Element Solutions: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 22, 2026, Element Solutions (NYSE:ESI) reported record quarterly revenue and raised its full-year financial outlook. The specialty chemical producer continues to gain momentum as it embeds its thermal management and electronic assembly products into artificial intelligence hardware supply chains.

Three key takeaways from management stand out for long-term investors.

1. Shareholder Feedback Prompted Management to Terminate the Solstice Acquisition

Element Solutions terminated its proposed combination with Solstice at the end of August after shareholders voiced a preference for the company's stand-alone growth plan. Leadership listened to investor input and redirected its focus toward organic growth and targeted bolt-on M&A--the strategy of buying smaller chemical providers to integrate into existing operations.

While we stand behind the strategic and financial merits of the Solstice transaction, it became clear that our shareholders valued the stand-alone trajectory that we articulated in our May investor day.
-- Ben Gliklich, Chief Executive Officer

2. Artificial Intelligence Infrastructure Buildouts Are Accelerating Organic Growth

Rapid expansion in artificial intelligence data centers is generating high demand for complex circuitry and thermal interface materials. Industry forecasts for printed circuit board--or PCB--volume growth in 2026 increased from 6% to over 10%, with high-performance computing driving the uptick.

Technical requirements in data center hardware and other high-performance electronics continue to increase, which has driven our offering of critical enabling solutions across thermal management, power density, and advanced packaging applications, to name a few.
-- Ben Gliklich, Chief Executive Officer

3. Operations Are Decentralizing to Move Faster for Key Customers

To match the fast pace of customer development cycles in data centers, the company is decentralizing its Electronics segment into smaller, more autonomous business units. Executive Matt Liebowitz moved into the Chief Operating Officer role to help manage these independent business units while keeping them under the unified MacDermid Alpha brand.

In that context, we're evolving our organizational structure in the electronic segment to further decentralize by forming more autonomous business units aligned with our customers, all of which will still operate under the strong MacDermid Alpha brand.
-- Ben Gliklich, Chief Executive Officer

Looking Ahead

Data center demand drives growth in high-margin lines, where dominant market positions provide a lasting structural advantage.

Underlying demand in the high-end electronics market remains strong, and the incumbent positions we've established in the fastest-growing, highest-value niches of these markets should continue to serve us well.
-- Ben Gliklich, Chief Executive Officer

Management raised full-year guidance to $720 million while lowering net leverage. Cash flow supports share repurchases alongside factory expansions in Asia and Texas.

Each of our businesses has identified opportunities and built strategies to deliver substantial profit growth through investments in people and capabilities over a multi-year timeframe.
-- Ben Gliklich, Chief Executive Officer

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