Element Solutions Inc
For the period ended Mar 31, 2025. Filed Apr 24, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 24, 2025
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Item 2. Results of Operations
The following table reconciles "Net income" to Adjusted EBITDA:
| Three Months Ended | ||
|---|---|---|
| March 31, | ||
| (dollars in millions) | 2025 | 2024 |
| Net income | $98.0 | $56.0 |
| Add (subtract): | ||
| Income tax expense | 17.8 | 13.5 |
| Interest expense, net | 14.3 | 13.9 |
| Depreciation expense | 10.0 | 10.1 |
| Amortization expense | 27.2 | 30.2 |
| EBITDA | 167.3 | 123.7 |
| Adjustments to reconcile to Adjusted EBITDA: | ||
| Restructuring expense | 1.1 | 2.3 |
| Acquisition, divestiture and integration expense | 8.3 | 1.7 |
| Foreign exchange losses (gains) on intercompany loans | 6.0 | (6.8) |
| MGS Transaction gain | (72.1) | — |
| Debt financing costs | 1.8 | — |
| Kuprion Acquisition research and development charge | — | 3.9 |
| Other, net | 16.0 | 2.2 |
| Adjusted EBITDA | $128.4 | $127.0 |
The following tables summarize financial information regarding each reportable segment's results of operations. As noted above, Adjusted EBITDA for each segment excludes certain items that may not be indicative of the Company's core operating results for its reportable segments. As such, the "Segment Total" below may not agree to the corresponding amounts on the Condensed Consolidated Statements of Operations.
| Three Months Ended March 31, | ||||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | |||||
| (dollars in millions) | Electronics | Industrial & Specialty | Segment Total | Electronics | Industrial & Specialty | Segment Total |
| Net sales | $394.3 | $199.4 | $593.7 | $349.2 | $225.8 | $575.0 |
| Cost of sales | 233.2 | 109.7 | 342.9 | 200.9 | 128.3 | 329.2 |
| Selling, technical, general and administrative | 65.3 | 51.9 | 117.2 | 57.8 | 56.0 | 113.8 |
| Research and development | 12.0 | 3.3 | 15.3 | 10.2 | 3.4 | 13.6 |
| Other segment items (1) | 0.7 | (0.8) | (0.1) | 2.0 | (0.5) | 1.5 |
| Add: Depreciation expense | 5.8 | 4.2 | 10.0 | 5.6 | 4.5 | 10.1 |
| Adjusted EBITDA | $88.9 | $39.5 | $128.4 | $83.9 | $43.1 | $127.0 |
(1) Other segment items for the Electronics segment primarily consist of $0.3 million and $2.8 million of realized losses associated with metals derivative contracts for the three months ended March 31, 2025 and 2024, respectively. See Note 7, Financial Instruments, to the Condensed Consolidated Financial Statements for further discussion of these derivative instruments.
Assets by Reportable Segment
Total assets by reportable segment at March 31, 2025 and December 31, 2024 are not presented as they are not utilized for purposes of allocating resources and evaluating performance.
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