Elementis (LSE:ELM) told investors it now expects full-year adjusted operating profit of $133m to $135m, nudging up previous guidance and matching the latest market expectations, the specialty chemicals group said in a third-quarter trading update on Wednesday.
Revenue for the nine months to 30 September rose 7% on an organic constant-currency basis to $479m, with Personal Care accelerating across all regions and the Americas showing further improvement.
The company said the improved outlook reflects continued trading progress despite mixed market conditions, and attributed the performance to its "Elevate Elementis" strategy launched in 2025 to accelerate growth and simplify the business.
Personal Care benefited from a weaker prior-year comparator and favourable order phasing in September, while in Coatings the Energy business continued to perform strongly, helped by further operational improvements at the group's St. Louis plant in the US and solid demand.
Coatings in the Americas recovered after a weak first half, and continued strength in Asia offset softer results in EMEA during the quarter.
Elementis expects fourth-quarter revenue to come in lower than the third quarter, consistent with its usual seasonal pattern, after some customer orders were fulfilled earlier than anticipated; it also expects Coatings growth to moderate in the fourth quarter against a strong prior-year comparator in Asia.
"Our 'Elevate Elementis' strategy is progressing well, with revenue up 7% for the nine months to September 2026 despite mixed end market conditions," said chief executive Luc van Ravenstein, adding that the group's innovation underpinning this growth would feature at its Innovation Day next week.
Read more about Elementis
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The update follows Elementis's first-half results, published 30 July, in which revenue rose 4.7% on an organic constant-currency basis to $318.2m and adjusted operating margin reached 23.0%, within the group's medium-term target range, after the company completed the sale of its pharmaceutical manufacturing business to Associated British Foods on 2 June and launched a share buyback of around £25m funded by the proceeds.