. However, the figure beat the consensus estimate of $188 million.

Financial Position

Element Solutions ended the quarter with cash and cash equivalents of $626.5 million, up around 74.3% from the year-ago quarter. Long-term debt was $1,625.9 million at the end of the quarter, down from $1,813.6 million a year ago.

Cash from operating activities was $91.1 million, while free cash flow was $82.8 million for the reported quarter.

Q1 & 2026 Outlook

The company anticipates full-year 2026 adjusted EBITDA in the range of $650 million to $670 million. Element Solutions expects first-quarter 2026 adjusted EBITDA to be between $140 million and $155 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, Element Solutions has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Element Solutions has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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

This article originally published on Zacks Investment Research (zacks.com).

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