Elementis plc (LSE:ELM) reported full-year 2025 results on Thursday that came in ahead of analyst expectations, supported by improved margins despite a difficult trading environment. The company also announced the planned sale of its pharmaceutical manufacturing division to Associated British Foods plc.
For the year ended 31 December 2025, adjusted earnings per share reached 13.7 cents, surpassing analyst forecasts of 13.0 cents.
Revenue declined 1.9% on a constant currency basis to $597.5m, slightly below the $601m expected by analysts but compared with $603.8m recorded in 2024. Adjusted operating profit increased 4.6% in constant currency terms to $126.7m, broadly in line with consensus estimates of $126m, while adjusted operating margin improved by 150 basis points to 21.2%.
Within the business segments, Personal Care delivered revenue growth of 2.4% on a constant currency basis to $224.5m, with adjusted operating margin jumping 410 basis points to 32.4%. Meanwhile, the Coatings division saw revenue decline 4.3% on a constant currency basis to $373.0m due to softer demand, though adjusted operating margin remained relatively strong at 18.9%, compared with 20.3% the previous year.
Elementis also confirmed it has agreed to sell its pharmaceutical manufacturing unit to Associated British Foods for an enterprise value of about €34m ($40m). The deal is expected to complete in the second quarter of 2026, subject to regulatory approval, and is intended to allow the company to concentrate on its core Personal Care and Coatings markets.
The group said it plans to return the net proceeds from the transaction to shareholders once the sale is finalised.
“I am pleased we have delivered a resilient performance with strong growth in profitability and margins despite the challenging market environment,” said Luc van Ravenstein. “We are pleased to have reached another important milestone for Elementis with the agreement to sell our pharmaceutical manufacturing business.”
The board proposed a final dividend of 3.0 cents per share, bringing the full-year dividend to 4.3 cents—an increase of 7.5% compared with 4.0 cents in 2024. During the year, the company also completed a £40.0m ($53.8m) share buyback programme.
Net debt rose to $185.4m from $157.2m the previous year, with the net debt-to-EBITDA ratio standing at 1.3 times. Elementis reported delivering $18m in cost savings during 2025 and said it remains on track to achieve the remaining $4m in savings during 2026.
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