Element Solutions lifts 2026 adjusted EBITDA guidance to about $720 million after record quarter

Element Solutions Inc lifted its full-year 2026 adjusted EBITDA guidance to approximately $720 million on October 21, above the $690 million to $710 million range it published in July, after reporting record third-quarter results. Net sales rose 52% from a year earlier to $995.3 million on a reported basis and 13% organically, and adjusted EBITDA rose 30% to $191.0 million.

Guidance clears the range set in July

Element Solutions told investors in July to expect full-year 2026 adjusted EBITDA of $690 million to $710 million. The October 21 release replaces that band with a single figure, approximately $720 million, which is $10 million above the old ceiling and 1.41% more than its top end. Management also raised the adjusted EPS growth language, moving from growth of approximately 20% to growth of over 20% for the full year. The third quarter ran ahead of the company's own marker: it had guided to approximately $180 million of adjusted EBITDA and delivered $191.0 million, 6.11% above that number. Nine-month adjusted EBITDA of $536.8 million leaves roughly $183.2 million to find in the fourth quarter for the full-year target to land.

Pass-through metals and acquisitions both carry the sales gain

The 52% reported increase is not the underlying growth rate. Pass-through metals rose $193.5 million to $318.5 million from $125.0 million, a 155% increase, and that line alone is 57.0% of the $339.2 million increase in net sales. The release separates the two forces: Electronics' results were helped by $94.4 million of pass-through metals pricing and by $138 million of acquisitions, and it says that acquisition figure includes $93.1 million of net sales from pass-through metals. Adding Specialties' $23.4 million of acquired revenue puts total acquisitions at about $161.4 million, or 47.6% of the increase. Strip out the metals revenue that arrived with those deals and acquisitions are $68.3 million, or 20.1% of the increase, below the $94.4 million metals-pricing figure at 27.8%. Organic growth, which strips out currency, metals and acquisitions, was 13%, and sales excluding pass-through metals were $676.8 million, up 27% from a year earlier. Electronics did most of the work: segment sales of $779.6 million rose 68% from a year earlier as reported, including 30% from acquisitions, and 18% organically. Specialties sales of $215.7 million rose 13% from a year earlier, only 1% of it organic, and segment adjusted EBITDA of $42.7 million was 6% lower than a year earlier.

Acquisition costs widen the gap to adjusted earnings

Reported net income was $65.7 million, or $0.27 a diluted share, against $39.3 million and $0.16 a year earlier. Operating profit rose 13% to $113.9 million, so the 67% jump in net income came from below the operating line: total other expense narrowed to $20.6 million from $45.3 million, helped by a $6.0 million foreign-exchange gain in place of an $11.0 million loss a year earlier. Adjusted EPS was $0.50 against $0.41, and the reconciliation shows why the measures diverge: $30.3 million of intangible amortization and $21.9 million of acquisition, integration and transaction expenses were added back, the latter up from $11.0 million. Financing costs also grew, with net interest expense of $22.8 million against $13.3 million. Cash fell to $224.9 million from $626.5 million at December 31, 2025 after $865.8 million of acquisitions, and net debt was $1.87 billion, with about 94% of debt fixed at September 30, 2026. Third-quarter free cash flow was $134.5 million, but the nine-month total of $134.0 million was 22.54% below the $173.0 million generated a year earlier.

A terminated merger, a Thursday call and the fourth-quarter test

Chief Executive Benjamin Gliklich said in the release: "Our team continued to execute exceptionally well and delivered another quarter of record results." He added that he was "particularly proud of this quarter's results considering the risk of distraction from the proposed and subsequently terminated Solstice transaction." Solstice had agreed to acquire Element Solutions, exchanging each share for 0.5 Solstice shares and $10.00 in cash, with a closing expected in the first half of 2027 subject to customary conditions and regulatory approvals. Element Solutions and Solstice mutually agreed on August 27, 2026 to terminate the merger agreement they signed on July 6, 2026. Management takes questions on a call at 8:30 a.m. Eastern time on Thursday, October 22, 2026. The release leaves real gaps: it gives no revenue guidance, no quarterly outlook and no analyst consensus, and the EBITDA target assumes stable exchange rates and metal prices. The figures were filed as Exhibit 99.1 to a Form 8-K carrying Item 2.02, results of operations and financial condition.