**Summary of Elementis PLC Preliminary Results for the Year Ended 31 December 2025**
**Financial Performance**
**Resilient Results** Elementis PLC reported a resilient financial performance for 2025, with revenue slightly down to $597.5 million (from $603.8 million in 2024) but strong growth in adjusted operating profit to $126.7 million (up 6.3% from $119.2 million in 2024). The adjusted operating margin improved to 21.2% from 19.7%.
**Dividend Increase** The final proposed dividend increased to 3.0 cents per share, resulting in a full-year dividend of 4.3 cents per share, up 7.5%.
**Statutory Loss** A statutory loss of $45.5 million was reported, primarily due to a $110.5 million loss on the sale of the Talc business in H1 2025.
**Net Debt** Net debt stood at $185.4 million, with a net debt to EBITDA ratio of 1.3x.
**Strategic Progress**
**Elevate Elementis Strategy** The company made significant progress in its Elevate Elementis growth strategy, focusing on innovation, acquisitions, and operational efficiency.
**Acquisition of Alchemy** Acquired Alchemy for $22 million, enhancing its position in the fast-growing natural skincare and cosmetics markets.
**Capacity Expansion** Debottlenecking actions at the St. Louis plant led to a 20% increase in capacity utilization since H1 2025.
**Cost Savings** Delivered $18 million in cost savings in 2025 and is on track to deliver the remaining $4 million in 2026, as part of a $10 million additional cost savings program.
**Sale of Pharmaceutical Business** Agreed to sell its pharmaceutical manufacturing business to Associated British Foods for approximately $40 million, expected to complete in Q2 2026.
**Segment Performance**
**Personal Care** Revenue increased by 3.3% to $224.5 million, with a 2.4% increase on a constant currency basis. Adjusted operating profit rose by 18.2% to $72.8 million, driven by higher pricing and cost savings.
**Coatings** Revenue declined by 3.5% to $373.0 million, with a 4.3% decrease on a constant currency basis, due to soft demand. Adjusted operating profit decreased by 10.2% to $70.4 million, with a resilient margin of 18.9%.
**Innovation and Sustainability**
**Innovation Revenue** Increased by 200 basis points to 16.4%, with a target to reach 20% over the medium term.
**Sustainability Initiatives** Made progress in reducing greenhouse gas emissions, expanding low-carbon electricity usage, and launching sustainable products like biodegradable antiperspirant and deodorant actives.
**Outlook**
**Challenging Environment** The company remains mindful of the soft demand environment for coatings and geopolitical uncertainties but is confident in delivering another year of progress.
**Strategic Focus** Priorities include accelerating innovation, expanding customer relationships, driving operational efficiency, advancing sustainability, and delivering attractive returns to shareholders.
**CEO Commentary**
**Luc van Ravenstein, CEO** Highlighted the companys resilient performance, progress in the Elevate Elementis strategy, and the strategic sale of the pharmaceutical business. Emphasized the focus on innovation, customer relationships, and sustainability to drive long-term value.
**Conclusion**
Elementis PLC demonstrated resilience in 2025 despite challenging market conditions, with strong profitability and strategic advancements. The company is well-positioned to capitalize on growth opportunities in its core markets and adjacent areas, supported by its Elevate Elementis strategy and commitment to sustainability.
| Metric | 2025 ($m) | 2024 ($m) | Change (%) |
|---|---|---|---|
| Revenue | 597.5 | 603.8 | (1.0%) |
| Adjusted Operating Profit | 126.7 | 119.2 | 6.3% |
| Net Debt | 185.4 | 157.2 | 17.9% |
| Net Debt to EBITDA | 1.3 | 1.1 | 18.2% |
| Personal Care Revenue | 224.5 | 217.4 | 3.3% |
| Coatings Revenue | 373.0 | 386.4 | (3.5%) |
| Operating Profit Margin (%) | 21.2% | 19.7% | 150 bps |
| Diluted Earnings per Share (cents) | 13.7 | 12.0 | 14.2% |
| Ordinary Dividend per Share (cents) | 4.3 | 4.0 | 7.5% |