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Get filing alertsElement Solutions reports record Q2 results, raises guidance, discloses pending Solstice merger
Filed July 27, 2026 · Period ending July 27, 2026 · ~1 min read
Key Changes
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high
Q2 net sales rose 56% to $978M (15% organic), net income up 63% to $77M, adjusted EBITDA up 35% to $184M with margin expansion to 27.8% from 26.6% prior year
Exhibit 99.1 view on EDGAR → -
high
Definitive merger with Solstice announced: ESI shareholders to receive 0.5 Solstice shares plus $10 cash per share, expected to close H1 2027 subject to approvals
Exhibit 99.1 view on EDGAR → -
high
Raised full-year 2026 adjusted EBITDA guidance to $690M-$710M range and expects ~20% adjusted EPS growth, reflecting improved organic outlook and acquisition contributions
Exhibit 99.1 view on EDGAR → -
medium
Q2 operating cash flow of $100M and free cash flow of $74M; net debt of $1,943M as of June 30, 2026 with 93% of debt fixed through swaps
Exhibit 99.1 view on EDGAR → -
low
Company uses non-GAAP financial measures alongside GAAP metrics; reconciliations and definitions provided in press release
Item 2.02 — Results of Operations and Financial Condition verify on EDGAR →
Summary
Element Solutions delivered record second quarter 2026 results with net sales of $978 million, up 56% on a reported basis and 15% organically, driven by strong performance across both Electronics (up 75% reported, 20% organic) and Specialties (up 14% reported, 3% organic) segments.
Net income rose 63% to $77 million while adjusted EBITDA increased 35% to $184 million with margin expansion of 120 basis points to 27.8%. The company generated $100 million in operating cash flow and $74 million in free cash flow during the quarter.
The filing also disclosed a definitive merger agreement with Solstice announced on July 6, 2026, under which Element Solutions shareholders will receive 0.5 shares of Solstice common stock plus $10.00 in cash for each share held. The transaction is expected to close in the first half of 2027, subject to shareholder approval and regulatory clearance. Management stated the combination will create a stronger electronics portfolio with compelling synergies. Based on the strong first-half performance and improved organic outlook, Element Solutions raised its full-year 2026 adjusted EBITDA guidance to a range of $690 million to $710 million and expects approximately 20% adjusted EPS growth. The company ended the quarter with net debt of $1,943 million, with approximately 93% of its debt fixed through interest rate and cross-currency swaps.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Element Solutions reported Q2 2026 financial results via press release, disclosing revenue, earnings, and operational metrics.
Added in current filing · verify on EDGAR →
On July 27, 2026, Element Solutions Inc ("Element Solutions") issued a press release announcing its financial results for the three months and six months ended June 30, 2026.
Element Solutions disclosed its second quarter 2026 financial results through a press release. The 8-K filing itself does not contain the actual financial figures — those are in the attached Exhibit 99.1 press release, which is incorporated by reference.
Added in current filing · verify on EDGAR →
To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), Element Solutions presents certain non-GAAP financial measures. Investors are encouraged to refer to the Non-GAAP Measures section in the press release for definitions and reconciliations of these non-GAAP measures.
The company uses non-GAAP financial measures in addition to GAAP metrics to present its results. The press release contains definitions and reconciliations of these non-GAAP measures to their GAAP equivalents, allowing investors to understand adjustments made to reported figures.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Net sales of $978 million, an increase of 56% on a reported basis and 15% on an organic basis from the second quarter of 2025 ... Reported net income of $77 million, compared to $48 million in the same period last year, an increase of 63% on a reported basis and net income margin of 7.9%, compared to 7.6% in the same period last year ... Adjusted EBITDA of $184 million, compared to $136 million in the same period last year, an increase of 35% on a reported basis and 33% on a constant currency basis ... Adjusted EBITDA margin increased to 27.8% from 26.6% in the same period last year
Element Solutions delivered record second quarter results. Net sales reached $978 million, up 56% reported and 15% organically, driven by strong performance in Electronics (up 75% reported, 20% organic) and Specialties (up 14% reported, 3% organic). Net income rose 63% to $77 million, while adjusted EBITDA increased 35% to $184 million with margin expansion of 120 basis points to 27.8%. The company generated $100 million in operating cash flow and $74 million in free cash flow.
Added in current filing · view on EDGAR → · paraphrased
Corporate Revolver 2/2/2031 SOFR plus 1.50% $ 50.0 ... Term Loans 12/18/2030 SOFR plus 1.75% 1,283.0 ... Total First Lien Debt 1,333.0 ... Senior Notes due 2028 9/1/2028 3.875% 800.0 ... Total Debt 2,133.0 ... Cash Balance 189.6 ... Net Debt $ 1,943.4
As of June 30, 2026, Element Solutions had total debt of $2,133 million, consisting of $1,283 million in term loans at SOFR plus 1.75%, $50 million drawn on its revolver at SOFR plus 1.50%, and $800 million in 3.875% senior notes due 2028. With a cash balance of $189.6 million, net debt stood at $1,943.4 million. Approximately 93% of the company's debt was fixed through interest rate and cross-currency swaps.
Added in current filing · view on EDGAR →
Second quarter 2026 Cash flows from operating activities of $100 million and free cash flow of $74 million
Element Solutions generated $100 million in operating cash flow and $74 million in free cash flow during the second quarter of 2026. For the six-month period, operating cash flow was $33 million and free cash flow was negative $0.5 million, reflecting working capital investments to support growth and recent acquisitions.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 28, 2026 · How we verify