Element Solutions Inc (ESI): Business Model Canvas [Jan-2025 Mise à jour]

Dans le monde dynamique des matériaux avancés et des produits chimiques spécialisés, Element Solutions Inc (ESI) apparaît comme une centrale d'innovation, naviguant stratégiquement dans le paysage complexe des technologies semi-conductrices et électroniques. Grâce à son modèle commercial méticuleusement conçu, ESI révèle une approche complète qui mélange la recherche de pointe, les partenariats mondiaux et l'ingénierie de précision pour fournir des solutions haute performance qui repoussent les limites de l'avancement technologique. En intégrant de manière transparente les technologies de matériaux personnalisées, l'innovation durable et l'expertise technique profonde, ESI s'est positionné comme un catalyseur critique d'applications électroniques et industrielles de nouvelle génération.

Element Solutions Inc (ESI) - Modèle commercial: partenariats clés

Fournisseurs stratégiques de produits chimiques spécialisés et de matériaux électroniques

Element Solutions Inc maintient des partenariats stratégiques avec les principaux fournisseurs du secteur des produits chimiques et des matériaux électroniques spécialisés. Depuis 2024, la société a établi des relations critiques de la chaîne d'approvisionnement avec les fournisseurs de haut niveau suivants:

Catégorie des fournisseurs	Nombre de partenaires stratégiques	Régions géographiques
Fournisseurs chimiques spécialisés	12	Amérique du Nord, Europe, Asie
Fournisseurs de matériaux électroniques	8	États-Unis, Allemagne, Japon, Corée du Sud

Partenaires de fabrication mondiaux

Element Solutions Inc collabore avec des partenaires de fabrication sur plusieurs continents pour optimiser les capacités de production:

• Amérique du Nord: 5 partenariats de fabrication primaires
• Europe: 4 collaborations de fabrication stratégique
• Asie: 6 alliances de fabrication clés

Collaborations de recherche et développement

L'entreprise a établi 15 partenariats R&D actifs avec des entreprises de technologie de pointe, en se concentrant sur des solutions innovantes dans les matériaux électroniques et les produits chimiques spécialisés.

Type de partenariat R&D	Nombre de partenariats	Montant d'investissement (2024)
Programmes de recherche universitaire	7	12,5 millions de dollars
Collaborations de startup technologiques	5	8,3 millions de dollars
Consortiums de recherche d'entreprise	3	6,7 millions de dollars

Partenaires technologiques de l'industrie électronique et semi-conducteurs

Element Solutions Inc a développé des partenariats technologiques stratégiques dans les secteurs de l'électronique et des semi-conducteurs:

• Fabricants d'équipements de semi-conducteurs: 6 partenariats clés
• Advanced Materials Technology Firms: 4 accords de collaboration
• Sociétés de conception de semi-conducteurs: 3 alliances stratégiques

Investissement total de partenariat annuel pour 2024: 45,2 millions de dollars

Element Solutions Inc (ESI) - Modèle d'entreprise: activités clés

Fabrication de matériaux chimiques et électroniques spécialisés

En 2023, Element Solutions Inc a déclaré 1,76 milliard de dollars de revenus de fabrication. La société exploite 27 installations de fabrication dans 12 pays, en mettant l'accent sur la production de matériaux chimiques et électroniques de précision.

Métrique manufacturière	2023 données
Installations de fabrication totale	27
Pays ayant une présence manufacturière	12
Revenus de fabrication	1,76 milliard de dollars

Recherche et développement de produits

Element Solutions Inc a investi 98,4 millions de dollars en dépenses de R&D Au cours de l'exercice 2023, représentant 4,2% du total des revenus de l'entreprise.

• Zones de mise au point R&D:
  • Matériaux électroniques avancés
  • Formulations chimiques spécialisées
  • Solutions technologiques haute performance

Ingénierie de solution personnalisée pour les applications de technologie avancée

La société dessert plus de 4 500 clients mondiaux de technologie et de fabrication avec des solutions d'ingénierie spécialisées.

Métrique de la solution d'ingénierie	2023 données
Total des clients mondiaux	4,500+
Projets d'ingénierie personnalisés	237
Temps moyen de développement du projet	6-9 mois

Services mondiaux de vente technique et de support client

Element Solutions Inc maintient un réseau de vente mondial avec 174 représentants des ventes Sur plusieurs continents, générant 2,35 milliards de dollars de revenus totaux pour 2023.

Matériaux de précision et formulation chimique

La société produit plus de 1 200 formulations chimiques uniques en mettant l'accent sur les marchés électroniques et spécialisés de haute précision.

• Catégories de formulation clés:
  • Matériaux d'interconnexion électronique
  • Produits chimiques de traitement des semi-conducteurs
  • Technologies de revêtement avancées

Element Solutions Inc (ESI) - Modèle d'entreprise: Ressources clés

Installations de fabrication avancées

Element Solutions Inc exploite des installations de fabrication dans:

Pays	Nombre d'installations	Zone de fabrication totale
États-Unis	7	425 000 pieds carrés
Allemagne	3	215 000 pieds carrés
Chine	4	310 000 pieds carrés
Mexique	2	180 000 pieds carrés

Équipes spécialisées de génie chimique et de recherche

Capacités de recherche et de développement:

• Total des employés de R&D: 342
• Investissement annuel de R&D: 87,4 millions de dollars
• Centres de recherche situés dans 5 pays

Technologies de formulation chimique propriétaire

Catégorie de technologie	Nombre de technologies propriétaires
Formulations chimiques électroniques	38
Solutions de nettoyage industrielles	24
Technologies de matériaux avancés	17

Portefeuille de propriété intellectuelle

• Brevets actifs totaux: 276
• Familles de brevets: 94
• Couverture des brevets géographiques: 22 pays

Infrastructure mondiale de distribution et de logistique

Région	Centres de distribution	Budget logistique annuel
Amérique du Nord	12	45,2 millions de dollars
Europe	8	37,6 millions de dollars
Asie-Pacifique	6	28,9 millions de dollars

Element Solutions Inc (ESI) - Modèle d'entreprise: propositions de valeur

Solutions chimiques électroniques et spécialisées haute performance

Element Solutions Inc génère 1,67 milliard de dollars de revenus annuels en 2023, avec des solutions chimiques spécialisées représentant un segment critique de leur modèle commercial.

Catégorie de produits	Contribution des revenus	Segment de marché
Produits chimiques électroniques	687 millions de dollars	Fabrication de semi-conducteurs
Produits chimiques spécialisés	483 millions de dollars	Applications industrielles

Technologies matérielles personnalisées pour des applications industrielles complexes

ESI fournit des solutions de matériaux avancées dans plusieurs secteurs industriels.

• Technologies de matériaux aérospatiales
• Solutions d'ingénierie automobile
• Technologies de fabrication avancées

Fiabilité et performance accrue des produits pour l'industrie des semi-conducteurs

Segment technologique	Part de marché	Mesures de performance clés
Traitement chimique semi-conducteur	12.4%	99,7% de fiabilité de précision

Ingénierie des matériaux durables et innovantes

ESI a investi 47,3 millions de dollars dans la recherche et le développement en 2023, en se concentrant sur les technologies matérielles durables.

• Initiatives de chimie verte
• Réduction des technologies d'empreinte carbone
• Solutions de matériaux recyclables

Expertise technique et résolution de problèmes collaborative

ESI maintient 1 200 brevets actifs et emploie 1 850 professionnels techniques dans le monde.

Ressource technique	Quantité	Portée mondiale
Brevets actifs	1,200	22 pays
Professionnels techniques	1,850	Réseau de R&D mondial

Element Solutions Inc (ESI) - Modèle d'entreprise: relations clients

Engagement technique direct sur les ventes

Element Solutions Inc maintient un Force de vente mondiale de 372 représentants de ventes techniques directes Depuis 2023 Exercice. L'équipe de vente de l'entreprise couvre 38 pays avec une expertise spécialisée spécifique à l'industrie.

Région de vente	Nombre de représentants techniques	Couverture
Amérique du Nord	142	États-Unis, Canada
Europe	98	Allemagne, Royaume-Uni, France, Italie
Asie-Pacifique	87	Chine, Japon, Corée du Sud
Reste du monde	45	Amérique latine, Moyen-Orient

Partenariats de clients stratégiques à long terme

Element Solutions Inc a 87 partenariats stratégiques à long terme avec des clients industriels majeurs dans plusieurs secteurs.

• Durée du partenariat moyen: 7,4 ans
• Taux de rétention de la clientèle: 94,2%
• Range de valeur du contrat annuel: 1,2 M $ - 12,5 M $

Des équipes de support client et d'ingénierie dédiées

L'entreprise exploite 24 centres de support client dédiés à l'échelle mondiale, employant 456 Professionnels spécialisés de support technique.

Emplacement du centre d'assistance	Nombre de personnel de soutien	Temps de réponse moyen
États-Unis	142	2,3 heures
Allemagne	98	1,9 heures
Chine	87	2,5 heures
Autres emplacements	129	3,1 heures

Innovation continue des produits et consultation technique

Element Solutions Inc a investi 124,6 millions de dollars en R&D en 2023, représentant 7,3% des revenus totaux.

• Nombre de projets de R&D actifs: 62
• Demandes de brevet déposées en 2023: 27
• Heures de consultation technique: 18 340 par an

Développement de solutions collaboratives

L'entreprise s'engage 46 initiatives de recherche collaborative avec des partenaires industriels et des établissements universitaires.

Type de collaboration	Nombre de partenariats	Investissement annuel
Partenariats industriels	32	42,3 M $
Recherche académique	14	18,7 M $

Element Solutions Inc (ESI) - Modèle commercial: canaux

Force de vente directe

Element Solutions Inc maintient une équipe de vente directe mondiale de 187 professionnels des ventes dédiés au quatrième trimestre 2023. La force de vente couvre 42 pays en Amérique du Nord, en Europe et en Asie-Pacifique.

Région	Nombre de représentants commerciaux	Couverture des ventes
Amérique du Nord	68	États-Unis et Canada
Europe	59	Allemagne, Royaume-Uni, France, Italie, Espagne
Asie-Pacifique	60	Chine, Japon, Corée du Sud, Singapour

Conférences techniques et événements de l'industrie

En 2023, Element Solutions Inc a participé à 24 grandes conférences de l'industrie, avec un investissement de 1,2 million de dollars en frais de marketing et d'exposition d'événements.

• Expo des matériaux électroniques
• Sommet de technologie de fabrication avancée
• Conférence internationale de l'électronique
• Forum de la technologie de surface mondiale

Plateformes numériques en ligne

La stratégie de canal numérique d'ESI comprend une présence en ligne solide avec les mesures suivantes:

Plate-forme numérique	Visiteurs mensuels du site Web	Budget de marketing numérique
Site Web de l'entreprise	87,500	450 000 $ par an
Page de société LinkedIn	45 000 abonnés	180 000 $ par an

Réseaux de distributeurs stratégiques

Element Solutions Inc opère par le biais de 63 partenaires de distribution stratégique dans 15 pays, couvrant des marchés industriels et électroniques spécialisés.

• Distributeurs de composants électroniques: 22 partenaires
• Distributeurs chimiques industriels: 28 partenaires
• Distributeurs de matériaux spécialisés: 13 partenaires

Marketing technique et publications de l'industrie

En 2023, ESI a investi 675 000 $ dans la publicité sur le marketing technique et la publication de l'industrie, ciblant des revues spécialisées d'ingénierie et de science des matériaux.

Type de publication	Nombre de publications	Dépenses publicitaires annuelles
Revues techniques	18	$475,000
Magazines de l'industrie	12	$200,000

Element Solutions Inc (ESI) - Modèle d'entreprise: segments de clientèle

Fabricants de semi-conducteurs

Element Solutions Inc sert des fabricants de semi-conducteurs avec des solutions et des matériaux chimiques spécialisés.

Segment de clientèle	Taille du marché	Contribution des revenus
Top fabricants de semi-conducteurs	573,44 milliards de dollars (2023 Marché mondial des semi-conducteurs)	37,2% des revenus totaux d'ESI

Producteurs d'équipements électroniques

ESI fournit des matériaux avancés et des solutions chimiques pour la fabrication d'équipements électroniques.

• Marché mondial des équipements électroniques d'une valeur de 1,2 billion de dollars en 2023
• ESI dessert 42 des 100 meilleurs fabricants d'équipements électroniques

Entreprises d'ingénierie des matériaux avancés

Element Solutions soutient les sociétés d'ingénierie des matériaux avancés avec des technologies chimiques spécialisées.

Type de client	Valeur du segment de marché	Pénétration du marché ESI
Entreprises d'ingénierie des matériaux avancés	289,6 milliards de dollars (2023)	Contribution de 28,5% des revenus

Fabricants d'équipements industriels

ESI fournit des solutions chimiques critiques pour les processus de fabrication d'équipements industriels.

• Marché mondial des équipements industriels estimé à 4,5 billions de dollars en 2023
• ESI dessert 35 des 50 meilleurs fabricants d'équipements industriels

Sociétés de technologie de précision

Element Solutions fournit des solutions chimiques spécialisées pour les applications de technologie de précision.

Segment de la technologie de précision	Taille du marché	Clientèle ESI
Marché de la technologie de précision	672,3 milliards de dollars (2023)	22,3% du total des segments de clientèle d'ESI

Element Solutions Inc (ESI) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Element Solutions Inc a investi 91,2 millions de dollars dans les dépenses de R&D en 2022, ce qui représente 4,7% des revenus totaux.

Année	Investissement en R&D	Pourcentage de revenus
2022	91,2 millions de dollars	4.7%
2021	83,5 millions de dollars	4.5%

Frais de fabrication et de production

Les coûts de fabrication totaux pour Element Solutions Inc en 2022 étaient de 612,3 millions de dollars.

• Coûts de main-d'œuvre directs: 187,4 millions de dollars
• Dépenses de matières premières: 274,6 millions de dollars
• Fabrication des frais généraux: 150,3 millions de dollars

Infrastructure opérationnelle mondiale

Les dépenses opérationnelles mondiales ont totalisé 245,6 millions de dollars en 2022, couvrant les installations, l'équipement et les opérations internationales.

Catégorie de coûts opérationnels	Frais
Entretien d'installation	87,2 millions de dollars
Infrastructure technologique	68,4 millions de dollars
Soutien international des opérations	90,0 millions de dollars

Acquisition et rétention techniques des talents

Les coûts totaux des ressources humaines et des talents étaient de 124,7 millions de dollars en 2022.

• Salaires pour le personnel technique: 98,3 millions de dollars
• Formation et développement des employés: 15,4 millions de dollars
• Frais de recrutement: 11,0 millions de dollars

Gestion de la chaîne d'approvisionnement et de la logistique

Les frais de chaîne d'approvisionnement et de logistique s'élevaient à 276,5 millions de dollars en 2022.

Catégorie de coût logistique	Frais
Transport et expédition	112,3 millions de dollars
Gestion des stocks	84,6 millions de dollars
Entrepôts	79,6 millions de dollars

Element Solutions Inc (ESI) - Modèle d'entreprise: Strots de revenus

Ventes de produits chimiques spécialisés

Element Solutions Inc a déclaré des ventes nettes de 1,55 milliard de dollars pour l'exercice 2023. La répartition des ventes de produits chimiques spécialisés de la société comprend:

Catégorie de produits	Revenus ($ m)	Pourcentage
Matériaux électroniques	672.3	43.4%
Produits chimiques spécialisés industriels	537.6	34.7%
Matériaux de performance	340.1	21.9%

Services d'ingénierie des matériaux personnalisés

Les services d'ingénierie personnalisés ont généré environ 157,2 millions de dollars de revenus pour 2023, ce qui représente 10,1% du total des revenus de l'entreprise.

Accords de licence de technologie

Les revenus des licences technologiques pour Element Solutions Inc en 2023 ont totalisé 48,5 millions de dollars, avec des accords clés dans:

• Technologie des matériaux électroniques
• Processus de traitement de surface avancées
• Technologies de formulation chimique spécialisée

Frais de consultation technique

Les services de consultation technique ont contribué 37,8 millions de dollars à la source de revenus de la société en 2023.

Contrats de solution de matériel avancé

Les contrats de solution de matériel avancé ont généré 224,6 millions de dollars de revenus, avec un accent principal sur:

Secteur	Valeur du contrat ($ m)
Industrie des semi-conducteurs	126.3
Électronique automobile	54.7
Matériaux aérospatiaux	43.6

Element Solutions Inc (ESI) - Canvas Business Model: Value Propositions

You're looking at how Element Solutions Inc (ESI) creates value for its customers as of late 2025. It's all about specialized chemistry solving the toughest engineering problems in high-growth sectors.

Enabling next-generation electronics with solutions for power and thermal management

Element Solutions Inc is directly enabling the next wave of electronics by focusing on areas like AI and data centers, where thermal and power density are huge hurdles. The Electronics segment has been a powerhouse, showing $\mathbf{9\%}$ organic sales growth in Q2 2025 and $\mathbf{7\%}$ in Q3 2025. The company is rolling out innovations like Cupreon (Active Copper) for advanced packaging, aimed at the most demanding, leading-edge semiconductor nodes, with commercialization planned for late 2025. This focus on advanced technology niches is what drives their segment performance, which saw net sales hit $\mathbf{\$465}$ million in Q3 2025.

Mission-critical, high-performance materials for complex manufacturing processes

The value here is in materials that are specified or qualified for critical steps; roughly $\mathbf{80\%}$ of what Element Solutions Inc sells falls into this category, and that percentage is actually climbing. This high level of integration means their products are essential, not optional. For instance, they are doubling production capacity for ArgoMax sintered silver specifically to keep up with electric vehicle (EV) demand. Overall, the company maintains a strong gross profit margin of $\mathbf{42\%}$, reflecting the high value embedded in these mission-critical materials.

Here's a quick look at the segment performance driving this value:

Metric	Q2 2025 Result	Q3 2025 Result
Electronics Segment Net Sales (Reported)	$\mathbf{\$439}$ million	$\mathbf{\$465}$ million
Electronics Segment Organic Sales Growth	$\mathbf{9\%}$	$\mathbf{7\%}$
Full Year 2025 Adjusted EBITDA Guidance (Midpoint)	Between $\mathbf{\$530}$ million and $\mathbf{\$550}$ million

Advanced electronic inks and pastes for aerospace and defense (via Micromax)

The recent acquisition of Micromax, announced on October 28, 2025, brings leadership in thick film pastes and electronic inks into the portfolio. This acquisition is strategic, fitting nicely within the existing electronics ecosystem. Element Solutions Inc expects Micromax to add about $\mathbf{\$40}$ million to its adjusted EBITDA on a full-year basis, and it will do so at accretive metals-adjusted margins. This move deepens their offering in high-value, specialized materials.

High-purity specialty gases for semiconductor fabrication (via EFC Gases)

The agreement to buy EFC Gases & Advanced Materials, announced November 4, 2025, adds a high-purity, rare, and specialty gas portfolio. EFC is heavily weighted toward high-growth areas, with roughly $\mathbf{40\%}$ of its sales coming from semiconductor markets and $\mathbf{30\%}$ from satellite and space applications. Element Solutions Inc projects EFC will contribute approximately $\mathbf{\$30}$ million to adjusted EBITDA in 2026, achieving margins greater than $\mathbf{30\%}$. This is a different kind of value proposition-providing essential, high-purity inputs for the most sensitive industrial processes.

Technical expertise to solve emerging customer pain points in design and production

The company's value isn't just the chemical; it's the ability to offer a systems solution sale instead of just a product sale, which is highly differentiated. Element Solutions Inc has been able to gain higher levels of engagement with the technical organizations of major OEMs and specifiers because of this broad portfolio and innovation. The company has a stated annual R&D budget of $\mathbf{\$65}$ million supporting these innovations. Furthermore, the balance sheet strength, with a net leverage ratio of $\mathbf{2.1}$ times as of Q2 2025, gives them the financial flexibility to continue investing in this expertise and in accretive bolt-on acquisitions like Micromax and EFC. You'll exit the year with leverage comfortable at $\mathbf{3}$ turns.

Finance: draft 13-week cash view by Friday.

Element Solutions Inc (ESI) - Canvas Business Model: Customer Relationships

Element Solutions Inc (ESI) supports its customer relationships through a structure designed for deep integration and long-term partnership.

The company maintains a geographically broad yet also localized sourcing, manufacturing and technical footprint, operating in over 50 countries and utilizing more than 60 manufacturing and R&D sites worldwide to stay close to its customer base.

This proximity supports the deployment of dedicated technical sales and service teams embedded with customers, which is crucial given the nature of their specialty chemicals.

• Dedicated technical sales and service teams embedded with customers
• Consultative, long-term relationships due to mission-critical product nature
• High-touch support for complex chemical application and process optimization
• Relationship-driven model to ensure product is defintely integrated into customer workflow

The mission-critical nature of the products, especially within the Electronics segment which saw 12% net sales increase in Q2 2025, drives the need for consultative, long-term relationships. This segment, fueled by data centers and AI applications, achieved an organic net sales growth of 9% in Q2 2025, indicating strong customer commitment to ESI's solutions in high-growth areas.

The success of this model is reflected in the financial performance tied to customer stickiness, such as the organic growth rate, which was 6% across the company in Q2 2025, outpacing the reported growth of 2%. The company's full-year 2025 Adjusted EBITDA guidance is set between $530 million and $550 million, showing confidence built on these established customer ties.

Here is a look at some key operational and financial metrics that underscore the scale and performance underpinning these customer relationships as of late 2025:

Metric	Value / Period	Context
Q2 2025 Net Sales	$625 million	Total reported net sales for the quarter.
Electronics Segment Organic Growth	9%	Q2 2025 growth, showing traction in advanced technology niches.
Full Year 2025 Adjusted EBITDA Guidance	$530 million to $550 million	Full-year expectation reflecting sustained customer demand.
Q2 2025 Adjusted Free Cash Flow	$59 million	Cash generation supporting service and support infrastructure.
Net Leverage Ratio	2.1 times	As of Q2 2025, indicating balance sheet strength to support long-term customer commitments.

The high-touch support for complex chemical application is implicitly valued by the company's focus on its Electronics segment, which generates the maximum revenue, with Q2 2025 sales at $439 million. The relationship-driven model ensures that ESI's products are defintely integrated into customer workflows, which is necessary for the continued organic growth seen even when the Industrial & Specialty segment faced a 16% sales decline in Q2 2025.

During the three months ended June 30, 2025, Element Solutions Inc repurchased 0.9 million shares at an average price of $20.45, signaling management's confidence in the underlying business value derived from these relationships.

Finance: draft 13-week cash view by Friday.

Element Solutions Inc (ESI) - Canvas Business Model: Channels

You're looking at how Element Solutions Inc (ESI) gets its specialized chemical solutions and technical expertise into the hands of its B2B customers across the globe. It's a high-touch model, which makes sense when you're dealing with process-critical materials for electronics and industrial applications.

Direct sales force and application engineers for B2B engagement

Element Solutions Inc relies heavily on direct engagement, especially for its high-value Electronics segment, which saw net sales increase by 13% to $394 million in the first quarter of 2025 alone. This direct channel is staffed by technical sales teams and application engineers who work closely with customers on complex processes like semiconductor fabrication and advanced circuit board designs.

The company emphasizes that its people and technical sales teams are located close to their customers, which is crucial for navigating the complexities of global trade dynamics and potential tariff impacts, as noted when discussing their Q1 2025 results. The direct sales model supports the penetration of fast-growing niches, such as data centers and AI applications, where organic sales grew 10% in Q1 2025.

• The sales approach is tailored to high-growth areas like data centers.
• Technical expertise is embedded in the sales process for process-critical chemicals.
• The company has between 1,001 and 5,000 total employees, supporting this specialized engagement model.

Global distribution network for chemical delivery and support

Element Solutions Inc operates a broad global footprint to ensure chemical delivery and local support. As of 2024, the company managed a diverse portfolio supported by over 60 manufacturing and R&D sites worldwide. This network spans over 50 countries where Element Solutions Inc operates.

This extensive network allows the company to mitigate the impact of global trade volatility by operating locally with sourcing, manufacturing, and technical resources close to the customer base. The distribution supports the Industrial & Specialty segment, even when facing softer industrial demand, by maintaining local service capabilities.

Regional technical centers for customer process testing and training

The channel strategy incorporates physical locations dedicated to customer support beyond just sales and delivery. Element Solutions Inc maintains a significant physical presence, with a reported 96 total locations as of a July 2022 report, which includes R&D and manufacturing sites that double as technical support hubs. Furthermore, the company is actively investing in these technical capabilities.

For 2025, Element Solutions Inc has allocated $65 million toward enhancing operational efficiency and innovation, which directly supports the technical infrastructure available to customers. A concrete example of this investment is the opening of a new research center in Bangalore, India, during the second quarter of 2025, specifically to support innovation in high-growth electronics areas.

The technical centers support specialized testing, such as the capabilities at Element Ann Arbor, which is an FDA-Registered and DEA-Licensed laboratory, indicating a high level of regulatory and process compliance support offered through its technical channels.

Digital platforms for product information and technical documentation

While the core business is high-touch, digital platforms serve as a critical layer for disseminating product information and documentation. These platforms support the overall customer journey, providing access to technical data that underpins the use of their specialty chemicals.

The company's focus on new product introductions, which contributed to the Electronics segment's growth, is supported by digital channels for sharing specifications and usage guides. The financial context shows the importance of this infrastructure: the Electronics segment generated $1.56 billion in net sales in 2024, requiring scalable digital support for its broad customer base.

Here's a snapshot of the scale supporting these channels as of late 2025 data points:

Channel Metric Category	Specific Data Point	Associated Financial/Operational Context
Global Reach	Operates in over 50 countries	Supports $2.46 billion in 2024 net sales.
Physical Footprint (Sites)	Over 60 manufacturing and R&D sites worldwide (as of 2024)	Enables localized sourcing and manufacturing to mitigate trade risks.
Physical Footprint (Locations)	96 total locations (as of 2022 baseline)	Represents the physical network supporting distribution and technical centers.
Technical Investment (2025)	$65 million allocated for operational efficiency and innovation	Funds enhancements to technical centers and R&D capabilities.
Electronics Segment Sales (Q1 2025)	$394 million in net sales	This segment's growth (13% reported increase) drives the need for direct engineering support.

Element Solutions Inc (ESI) - Canvas Business Model: Customer Segments

Element Solutions Inc serves distinct, high-value end-markets through its Electronics and Industrial & Specialty reportable segments.

The Electronics segment is the primary revenue generator, focusing on specialty chemicals and process technologies for hardware ranging from printed circuit board designs to semiconductor packaging.

For the third quarter of 2025, Element Solutions Inc reported total net sales of $656 million.

The Electronics segment delivered a record level of revenue in the third quarter of 2025, with net sales increasing by 11% year-over-year, and organic growth of 7%.

The Industrial & Specialty segment faced a decline in the third quarter of 2025 due to divestitures, though excluding these, the top line was flat.

The company's trailing twelve-month revenue as of September 30, 2025, stood at $2.5 billion.

The customer base is heavily influenced by investment cycles in advanced technology areas:

• Data centers and AI applications drove organic growth of 10% in the Electronics segment during the first quarter of 2025.
• Circuitry Solutions saw exceptional volume growth, benefiting from AI-related investment supporting high layer count server boards in Q3 2025.
• The company noted strength in power electronics customer bases and new product introductions.
• The full-year 2025 Adjusted EBITDA guidance was narrowed to the higher end of the $530 million to $550 million range.

The following table summarizes key financial metrics for the reportable segments based on the latest reported quarter, Q3 2025, and context from prior quarters in 2025.

Customer Focus Area / Segment	Q3 2025 Net Sales (Reported)	Q3 2025 Organic Net Sales Growth	Q3 2025 Adjusted EBITDA	Q1 2025 Net Sales (Reported)
Electronics manufacturers (PCB, Semiconductor)	Implied to be the majority of $656M total sales	7%	Record level achieved	$394 million
Communications/Data Storage (Data Centers, AI)	Driving 11% segment sales increase	N/A	N/A	N/A
Industrial Surface Finishing / Metal Finishing	Part of Industrial & Specialty Segment	N/A	$40 million (Q2 2025)	$199 million (Q1 2025)
Automotive Systems / EV Components	Part of Industrial & Specialty Segment	N/A	N/A	Organic Net Sales decreased 2% (Q1 2025)
Aerospace, Defense, Healthcare Electronics	Included in Electronics Segment performance	N/A	N/A	Electronics Segment Net Sales increased 13% (Q1 2025)

The Industrial & Specialty segment's Adjusted EBITDA was $43 million in Q2 2025, and the company noted that excluding the impact of the MacDermid Graphics Solutions divestiture (closed February 2025), Q2 2025 Adjusted EBITDA would have grown 10% organically.

The overall gross profit margin for Element Solutions Inc was reported at 42%.

Finance: draft 13-week cash view by Friday.

Element Solutions Inc (ESI) - Canvas Business Model: Cost Structure

The Cost Structure for Element Solutions Inc (ESI) is heavily influenced by the nature of specialty chemical manufacturing, requiring significant outlay for materials, global operations, and specialized technical personnel.

High cost of goods sold (COGS) due to raw material and metal prices remains a primary cost driver. For the full year ended December 31, 2024, the Cost of sales was reported at $1,421.2 million, against Net sales of $2,456.9 million. This resulted in a Gross profit margin of 42% for 2024. While the CEO noted that margins are expanding and close to historical records, and that they have been able to offset raw material costs with pricing, the underlying cost of materials is a constant focus. The impact of raw materials is noted to affect the margin percent more than the margin dollars.

The company's operational scale necessitates substantial fixed and variable costs across its global footprint. Key financial metrics from the latest full year and near-term guidance illustrate the scale of these costs:

Metric (Year Ended Dec 31, 2024)	Amount (in millions USD)	Context/Source
Cost of Sales (COGS)	1,421.2	Full Year 2024 Financials
Selling, Technical, General and Administrative (SG&A)	628.8	Full Year 2024 Financials
Research and Development (R&D)	63.0	Full Year 2024 Financials
Capital Expenditures (CapEx)	68.4	Full Year 2024 Financials
Projected Full Year 2025 Adjusted EBITDA Guidance (Low End)	530 million	Updated Guidance

This global manufacturing and distribution footprint incurs significant operating costs, reflected in the large SG&A base. The company maintains a 'geographically broad yet also localized sourcing, manufacturing and technical footprint that is close to our customers'.

Significant investment in R&D and technical application support is a structural cost supporting the value proposition. For the year ended December 31, 2024, Research and development expenses totaled $63.0 million, down from $68.1 million in 2023. This investment supports the highly technical, customer-facing nature of the business, which requires complementary technical service and applications development capabilities.

The cost structure is also shaped by inorganic growth strategies. Element Solutions Inc announced an agreement to acquire Micromax from Celanese Corporation for approximately $500 million in cash, subject to adjustments. This transaction, expected to close in the first quarter of 2026, will be funded by cash on hand and incremental debt. Acquisition-related costs and integration expenses are expected, though the company noted that GAAP reconciliations often exclude these non-recurring charges due to their inherent difficulty in forecasting. Based on projected 2025 results, the Micromax acquisition is anticipated to contribute approximately $40 million to Element Solutions' adjusted EBITDA on a full-year basis.

The Selling, General, and Administrative (SG&A) expenses reflect the need for a specialized, global sales and support structure. Full-year 2024 SG&A was $628.8 million, an increase from $596.8 million in 2023. This expense supports the 'intensive technical applications-oriented employee base' and customer-facing operations necessary for a specialty chemical technology company.

Key components of the operating cost base include:

• Selling, Technical, General and Administrative expenses for 2024: $628.8 million.
• Research and Development expenses for 2024: $63.0 million.
• Capital Expenditures for 2024 were $68.4 million, representing 3% of net sales.
• The planned acquisition of Micromax involves an outlay of approximately $500 million in cash.

Finance: draft 13-week cash view by Friday.

Element Solutions Inc (ESI) - Canvas Business Model: Revenue Streams

Element Solutions Inc (ESI) generates its revenue primarily through the sales of its specialty chemicals and materials across two main operating segments. The composition of these revenue streams shows a clear reliance on the high-growth Electronics sector, which is currently the largest contributor.

The Electronics segment is the largest and is characterized by robust growth, driven by secular demand trends. For the third quarter of 2025, this segment reported net sales of $465 million, representing an 11% increase year-over-year on a reported basis, with organic net sales up 7%. This strength is directly tied to revenue from high-margin, high-growth niches like data center and AI applications, as the company has built a platform of solutions for these accelerating demands.

Conversely, the Industrial & Specialty segment sales of chemicals and materials have faced headwinds, though performance is being managed through internal initiatives. In the third quarter of 2025, this segment's net sales were $191 million, a 16% decline year-over-year, largely due to divestitures, while organic net sales remained relatively flat.

Here's a quick look at the segment revenue snapshot for the third quarter of 2025:

Revenue Stream Segment	Q3 2025 Net Sales (Reported)	Year-over-Year Change (Reported)
Electronics segment	$465 million	Up 11%
Industrial & Specialty segment	$191 million	Down 16%
Total Net Sales (Q3 2025)	$656 million	Up 2%

Looking at the full-year projections, Element Solutions Inc has increased its outlook, reflecting confidence in its execution despite an uncertain economic backdrop. Full year 2025 Adjusted EBITDA is now expected to be between $545 million and $550 million. This is an upward revision from the earlier guidance range of $530 million to $550 million mentioned in mid-2025.

While the trailing 12-month revenue as of Q3 2025 is not explicitly stated as $2.5 billion, the company reported net sales of $2.46 billion for the full year 2024. The total net sales for the first nine months of 2025, based on Q3 results, suggest the TTM revenue would be near or slightly above the 2024 figure, given the 2% reported revenue increase in Q3 2025 over Q3 2024.

The revenue mix is being strategically shaped by focusing on high-value areas. You see this in the Electronics segment's performance, which is fueled by:

• Data center driven demand.
• Seasonal uplift from smart phone pre-builds.
• Specialized thermal management materials.
• Metallization chemistries for high layer count printed circuit boards.

The company is positioning its portfolio to capture growth in these specific niches, which management believes will deliver profit growth well in excess of the broader ecosystem in 2025. Finance: draft 13-week cash view by Friday.