Element Solutions Inc. Q2 2024 Sales Top $1.3B

TL;DR

ESI Q2 sales hit $1.34B for H1 2024. Looks solid.

AI Summary

Element Solutions Inc. reported its Q2 2024 results, with net sales for the six months ended June 30, 2024, reaching $1.34 billion. The company's fiscal year ends on December 31st, and this 10-Q filing covers the period up to June 30, 2024. Element Solutions Inc. is a company operating in the Miscellaneous Chemical Products sector.

Why It Matters

This filing provides investors with a detailed look at Element Solutions Inc.'s financial performance for the first half of 2024, impacting investment decisions and market sentiment.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $1.34B — Net Sales (YTD) (Represents the total revenue generated in the first six months of 2024.)
• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter and year-to-date period covered by the report.)
• 20240730 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• Element Solutions Inc. (company) — Filer of the 10-Q report.
• 20240630 (date) — End of the reporting period.
• $1.34 billion (dollar_amount) — Net sales for the six months ended June 30, 2024.
• 2890 (number) — Standard Industrial Classification code for Miscellaneous Chemical Products.

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ESI New York Stock Exchange
• $800 million — % USD Notes due 2028 Element Solutions' $800 million aggregate principal amount of 3.875% se

Filing Documents

• esi-20240630.htm (10-Q) — 1283KB
• esi10-q2024630exx311.htm (EX-31.1) — 11KB
• esi10-q2024630exx312.htm (EX-31.2) — 11KB
• esi10-q2024630exx321.htm (EX-32.1) — 10KB
• esi-20240630_g1.jpg (GRAPHIC) — 286KB
• 0001590714-24-000135.txt ( ) — 6670KB
• esi-20240630.xsd (EX-101.SCH) — 34KB
• esi-20240630_cal.xml (EX-101.CAL) — 83KB
• esi-20240630_def.xml (EX-101.DEF) — 149KB
• esi-20240630_lab.xml (EX-101.LAB) — 516KB
• esi-20240630_pre.xml (EX-101.PRE) — 359KB
• esi-20240630_htm.xml (XML) — 741KB

Forward-Looking Statements

Forward-Looking Statements ii Non-GAAP Financial Measures ii Part I. Financial Information Item 1. Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Operations Three and Six Months Ended June 30, 2024 and 2023 1 Condensed Consolidated Statements of Comprehensive Incom e ( L oss) Three and Six Months Ended June 30, 2024 and 2023 2 Condensed Consolidated Balance Sheets June 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity Three and Six Months Ended June 30, 2024 and 2023 5 Notes to the Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29 Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 30 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 31

Signatures

Signatures 32 GLOSSARY OF DEFINED TERMS Terms Definitions Element Solutions; We; Us; Our; the Company Element Solutions Inc, a Delaware corporation, and where the context requires, its subsidiaries or operating businesses. Credit Agreement Credit Agreement, dated as of January 31, 2019, as amended from time to time, among, inter alia, Element Solutions and MacDermid, Incorporated, as borrowers, certain subsidiaries of Element Solutions and the lenders from time to time parties thereto. EBITDA Earnings before interest, taxes, depreciation and amortization. Exchange Act Securities Exchange Act of 1934, as amended. GAAP U.S. Generally Accepted Accounting Principles. Kuprion Acquisition Acquisition of Kuprion, Inc. on May 19, 2023. Quarterly Report This quarterly report on Form 10-Q for the three and six months ended June 30, 2024. RSUs Restricted stock units issued by Element Solutions from time to time under its Amended and Restated 2013 Incentive Compensation Plan or 2024 Incentive Compensation Plan, as applicable. SEC Securities and Exchange Commission. ViaForm Distribution Rights The rights to sell the Company's ViaForm electrochemical deposition products directly to customers. 2023 Annual Report Element Solutions' annual report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 21, 2024. 3.875% USD Notes due 2028 Element Solutions' $800 million aggregate principal amount of 3.875% senior notes due 2028, denominated in U.S. dollars, issued on August 18, 2020. i

Forward-Looking Statements

Forward-Looking Statements This Quarterly Report contains forward-looking statements that can be identified by words such as "expect," "anticipate," "project," "will," "should," "believe," "intend," "plan," "assume," "estimate," "predict," "seek," "continue," "outlook," "may," "might," "aim," "can have," "likely," "potential," "target," "hope," "goal," "priority" or "confident" and variations of such words and similar expressions. Many of the forward-looking statements include, but are not limited to, statements, beliefs, projections and expectations regarding the expected benefits of the reacquired ViaForm Distribution Rights and the Kuprion Acquisition; deferred payments related to the Kuprion Acquisition; the war between Russia and Ukraine, the Israel-Hamas conflict and other hostilities in the Middle East as well as actions in response thereto and their impact on market conditions and the global economy; the continuing economic impact of the coronavirus (COVID-19) and its variants on the global economy and supply chains; capital requirements and need for and availability of financing; probability of achievement of the performance target related to certain performance-based RSUs; the impact of new accounting standards and accounting changes; potential share repurchases; our dividend policy and dividend declarations; expectations with respect to the Company's full year financial results; our hedging activities; timing and outcome of environmental and legal matters; tax planning strategies and assessments; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; inflation and fluctuations in foreign exchange rates; our liquidity, cash flows and capital allocation; funding sources; expected capital expenditures; debt and debt leverage ratio; pension plan contributions; contractual obligations; gene

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements ELEMENT SOLUTIONS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (dollars in millions, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net sales $ 612.7 $ 586.1 $ 1,187.7 $ 1,160.5 Cost of sales 345.5 357.6 675.5 704.2 Gross profit 267.2 228.5 512.2 456.3 Operating expenses: Selling, technical, general and administrative 155.4 147.0 304.5 295.9 Research and development 15.6 28.9 33.7 41.4 Total operating expenses 171.0 175.9 338.2 337.3 Operating profit 96.2 52.6 174.0 119.0 Other (expense) income: Interest expense, net ( 14.3 ) ( 12.0 ) ( 28.2 ) ( 23.7 ) Foreign exchange gains 5.0 9.0 12.9 13.9 Other expense, net ( 12.7 ) ( 1.6 ) ( 15.0 ) ( 1.3 ) Total other expense ( 22.0 ) ( 4.6 ) ( 30.3 ) ( 11.1 ) Income before income taxes and non-controlling interests 74.2 48.0 143.7 107.9 Income tax benefit (expense) 17.5 ( 21.2 ) 4.0 ( 38.1 ) Net income from continuing operations 91.7 26.8 147.7 69.8 Income from discontinued operations, net of tax 1.6 2.9 1.6 2.9 Net income 93.3 29.7 149.3 72.7 Net (income) loss attributable to non-controlling interests ( 0.1 ) 0.2 ( 0.1 ) 0.1 Net income attributable to common stockholders $ 93.2 $ 29.9 $ 149.2 $ 72.8 Earnings per share Basic from continuing operations $ 0.38 $ 0.11 $ 0.61 $ 0.29 Basic from discontinued operations 0.01 0.01 0.01 0.01 Basic attributable to common stockholders $ 0.39 $ 0.12 $ 0.62 $ 0.30 Diluted from continuing operations $ 0.38 $ 0.11 $ 0.61 $ 0.29 Diluted from discontinued operations 0.01 0.01 0.01 0.01 Diluted attributable to common stockholders $ 0.39 $ 0.12 $ 0.62 $ 0.30 Weighted average common shares outstanding Basic 242.1 241.4 242.0 241.1 Diluted 242.5 241.7 242.5 241.6 See accompanying notes to the Condensed Consolidated Financial Statements 1 ELEMENT SOLUTIONS INC AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS O

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