MIAMI – Element Solutions reported electronics fourth quarter net sales increased 16% year-over-year to $400 million. Organic net sales increased 1%.

Electronics adjusted EBITDA was $80 million, a decrease of 1% compared to the fourth quarter of 2020. On a constant currency basis, adjusted EBITDA decreased 2%.

Total net sales for the fourth quarter were $647 million, up 21% year-over-year. Organic net sales, which exclude the impact of currency changes, certain pass-through metal prices and acquisitions, increased 2%.

Total net income was $6 million, down 80% year-over-year. Adjusted EBITDA was $122 million, a decrease of 3%. On a constant currency basis, adjusted EBITDA decreased 2%.

For full-year 2021, electronics net sales increased 31% to $1.53 billion. Organic net sales increased 13%.

Adjusted EBITDA for the electronics segment was $355 million, up 28% year-over-year. On a constant currency basis, adjusted EBITDA increased 23%.

Element Solutions reported total 2021 net sales on a reported basis were $2.40 billion, up 29% compared to 2020. Organic net sales increased 13%. Net income was $203 million, growth of 163.6%. Adjusted EBITDA was $525 million, an increase of 24%. On a constant currency basis, adjusted EBITDA increased 20%.

“Element Solutions had a record year in 2021, with strong growth in sales, adjusted EBITDA, adjusted EPS and free cash flow,” said president and CEO Benjamin Gliklich. “In this unusual macro backdrop of both record demand and significant disruptions in raw material supply, logistics and labor, our organization continues to execute at a high level. Our results are a testament to the dedication of our exceptional global team, as well as our culture of embracing challenges and delivering on our commitments. In 2021, we were also pleased to deploy a significant amount of capital strategically with high expected returns. We believe the acquisitions of Coventya and HK Wentworth will improve our growth rate in our core markets and attractive adjacencies.

“The acceleration in high-end electronics markets that began in 2020 continued in 2021 and shows no indication of slowing in 2022. Expansion in 5G infrastructure and the mobile technologies associated with its rollout, increasing production of electric vehicles, and the rising demand for semiconductors in a variety of applications are all trends we expect to contribute to our growth for many years to come. At the same time, low auto inventories and strong underlying demand suggest medium-term cyclical tailwinds for our more industrially oriented businesses when supply chains normalize in 2022 and beyond. For the full year 2022, we expect solid organic growth and the contribution from Coventya's synergies to generate adjusted EBITDA of between $575 million and $590 million, a constant currency increase of 13% to 16%. Our expectation for full-year 2022 free cash flow generation of between $310 million and $325 million would set another record, providing continued opportunities for the balanced, high-returning capital allocation we have demonstrated over the last three years.”

For 2022, the company expects adjusted EBITDA in the range of $575 million to $590 million and free cash flow in the range of $310 million to $325 million.

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