Elementis plc Overview
Elementis is a London-headquartered, US-dollar-reporting specialty chemicals company that, after a four-year portfolio clean-up, is now a pure-play supplier of rheology modifiers and performance additives to the personal care and coatings industries. Its strategic crown jewel is the hectorite clay mine at Newberry Springs, California, which the company has long described as the only high-quality, rheology-grade hectorite deposit in the world; hectorite-based products already account for c.50% of the Personal Care portfolio and c.20% of Coatings (H1 2026 RNS). Following the disposals of Chromium (January 2023), Talc (May 2025) and the pharmaceutical manufacturing business (June 2026), Elementis is a smaller (c.$590m LTM revenue, derived), higher-margin (23.0% adjusted operating margin in H1 2026) and less capital-intensive business. Management's "Elevate Elementis" strategy targets mid-single-digit organic growth, 23%+ margins, >90% three-year cash conversion and >30% ROCE (ex-goodwill), supported by innovation, direct customer coverage, cost savings and bolt-on M&A such as Alchemy (November 2025).
Company's own description. In its FY2025 and H1 2026 reporting, Elementis describes itself as a pure-play specialty chemicals business that develops high-performance additives, whose "winning differentiators" are its premium hectorite asset and its capabilities in rheology and formulation solutions. Its stated purpose is "unique chemistry, sustainable solutions", with values of Safety, Team, Respect, Solutions and Ambition (H1 2026 RNS). Rheology accounts for approximately 60% of Group revenue; the company cites a c.$4bn core personal care and coatings rheology market plus c.$4bn of new and adjacent addressable markets (FY2025 Preliminary Results).
What the company does. Elementis manufactures small-volume, high-value additives that control flow, texture, suspension, stability and application behaviour in its customers' formulations. These additives are typically a small share of a customer's bill of materials but are critical to performance (e.g., sag resistance in paint, even sunscreen film formation, suspension of actives in antiperspirant sticks), which supports pricing power — illustrated by $6.8m of price realised in H1 2026 against Middle East-driven input inflation (H1 2026 earnings call).
Business and revenue model.
Value-chain position. Elementis is a mid-stream specialty formulator: it mines hectorite (vertically integrated raw material), purchases commodity inputs (quaternary amines, aluminium compounds, oleochemicals, acrylics/polyurethane intermediates), and sells to formulators (paint and coatings manufacturers, cosmetics brands, AP/deodorant makers, drilling-fluid companies, adhesives and construction-chemicals producers). It does not sell to end consumers.
Customer types. Multinationals (global paint and beauty majors), distributors, fast-growing "Indie" beauty brands, and established regional/local champions (FY2025 Preliminary Results).
End-markets served.
Independent characterisation. Elementis is best understood as a niche "toll-gate" ingredient supplier with an unusual raw-material moat (hectorite) attached to a broader, more competitive organoclay/associative-thickener/additives portfolio. Personal Care is the profit engine (38.1% adjusted margin H1 2026); Coatings is the volume base (c.66% of H1 2026 revenue) with cyclical exposure to construction and industrial activity, now recovering margin (20.7% H1 2026). The company is sub-scale versus peers such as BYK (ALTANA), Croda or Ashland, which makes it simultaneously nimble and a recurrent takeover target (four approaches in 2020–21).
Strategy
Strategy: "Elevate Elementis" (launched July 2025). Three priorities (FY2025 Preliminary Results; H1 2026 RNS):
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Accelerate sustainable growth — leverage hectorite and rheology/formulation expertise. Levers: raise R&D from 2% to 3% of revenue; lift Innovation Revenue from 16.4% to 20%; double-digit growth in hectorite-based revenue; new use-cases (agrochemicals, fire retardants, household and industrial cleaning, LFP batteries); expand direct account coverage; new warehouses/labs in Southeast Asia and India; selective bolt-on M&A (e.g., Alchemy).
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First choice for customers — OTIF improvement (76% in 2024 → 83% end-2025 → 88% June 2026; c.20% upside to best-in-class); debottlenecking (St. Louis +c.20% utilisation); predictive maintenance; digital tools; customer-first culture.
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Simpler, leaner Elementis — $10m net savings programme (July 2025): $6m delivered 2025, $4m targeted 2026 ($6.5m cumulative by H1 2026); leadership simplification; follows $30m savings in 2024–2025 (Fit for the Future + supply chain).
Medium-term financial targets (July 2025) and status
Prior targets (2023 Capital Markets Day, for 2026) were delivered a year early in FY2025 following the Talc sale (FY2025 results).
Strategic initiatives register (last 24 months)
Capital allocation stance. Progressive dividend at c.30% payout; investment in organic growth (R&D to 3%); bolt-on M&A with balance sheet discipline; return of disposal proceeds to shareholders (both Talc and Pharma proceeds funded buybacks).
Products & Services
Pricing is not publicly disclosed for any product; all are sold B2B on negotiated or list-price terms.
Personal Care
| Product / brand | Description & capability | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| BENTONE® (hectorite and organoclay rheology modifiers, pure and blended gels) | Suspension, thickening and sensory enhancement for oil- and water-phase cosmetics | Colour cosmetics, skin care, AP formulators | Long-standing; continuously extended | Hectorite penetration of PC portfolio c.50% (H1 2026), up from c.40% (FY2025) |
| BENTONE® Gel GTCC V | Hectorite gel in caprylic/capric triglyceride | Sun care, colour cosmetics | Existing; selected as preferred ingredient in a new suncare launch (H1 2026) | Flagship win cited by CEO |
| BENTONE® ULTIMATE series (ISD, LC, plus high clay-load gels) | Patent-pending oil-based rheology technology on organically modified hectorite, 100% natural activation system | Natural/"clean" cosmetics | ISD and LC launched 2025; range expanded H1 2026 | — |
| BENTONE® LUXE DM | Cyclomethicone-free; combines rheology control, emulsification and sensory enhancement for water-in-oil and water-in-silicone systems | Colour cosmetics, foundations | H1 2026 | Reduces formulation complexity |
| BENTONE HYDROCLAY™ range | Natural thickeners replacing non-biodegradable polymers | Skin care | Existing; growth driver 2025 | — |
| NATURALUXE™ MFF | Biobased multifunctional film former and polymeric emollient; UV-filter compatible, water resistant | Sun care | Launched at In-Cosmetics Asia 2025 | Strong demand H1 2026 |
| DEOLUXE™ SC | Non-metal, biodegradable, clinically proven sweat-control active | AP/deodorant brands | Launched In-Cosmetics Global, April 2025 | Commercial sales expected H2 2026 |
| AP Actives (aluminium and aluminium-zirconium actives incl. low-carbon AP active) | High-efficacy antiperspirant actives (legacy SummitReheis portfolio) | Global AP/deodorant majors | Ongoing; Middletown, NY plant closed 2024 and sold April 2026; production at Huguenot, NY and Taloja, India | Brand names (historically "Reach", "Rezal") not re-verified |
| Alchemy — Sucragel® and Sapogel® | Natural oil-gelling systems replacing synthetic raw materials | Natural cosmetics and skin care | Acquired Nov 2025 | Double-digit growth expected 2026 |
| Alchemy — Clearthix® and Sclerothix® | Natural water-gelling rheology modifiers | Natural cosmetics and skin care | Acquired Nov 2025 | — |
| Pharmaceutical antacids and excipients | — | Pharma | Divested to ABF, 1 June 2026 | c.$35m FY2025 revenue |
Personal Care innovation KPIs (FY2025): seven new products (four hectorite-based); revenue from new and innovation products 22.2% (2024: 17.0%); new business pipeline $92m (2024: $89m).
Coatings
| Product / brand | Description & capability | Target customer | Launch / latest | Notes |
|---|---|---|---|---|
| RHEOLATE® NiSAT associative thickeners (incl. biobased grades) | Non-ionic synthetic associative thickeners for waterborne paints; biobased grade >90% biobased content (C14) | Premium decorative paint makers | Biobased grades 2024; won 2025 Ringier Technology Innovation Award | — |
| RHEOLATE® HX 6030 | High-efficiency NiSAT for ultra-low-VOC architectural coatings; co-developed with a large customer | Architectural paint majors (Americas focus) | 2,025 | — |
| RHEOLATE® CVS 16 | Tint-robust rheology modifier; minimises viscosity drop at high tint loads | Architectural paint | H1 2026 | Patent-pending |
| DAPRO® CVS 20 (DAPRO® additive family) | Tint-robustness additive complementing CVS 16; DAPRO family covers defoamers/dispersants/specialty additives | Architectural paint | H1 2026 | — |
| THIXATROL® (organic thixotropes) incl. THIXATROL® 5050W | 5050W: 100% water-based additive for waterborne automotive coatings, aligns metallic pigments without adding viscosity | Automotive/industrial coatings | 5050W launched 2025 | — |
| BENTONE® organoclays and hectorite for coatings | Viscosity control, anti-settling, sag resistance in solvent and waterborne systems | Industrial and decorative coatings, inks, adhesives | Long-standing | Hectorite penetration of Coatings c.20% |
| BENAQUA® 1101 | Water-based drilling rheology solution stable to 400°F (204°C) for HPHT drilling | Energy (drilling fluids) | 2,025 | — |
| BENAQUA® 6000 | Hectorite-based multifunctional additive improving open time in tile adhesives | Construction chemicals | H1 2026 | — |
| Oil-based drilling organoclays (BENTONE® energy grades) | Rheology for oil-based muds | Oilfield service companies | Long-standing | Energy c.10% of Coatings revenue; St. Louis debottlenecked (+c.20% utilisation since H1 2025) |
| EXCELSPERSE® 9000 | High-performance dispersant for LFP cathode slurries | EV battery supply chain (Asia) | H1 2026 | Adjacency |
| CHARGUARD® 2020 | Organically modified mineral thickener improving anti-drip and char formation in non-halogenated fire-retardant systems | Fire-retardant formulators | H1 2026 | Adjacency |
| Dispersants, defoamers, powder-coating additives, wax and other specialty additives | Broad additive toolkit used alongside hectorite | Coatings and inks | Ongoing | Powder coatings described as key growth market (AR 2024) |
Coatings innovation KPIs (FY2025): 12 new products (one hectorite-based); innovation revenue 13.4% (2024: 13.2%); new business pipeline $170m (2024: $182m). H1 2026: six launches.
Group innovation KPI: Innovation Revenue 16.4% of Group revenue in FY2025 (+200bp), medium-term target 20% (FY2025 Preliminary Results).
Financial Narrative
Table 6a — Income statement (USD m unless stated)
Sources: AR 2021 (FY2021 statutory figures are total operations incl. Chromium), AR 2022, FY2023 Preliminary Results, AR 2024, FY2025 Preliminary Results. FY2024 statutory loss reflects Talc impairment; FY2025 statutory loss reflects $110.5m loss on Talc sale.
Table 6b — Margins (%)
FY2024 statutory margin on re-presented basis (96.0/603.8). Gross, EBITDA and net margins derived.
Revenue CAGR: FY2021–FY2023 (same Talc-inclusive basis) +0.3% p.a. (derived, 709.4 to 713.4). Portfolio changes make a five-year CAGR not meaningful; like-for-like FY2024–FY2025 revenue fell 1.0% reported (-1.9% constant currency). H1 2026 organic constant-currency growth +4.7%.
Table 6c — Balance sheet (USD m, 31 December)
Sources: FY2025 Preliminary Results balance sheet and statement of changes in equity (FY2023 equity = opening 1 Jan 2024 balance); net debt history from AR 2021, FY2022 Preliminary Results, AR 2023. Net current assets derived.
Interim balance sheet (30 June 2026, H1 2026 RNS): total assets $1,135.0m; cash $86.2m; bank loans current $50.0m and non-current $197.1m; net debt $163.8m (1.1x pre-IFRS 16 EBITDA); equity $662.7m; goodwill and intangibles $588.8m; trade working capital $157.5m; EU State aid tax recoverable $23.9m; UK DB pension surplus reduced to $1.1m after Aviva buy-in.
Table 6d — Cash flow (USD m)
Sources: FY2021 interim comparatives (operating cash flow FY2021 total ops), FY2023 interim RNS (FY2022 continuing adjusted OCF), FY2023 Preliminary Results, FY2025 Preliminary Results. FY2023 conversion derived (105.3/103.9).
H1 2026 cash flow: adjusted EBITDA $84.1m; working capital outflow $44.4m (end of debtor factoring, $16m benefit in H1 2025 not repeated; raw material pre-buys); capex $9.9m; adjusted operating cash flow $29.8m (40.7% conversion); free cash flow $13.3m; dividends $17.2m; net share repurchases $6.7m; disposal proceeds $34.3m.
Table 6e — Ratios
Derived from FY2025 Preliminary Results except ROCE and net debt/EBITDA (company-reported). FY2024 adjusted ROE uses adjusted earnings 72.0 on average equity 802.2 (derived). Cash conversion cycle = inventory days + receivable days − payable days as disclosed (FY2025: 144.2 + 40.8 − 92.9). FY2022 leverage on total-operations EBITDA.
Commentary on trends, inflections and drivers.
Revenue: Reported revenue has been almost flat around $710–740m across FY2021–FY2024 while the mix shifted from cyclical Talc toward Personal Care. The step-down to $597.5m in FY2025 is portfolio-driven (Talc deconsolidated) rather than demand-driven; underlying FY2025 revenue fell 1.9% at constant currency as global coatings volumes weakened in every region, partly offset by pricing and a strong Energy business. H1 2026 marks the inflection: +4.7% organic constant-currency growth with $16m of volume (mostly Coatings Asia/EMEA), $6.8m price and $3.5m from Alchemy, while North America remained weak.
Profitability: The margin story is the core investment case. Adjusted operating margin rose from 12.4% (FY2021) to 21.2% (FY2025) and 23.0% (H1 2026), driven by (i) mix (exit of Chromium, Talc and Pharma, each lower-margin), (ii) $30m Fit-for-the-Future and supply chain savings over 2024–2025, (iii) closure of Middletown AP Actives plant, (iv) pricing. Personal Care margin moved from 21.0% to 38.1% in five years. Coatings margin has been volatile (15.3% in FY2023 destocking, 20.3% FY2024, 18.9% FY2025, 20.7% H1 2026), showing operating leverage to volumes.
Statutory earnings: Statutory results have been repeatedly distorted by portfolio actions: FY2022 operating loss (-$41.8m) and FY2024 loss (Talc-related impairment), FY2025 loss (-$45.5m) from the $110.5m loss on Talc sale. Continuing profit after tax rose 27.7% to $62.3m in FY2025 and to $43.7m in H1 2026 (+27%). Adjusting items have narrowed from $142.3m (FY2022) to $17.7m (FY2025) and $7.5m (H1 2026), improving earnings quality.
Balance sheet: Net debt fell from $401m (FY2021, 2.6x) to $157m (FY2024, 1.1x) on disposals and cash generation, rose to $185m (1.3x) in FY2025 after the $53.8m buyback and $20.1m Alchemy outlay, and fell to $163.8m (1.1x) by June 2026 after pharma proceeds — close to management's c.1x target. Equity has contracted ($847m to $663m) due to write-downs and returns. The UK DB scheme buy-in (May 2026) materially de-risks pensions.
Cash: Adjusted operating cash conversion was strong in FY2023–FY2024 (101–103%) but fell to 83% in FY2025 and 40.7% in H1 2026 because of working capital build (strategic inventory, end of factoring) and capex rising to $22.7m. The three-year conversion metric (95.1% per H1 2026 presentation) still exceeds the 90% target, but the H1 2026 trend is the key monitorable.
Shareholder returns: Dividend reinstated FY2023 (2.1c), raised to 4.0c (FY2024) and 4.3c (FY2025; c.31% payout); interim FY2026 1.5c (+15.4%). Buybacks: $53.8m (2025) and c.£25m (c.$35m) launched June 2026; weighted diluted share count fell from 600.8m (FY2024) to 579.6m (H1 2026).
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Reporting Structure by Period
| Period | Reporting structure |
|---|---|
FY2021–FY2022 | Personal Care, Coatings, Talc, Chromium (Chromium discontinued in FY2022 accounts) |
FY2023–FY2024 | Personal Care; Performance Specialties (Coatings + Talc) |
FY2025 | Personal Care; Coatings (Talc discontinued; FY2024 re-presented) |
H1 2026 | Personal Care; Coatings (Pharma discontinued; H1 2025 re-presented) |
Revenue by Segment
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Personal Care revenue (USD Mn) | 175 | 212 | 209 | 217.4 | 224.5 |
Coatings revenue (USD Mn) | 384 | 389.1 | 368 | 386.4 | 373.0 |
Talc revenue (USD Mn) | 150 | 136 | 136 | 135 | — |
Group revenue continuing (USD Mn) | 709.4 | 736.4 | 713.4 | 738.3 | 597.5 |
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View Subscription PlansResults by Segment
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Personal Care adj. op. profit (USD Mn) | 37 | 53 | 50 | 61.6 | 72.8 |
Coatings adj. op. profit (USD Mn) | 62 | 73 | 56 | 78.4 | 70.4 |
Talc adj. op. profit (USD Mn) | 14 | 0 | 14 | 8 | — |
Central costs (USD Mn) | — | — | — | -20.8 | -16.5 |
Group adj. op. profit (USD Mn) | 88 | 100.5 | 103.9 | 128.8 | 126.7 |
Segment Margins & Growth (%)
| Segment | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Personal Care margin (%) | 21.0 | 25.0 | 24.1 | 28.3 | 32.4 |
Coatings margin (%) | 16.1 | 18.8 | 15.3 | 20.3 | 18.9 |
Talc margin (%) | 9.3 | 0.0 | 10.2 | 5.9 | — |
Segment Margins & Growth (%) (FY2023–FY2025)
| Metric | FY2023 | FY2024 | FY2025 |
|---|---|---|---|
Personal Care % of Group revenue | 29.3 | 36.0 | 37.6 |
Coatings % of Group revenue | 51.6 | 64.0 | 62.4 |
Personal Care revenue growth constant currency (%) | -1 | 4 | 2.4 |
Coatings revenue growth constant currency (%) | -5 | 5 | -4.3 |
Personal Care % of Group adj. op. profit (segment basis) | — | — | 50.8 |
Segment Revenue
| Segment | Revenue H1 2025 | Revenue H1 2026 | Organic CC growth % | Adj. op. profit H1 2025 | Adj. op. profit H1 2026 | Adj. margin H1 2026 % |
|---|---|---|---|---|---|---|
Coatings | 191.5 | 209.0 | 5.6 | 34.9 | 43.2 | 20.7 |
Personal Care | 99.3 | 109.2 | 2.9 | 37.5 | 41.6 | 38.1 |
Central costs | — | — | — | -9.5 | -11.6 | — |
Group | 290.8 | 318.2 | 4.7 | 62.9 | 73.2 | 23.0 |
Income Statement and Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue as reported (USD Mn) | 709.4 | 736.4 | 713.4 | 738.3 | 597.5 |
Revenue latest re-presented basis (USD Mn) | — | — | — | 603.8 | 597.5 |
Gross profit (USD Mn) | — | — | — | 289.6 | 280.1 |
Adjusted operating profit (USD Mn) | 88 | 100.5 | 103.9 | 128.8 | 126.7 |
Adjusted operating profit re-presented (USD Mn) | — | — | — | 119.2 | 126.7 |
Statutory operating profit (USD Mn) | 26.4 | -41.8 | 58.9 | -26.6 | 109.0 |
Adjusted EBITDA (USD Mn) | — | — | — | 141.8 | 149.0 |
Adjusted profit before tax (USD Mn) | — | — | 84 | 105 | 107.5 |
Statutory profit before tax (USD Mn) | 6 | -54.8 | 39.7 | -49.6 | 89.9 |
Profit/(loss) for the year (USD Mn) | — | -62.6 | 28.2 | -47.8 | -45.5 |
Profit from continuing operations (USD Mn) | — | — | — | 48.8 | 62.3 |
Adjusted diluted EPS (US cents) | — | 10.9 | 10.8 | 13.3 | 13.7 |
Statutory diluted EPS total ops (US cents) | — | -10.7 | 4.7 | -8.1 | -7.8 |
Dividend per share (US cents) | 0 | 0 | 2.1 | 4.0 | 4.3 |
Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin (%) | — | — | — | 48.0 | 46.9 |
Adjusted operating margin (%) | 12.4 | 13.6 | 14.6 | 17.4 | 21.2 |
Adjusted operating margin re-presented (%) | — | — | — | 19.7 | 21.2 |
Statutory operating margin (%) | — | -5.7 | 8.3 | 15.9 | 18.2 |
Adjusted EBITDA margin (%) | — | — | — | 23.5 | 24.9 |
Net margin continuing (%) | — | — | — | 8.1 | 10.4 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (USD Mn) | — | — | — | 1,308.4 | 1,114.6 |
Cash and equivalents (USD Mn) | — | — | 65.8 | 59.9 | 54.6 |
Short-term borrowings (USD Mn) | — | — | — | 0 | 50.0 |
Long-term borrowings (USD Mn) | — | — | — | 219.2 | 186.2 |
Net debt pre-IFRS 16 (USD Mn) | 401.0 | 366.8 | 202.0 | 157.2 | 185.4 |
Lease liabilities (USD Mn) | — | — | — | 34.7 | 20.4 |
Total equity (USD Mn) | — | — | 847.3 | 757.0 | 643.9 |
Goodwill and intangibles (USD Mn) | — | — | — | 585.9 | 603.9 |
Property plant and equipment (USD Mn) | — | — | — | 338.0 | 169.0 |
Trade working capital (USD Mn) | — | — | — | 129.6 | 123.2 |
Net current assets (USD Mn) | — | — | — | 209.6 | 148.3 |
Cash Flow and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Statutory net cash from operating activities (USD Mn) | 76.0 | — | — | 100.0 | 74.2 |
Adjusted operating cash flow (USD Mn) | — | 66.3 | 105.3 | 123.2 | 104.7 |
Capital expenditure (USD Mn) | — | — | — | 16.9 | 22.7 |
Free cash flow company definition (USD Mn) | — | — | — | 51.0 | 41.0 |
Dividends paid (USD Mn) | 0 | 0 | 0 | 18.8 | 25.3 |
Share buybacks (USD Mn) | 0 | 0 | 0 | 0 | 53.8 |
Adjusted operating cash conversion (%) | — | — | 101 | 103 | 83 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2024 | FY2025 |
|---|---|---|---|---|
Adjusted ROE on average equity (%) | — | — | 9.0 | 11.6 |
Statutory ROE total ops (%) | — | — | -6.0 | -6.5 |
ROA continuing profit on average assets (%) | — | — | — | 5.1 |
ROCE ex-goodwill company APM (%) | — | — | 29 | 30 |
Current ratio (x) | — | — | 2.59 | 1.90 |
Gross debt to equity (x) | — | — | 0.29 | 0.37 |
Net debt to EBITDA pre-IFRS 16 (x) | 2.6 | 2.2 | 1.1 | 1.3 |
Interest coverage adj. op. profit / net borrowing cost (x) | — | — | 6.0 | 7.5 |
Asset turnover (x) | — | — | — | 0.49 |
Cash conversion cycle (days) | — | — | 75.3 | 92.1 |
Geographic Revenue
| Segment × region | FY2025 growth vs FY2024 (%) | H1 2025 growth vs H1 2024 (%) | H1 2026 growth vs H1 2025 |
|---|---|---|---|
Personal Care — Europe/EMEA | 6 | — | mid-single-digit |
Personal Care — Asia | 1 | — | mid-teens (Japan, Korea strong) |
Personal Care — Americas | 0 | — | muted (isolated weak Q1 demand) |
Coatings — Asia | negative (volumes lower) | -7.8 | strong underlying growth |
Coatings — EMEA | negative (volumes lower) | negative | strong underlying growth |
Coatings — Americas | negative (volumes lower) | negative | continued weakness (North America) |
Region Overview
| Region | Manufacturing sites | Employees | R&D centres |
|---|---|---|---|
Americas | 6 | 318 | 2 |
Europe | 2 | 280 | 3 |
Asia | 4 | 391 | 3 |
Valuation Snapshot
| Metric | Value | Source / note |
|---|---|---|
Latest price | c.176p (early October 2026) | AJ Bell / LSE |
52-week range | 136.0p – 195.4p | AJ Bell |
1-year change | c.+9% (vs 161.8p on 19 Sep 2025) | MarketBeat (derived) |
5-year change | n/d (shares traded at c.137p after Innospec withdrawal in April 2021 — derived comparison suggests c.+28%, not total return) | Bloomberg Apr 2021 (derived) |
Market cap | c.£999m (c.$1.33bn) | AJ Bell |
Shares in issue | c.566.6m | Sharecast (9 Sep 2026) |
Per-Share Data
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Interim DPS (US cents) | 0 | 0 | 0 | 1.1 | 1.3 |
Final DPS (US cents) | 0 | 0 | 2.1 | 2.9 | 3.0 |
Total DPS (US cents) | 0 | 0 | 2.1 | 4.0 | 4.3 |
Valuation Multiples
| Multiple | Elementis | Basis |
|---|---|---|
P/E (adjusted, trailing) | c.15x | Price $2.34 / LTM adj. diluted EPS 15.6c (13.7 − 6.6 + 8.5) |
P/E (statutory) | c.19x | AJ Bell (18.95) |
EV/EBITDA (LTM) | c.9.7x | EV c.$1.51bn (mkt cap $1.33bn + net debt $163.8m + leases $17.4m) / LTM adj. EBITDA $156.5m |
EV/EBIT (FY2026 consensus) | c.11.4x | EV / $132.5m consensus adj. op. profit |
EV/Sales (LTM) | c.2.6x | LTM continuing revenue c.$590m (derived) |
P/B | c.2.0x | Equity $662.7m (30 Jun 2026) |
Dividend yield | c.1.9% | AJ Bell |
Capital Instruments
| Instrument | Amount | Maturity | Note |
|---|---|---|---|
Term loan (USD) | $110m drawn at refinancing | May 2029 | Drawn May 2025 |
Revolving credit facility | Facility size n/d; drawings within $197.1m non-current loans | — | Covenant-based |
Current bank loans | $50.0m | Within 12 months | Classified current |
Lease liabilities | $17.4m | Various | IFRS 16 |
Unamortised syndicate fees | $2.9m | — | Netted |
Analyst Conclusions
Management guidance (30 July 2026). Confident of delivering FY2026 performance in line with company-compiled consensus (adjusted operating profit $132.5m, range $129.4–136.5m), supported by a solid Q3 order book, while remaining vigilant on Middle East impacts on demand, input costs and supply. Net savings of $4m targeted in 2026; medium-term adjusted ETR around 25%; Product Innovation Day in Porto in November 2026.
Consensus growth. FY2026 adjusted operating profit $132.5m implies c.+7% vs FY2025 reported $126.7m (derived; note FY2025 included pharma). Revenue consensus n/d.
Bull case
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Margin compounding: Group margin already at 23.0% with Personal Care at 38.1%; continued mix shift toward hectorite (double-digit expected growth) and the remaining savings could push margins into the mid-20s.
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Operating leverage to coatings recovery: Coatings earned a 20.7% margin in H1 2026 despite weak North America; a housing/industrial recovery would expand earnings disproportionately.
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Capital returns and optionality: Leverage at 1.1x, de-risked pension, active buyback and a history of bids (up to 160p in 2021, when the business was lower-quality) support valuation; a board with Croda and PE/M&A experience may unlock value.
Bear case
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Cash conversion slippage: Adjusted operating cash conversion fell to 40.7% in H1 2026 and FCF to $13.3m; persistent working capital build would undermine the >90% target and buyback capacity.
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Small-cap scale and growth credibility: After three disposals the Group is c.$590m revenue; FY2025 revenue declined 1.9% CC and Coatings pipeline shrank; mid-single-digit growth through the cycle is unproven.
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Macro and legal tail risks: Middle East input inflation, North American weakness, US tariff volatility, and up to $34m of possible additional HMRC exposure plus the $23.9m EU State aid receivable at risk.
Key catalysts and monitorables (next 12 months)
Analyst verdict. Elementis has completed one of the more thorough portfolio clean-ups in the European mid-cap chemicals sector. In under four years it exited Chromium, Talc and pharma manufacturing, converting a diversified, debt-laden group (net debt $401m, 2.6x, in FY2021) into a focused rheology and additives specialist with a 23.0% adjusted operating margin and leverage of 1.1x. The quality of the remaining franchise is evident in Personal Care's 38.1% margin and in the hectorite asset, which gives Elementis a genuinely differentiated raw-material position in sun care, skin care and premium coatings. Management under Luc van Ravenstein has so far delivered what it promised: the 2026 targets one year early, the 23%+ margin target in H1 2026, cost savings on schedule and disposal proceeds returned via buybacks.
The investment debate has now shifted from portfolio repair to growth and cash. The H1 2026 organic growth of 4.7% is encouraging, but it is a single half against a weak FY2025 comparator, and North American coatings remain soft. More concerning is the drop in cash conversion to 40.7% in H1 2026 as working capital absorbed $44.4m; the full-year outturn will be the clearest test of earnings quality. Governance is in transition, with a new Chair, a strengthened specialty-chemicals bench, and visible shareholder dissent that the Board must address.
At c.15x trailing adjusted earnings and c.10x LTM EBITDA, the shares do not appear to price in a premium-specialty profile, particularly against a takeover history at up to 160p when the business was weaker. On balance, the risk-reward appears constructive, contingent on H2 2026 cash recovery and evidence at the Porto Innovation Day that hectorite-led growth can sustain mid-single-digit organic expansion. Key downside triggers would be a consensus miss driven by Middle East inflation or a further deterioration in North American coatings. This assessment is analytical commentary, not investment advice.
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Executive Leadership Team
| Name | Title | Tenure | Prior roles | Education | Age |
|---|---|---|---|---|---|
Luc van Ravenstein | CEO, Executive Director | CEO since 29 Apr 2025; c.14 years at Elementis | Led Coatings (transformed into higher-margin additives business); led Personal Care for six years | — | c.48 (MarketScreener) |
Kath Kearney-Croft | CFO, Executive Director | CFO designate 3 Nov 2025; CFO 1 Jan 2026 | CFO Learning Technologies Group (2021–2025); senior finance roles at SIG, Vitec Group, Rexam, BOC Group | Business & management degree; MBA (Manchester Business School); CIMA | c.52 (MarketScreener) |
Hannah Constantine | Chief Legal & People Officer; Group General Counsel & Company Secretary | Since 2025 (people remit added 1 June 2026) | — | — | — |
Stijn Dejonckheere | Chief Commercial Officer | c.6 years | — | — | — |
Colin Smith | Chief Manufacturing & Procurement Officer | Appointed c.2025–2026 | — | — | — |
Michela Fusco | Chief Strategy & Innovation Officer | Appointed April 2026 | — | — | — |
Huibin Zhao | VP Coatings Asia & President, China | c.6.5 years | — | — | — |
Phil Blakeman | Global Sustainability Director | — | — | — | — |
Zeeshan Maqbool | Investor Relations | — | — | — | — |
Directors' Remuneration
| Executive | Base salary | Total | Source |
|---|---|---|---|
Luc van Ravenstein (CEO, FY2025 partial year) | — | c.$1.76m | Simply Wall St summary of AR 2025 (verify against Directors' Remuneration Report) |
Kath Kearney-Croft (CFO) | £400,000 (on appointment) | — | RNS 30 Sep 2025 |
NED fees (FY2025) | Soden c.$103.8k; Schoolenberg c.$95.7k; Woon c.$95.7k; Ciliberti c.$82.2k; Mills c.$82.2k (donated to Harwood Charitable Trust) | — | Simply Wall St; RNS 24 Dec 2024 |
Board of Directors
| Director | Role | Appointed | Independence | Committees | Background |
|---|---|---|---|---|---|
Trudy (Geertrui) Schoolenberg | Non-Executive Chair | NED 15 Mar 2022; SID Apr 2022–Apr 2026; Chair 29 Apr 2026 | Independent on appointment | Nomination (Chair); Remuneration | c.35 years in chemicals/engineering; Chair of Accsys Technologies; former SID Spirax-Sarco, Low & Bonar; ex-Avantium supervisory board |
Luc van Ravenstein | CEO | 29 Apr 2025 | Executive | — | See above |
Kath Kearney-Croft | CFO | 1 Jan 2026 | Executive | — | See above |
Christine Soden | Senior Independent Director (interim from 29 Apr 2026; permanent 16 Sep 2026) | 1 Nov 2020 | Independent | Audit (Chair); Remuneration; Nomination; designated NED for workforce engagement | Finance background (details n/d) |
Clement (Hin Yong) Woon | Independent NED | Dec 2022 | Independent | Remuneration (Chair); Audit; Nomination | — |
Maria Ciliberti | Independent NED | Mar 2024 | Independent | Audit; Remuneration; Nomination | — |
Mike Humphrey | Independent NED | 29 Apr 2026 | Independent | Audit; Remuneration; Nomination | CEO Croda International 1999–2011; Chair IP Group 2015–18; M&A adviser to Jefferies and SK Capital |
Christopher Mills | Non-Independent NED | 1 Jan 2025 | Not independent (founder/CEO Harwood Capital; ties to other shareholders) | Nomination | CEO/manager of North Atlantic Smaller Companies IT; multiple NED roles |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
18 Nov 2024 | CEO succession announced | Board and shareholder frustration with valuation (stated in Mills appointment RNS) |
24 Dec 2024 | Christopher Mills appointed (effective 1 Jan 2025) | Harwood funds held 22.5m shares at announcement |
29 Apr 2025 | Luc van Ravenstein CEO | Internal successor |
30 Sep 2025 | Ralph Hewins retirement announced; Kath Kearney-Croft appointed | Nine-year CFO tenure |
29 Oct 2025 | Chair John O'Higgins to step down at 2026 AGM; Heejae Chae to leave | After Chromium, Talc sales and strategy launch |
19 Mar 2026 | Schoolenberg named Chair; Humphrey named NED | Sector depth added |
2025–2026 | New ExCo roles: Chief Strategy & Innovation Officer, Chief Manufacturing & Procurement Officer | Elevate Elementis simplification |
16 Sep 2026 | Christine Soden confirmed SID | — |
Major Shareholders
| Holder | Shares | % | Date / source | Status |
|---|---|---|---|---|
Franklin Mutual Advisers LLC | 58,466,789 | 9.89 | MarketScreener (historic snapshot; date n/d) | Possibly stale |
Threadneedle Asset Management | — | — | MarketScreener | Stale |
FIL Investment Advisors (UK) | — | — | MarketScreener | Stale |
BlackRock Investment Management (UK) | 23,193,252 | 3.93 | MarketScreener | Stale |
The Vanguard Group | 22,094,923 | 3.74 | MarketScreener | Stale |
Harwood Capital funds (incl. Oryx, NASCIT) | 22,500,000 | c.3.8 | RNS 24 Dec 2024 | Position may have changed |
Remaining top-10 holders | — | — | — | Verify via latest TR-1 notifications / AR 2025 substantial shareholdings table |
Insider ownership | — | <1 (CEO c.0.11%) | Simply Wall St | — |
Competitive Landscape
Key Competitors
| Competitor | HQ | Overlap with Elementis | Relative positioning |
|---|---|---|---|
BYK (ALTANA group) | Germany | Coatings additives, organoclays, synthetic hectorite (Laponite), rheology | Global leader in coatings additives; much larger scale and breadth |
Dow (ACRYSOL / Rheology modifiers) | USA | HEUR/HASE associative thickeners for architectural paint | Scale player in waterborne thickeners; competes with RHEOLATE |
BASF (Rheovis and dispersions) | Germany | Associative thickeners, dispersants | Broad portfolio; integrated raw materials |
Arkema (Coatex) | France | Rheology modifiers and dispersants | Strong in acrylic thickeners |
Evonik (TEGO / Coating Additives) | Germany | Defoamers, wetting, dispersants | Leader in surface-active additives |
Clariant | Switzerland | Coatings additives, personal care ingredients | Broad specialty portfolio |
Croda International | UK | Personal care actives, emollients, sun care | Premium beauty ingredients; larger PC exposure |
Ashland | USA | Personal care rheology (cellulosics), coatings (HEC thickeners) | Major in cellulosic thickeners |
Lubrizol (Berkshire Hathaway) | USA | Personal care polymers (Carbopol), coatings additives | Dominant in carbomer rheology for PC |
Minerals Technologies | USA | Bentonite/clay minerals; formerly bid for Elementis | Minerals-based adjacency |
Innospec | USA | Personal care, performance chemicals, oilfield | Former bidder; overlaps in PC and energy |
Borchers (Milliken) | USA | Coatings additives (driers, dispersants, rheology) | Mid-sized specialist |
Gulbrandsen | USA/India | AP actives (aluminium-zirconium salts) | Direct AP Actives competitor |
Asian organoclay producers (e.g., Zhejiang Fenghong, Camp-Shinning) | China/Taiwan | Organoclays | Lower-cost competition in commoditised grades |
Peer Comparison FY2025
| Metric | Elementis FY2025 | Croda FY2024 | Ashland FY2024 (Sep YE) | Innospec FY2024 |
|---|---|---|---|---|
Revenue | $597.5m | c.£1.63bn | c.$2.1bn | c.$1.85bn |
Revenue growth (reported) | -1.0% | — | — | — |
Adjusted operating margin | 21.2% | — | — | — |
R&D intensity | c.2% (target 3%) | — | — | — |
Recent Developments
Litigation/regulatory items in the period: * HMRC tax audit (2019 returns) — partial settlement provision $11.9m, possible further obligation £0–25.6m ($0–34.0m); Eaglescliffe environmental incident (Q4 2023) covered by buyer indemnity.
