Element Solutions Inc (ESI): Business Model Canvas [Dec-2025 Updated]

You're looking at Element Solutions Inc (ESI) right as they've navigated a complex M&A landscape, and frankly, the results are showing; as a seasoned analyst, I see a company doubling down on mission-critical specialty chemicals, especially for electronics-think data centers and AI infrastructure-which is why they're guiding for a full-year 2025 Adjusted EBITDA between $545 million and $550 million on revenue nearing $2.5 billion. The recent Q3 performance, hitting a record $147 million in Adjusted EBITDA, proves their strategy of focusing on high-value niches is working, even as they integrate big moves like the Micromax deal. To truly understand how they are structuring this growth-from their key partnerships with semiconductor giants to the high-cost structure required to maintain that technical edge-you need to look at the full Business Model Canvas below.

Element Solutions Inc (ESI) - Canvas Business Model: Key Partnerships

You're looking at the structure supporting Element Solutions Inc's specialty chemical technology delivery across its key end markets. The partnerships Element Solutions Inc relies on are critical, especially given the focus on high-growth areas like semiconductor fabrication and data center infrastructure.

Financial institutions for debt financing of acquisitions like Micromax

Element Solutions Inc secured financing for the planned acquisition of Micromax from Celanese Corporation, which has an approximate cash purchase price of $500 million. To fund this, Element Solutions Inc priced and syndicated a $450 million add-on to its existing senior secured term loan B due 2030. This financing, combined with cash on hand, is earmarked for the transaction, which is expected to close in the first quarter of 2026. Based on projected 2025 results, the Micromax business is expected to contribute approximately $40 million to Element Solutions Inc's adjusted EBITDA on a full-year basis.

Technology co-development with key semiconductor and electronics manufacturers

Element Solutions Inc's strategy involves deep focus on electronics, improving access to the semiconductor market. The company noted that new capacity additions in its supply chain are supporting AI and associated network infrastructure requirements. Furthermore, the company's Electronics segment saw record revenue in Q3 2025, driven by data center demand and smartphone pre-builds. The acquisition of EFC Gases, which services semiconductor fabrication in the United States, highlights a focus on a business where its key areas grew 15% annualized back to 2019.

• Electronics segment organic revenue growth was 9% in Q2 2025.
• Electronics segment Adjusted EBITDA for Q3 2025 was $102 million.
• The company's progress in penetrating data center-related customers and advanced foundries propelled its business in Q2 2025.

Global logistics and distribution partners for efficient supply chain

Element Solutions Inc operates with a geographically broad yet localized approach to its supply chain. The company's strong liquidity position, evidenced by a current ratio of 3.95 as of June 30, 2025, supports its global operations. The overall business relies on efficient movement of specialty chemicals across its target markets in North America, Europe, and Asia.

Manufacturing partners for localized production to mitigate tariff risk

Element Solutions Inc has manufacturing and research and development sites in multiple countries. The CEO noted that the company has been able to recapture and retain value through strong price, procurement, and productivity activities in its more industrially exposed businesses, despite uneven economic backdrops and tariff uncertainty. The company's broad geographic footprint helps manage global trade dynamics.

Strategic raw material suppliers for specialty chemicals

While specific supplier names aren't detailed, the company's operations are sensitive to raw material costs, particularly metals, as indicated by the Micromax deal being structured at accretive metals-adjusted margins. The company's ability to manage procurement activities contributed to earnings growth in the Industrial & Specialty segment in Q3 2025. The overall gross profit margin for Element Solutions Inc was 42% as of July 2025.

The scale of operations supported by these partnerships can be seen in the following financial snapshots:

Metric	Value (Latest Reported/Guidance)	Period/Context
Full Year 2025 Adjusted EBITDA Guidance	$530 million to $550 million	Full Year 2025
Q3 2025 Adjusted EBITDA	$147 million	Q3 2025
Q3 2025 Net Sales	$656 million	Q3 2025
Acquisition Financing for Micromax	$450 million	Term Loan B Add-On
Projected EBITDA Contribution from Micromax	$40 million	Full-Year 2025 Projection
Current Ratio	3.95	As of Q2 2025

The company's ability to generate cash flow is also a testament to these operational relationships; adjusted free cash flow for Q3 2025 was $84 million.

Element Solutions Inc (ESI) - Canvas Business Model: Key Activities

You're looking at the core engine of Element Solutions Inc as of late 2025. It's all about specialized chemistry, disciplined capital deployment, and driving efficiency across a global footprint.

Research and development (R&D) of proprietary chemical formulations

Element Solutions Inc continues to invest behind its high-growth areas. This activity is evidenced by targeted operational expenditure, such as the incremental OpEx investment noted in support of high-growth initiatives like Kuprion.

Specialty chemical manufacturing and complex process technology formulation

The scale of manufacturing and formulation is best seen through the segment results. For instance, the Electronics segment reported net sales of $394 million for the first quarter of 2025, growing to $439 million in the second quarter of 2025. The company's focus on high-value niches is reflected in the ex-metals margins, which stood at 28% in the third quarter of 2025, only 100 basis points off the prior peak.

Key manufacturing and formulation metrics for the Electronics segment:

• Organic net sales growth: 10% (Q1 2025).
• Organic net sales growth: 7% (Q3 2025).
• Net sales increase: 12% (Q2 2025 reported).

Technical service and applications development for customer processes

The value proposition is locked in by deep customer integration. The Electronics segment's growth demonstrates traction in solving emerging customer pain points associated with power and thermal management in complex designs. This technical depth supports a high level of specification:

Roughly 80% of what Element Solutions Inc sells is either specified or qualified, and that percentage is increasing.

Prudent capital allocation, including M&A (e.g., EFC, Micromax) and share buybacks

Capital deployment is a core activity, balancing growth investment with shareholder returns. The company executed a major portfolio optimization by selling its flexographic printing plate business, MacDermid Graphics Solutions, for $323 million, which closed in February 2025 and resulted in a gain of $72.1 million in Q1 2025. Following this, the company made strategic acquisitions, including Electronic Fluorocarbons on November 4, 2025. The Micromax transaction is projected to contribute approximately $40 million of adjusted EBITDA on a full-year 2025 basis.

Shareholder returns were also active:

Metric	Value	Date/Period
Shares Repurchased	0.9 million shares	Three months ended June 30, 2025
Average Buyback Price	$20.45 per share	Three months ended June 30, 2025
Capital Deployed to Buybacks	Approximately $19.5 million	Three months ended June 30, 2025
Remaining Buyback Authorization	Approximately $562 million	As of June 30, 2025
Target Leverage Exit 2025	3x turns of leverage	Exiting 2025

Operational excellence to drive procurement and productivity gains

The focus on operational efficiency helps margin performance, especially in more challenging markets. In the Industrial & Specialty businesses, management has been able to recapture and retain value through strong price, procurement, and productivity activities. This focus drove strong profit growth in the segment despite a flat top line in Q3 2025.

Overall financial performance context for 2025:

Financial Metric	Q1 2025 Actual	Q2 2025 Actual	Full Year 2025 Guidance Range
Net Sales	$594 million	$625 million	N/A
Adjusted EBITDA	$128 million	$136 million	$545 million to $550 million (Revised)
Cash Flows from Operating Activities	$26 million	$73 million	N/A
Adjusted Free Cash Flow	$30 million	$59 million	Conversion comparable to previous year

The company is compounding earnings per share in the teens over the long term, supported by these operational and capital deployment actions.

Element Solutions Inc (ESI) - Canvas Business Model: Key Resources

You're looking at the core assets Element Solutions Inc (ESI) relies on to drive its specialty chemicals business, especially as they navigate the high-growth electronics sector. These aren't just line items on a balance sheet; they are the engines of their value creation.

Proprietary intellectual property (IP) and chemical patents

The foundation of Element Solutions Inc's offering rests on its protected chemical formulations. This IP shields their specialized processes and materials from immediate replication by competitors, which is crucial in high-tech markets like semiconductor fabrication.

As of late 2025 reporting periods, the portfolio strength is quantified:

• Total Documents Applications and Grants: 913
• Total Patents Families: 263

Global network of manufacturing and technical service facilities

Element Solutions Inc maintains a geographically dispersed footprint, which helps mitigate supply chain risks and keeps technical support close to its global customer base. This localized presence is a key operational advantage, especially when dealing with complex, just-in-time chemical delivery and process support.

The scale of this physical network is substantial:

Metric	Value
Manufacturing and R&D Sites	63
Countries of Operation	18

This network supports operations across North America, Europe, and Asia, targeting key end markets.

Highly specialized R&D talent and application engineers

The company's ability to innovate and maintain high-value customer relationships depends heavily on its technical workforce. This talent pool translates the IP into real-world performance improvements for customers in areas like data centers and advanced circuit board designs.

A significant portion of the workforce is dedicated to this technical expertise:

• Approximate percentage of full-time employees in R&D, technical service, and sales: ~40%

If we look at the reported 2024 headcount of 5,300 employees, this suggests a base of over 2,120 employees in these critical technical roles. That's a lot of specialized knowledge walking around.

Strong liquidity and balance sheet capacity for M&A

Prudent capital allocation is a stated focus, and the balance sheet strength provides the flexibility to invest in growth both organically and through acquisitions. The recent divestiture provided a significant cash infusion to deploy.

Key financial and transactional indicators as of mid-to-late 2025 include:

Financial/Transactional Metric	Amount/Value
Current Ratio (as of Q2 2025)	3.95
Proceeds from MacDermid Graphics Solutions Sale (Closed Feb 2025)	$323 million
Announced Acquisition of EFC Gases & Advanced Materials	Approx. US$500 million
FY 2025 Adjusted EBITDA Guidance (Revised)	$530 million to $550 million

The company described its financial health rating as 'GREAT' in July 2025.

Core brands like MacDermid Enthone and Alpha Assembly Solutions

The market-facing identity of Element Solutions Inc is carried through its established, segment-leading brands. These names carry the trust and performance history within their respective industrial niches.

The portfolio of brands includes, but isn't limited to:

• MacDermid Enthone
• Alpha (including MacDermid Alpha Electronics Solutions)
• Compugraphics
• Fernox
• Kester

The Electronics segment, which is now more than 70% of sales, is heavily driven by the performance of brands like MacDermid Alpha Electronics Solutions.

Finance: draft 13-week cash view by Friday.

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.