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Enabling Technology. Growing Sustainably. Second Quarter 2026 Earnings Presentation
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2 Legal Notices SAFE HARBOR Please note that in this presentation, we may discuss events or results that have not yet occurred or been realized, commonly referred to as forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by or on behalf of the Company. Such discussion and statements will often contain words such as “expect,” “anticipate,” “project,” “will,” “should,” “believe,” “intend,” “plan,” “assume,” “estimate,” “predict,” “seek,” “continue,” “outlook,” “may,” “might,” "aim," “can have,” “likely,” “potential,” “target,” “hope,” “goal,” "priority,” “guidance” or "confident" and variations of such words and similar expressions, and relate in this presentation, without limitation to the Company's investments; customer innovation; expected benefits of recent acquisitions; metals prices volatility; free cash flow generation; capital deployment; profitability; market trends; conditions and demand expectations; third quarter and full year 2026 guidance for adjusted EBITDA; full year 2026 guidance for adjusted EPS growth; full year 2026 cash flow uses outlook, including cash interest, cash taxes and net capex; expected year end leverage ratio; and expected full year 2026 FX tailwinds. These projections and statements reflect management's estimates, assumptions and expectations with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Such projections and statements are based on the assessment of information available as of the current date, and the Company does not undertake any obligations to provide any further updates. Actual results could differ materially from those expressed or implied in the forward-looking statements if one or more of the underlying estimates, assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the war in Ukraine, the Iran conflict and other hostilities in the Middle-East as well as actions in response thereto and their impact on market conditions and the global economy; increases in tariffs and/or imposition of new tariffs and other changes in trade policy in the U.S. and other countries, and other economic factors that may affect cost structure and demand, including the cost and availability of raw materials and precious metals; capital requirements and need for and availability of financing; the impact of government regulations on our ability to conduct operations; the impact of hedging activities; the impact of tax planning strategies; the impact of changes to privacy, cybersecurity, environmental, global trade, tax and other governmental regulations; impairments, including those on goodwill and other intangible assets; price volatility and cost environment; inflation and fluctuations in foreign exchange rates; the Company's liquidity, cash flows and capital allocation; funding sources; capital expenditures; outstanding debt and debt leverage ratio; shares repurchases; debt and/or equity issuance, repayments or retirement; expected returns to stockholders; and the impact of acquisitions, divestitures, restructurings, refinancings, impairments and other unusual items, including the Company's ability to integrate and obtain the anticipated benefits, results and synergies from these items or other related strategic initiatives. Additional information concerning these and other factors that could cause actual results to vary is, or will be, included in the Company's periodic and other reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward- looking statements, whether as a result of new information, future events or otherwise. This data is provided for informational purposes only and is not necessarily, and should not be assumed to be, an indication of the results that may be achieved in the future. NON-GAAP FINANCIAL MEASURES To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), the Company presents in this presentation the following non-GAAP financial measures: EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS, adjusted common shares outstanding, free cash flow, net debt to adjusted EBITDA ratio, pro forma net debt to adjusted EBITDA ratio, third quarter 2026 guidance for adjusted EBITDA, and full year 2026 guidance for adjusted EBITDA, adjusted EPS growth and free cash flow uses. The Company also evaluates and presents its results of operations on a constant currency and organic basis. The definitions and reconciliations of these non-GAAP measures to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in the footnotes and appendix of this presentation and in the Company’s earnings release dated July 27, 2026 (the “Release”), a copy of which can be found on the Company’s website at www.elementsolutionsinc.com. This presentation should be read in conjunction with the Release. Management internally reviews these non-GAAP measures to evaluate performance and liquidity on a comparative period-to-period basis in terms of absolute performance, trends and expected future performance with respect to the Company’s business and believes that these non-GAAP measures provide investors with an additional perspective on trends and underlying operating results on a period-to-period comparable basis. The Company also believes that investors find this information helpful in understanding the ongoing performance of its operations as well as their ability to generate cash separate from items that may have a disproportionate positive or negative impact on its financial results in any particular period or that are considered to be associated with its capital structure. These non-GAAP financial measures, however, have limitations as analytical tools, and should not be considered in isolation from, a substitute for, or superior to, the related financial information that the Company reports in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements and may not be completely comparable to similarly titled measures of other companies due to potential differences in calculation methods. In addition, these measures are subject to inherent limitations as they reflect the exercise of judgment by management about which items are excluded or included in determining these non-GAAP financial measures. Investors are encouraged to review the definitions and reconciliations of these non-GAAP financial measures to their most comparable GAAP financial measures included herein and in the Release, and not to rely on any single financial measure to evaluate the Company’s businesses. The Company provides third quarter and full year 2026 financial guidance with respect to adjusted EBITDA and full year 2026 guidance with respect to adjusted EPS growth and free cash flow uses only on a non- GAAP basis. Reconciliations of such forward-looking non-GAAP measures to GAAP are excluded in reliance upon the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K due to the inherent difficulty in forecasting and quantifying, without unreasonable efforts, certain amounts that are necessary for such reconciliations, including adjustments that could be made for restructurings, refinancings, impairments, divestitures, integration and acquisition related expenses, share-based compensation amounts, non-recurring, unusual or unanticipated charges, expenses or gains, adjustments to inventory and other charges reflected in its reconciliation of historic numbers, the amount of which, based on historical experience, could be significant.
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3 Note: Totals may not sum due to rounding or due to varying sizes of the two reportable segments * These financial measures, on this slide and subsequent slides, are not prepared in accordance with GAAP. For definitions, d iscussions of adjustments and reconciliations, please refer to the footnotes and appendix of this presentation Constant Currency* Organic* ($ in millions) Q2 2026 Q2 2025 YoY YoY YoY Net Sales $978 $625 56% 55% 15% Electronics 767 439 75% 74% 20% Specialties 211 186 14% 12% 3% Diluted EPS $0.32 $0.20 Adjusted EBITDA* $184 $136 35% 33% Net Sales ex-Metals 661 512 % margin 27.8% 26.6% 120 bps Electronics 142 97 47% 44% % margin 31.5% 29.6% 190 bps Specialties 42 40 7% 4% % margin 19.9% 21.2% (130) bps Adjusted EPS* $0.47 $0.37 27% • Record quarterly revenue, adjusted EBITDA* and adjusted EPS* • Organic net sales* increased 15% year-over-year led by Electronics organic growth* of 20% • Solid double digit growth across all Electronics businesses led by Semiconductor organic growth* of 31% • Adjusted EBITDA margin* increased 120 bps to 28% driven by positive product mix in Electronics • Electronics Adjusted EBITDA margin* of over 31% • Adjusted EPS* increase of 27% Second Quarter 2026 Financial Results
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4 Second Quarter 2026 Segment Details Electronics Specialties Note: Totals may not sum due to rounding *See non-GAAP definitions and reconciliations in the appendix Net Sales ($ in millions) Organic Growth* Key Drivers Assembly $369 18% Increased volume of high reliability paste across electronics manufacturing and engineered products for datacenter applications Circuitry $154 15% AI-related demand for high layer count server board Semiconductor $115 31% Increased wafer plating chemistry sales to OSATs, strong power electronics sales, and precious metals price inflation Micromax $129 — Volume growth and pricing across electronics ecosystem (excluded from organic calc.) Total $767 20% Net Sales ($ in millions) Organic Growth* Key Drivers Industrial $172 3% Raw material surcharges and improved European volume Energy $23 1% Robust market partially offset by project timing dynamics and impact from Iran conflict EFC $16 — Strength in electronics, satellite and electrical infrastructure (excluded from organic calc.) Total $211 3%
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5 Q2 2026 Capital Structure Instrument (in millions) Corporate Revolver $50 Term Loans 1,283 Total First Lien Debt 1,333 Senior Notes due 2028 800 Total Debt $2,133 Cash Balance 190 Net Debt $1,943 Adjusted Shares Outstanding1* 247 Market Capitalization2 $11,804 Total Capitalization $13,747 $ millions YTD 2026 FY 2026 Cash Interest $45 ~$90 Cash Taxes $45 ~$110 Net Capex $53 ~$100 Note: Totals may not sum due to rounding * See non-GAAP definitions and reconciliations in the appendix 1. See p.8 for reconciliation to Adjusted Share Counts 2. Based on Element Solutions’ closing stock price of $47.75 at June 30, 2026 Key Cash Flow Items Balance Sheet Management Q2 2026 Cash Flow Uses and FY 2026 Outlook ▪ Q2 2026 free cash flow* of $74 million ◦ Modest working capital investment tied to sales growth, while demonstrating sequential improvement in inventory days ◦ Expect strong free cash flow* generation in 2H assuming stable metals prices ▪ Q2 2026 capex of $28 million ◦ Expect full year capex to be ~$100 million driven by capacity addition in certain high-value product areas (Kuprion, thermal interface materials) ▪ Pro Forma Net debt to adjusted EBITDA ratio of 2.9x (including Micromax and EFC) on an LTM basis as of June 30, 2026 • Expect to reduce leverage ratio by roughly half of a turn by year end 2026, assuming no further capital deployment ▪ Paid $20 million in cash dividends in Q2 2026 Balance Sheet and Cash Flow Considerations
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6 Full Year 2026 Financial Guidance Updated as of July 2026 FY Adjusted EPS* ~20% YoY Growth Additional Considerations $690 million to $710 million1FY Adjusted EBITDA* * See non-GAAP definitions and reconciliations in the appendix 1. Based on FX rates and metal prices as of June 30, 2026 and inclusive of expected contributions from Micromax and EFC on a full year basis Expect strong momentum to carry through year end ▪ Expect Q3 Adjusted EBITDA* of approximately $180 million ▪ Continue to expect modest FX tailwind for FY2026
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Enabling Technology. Growing Sustainably. Appendix
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8 (amounts in millions) Q2 2026 Q2 2025 Basic common shares outstanding 244 242 Number of shares issuable upon vesting of granted Equity Awards1 4 2 Adjusted common shares outstanding 247 244 Note: Totals may not sum due to rounding 1. Equity awards with targets that are considered probable of achievement vested at target level. Reconciliation to Adjusted Share Count
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9 Net Income Reconciliation to Adjusted EBITDA ($ millions) Q2 2026 Q2 2025 Net income $77 $48 Add (subtract): Income tax expense 30 16 Interest expense, net 24 13 Depreciation expense 15 10 Amortization expense 30 29 EBITDA 176 114 Adjustments to reconcile to Adjusted EBITDA: Inventory step-up 2 — Restructuring expense 2 2 Acquisition, integration and transaction expenses 11 3 Foreign exchange (gains) losses on intercompany loans (8) 11 Loss on divestitures — 6 Unrealized gains on metals derivative contracts (8) (4) Change in fair value of EFC contingent consideration 3 — Other, net 5 4 Adjusted EBITDA 184 136 Net income margin % 7.9% 7.6% Adjusted EBITDA margin % 27.8% 26.6% Note: Totals may not sum due to rounding
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10 ($ millions, except per share amounts) Q2 2026 Q2 2025 Net income $77 $48 Net income attributable to non-controlling interests — (0) Reversal of amortization expense 30 29 Adjustment to reverse incremental depreciation expense from acquisitions and facility closures 1 0 Inventory step-up 2 — Restructuring expense 2 2 Acquisition, integration and transaction expense 11 3 Foreign exchange (gains) losses on intercompany loans (8) 11 Loss on divestitures — 6 Unrealized gains on metals derivative contracts (8) (4) Change in fair value of EFC contingent consideration 3 — Other, net 5 4 Tax effect of pre-tax non-GAAP adjustments (8) (10) Adjustment to estimated effective tax rate 8 3 Adjusted net income $116 $91 Adjusted earnings per share $0.47 $0.37 Adjusted common shares outstanding1 247 244 Note: Totals may not sum due to rounding 1. See p.8 for a reconciliation to Adjusted Share Counts. Net Income Reconciliation to Adjusted EPS
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11 Net Debt to Adjusted EBITDA Ratio Reconciliation on a Trailing Twelve Month Basis ($ millions) YTD 2026 Q3 2025 Q4 2025 LTM Q2 2026 Net income $133 $39 $6 $179 Add (subtract): Income tax expense 57 16 25 98 Interest expense, net 46 13 13 72 Depreciation expense 30 10 11 51 Amortization expense 58 29 26 112 EBITDA 323 107 81 511 Inventory step-up 5 — — 5 Restructuring expense 4 2 1 7 Acquisition, integration and transaction expense 31 11 12 54 Foreign exchange (gains) losses on intercompany loans (7) 12 — 5 Loss on divestitures — 7 1 8 Unrealized (gains) losses on metals derivative contracts (30) 6 3 (20) Change in fair value of contingent consideration 9 — — 9 2025 executive share grants — — 37 37 Other, net 11 2 1 13 Adjusted EBITDA $346 $147 $136 $629 Net Debt $1,943 Net Debt to Net Income Ratio 10.9x Net Debt to Adjusted EBITDA Ratio 3.1x Adjusted EBITDA including Micromax & EFC $669 Pro Forma Net Debt to Adjusted EBITDA Ratio* 2.9x Note: Totals may not sum due to rounding
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12 Organic Net Sales Growth Reconciliation Three Months Ended June 30, 2026 Reported Net Sales Growth Impact of Currency Constant Currency Change in Pass- Through Metals Pricing Acquisitions Organic Net Sales Growth Electronics 75% (1)% 74% (24)% (29)% 20% Specialties 14% (2)% 12% —% (9)% 3% Total 56% (1)% 55% (17)% (23)% 15% Note: Totals may not sum due to rounding or due to varying sizes of the two reportable segments
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13 ($ millions) Q2 2026 Q2 2025 Cash flows from operating activities $100 $73 Capital expenditures (28) (18) Proceeds from disposal of property, plant and equipment — 1 Adjustments 2 3 Free cash flow $74 $59 Note: Totals may not sum due to rounding Free Cash Flow Reconciliation
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14 Adjusted Earnings Per Share (EPS): Adjusted EPS is a key metric used by management to measure operating performance and trends as management believes the exclus ion of certain expenses in calculating adjusted EPS facilitates operating performance comparisons on a period -to-period basis. Adjusted EPS is defined as n et income adjusted to reflect adjustments consistent with the Company’s definition of adjusted EBITDA. Additionally, the Company eliminates amortization expense associated with intangible assets, i ncremental depreciation associated with the step-up of fixed assets and incremental cost of sales associated with the step-up of inventories recognized in purchase accounting for acquisitions. The res ulting adjusted net income is then divided by the Company's adjusted common shares outstanding. Adjusted common shares outstanding represent the shares outstanding as of the balance sheet date for the quarter-to-date period and an average of each quarter for the year-to-date period, plus the shares issuable upon exercise or vesting of all outstanding equity awards (assuming a performance achievement target level for equity awards with targets considered probable). The Company uses a non-GAAP effective tax rate of 20%, as described in the Release. This rate, which reflects the Co mpany's estimated long-term expectations for taxes to be paid on its adjusted non-GAAP earnings, is consistent with how management evaluates the Company's financial performance. The Company also b elieves that providing a fixed rate facilitates comparisons of business performance from period to period. This non -GAAP effective tax rate is lower than the average of the statutory tax rat es applicable to the Company's jurisdictional mix of earnings primarily because it reflects tax benefits derived from U.S. tax attribute carryforwards, which consist of operating losses and tax cre dits. Without taking into account these benefits and other similar adjustments, the Company projects its non-GAAP effective tax rate would be 25.8% based on its estimated results for the full year 2026. This rate would have resulted in a $0.06 reduction in Adjusted EPS for the six months ended June 30, 2026. Constant Currency: The Company discloses net sales and adjusted EBITDA on a constant currency basis by adjusting results to exclude the impact o f changes due to the translation of foreign currencies of its international locations into U.S. dollars. Management believes this non-GAAP financial information facilitates period-to-period comparison in the analysis of trends in business performance, thereby providing valuable supplemental information regarding its results of operations, consistent with how the Company internally e valuates its financial results. The impact of foreign currency translation is calculated by converting the Company's current -period local currency financial results into U.S. dollars using the prior period's exchange rates and comparing these adjusted amounts to its prior period reported results. The difference between actual growth rates and constant currenc y growth rates represents the estimated impact of foreign currency translation. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin: EBITDA represents earnings before interest, provision for income taxes, depreciation and amortization. Adjusted EBITDA is def ined as EBITDA, excluding the impact of additional items included in GAAP earnings which the Company believes are not representative or indicative of its ongoing business or are considered to be associated with its capital structure, as described in the Release. Adjusted EBITDA for each segment also includes an allocation of corp orate costs, such as compensation expense and professional fees. Adjusted EBITDA margin is defined as adjusted EBITDA divided by net sales excluding the value of certain pass -through metals in the Electronics segment. Adjusted EBITDA margin excludes the impact of certain pass-through metals in the Electronics segment as we believe the fluctuations in these metal prices do not reflect underlying op erating results. Management believes adjusted EBITDA and adjusted EBITDA margin provide investors with a more complete understanding of the long -term profitability trends of the Company’s busine ss and facilitate comparisons of its profitability to prior and future periods. However, these measures, which do not consider certain cash requirements, should not be construed as an alternative to net in come or cash flows from operations as a measure of profitability or liquidity. Net Debt to Net Income and Net Debt to Adjusted EBITDA Ratios: Net debt is a non-GAAP measure and is comprised of total debt (current installments of long -term debt, revolving credit facilities and long-term debt), excluding unamortized discounts and debt issuance costs, which totaled $13.6 million at June 30, 2026, less cash. For the non-GAAP reconciliation of Net debt, please refer to the "Q2 2026 Capital Structure" table on page 5. Net debt to net income ratio and net debt to adjusted EBITDA ratio is net debt divid ed by net income and adjusted EBITDA, respectively. Free Cash Flow: Free cash flow for the three and six months ended June 30, 2026 and 2025 is defined as net cash flows from operating activiti es less capital expenditures, plus (1) proceeds from the disposal of property, plant and equipment, (2) professional fees, non -recurring expenses and taxes paid in association with acqu isitions and divestitures and (3) non-recurring payments associated with a multi-year tax settlement in the first quarter of 2025. Management believes that this non -GAAP metric, which measures the Compa ny’s ability to generate cash from its business operations, is an important financial measure for evaluating the Company's liquidity. Free cash flow should be considered as an additional measure of li quidity to, rather than as a substitute for, net cash provided by operating activities. Organic Net Sales Growth: Organic net sales growth is defined as net sales excluding the impact of foreign currency translation, changes due to the pas s-through pricing of certain metals and acquisitions and/or divestitures, as applicable. Management believes this non -GAAP financial measure provides investors with a m ore complete understanding of the underlying net sales trends by providing comparable net sales over differing periods on a consistent basis. For the three months ended June 30, 2026, Electronics' consolidated results were positively impacted by $107 million of pass -through metals pricing and $129 million of acquisitions and Specialties’ consolidated results were positively impacted by $16.1 million of acquisitions. Non-GAAP Definitions