Element Solutions Inc filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $3.49 billion, which rose 39.6% on the year before. That growth rate was up 13.0 percentage points on the rate a quarter earlier.

What stands out

Net income fell 14.4% over the year while free cash flow fell 32.2%. Reported profit and cash are moving at different speeds.

Capital spending rose 48.7%, faster than operating cash flow’s 16.0%. Less of the cash generated was left over.

Revenue grew 39.6% but the operating margin fell 2.2 percentage points. Sales are rising faster than profit.

Growth and profit

The trailing gross margin was 36.6%. The trailing operating margin was 11.7%, down 2.2 percentage points from a year earlier. The trailing net margin was 5.9%. Net income over the twelve months was $205.0 million, which fell 14.4% on the year before.

Cash flow

Operating cash flow over the twelve months was $283.3 million, down 16.0% on the year before. Capital spending was $100.4 million, or 2.9% of revenue. Free cash flow, operating cash flow less capital spending, was $182.9 million, down 32.2% on the year before. Free cash flow was 5.2% of revenue (the free-cash-flow margin), down 5.6 percentage points from a year earlier. The average diluted share count rose 0.4% over the year.

In context

Today’s free-cash-flow margin of 5.2% is higher than 30% of the company’s own past quarterly readings, which have ranged from −1.5% to 14.6%. Today’s operating margin of 11.7% is higher than 43% of the company’s own past quarterly readings, which have ranged from 0.6% to 15.9%. Today’s twelve-month revenue growth rate of 39.6% is higher than 88% of the company’s own past quarterly readings, which have ranged from −47.6% to 201.5%.

Guidance

The company raised its full year 2026 guidance for adjusted EBITDA: $720.0 million. The company gave its full year 2026 guidance for adjusted EPS growth: 20%.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 30.8%, and 5 percentage points higher would raise it by 39.4%. A free-cash-flow margin 1 percentage point lower would lower it by 24.7%.

What to watch

The next filing will show whether the gap between revenue growth and profit expansion continues to widen. It will also reveal if capital spending remains elevated relative to operating cash flow. Finally, it will indicate if the free-cash-flow margin stabilizes or declines further from its current level.