Element Solutions Inc. reported a significant increase in its financial performance for the fiscal year ended December 31, 2024, achieving net sales of $2.46 billion, a 5% increase from $2.33 billion in 2023. The company's gross profit rose to $1.04 billion, reflecting a 13% increase year-over-year, with a gross margin improvement to 42.2% from 39.4%. Operating profit nearly doubled to $343.9 million, resulting in an operating margin of 14.0%, up from 7.4% in the previous year. Net income surged to $244.5 million, compared to $118.2 million in 2023, marking a notable recovery in profitability.
The company experienced various operational changes, including the acquisition of Kuprion, Inc. in May 2023, which contributed to its revenue growth. Additionally, Element Solutions announced the pending sale of its flexographic printing plate business, MacDermid Graphics Solutions, for approximately $325 million, expected to close in the first quarter of 2025. This strategic divestiture is part of the company's ongoing efforts to optimize its portfolio and focus on higher-margin segments. The Electronics segment, which accounted for 64% of total sales, saw a 10% increase in net sales, driven by strong demand in the semiconductor and circuitry solutions markets.
In terms of operational metrics, Element Solutions reported a total employee headcount of over 5,300, with approximately 40% engaged in research and development. The company also emphasized its commitment to sustainability and innovation, with research and development expenses totaling $63 million in 2024. The company’s focus on customer-driven innovation and operational excellence is expected to continue driving growth in both existing and new markets.
Looking ahead, Element Solutions anticipates continued growth, supported by its strategic initiatives and market positioning. The company expects to maintain a strong cash flow, with projected capital expenditures of approximately $65 million for 2025. The management remains optimistic about leveraging its acquisitions and divestitures to enhance shareholder value while navigating potential challenges posed by global economic conditions and market dynamics.
About Element Solutions Inc
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