stockrowWhat it does
Element Solutions is a specialty chemicals company that supplies materials used in electronics manufacturing, industrial surface finishing and offshore energy production. Headquartered in Miami, it is led by chief executive Benjamin H. Gliklich.
Its Electronics business sells chemicals and materials used to make circuit boards, assemble electronic devices and package semiconductor chips. Some chemicals create or finish the conductive paths on a circuit board; solder pastes, adhesives and other materials join components together. Customers use these products in manufacturing for computers, communications equipment, automobiles, aerospace equipment and data centers.
The Specialties business sells chemical systems that protect or decorate metal and plastic surfaces. Examples include coatings for automotive parts and finishes for plumbing goods. It also supplies water-based hydraulic fluids used to operate equipment in offshore oil and gas production and drilling.
Element Solutions formulates its products by blending raw materials and incorporating them into multi-step processes. It also supplies technical service and works with customers and original equipment manufacturers, or OEMs, to adapt products to their manufacturing needs. Customers buy directly or through intermediaries.
The company acquired EFC Gases & Advanced Materials, a supplier of specialty gases and advanced materials, and Micromax, a supplier of electronics inks and pastes, in 2026. EFC is part of Specialties and Micromax is part of Electronics.
How it makes money
In 2025, Electronics revenue was $1.8 billion and Specialties revenue was $765.0 million; both acquisitions contributed revenue in the third quarter of 2026.
Element Solutions earns revenue by selling specialty chemicals, materials and process technologies through Electronics and Specialties. In substantially all cases, customers consume the products during production and replenish them to keep their factories running. The company also provides technical support to help customers use the products and optimize their processes.
Electronics generated 70.0% of the company’s revenue in 2025. Its businesses include Assembly Solutions, which supplies materials such as solder pastes, fluxes and adhesives; Circuitry Solutions, which supplies chemical processes for circuit boards and memory storage devices; and Semiconductor Solutions, which supplies materials and processes for chip fabrication and packaging. The company says its products and support typically represent a small portion of customers’ costs but contribute to the performance of their products.
Specialties generated 30.0% of the total in 2025. Its Industrial Solutions business sells finishing chemicals, coatings, water-treatment products and lubricants. Energy Solutions sells fluids for offshore production and drilling. Element Solutions sold its printing-plate business, MacDermid Graphics Solutions, in February 2025.
Metal prices affect reported sales: Assembly Solutions’ net sales include metal content, and price fluctuations are generally passed through to customers. In 2025, pass-through metals pricing increased Electronics’ consolidated results, while divestitures reduced Specialties’ consolidated results.
In the third quarter of 2026, Electronics organic net sales grew. Micromax contributed to reported sales in the quarter, including sales related to metals.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Electronics | $1.8 billion | 70.0% | 14.4% |
| Specialties | $765.0 million | 30.0% | −14.6% |
Customers and how it sells
Element Solutions sells to manufacturers across electronics, automotive, aerospace, industrial finishing and offshore energy. Its electronics customers use the company’s materials in circuit boards, semiconductor packaging and device assembly. Industrial customers include makers of automotive parts, appliances, plumbing goods and construction equipment; the offshore business serves oil and gas companies and drilling contractors.
The company sells directly to end users and through intermediaries. Regional sales and technical-service employees, as well as distributors, help generate business. Element Solutions also works with OEMs and industry partners that specify its chemistries for use in their products or grant development rights to their intellectual property. It operates small and medium-sized facilities near customers in major economic regions.
The company says its businesses are not materially dependent on any single customer. Most businesses have short order cycles, and order backlog is minimal.
China accounted for $557.9 million, or 21.9%, of 2025 revenue. The United States accounted for $524.3 million, or 20.6%. Net sales originating outside the U.S. were denominated in several currencies, including the Chinese yuan and euro. Element Solutions had approximately 5,200 full-time employees at December 31, 2025, with employees based throughout the world.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Other countries | $1.5 billion | 57.6% | 4.07% |
| China | $557.9 million | 21.9% | 16.5% |
| UNITED STATES | $524.3 million | 20.6% | −7.43% |
Suppliers and costs
Element Solutions typically buys its major raw materials as needed from outside suppliers. It seeks local sources where possible and says the majority of its raw materials are available from multiple conformant sources worldwide. The company also recycles certain materials, primarily tin, at its own U.S. smelting and refining facility for use in manufacturing.
Its production model involves blending raw materials into specialty chemical formulations and incorporating them into multi-step processes. Element Solutions says it focuses investment on technology, sales and service rather than large physical-asset investments. Substantially all of its research and development was performed internally.
Tin and silver prices affect Electronics’ reported revenue and margins. Although metal price changes are generally passed through to Assembly Solutions customers, higher pass-through tin and silver prices reduced Electronics’ gross margin in 2025. The company also uses metals derivative contracts intended to mitigate the effect of fixed-price customer agreements or commodity price movements after it purchases inventory.
In the third quarter of 2026, price-cost timing affected Industrial Solutions margins. Element Solutions said price increases were tied to raw-material cost inflation, while global volumes in the business were roughly flat.
- Revenue$2.6B
- Cost of revenue−$1.5B
- Research and development−$67.6M
- Selling, general and administrative−$660.7M
- Operating income$342.2M
Competitive position
Element Solutions competes on quality, technology, performance, reliability, brand, service, product range and technical support. Its markets change with technology, and competitors range from global companies to regional businesses and smaller specialists.
In Electronics, the company identifies MKS Instruments, Qnity Electronics, Inc., Henkel Corporation, Senju Metal Industry Co. and Uyemura International as its most significant competitors. In Specialties, it identifies MKS Instruments, Quaker Houghton and Castrol. Competition varies by end market and geography, and some competitors may have greater financial, technical or marketing resources.
Element Solutions works with customers and OEMs to develop formulations for particular manufacturing requirements. It also provides technical support and testing, and seeks qualifications and specifications in customers’ supply chains. The company says operational risks and switching costs can make changing suppliers difficult.
Our reading: Customer-specific formulations, qualifications and service provide a meaningful source of protection because replacing a product can involve disruption to a manufacturing process. That protection depends on continued product performance and customer needs.
The company maintains patents, trade secrets and other intellectual property, as well as proprietary products not covered by patents. It also offers products across circuit formation and assembly.
Our reading: Intellectual property and the breadth of the electronics offering support its competitive position, but neither eliminates competition from specialists or larger businesses. Technical service and continued development remain important alongside those assets.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| MKS Instruments | Electronics materials and specialty chemicals | High |
| Qnity Electronics, Inc. | Electronics materials | Medium |
| Henkel Corporation | Electronics materials | Medium |
| Senju Metal Industry Co. | Electronics materials | Medium |
| Uyemura International | Electronics materials | Medium |
| Quaker Houghton | Specialty chemicals | Medium |
| Castrol | Specialty chemicals | Medium |
Growth opportunities
Element Solutions expects product innovation and extensions to support sales growth in existing and new markets. In Electronics, it expects growth from greater use of electronics across applications including automobiles, communications and computing. The company also expects advanced packaging demand to support Semiconductor Solutions as customers develop more complex devices.
In 2025, Electronics net sales increased on a reported and organic basis. Element Solutions attributed Circuitry Solutions’ organic growth in part to AI and data-center investment driving demand for metallization products. Specialties sales decreased on a reported basis but increased organically; divestitures reduced reported results.
The company is adding manufacturing capacity for engineered preforms and thermal interface products and building Electronics laboratory capacity in India and Southeast Asia. It is also investing in Kuprion ActiveCopper, a product for applications including thermal management and copper plating. Customers qualified ActiveCopper for high-volume manufacturing in the third quarter of 2026. Element Solutions expects multiple sites to supply customers in late 2027, early 2028.
Acquisitions are another part of the strategy. Element Solutions acquired EFC in January 2026 and Micromax in February 2026. Both contributed to adjusted EBITDA growth in the third quarter, and the company broke ground on a new Texas facility for EFC late in that quarter. Element Solutions and Solstice mutually terminated a proposed transaction at the end of August 2026.
For full-year 2026, Element Solutions raised its adjusted EBITDA guidance. That guidance assumes continued AI-driven electronics investment, normal seasonality and sequential acceleration in EFC performance.
- $2.4BFY2021
- $2.5BFY2022
- $2.3BFY2023
- $2.5BFY2024
- $2.6BFY2025
Structural risks
- Competition and technology: The company operates in competitive markets subject to rapid technological change. It may face pricing pressure, fewer orders, reduced margins or lost market share if it cannot compete successfully. Some competitors may have greater financial, technical and marketing resources.
- International exposure: Global operations expose Element Solutions to currency movements, trade barriers, tariffs, sanctions and political instability. Foreign operations can also make intellectual property protection, staffing and compliance more difficult.
- Demand and customer disruption: Industry and consumer trends can cause significant fluctuations in results. In the third quarter of 2026, an equipment failure at a large offshore customer reduced Energy Solutions sales; the customer’s site subsequently came back online.
- Raw materials and regulation: Manufacturing depends on timely supplies of raw materials. Changing metals prices affect results, while increasingly stringent safety, health and environmental requirements could bring additional costs, fines or penalties.
- Debt and financing: Significant indebtedness can require cash flow to be used for debt payments, reduce flexibility and expose the company to higher interest rates on variable-rate borrowings. Element Solutions had indebtedness outstanding at December 31, 2025.
- Intellectual property and systems: Failure to protect intellectual property could adversely affect the business. A significant information-technology disruption or unsuccessful implementation of new systems could also harm operations and financial condition.
Bottom line
Our reading
Element Solutions combines replenished manufacturing consumables with customer-specific formulations and technical service; its competitive position depends on maintaining those relationships as technologies change. Electronics is the larger business and is investing in capacity for advanced applications, while Specialties serves industrial and offshore markets with different demand drivers. Our reading is that growth opportunities from electronics investment and acquisitions sit alongside exposure to metal prices, international trade, customer demand and debt.