Elementis Q3 2025: Resilient trading, guidance intact, and a busy Boardroom
Elementis has posted a steady third quarter in tough markets and kept its full year guidance on track. Reported revenue came in at c.$152m, up c.2% year-on-year, with adjusted operating profit improving versus last year. On a constant currency basis – stripping out exchange rate movements – revenue was flat, highlighting the effect of a weaker dollar on reported numbers.
Management says full year performance should land in line with market expectations. For clarity, the company-compiled consensus for adjusted operating profit is $125m (range $123-127m).
Quick take: key numbers and messages investors need to know
| Metric | Q3 2025 Update |
|---|---|
| Revenue | c.$152m, up c.2% year-on-year |
| Revenue (constant currency) | Flat |
| Adjusted operating profit | Improved vs prior year (exact figure not disclosed) |
| Year-to-date adjusted operating margin | Consistent with H1 (not disclosed numerically) |
| 2025 consensus AOP | $125m (range $123-127m) |
| Cost savings 2025 | On track for $12m, completing $30m programme |
| Additional simplification savings | c.$5m this year, part of $10m to 2026 (net of extra R&D) |
| Eaglescliffe site exit | Completed, c.$11m cash outflow; c.$20m environmental liabilities removed |
What’s driving performance across Personal Care, Coatings and Energy
Personal Care was flat on a constant currency basis. Management cites positive price and volume, offset by a negative mix. Mix refers to the blend of products sold – if lower margin products make up more of sales, mix can drag on profitability even if volumes are healthy.
Coatings was also flat on a constant currency basis. Weakness in the Americas hurt volume and mix, though pricing helped to cushion the blow. The energy business continues to be the bright spot, with volumes, pricing and mix all better than last year.
Margins holding up thanks to “self-help” and cost control
Adjusted operating profit improved year-on-year despite broadly flat constant currency revenue, which points to one thing: self-help actions are working. Adjusted operating profit removes certain items like restructuring or one-offs to give a cleaner view of underlying performance.
The company says year-to-date adjusted operating margins are consistent with H1. While numbers are not disclosed, steady margins in a soft demand backdrop are a positive read-through for pricing discipline, procurement, and site efficiency.
Cost savings: $12m this year plus simplification benefits
Elementis remains on track to deliver $12m of savings by year-end, completing the $30m programme announced in November 2023. On top of that, the Elevate Elementis strategy is driving simplification and agility, with c.$5m of extra savings expected this year. These are part of the wider $10m of additional savings to 2026, net of extra R&D spend, as announced in July.
Why it matters: in a low-growth environment, cost and complexity reduction drops straight to the bottom line. The proof point is improved adjusted operating profit on flat constant currency sales.
Eaglescliffe exit: cash outflow now, liabilities off the balance sheet
The sale of the disused Eaglescliffe manufacturing site completed on 14 October 2025. It resulted in a cash outflow of c.$11m, following UK Environment Agency consent to transfer permits to the buyer. This transaction removes c.$20m of environmental liabilities from the balance sheet and completes the Group’s exit from the site.
My read: although cash moved out the door, the removal of legacy environmental obligations de-risks the balance sheet and reduces future drag. It is a tidy piece of housekeeping that aligns with the simplification narrative.
Guidance maintained: what “in line with expectations” means
Elementis expects to deliver full year results in line with market expectations. Per the company’s note, consensus adjusted operating profit for 2025 is $125m, within a $123-127m range. The delta between reported growth and constant currency flatness suggests FX gave a small revenue lift this quarter, but the underlying trend is stable rather than accelerating.
Management flags that coatings market demand is likely to remain soft. The focus is squarely on execution of the Elevate Elementis strategy to keep margins healthy and returns attractive.
Boardroom changes: orderly, but more moving parts than usual
Chair John O’Higgins will not seek re-election and will step down after the AGM on 29 April 2026. The company will outline the succession plan in due course. In addition, NED (non-executive director) Heejae Chae will step down at year-end as the Board resizes to fit the slimmer Group.
On the finance side, long-standing CFO Ralph Hewins retires at the end of 2025. His successor, Kath Kearney-Croft, joins as CFO designate on 3 November 2025 and becomes CFO on 1 January 2026. She brings senior finance experience from Learning Technologies Group, SIG, The Vitec Group, Rexam and BOC.
Perspective: that is a lot of transition, but the sequencing looks well planned. Having a CFO designate overlap and a defined Chair timeline should help maintain continuity.
The positives and watch-outs from this update
What looks good
- Guidance intact with clear consensus signpost at $125m adjusted operating profit.
- Adjusted operating profit up despite flat constant currency revenue – evidence that cost actions are landing.
- Energy business momentum in volumes, pricing and mix.
- Eaglescliffe exit removes c.$20m in environmental liabilities and closes a legacy chapter.
- Cost savings cadence is credible: $12m this year to complete the $30m programme, plus c.$5m extra from simplification.
What to keep an eye on
- Coatings demand in the Americas remains soft, with volume and mix under pressure.
- Personal Care held flat; sustaining price and mix will be key for margin resilience.
- FX tailwinds from a weaker dollar helped reported revenue – that support can reverse.
- Board and CFO transitions bring change risk, even if well managed.
Bottom line: steady hands in choppy markets
This is a clean, no-drama update. Elementis is executing on self-help, keeping margins stable, and clearing legacy liabilities while navigating soft coatings demand. Maintaining full year guidance, with a transparent consensus anchor, should reassure the market.
From here, delivery on the remaining cost savings, sustained strength in Energy, and any turn in Americas coatings volumes will be the swing factors. For now, resilience is the word – and that counts when growth is scarce.
