- Element Solutions (NYSE:ESI) is raising 4Q20 adjusted EBITDA guidance to ~$118M from $90M-$95M and ~415M for FY2020.
- The company expects free cash flow to grow Y/Y to greater than $240M and net debt to adjusted EBITDA ratio of ~3.0x.
- Adjusted EPS to grow mid-to-high single digits for the year vs. consensus decline of -1.24%.
- Chief Executive Officer Benjamin Gliklich said, “Two key factors are driving this year’s results. First is our highly-variable cost model, which has long been one of the hallmarks of our business. Our team has proven its ability to operate the model deftly. We have been able to manage cost effectively to preserve margin and sustain robust cash flows. Second and more notably, strong, secular growth dynamics are driving many of our end-markets, offsetting, if not benefitting from, COVID-19’s impact this year. Our business provides enabling technology and service to next generation communications infrastructure, mobile devices and electric vehicles. This should continue to be the case for years to come.”
- Shares up 1.6% premarket.