Element Solutions Inc. (ESI), a specialty chemicals company, on Wednesday reported lower fourth-quarter earnings despite higher sales, as increased operating costs and other expenses weighed on results.
Net income attributable to common stockholders fell to $6.1 million, or $0.03 per share, from $54.7 million, or $0.23 per share, in the prior-year quarter.
Total other expense widened to $38.7 million from $8.1 million, driven by higher other expenses of $24.3 million compared with gain 4.7 million last year.
Excluding one-time items, adjusted earnings rose to $89.7 million or $0.37 per share from $85.3 million or $0.35 per share a year ago.
Operating income declined to $69.7 million from $74.9 million, as higher selling, technical, general and administrative expenses and increased research and development spending offset gross profit growth.
Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) increased 5% to $136 million, compared with $130 million in the fourth quarter of 2024.
Net sales rose 8% to $676.2 million from $624.2 million in the prior-year quarter, while organic net sales increased 10%.
Looking ahead, the company expects first-quarter 2026 adjusted EBITDA to be between $140 million and $155 million. For the full-year, adjusted EBITDA is projected in the range of $650 million to $670 million, compared with this year's $548 million.
Element Solutions shares gained 1.83% after hours after closing at $32.32 on Tuesday.
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