Element Solutions Q2 2025: Unraveling Contradictions in Demand, Electronics Growth, and Advanced Packaging Revenue

Demand and tariff impacts, power electronics demand and growth, electronics segment performance and market share, electronics revenue and volume growth, advanced packaging revenue and impact are the key contradictions discussed in Element Solutions' latest 2025Q2 earnings call.



Electronics Segment Growth:
- The Electronics business delivered a fifth consecutive quarter of high single-digit organic growth, with sales from wafer-level packaging products growing more than 20% in the second quarter.
- This growth was driven by ongoing hyperscaler investment in data centers and strong demand for metallization chemistries and thermal management materials in high layer count printed circuit boards.

Power Electronics and EV Partnerships:
- Power Electronics business grew at a double-digit rate, benefiting from demand strength from legacy EV customers and new wins in both Asia and Europe.
- The company demonstrated its value proposition in leading-edge semiconductor and power electronics technologies, establishing itself as a leading innovation partner.

Industrial & Specialty Margin Improvement:
- The Industrial & Specialty segment saw meaningful margin improvement, excluding the graphics divestiture impact, with adjusted EBITDA growth of 10%.
- This improvement was due to productivity improvements and strategic cost management, despite challenges in Europe and the Americas.

Financial Outlook and Currency Impact:
- Adjusted EBITDA for the second quarter was $136 million, exceeding initial guidance, and the company increased its full-year adjusted EBITDA outlook to $530 million to $550 million.
- Significant FX volatility is expected to benefit financial results in the second half of the year, with a year-over-year tailwind of over $5 million.