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Element Solutions ESI Tax Credit Carryforward Valuation Allowance

Tax Credit Carryforward Valuation Allowance at other companies

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Honeywell InternationalHON
$1.37B+9.7%

Other financials

Income statement

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Revenue$977.9M+56.4%
Gross profit$334.0M+25.4%
Operating income$113.7M+20.6%
Net income$77.3M+63.1%
EPS (diluted)$0.32+60.0%

Balance sheet

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Cash & equivalents$189.6M-64.2%
Total debt$2.2B+34.3%
Total equity$2.8B+7.1%
Total assets$5.8B+15.6%

Cash flow

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Operating cash flow$99.6M+37.2%
CapEx$27.9M+57.6%
Free cash flow-$91.7M-711%

Valuation

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Market cap$9.37B+67.3%
Enterprise value$11.36B+69.7%
P/E52.4×+29.2×
P/S+0.7×

Profitability

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Gross margin38.4%-3.4pp
Operating margin12.6%-1.2pp
Net margin5.7%-4.0pp
FCF margin4.3%-6.6pp

Returns & leverage

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Return on equity6.6%-3.0pp
Debt / equity0.8×+0.2×
Current ratio2.9×-1.2×

Where this comes from

Reported directly by Element Solutions in its filing.

Tagged under the XBRL concept us-gaap:TaxCreditCarryforwardValuationAllowance.

The source filing: Element Solutions’s 10-Q, filed July 28, 2026.

Filed
Jul 28, 2026, 4:16 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0001590714-26-000065

For the six months ended June 30, 2026, the Company recognized income tax expense of $56.5 million as compared to $33.6 million in the same period for 2025. Income tax expense for the six months ended June 30, 2026, includes a U.S. benefit related to claiming foreign tax credits, a recurring benefit from a U.S. tax deduction related to FDDEI partially offset with foreign tax credit valuation allowances of $6.4 million, NCTI, and the impact of changes to the level and mix of earnings. The foreign tax credit valuation allowance was required after taking into account the impacts on projected future taxable income from the EFC and Micromax Acquisitions, including significant tax-basis amortization of acquired intangible property and increased interest expense from the Add-on Term Loans.

Item 1. Condensed Consolidated Financial Statements (Unaudited)

FAQ

What is Element Solutions's tax credit carryforward valuation allowance?
Element Solutions (ESI) reported tax credit carryforward valuation allowance of $6.4M in Q2 2026.
What does tax credit carryforward valuation allowance mean?
This is a contra-asset account that reduces the carrying value of tax credit carryforwards when it is more likely than not that some or all of the credits will not be realized. It reflects management's assessment of the company's ability to generate sufficient future taxable income. A high allowance suggests uncertainty regarding the realization of tax benefits.

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