Elementis: 1H26 adj EBIT above JPMe, FY26 guidance reiterated

Research evidence excerpt

Elementis: 1H26 adj EBIT above JPMe, FY26 guidance reiterated

C A Z E N O V E Europe Equity Research

30 July 2026

Elementis Neutral

ELM.L, ELM LN

1H26 adj EBIT above JPMe, FY26 guidance reiterated Price (28 Jul 26):170p

Price Target (Dec-27):186p

Elementis (ELM) has reported solid 1H26 results this morning, continuing the European Chemicals

ACcompany’s strong track record of delivering in-line or better results, in contrast to the Chetan Udeshi, CFA

more difficult earnings environment seen at most other companies in the sector over (44-20) 7742-7034

the past 2-3 years. ELM’s 1H26 adj EBIT of $73.2m (23% margin) was up 10% YoY chetan.x.udeshi@jpmorgan.com

in constant currency and came in 6% above JPMe, with the beat driven by both Angelina Glazova, CFA

segments, but to a greater extent by Coatings (+9% vs JPMe). Based on solid 1H (44-20) 7134-8379

results, the company is confident in delivering FY26 adj EBIT in line with consensus. angelina.glazova@jpmorgan.com

J.P. Morgan Securities plc

This implies 2H earnings below the normal seasonality (1H:2H implied split of

55%:45% vs. historical seasonality of 52%:48%). This reflects the company's caution Specialist Sales contact details:

on 2H due to ongoing macro and geopolitical uncertainties, and the possibility that

Sam Edmunds - Specialist Sales -

some of the strength in earnings in 1H26, especially in Coatings, may be temporary European Industrials

due to customer pre-buying. That said, the company currently has a solid order book (44-20) 7742-8733

for 3Q — i.e. it isn’t currently seeing the below-seasonal trends implied in the 2H sam.edmunds@jpmorgan.com

guidance, leaving room for potential for some upside. The stock has had a good

bounce over the past month but has still underperformed the sector YTD (+5% vs.