Elementis (LON:ELM) Issues Quarterly Earnings Results

Elementis (LON:ELM) posted its quarterly earnings results on Thursday. The company reported GBX 8.60 EPS for the quarter, Digital Look Earnings reports. Elementis had a net margin of 12.16% and a return on equity of 11.26%.

Here are the key takeaways from Elementis’ conference call:

• Strong H1 performance: Organic constant-currency revenue rose 4.7% to $318.2 million, adjusted operating profit increased 16.4% to $73.2 million, and margins expanded 140 basis points to 23%. Adjusted EPS rose 28.8% to $0.085.
• Management remains confident of meeting its full-year 2026 expectations, citing a solid Q3 order book despite uncertain macroeconomic conditions. Coatings led growth at 5.6%, supported by Asia, EMEA, new applications, and improved St. Louis operations.
• The portfolio transformation advanced through the pharma sale, an ongoing share buyback, and the acquisition of Alchemy, which is performing well and tracking toward sustainable double-digit growth. Hectorite now represents roughly one-third of sales, with management targeting double-digit through-cycle growth and highlighting applications such as skincare and PFAS removal.
• The company expects margins to moderate in the second half because of normal seasonality, with H2 margins expected to be broadly similar to last year. North American demand remains weak, while first-half operating cash flow fell to $29.8 million from $41.3 million due to working-capital investment, higher taxes, and capital spending.

Elementis Price Performance

Shares of ELM opened at GBX 177.20 on Friday. Elementis has a twelve month low of GBX 136 and a twelve month high of GBX 184. The firm’s fifty day simple moving average is GBX 157.90 and its 200-day simple moving average is GBX 157.64. The firm has a market capitalization of £1.01 billion, a price-to-earnings ratio of -22.72, a PEG ratio of 3.05 and a beta of 0.92. The company has a current ratio of 2.27, a quick ratio of 1.16 and a debt-to-equity ratio of 39.71.

Analyst Upgrades and Downgrades

ELM has been the topic of several analyst reports. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 210 price objective on shares of Elementis in a research note on Thursday. Deutsche Bank Aktiengesellschaft boosted their target price on Elementis from GBX 200 to GBX 215 and gave the stock a “buy” rating in a research note on Friday. Finally, Berenberg Bank upped their price target on Elementis from GBX 195 to GBX 220 and gave the stock a “buy” rating in a report on Friday. Four equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Elementis currently has a consensus rating of “Moderate Buy” and a consensus target price of GBX 208.75.

Elementis announced that its Board of Directors has approved a share buyback plan on Wednesday, June 3rd that permits the company to repurchase 0 outstanding shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Shares repurchase plans are generally an indication that the company’s management believes its stock is undervalued.

Key Stories Impacting Elementis

Here are the key news stories impacting Elementis this week:

• Positive Sentiment: £25 million buyback announced: Elementis plans to repurchase up to £25 million of its shares. The program could support earnings per share and provide additional demand for the stock, signaling management’s confidence in the company’s valuation and cash-generation prospects. Elementis launches £25mn buyback
• Positive Sentiment: First-half performance exceeded expectations: Elementis reported strong first-half 2026 results, including revenue of approximately $318.2 million. Coverage of the earnings call highlighted robust growth and results ahead of analyst expectations, improving confidence in the company’s operating momentum. Elementis Delivers Strong First-Half Performance with Results Ahead of Expectations
• Positive Sentiment: Analysts raised targets and reiterated buy ratings: Berenberg lifted its price target from 195p to 220p, while Deutsche Bank raised its target from 200p to 215p; both now rate the shares “buy.” Jefferies also reaffirmed its buy recommendation with a 210p target. The upgrades indicate that brokers see further upside following the results. Broker views on Elementis
• Neutral Sentiment: Elementis reported quarterly EPS of 8.60p, but its reported net margin and return on equity remained negative. Investors may therefore focus on whether the improved first-half trading can translate into sustained profitability and stronger shareholder returns. Elementis quarterly earnings report

Elementis Company Profile

Elementis is a global specialty chemicals company listed on the London Stock Exchange. The Group employs c.1,000 across 20 global locations. As recognised innovation leaders with deep expertise in rheology (the science of flow), and formulation solutions, we develop distinctive solutions and products to improve performance, achieve smoother production, and enhance sustainability credentials for customers across a range of industries. The Group also owns and operates the largest high-quality hectorite mine in the world.