Elementis H1 Earnings Call Highlights

Elementis H1 Earnings Call Highlights Written by MarketBeat July 30, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Elementis LON: ELM reported higher first-half revenue, profit and margins as the specialty chemicals company advanced its Elevate Elementis strategy, while management said it remains confident of meeting full-year 2026 expectations despite mixed market conditions. Chief Executive Officer Luc van Ravenstein said organic constant-currency revenue rose 5% in the first half, while profit increased 16% and adjusted operating margins reached 23%. The company also completed the sale of its pharmaceutical manufacturing business in June, acquired skincare business Alchemy, and began a share buyback program. “We now have the right portfolio,” van Ravenstein said, describing Elementis as a pure-play specialty chemicals company focused on additives, rheology, Hectorite and formulation expertise for coatings and personal care markets. Revenue and Profit Growth Chief Financial Officer Kath Kearney-Croft said reported group revenue increased 9.4% to $318.2 million, including a favorable foreign-exchange contribution of about $9.8 million and a $3.5 million contribution from Alchemy. On an organic constant-currency basis, revenue rose 4.7%. Volume growth contributed $16 million of revenue, led by coatings demand in Asia and EMEA. That growth was partly offset by weaker conditions in North America, where construction activity remained soft. Personal care growth in the Americas was also affected by isolated weak demand during the first quarter. Pricing added $6.8 million across the company’s businesses, as Elementis responded to inflationary effects associated with the Middle East war. However, mix reduced revenue by $8.7 million, largely in coatings. Kearney-Croft said the company’s local-for-local strategy supported volumes, profits and margins, but lower local pricing in certain markets created pressure on reported revenue mix. Adjusted operating profit rose 16.4% to $73.2 million. Higher volumes generated $6.4 million of profit contribution, equivalent to 40% drop-through, while the overall price-and-mix effect was broadly neutral after pricing offset inflation-related costs. Adjusted operating margin improved by 140 basis points to 23%. Adjusted earnings per share increased 28.8% to $0.085, supported by profit growth, lower net finance costs and a reduced share count following prior and current buybacks. Segment Performance Personal care revenue increased 2.9% organically at constant currency to $109.2 million. The company cited strong cosmetics growth, particularly in Asian skincare, and good performance in EMEA. North American growth was muted, while antiperspirant actives revenue was flat as higher volumes were offset by a lower-priced product mix. Personal care adjusted operating profit grew 3.1% organically at constant currency, and segment margin increased 30 basis points to 38.1%. The divestment of pharmaceutical manufacturing also improved the reported personal care margin by roughly 380 basis points compared with the prior year, Kearney-Croft said. Alchemy, acquired in November 2025, has been fully integrated and is on track for sustainable double-digit growth, according to the CFO. Coatings revenue rose 5.6% organically at constant currency to $209 million. Asia and EMEA delivered particularly strong growth, offsetting ongoing North American weakness tied to construction markets. Coatings adjusted operating profit increased 18.7% organically at constant currency to $43.2 million, while margin climbed 250 basis points to 20.7%. Van Ravenstein said growth in coatings reflected new applications as well as regional expansion. He pointed to CHARGUARD, a product designed to prevent burning cables from dripping, which generated $1.5 million of business in the first half. The company also cited demand in energy markets, aided by improvements at its St. Louis facility.