Element Solutions Inc. · NYSE:ESI
Element Solutions — Q3 2026 Earnings Presentation
14 slides from Element Solutions's earnings presentation, October 2026
Slide 1: Third Quarter 2026 Earnings Presentation
Third Quarter 2026 Earnings Presentation Enabling Technology. Growing Sustainably.
Slide 2: Legal Notices
Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statement
Slide 3: Third Quarter 2026 Financial Results
Third Quarter 2026 Financial Results Constant Currency* Organic* ($ in millions) Q3 2026 Q3 2025 YoY YoY YoY Net Sales $995 $656 52% 52% 13% Electronics 780 465 68% 68% 18% Specialties 216 191 13% 14% 1% Diluted EPS $0.27 $0.16 Adjusted EBITDA* $191 $147 30% 29% Net Sales ex-Metals 677 531 % margin
Slide 4: Third Quarter 2026 Segment Details
Third Quarter 2026 Segment Details Electronics Net Sales Organic Key Drivers ($ in millions) Growth* Increased volume of high reliability paste across electronics manufacturing and engineered Assembly $369 16% products for datacenter applications Circuitry $162 16% AI-related demand for high layer c
Slide 5: Balance Sheet and Cash Flow Considerations
Balance Sheet and Cash Flow Considerations Key Cash Flow Items Balance Sheet and Capital Allocation ▪ Q3 2026 free cash flow* of $135 million ▪ Pro forma net debt to adjusted EBITDA ratio* of 2.7x on a LTM basis (including Micromax and EFC earnings) as ◦ Inventory discipline despite volume growth an
Slide 6: Full Year 2026 Financial Guidance
Full Year 2026 Financial Guidance Updated as of October 2026 FY Adjusted EBITDA* ~$720 million1 FY Adjusted EPS* >20% YoY Growth ▪ FY 2026 guidance assumes continued modestly positive FX tailwind 1 Additional ▪ FY 2026 Adj. EBITDA* guidance includes above target compensation accruals Considerations
Slide 7: Appendix
Appendix Enabling Technology. Growing Sustainably.
Slide 8: Reconciliation to Adjusted Share Counts
Reconciliation to Adjusted Share Counts (amounts in millions) Q3 2026 Q3 2025 Basic common shares outstanding 243 242 Number of shares issuable upon vesting of granted Equity Awards 1 4 2 Adjusted common shares outstanding 246 244 Note: Totals may not sum due to rounding 1. Equity awards with target
Slide 9: Net Income Reconciliation to Adjusted EBITDA
Net Income Reconciliation to Adjusted EBITDA ($ millions) Q3 2026 Q3 2025 Net income $66 $39 Add (subtract): Income tax expense 28 16 Interest expense, net 23 13 Depreciation expense 15 10 Amortization expense 30 29 EBITDA 161 107 Adjustments to reconcile to Adjusted EBITDA: Inventory step-up 0 — Re
Slide 10: Net Income Reconciliation to Adjusted EPS
Net Income Reconciliation to Adjusted EPS ($ millions, except per share amounts) Q3 2026 Q3 2025 Net income $66 $39 Reversal of amortization expense 30 29 Adjustment to reverse incremental depreciation expense from acquisitions and facility closures 1 0 Inventory step-up 0 — Restructuring expense 3
Slide 11: Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis
Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) LTM Q3 YTD 2026 Q4 2025 2026 Net income $199 $6 $205 Add (subtract): Income tax expense 84 25 109 Interest expense, net 68 13 81 Depreciation expense 45 11 56 Amortization expense 88 26 114 EBITDA 484 81 5
Slide 12: Organic Net Sales Growth Reconciliation
Organic Net Sales Growth Reconciliation Three Months Ended September 30, 2026 Change in Pass- Reported Net Constant Organic Net Sales Impact of Currency Through Metals Acquisitions Sales Growth Currency Growth Pricing Electronics 68% 0% 68% (20)% (30)% 18% Specialties 13% 1% 14% —% (12)% 1% Total 52
Slide 13: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ millions) Q3 2026 Q3 2025 Cash flows from operating activities $159 $100 Capital expenditures (30) (17) Proceeds from disposal of property, plant and equipment — 0 Adjustments 6 0 Free cash flow $135 $84 Note: Totals may not sum due to rounding 13
Slide 14: Non-GAAP Definitions
Non-GAAP Definitions Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclusion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period-to-period