Element Solutions Inc (ESI)
Pretax margin
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 298,400 | 287,700 | 258,500 | 164,900 | 138,700 | 129,100 | 129,800 | 216,000 | 255,500 | 272,000 | 271,600 | 255,000 | 214,700 | 251,700 | 285,400 | 221,100 | 182,000 | 81,100 | 105,200 | 167,500 |
| Revenue (ttm) | US$ in thousands | 2,475,600 | 2,456,900 | 2,406,100 | 2,360,400 | 2,333,800 | 2,333,200 | 2,333,600 | 2,352,800 | 2,443,600 | 2,549,400 | 2,622,500 | 2,620,200 | 2,529,900 | 2,399,800 | 2,289,500 | 2,150,800 | 1,951,200 | 1,853,700 | 1,771,800 | 1,759,000 |
| Pretax margin | 12.05% | 11.71% | 10.74% | 6.99% | 5.94% | 5.53% | 5.56% | 9.18% | 10.46% | 10.67% | 10.36% | 9.73% | 8.49% | 10.49% | 12.47% | 10.28% | 9.33% | 4.38% | 5.94% | 9.52% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $298,400K ÷ $2,475,600K
= 12.05%
The pretax margin of Element Solutions Inc. exhibits notable fluctuations over the observed period, reflecting changes in the company's profitability before income taxes. Beginning at 9.52% as of June 30, 2020, the margin declined significantly to 5.94% by September 30, 2020, and further diminished to 4.38% at the end of 2020, indicating challenges in maintaining profitability during this interval.
Throughout 2021, the pretax margin demonstrated an overall upward trend, rising to 9.33% in March, then improving markedly to 10.28% in June, and peaking at 12.47% in September. This improvement suggests a period of enhanced operational efficiency or favorable market conditions. The margin stabilized slightly at 10.49% in December 2021.
In 2022, the margin experienced modest fluctuations, with a decrease to 8.49% in March followed by an incremental increase to 9.73% in June, and further to 10.36% in September and 10.67% in December, indicating relative stability with slight positive momentum. During 2023, the pretax margin remained relatively stable around 10%, with minor decreases to 9.18% by June, then declining more significantly to 5.56% and 5.53% at the end of September and December, respectively. This decline may reflect increased costs or other operational challenges.
The first half of 2024 shows signs of recovery, with the pretax margin rising to 5.94% in March, further improving to 6.99% in June. The most recent figures indicate a notable increase to 10.74% in September 2024 and an upward trend continuing to 11.71% in December, culminating in 12.05% by March 2025. This recent upward trajectory suggests a recovery in profitability margins, potentially driven by operational improvements or favorable market conditions.
Overall, the pretax margin has experienced periods of volatility but shows a tendency towards stabilization and recent improvement after periods of decline. The company's ability to sustain and enhance this margin in the future will likely depend on its capacity to manage operational costs and leverage favorable market dynamics.
Peer comparison
Mar 31, 2025