Elementis Navigates Weak Markets, Maintains Full-Year Guidance

Elementis PLC (LON: ELM), a global specialty chemicals company, released its third-quarter trading update, showcasing a resilient performance amidst ongoing market challenges.

The company reaffirmed its full-year financial performance guidance, aligning with market expectations, supported by its “Elevate Elementis” strategy.

Revenue for the quarter reached approximately $152 million, a 2% increase compared to the prior period. On a constant currency basis, revenue remained flat, reflecting the impact of a weaker dollar.

Adjusted operating profit improved year-over-year, driven by self-help initiatives and stringent cost-control measures. Year-to-date adjusted operating margins are consistent with the first half of the year.

Personal Care sales remained flat on a constant currency basis, with positive price and volume impacts offsetting the negative impact of product mix.

Coatings sales were also flat on a constant currency basis, with volume and mix weakness in the Americas partially offset by price improvements. The energy business continued its strong performance, with higher volumes, pricing, and mix compared to the previous year.

Elementis is on track to deliver $12 million in cost savings by the end of this year, completing the $30 million cost-saving program announced in November 2023. The company anticipates an additional $5 million in savings this year as it drives simplification and agility across the business. This contributes to the $10 million of additional savings to 2026 (net of additional R&D spend) announced in July as part of the Elevate Elementis strategy.

The company completed the sale of its disused manufacturing site at Eaglescliffe in the UK to Flacks Group on October 14, 2025, resulting in a cash outflow of approximately $11 million. This follows the UK Environment Agency's consent to transfer all operating permits to the buyer. The sale completes the Group's exit from the Eaglescliffe site and removes approximately $20 million in environmental liabilities from the balance sheet.

Several changes to the board were announced. John O'Higgins will step down as Chair and NED immediately following the AGM on April 29, 2026. Heejae Chae will be stepping down as NED at the end of this year. Ralph Hewins, CFO, will be retiring from the company at the end of 2025, and Kath Kearney-Croft will succeed him, joining as CFO designate on November 3, 2025, and becoming CFO and a member of the Elementis Board on January 1, 2026.

CEO Luc van Ravenstein stated, “I am pleased to report that we have delivered a resilient third quarter performance, despite the continued softness in the coatings markets, demonstrating the strength and quality of our business and our commitment to delivering outstanding value for our customers.

“While revenue was broadly stable on the prior year period, our margins remain healthy due to the benefits of our proactive operational efficiency initiatives as we create a simpler, leaner Elementis. With market demand in coatings likely to remain soft, we remain focused on executing our Elevate Elementis strategy – designed to accelerate sustainable growth and deliver attractive returns.”

Based on company compiled consensus dated 28 October 2025, the mean adjusted operating profit for the year ended 31 December 2025 is $125m (range $123-127m).