Filing Flows › Element Solutions (ESI) › Q1 2025
Element Solutions (ESI) Q1 2025 earnings results (first quarter 2025)
10-Q filed Apr 24, 2025
Element Solutions (ESI) reported revenue of $594M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -5% from the quarter before. Operating margin was 13.0%, net earnings $98.0M (16.5% of revenue).
Element Solutions, Q1 2025: revenue $594M (+3% year over year), operating margin 13.0%, net earnings $98.0M, operating cash flow $26.0M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $594M | -5% | +3% |
| Gross profit | $250M | -2% | +2% |
| Operating profit | $77.4M | +3% | -0.5% |
| Net earnings | $98.0M | +79% | +75% |
| Operating cash flow | $26.0M | -81% | -55% |
| Free cash flow | $15.0M | -87% | -62% |
What changed
Revenue was $593.7M in Q1 2025, up 3% year over year and down 5% from the previous quarter. Electronics was the largest line at 66% of revenue. Electronics added $45.1M year over year (up 13%), 241% of the total change. Industrial & Specialty declined 12%.
Gross margin was 42.2%, down 0.4 points from a year earlier. Operating profit was $77.4M, a 13.0% margin (down 0.5 points year over year). Operating profit fell $400K even though revenue rose $18.7M versus a year earlier, so costs grew faster than sales. Operating expenses grew 4% against revenue growth of 3%. Net earnings were $98.0M, up 75% year over year. The effective tax rate was 15.4%. Non-operating items added $38.4M, 33% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $26.0M (down 55% year over year), 27% of net earnings. Non-cash charges added back $37.2M of depreciation and amortization and $5.0M of share-based compensation. Working capital and other items used $114.2M. Capital expenditures of $11.0M left free cash flow of $15.0M.
Questions
What was Element Solutions' revenue in the first quarter 2025?
Element Solutions (ESI) reported revenue of $594M for the first quarter 2025 (Q1 2025), +3% from a year earlier and -5% from the quarter before.
Was Element Solutions profitable in the first quarter 2025?
Operating profit was $77.4M (13.0% of revenue) and net earnings $98.0M.
Source: Element Solutions 10-Q on SEC EDGAR.