Q2 2024 Element Solutions Inc Earnings Call Transcript
Key Points
- Element Solutions Inc (ESI) reported a strong second quarter with adjusted EBITDA margins expanding by 250 basis points.
- The Electronics segment saw more than 10% volume growth in the Circuitry Solutions business, driven by demand from HVCAIEV and certain mobile markets.
- Adjusted EBITDA grew by over 20% year-over-year on a constant currency basis, with both segments growing by double digits.
- The company experienced robust incremental margins due to mix impacts and pricing stability amidst deflation in certain commodities.
- Energy Solutions business grew net sales by almost double digits at high incremental margins, contributing significantly to profitability.
- Soft demand for power electronics and electronics assembly materials, particularly from certain EV customers, moderated overall strength.
- Industrial and Specialty segments faced softer automotive demand in Europe and lower revenue from metal price surcharges.
- The smartphone market remains well below long-term average units, impacting overall electronics demand.
- The company anticipates lapping the benefits of lower raw materials and some supply chain actions in the second half, which may affect margins.
- Soft automotive demand in Europe continued from the first quarter, posing a headwind to growth in the Industrial and Specialty segments.
Please standby for live streaming.
Today at this time, and welcome everyone to Element Solutions Second Quarter 2024 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you'd like to ask a question during that time, simply press star followed by the number one on your telephone keypad. And if you'd like to withdraw that question again, press star one.
Thank you. I will now turn the conference over to Bernd and Jochen Senior Director of Strategy and Finance. You may begin.
Good morning, and thank you for participating in our second quarter 2024 earnings conference call. Joining me today are President and CEO, Ben Gliklich, and CFO, Kurt government. In accordance with Regulation FD, we are webcasting this conference call. A replay will be made available in the Investors section of the company's
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