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Minerals Technologies Inc. Announces 2025 First Quarter Financial Results
Apr 24, 2025, 17:05 PMMinerals Technologies Inc. Announces 2025 First Quarter Financial Results
--- Establishes Reserve for BMI OldCo Chapter 11 Case ---
--- Initiates a $10 Million Cost Savings Program ---
First Quarter 2025 Consolidated Results
Worldwide net sales were
“Throughout the quarter, we experienced slower demand from customers in both of our business segments. This was a result of destocking activities and shifting order patterns, primarily in January and February. We saw a significant improvement in sales in March, which we expect to continue through the second quarter,” said
Reported operating loss was
The Company recorded special items of
“We remain confident in BMI OldCo’s path to resolving these liabilities certainly and fairly through the Chapter 11 process, and believe this reserve is appropriate to cover the anticipated financial impact of talc-related claims,” said
Cost Savings Initiative
The Company has proactively identified efficiency cost savings of approximately
First Quarter 2025 Segment Results
Consumer & Specialties segment sales were
Household &
Segment operating income was
MTI’s Consumer & Specialties segment provides technologically enhanced products to consumer-driven end markets, including mineral-to-market household products as well as specialty additives that become functional components in a variety of consumer and industrial goods. This segment includes two product lines, Household &
Engineered Solutions segment sales were
High-Temperature Technologies sales were
Segment operating income was
MTI’s Engineered Solutions segment provides advanced process technologies and solutions that are designed to improve customers’ manufacturing processes and projects. This segment includes two product lines, High-Temperature Technologies and Environmental & Infrastructure.
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MTI will host a conference call tomorrow,
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FORWARD-LOOKING STATEMENTS
This press release may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenues, and financial performance, and are not limited to describing historical or current facts. They can be identified by the use of words such as “believes,” “expects,” “plans,” “intends,” “anticipates,” and other words and phrases of similar meaning. Forward-looking statements are necessarily based on assumptions, estimates, and limited information available at the time they are made. A broad variety of risks and uncertainties, both known and unknown, as well as the inaccuracy of assumptions and estimates, can affect the realization of the expectations or forecasts in these statements. Actual future results may vary materially. Significant factors that could affect the expectations and forecasts include worldwide general economic, business, and industry conditions; the cyclicality of our customers’ businesses and their changing regional demands; our ability to compete in very competitive industries; consolidation in customer industries, principally paper, foundry, and steel; our ability to renew or extend long term sales contracts for our satellite operations; our ability to generate cash to service our debt; our ability to comply with the covenants in the agreements governing our debt; our ability to effectively achieve and implement our growth initiatives or consummate the transactions described in the statements; our ability to successfully develop new products; our ability to defend our intellectual property; the increased risks of doing business abroad; the availability of raw materials and access to ore reserves at our mining operations, or increases in costs of raw materials, energy, or shipping; compliance with or changes to regulation in the areas of environmental, health and safety, and tax; risks and uncertainties related to the voluntary petitions for relief under Chapter 11 of the
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About
Investor Relations Contact
lydia.kopylova@mineralstech.com
Media Contact
stephanie.heise@mineralstech.com
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | ||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Quarter Ended | % Growth | |||||||||||||||
| 2025 | 2024 | 2024 | Prior Qtr. | Prior Year | ||||||||||||
| Net sales | $ | 491.8 | $ | 518.1 | $ | 534.5 | (5)% | (8)% | ||||||||
| Cost of goods sold | 372.2 | 385.4 | 398.6 | (3)% | (7)% | |||||||||||
| Production margin | 119.6 | 132.7 | 135.9 | (10)% | (12)% | |||||||||||
| Marketing and administrative expenses | 50.6 | 52.8 | 53.0 | (4)% | (5)% | |||||||||||
| Research and development expenses | 5.8 | 5.7 | 5.6 | 2% | 4% | |||||||||||
| Provision for litigation reserve | 215.0 | 0.0 | 0.0 | * | * | |||||||||||
| Restructuring and other items, net | 5.5 | 0.0 | 0.0 | * | * | |||||||||||
| Gain on sale of assets, net | 0.0 | (12.3) | 0.0 | * | * | |||||||||||
| Litigation expenses | 2.8 | 2.4 | 2.1 | 17% | 33% | |||||||||||
| Income (loss) from operations | (160.1) | 84.1 | 75.2 | * | * | |||||||||||
| Interest expense, net | (14.2) | (12.6) | (14.9) | 13% | (5)% | |||||||||||
| Debt extinguishment expenses | 0.0 | (1.8) | 0.0 | * | * | |||||||||||
| Other non-operating deductions, net | (2.0) | (0.3) | (0.2) | * | * | |||||||||||
| Total non-operating deductions, net | (16.2) | (14.7) | (15.1) | 10% | 7% | |||||||||||
| Income (loss) before tax and equity in earnings | (176.3) | 69.4 | 60.1 | * | * | |||||||||||
| Provision (benefit) for taxes on income | (32.1) | 16.2 | 13.9 | * | * | |||||||||||
| Equity in earnings of affiliates, net of tax | 1.2 | 1.5 | 1.4 | (20)% | (14)% | |||||||||||
| Net income (loss) | (143.0) | 54.7 | 47.6 | * | * | |||||||||||
| Less: Net income attributable to non-controlling interests | 1.0 | 0.7 | 0.9 | 43% | 11% | |||||||||||
| Net Income (loss) attributable to | $ | (144.0) | $ | 54.0 | $ | 46.7 | * | * | ||||||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic | 31.9 | 31.9 | 32.3 | |||||||||||||
| Diluted | 31.9 | 32.2 | 32.4 | |||||||||||||
| Earnings (loss) per share attributable to MTI: | ||||||||||||||||
| Basic | $ | (4.51) | $ | 1.69 | $ | 1.45 | * | * | ||||||||
| Diluted | $ | (4.51) | $ | 1.68 | $ | 1.44 | * | * | ||||||||
| Cash dividends declared per common share | $ | 0.11 | $ | 0.11 | $ | 0.10 | ||||||||||
| * Percentage not meaningful | ||||||||||||||||
| NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) | |||||||||||||
| 1 | ) | For comparative purposes, the quarterly periods ended | |||||||||||
| 2 | ) | To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP earnings per share, excluding special items, for the quarterly periods ended | |||||||||||
| (millions of dollars) | Quarter Ended | ||||||||||||
| 2025 | 2024 | 2024 | |||||||||||
| Net income (loss) attributable to MTI | $ | (144.0 | ) | $ | 54.0 | $ | 46.7 | ||||||
| % of sales | * | 10.4 | % | 8.7 | % | ||||||||
| Special items: | |||||||||||||
| Provision for litigation reserve | 215.0 | 0.0 | 0.0 | ||||||||||
| Restructuring and other items, net | 5.5 | 0.0 | 0.0 | ||||||||||
| Debt extinguishment expenses | 0.0 | 1.8 | 0.0 | ||||||||||
| Gain on sale of assets, net | 0.0 | (12.3 | ) | 0.0 | |||||||||
| Litigation expenses | 2.8 | 2.4 | 2.1 | ||||||||||
| Related tax effects on special items | (42.9 | ) | 2.3 | (0.5 | ) | ||||||||
| Net income attributable to MTI, excluding special items | $ | 36.4 | $ | 48.2 | $ | 48.3 | |||||||
| % of sales | 7.4 | % | 9.3 | % | 9.0 | % | |||||||
| Diluted earnings per share, excluding special items | $ | 1.14 | $ | 1.50 | $ | 1.49 | |||||||
| In the first quarter of 2025, the Company recorded a | |||||||||||||
| In the first quarter of 2025, the Company initiated a cost savings program and recorded a | |||||||||||||
| In the fourth quarter of 2024, the Company recorded a | |||||||||||||
| 3 | ) | Free cash flow is defined as cash flow from operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the quarterly periods ended | |||||||||||
| Quarter Ended | |||||||||||||
| (millions of dollars) | |||||||||||||
| 2025 | 2024 | 2024 | |||||||||||
| Cash flow from operations | $ | (4.4 | ) | $ | 70.4 | $ | 55.9 | ||||||
| Capital expenditures | 18.3 | 28.1 | 16.5 | ||||||||||
| Free cash flow | $ | (22.7 | ) | $ | 42.3 | $ | 39.4 | ||||||
| Depreciation, depletion and amortization expense | $ | 23.5 | $ | 24.3 | $ | 23.5 | |||||||
| 4 | ) | “Adjusted EBITDA” is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization (EBITDA), excluding special items. The following is a presentation of the Company's non-GAAP EBITDA and Adjusted EBITDA for the quarterly periods ended | |||||||||||
| Quarter Ended | |||||||||||||
| (millions of dollars) | |||||||||||||
| 2025 | 2024 | 2024 | |||||||||||
| Net income (loss) | $ | (144.0 | ) | $ | 54.0 | $ | 46.7 | ||||||
| Add back: | |||||||||||||
| Depreciation, depletion and amortization expense | 23.5 | 24.3 | 23.5 | ||||||||||
| Interest expense, net | 14.2 | 12.6 | 14.9 | ||||||||||
| Equity in earnings of affiliates, net of tax | (1.2 | ) | (1.5 | ) | (1.4 | ) | |||||||
| Net income attributable to non-controlling interests | 1.0 | 0.7 | 0.9 | ||||||||||
| Provision (benefit) for taxes on income | (32.1 | ) | 16.2 | 13.9 | |||||||||
| EBITDA | (138.6 | ) | 106.3 | 98.5 | |||||||||
| Add special items: | |||||||||||||
| Provision for litigation reserve | 215.0 | 0.0 | 0.0 | ||||||||||
| Restructuring and other items, net | 5.5 | 0.0 | 0.0 | ||||||||||
| Debt extinguishment expenses | 0.0 | 1.8 | 0.0 | ||||||||||
| Gain on sale of assets, net | 0.0 | (12.3 | ) | 0.0 | |||||||||
| Litigation expenses | 2.8 | 2.4 | 2.1 | ||||||||||
| Adjusted EBITDA | $ | 84.7 | $ | 98.2 | $ | 100.6 | |||||||
| % of sales | 17.2 | % | 19.0 | % | 18.8 | % | |||||||
| 5 | ) | The following table reflects the components of non-operating income and deductions: | |||||||||||
| (millions of dollars) | Quarter Ended | ||||||||||||
| 2025 | 2024 | 2024 | |||||||||||
| Interest income | $ | 1.2 | $ | 1.8 | $ | 1.1 | |||||||
| Interest expense | (15.4 | ) | (14.4 | ) | (16.0 | ) | |||||||
| Foreign exchange gains (losses) | (0.2 | ) | 1.4 | 0.9 | |||||||||
| Debt extinguishment expenses | 0.0 | (1.8 | ) | 0.0 | |||||||||
| Other deductions | (1.8 | ) | (1.7 | ) | (1.1 | ) | |||||||
| Non-operating deductions, net | $ | (16.2 | ) | $ | (14.7 | ) | $ | (15.1 | ) | ||||
| 6 | ) | The analyst conference call to discuss operating results for the first quarter is scheduled for | |||||||||||
| SUPPLEMENTARY DATA | ||||||||||||||||||||||
| (millions of dollars) | ||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||
| Quarter Ended | % Growth | |||||||||||||||||||||
| SALES DATA | % of | % of | % of | |||||||||||||||||||
| 2025 | Total Sales | 2024 | Total Sales | 2024 | Total Sales | Prior Qtr. | Prior Year | |||||||||||||||
| $ | 262.4 | 53 | % | $ | 264.7 | 51 | % | $ | 275.1 | 51 | % | (1 | )% | (5 | )% | |||||||
| International | 229.4 | 47 | % | 253.4 | 49 | % | 259.4 | 49 | % | (9 | )% | (12 | )% | |||||||||
| $ | 491.8 | 100 | % | $ | 518.1 | 100 | % | $ | 534.5 | 100 | % | (5 | )% | (8 | )% | |||||||
| Household & | $ | 123.1 | 25 | % | $ | 133.9 | 26 | % | $ | 138.4 | 26 | % | (8 | )% | (11 | )% | ||||||
| Specialty Additives | 145.2 | 30 | % | 144.8 | 28 | % | 158.5 | 30 | % | 0 | % | (8 | )% | |||||||||
| Consumer & Specialties Segment | $ | 268.3 | 55 | % | $ | 278.7 | 54 | % | $ | 296.9 | 56 | % | (4 | )% | (10 | )% | ||||||
| High-Temperature Technologies | $ | 169.4 | 34 | % | $ | 176.4 | 34 | % | $ | 177.3 | 33 | % | (4 | )% | (4 | )% | ||||||
| Environmental & Infrastructure | 54.1 | 11 | % | 63.0 | 12 | % | 60.3 | 11 | % | (14 | )% | (10 | )% | |||||||||
| Engineered Solutions Segment | $ | 223.5 | 45 | % | $ | 239.4 | 46 | % | $ | 237.6 | 44 | % | (7 | )% | (6 | )% | ||||||
| MTI Consolidated | $ | 491.8 | 100 | % | $ | 518.1 | 100 | % | $ | 534.5 | 100 | % | (5 | )% | (8 | )% | ||||||
| SUPPLEMENTARY DATA | ||||||||||||||
| (millions of dollars) | ||||||||||||||
| (unaudited) | ||||||||||||||
| Quarter Ended | % Growth | |||||||||||||
| Prior | Prior | |||||||||||||
| SEGMENT OPERATING INCOME (LOSS) DATA | 2025 | 2024 | 2024 | Qtr. | Year | |||||||||
| Consumer & Specialties Segment | $ | 27.5 | $ | 37.9 | $ | 42.0 | (27)% | (35)% | ||||||
| % of Sales | 10.2% | 13.6% | 14.1% | |||||||||||
| Engineered Solutions Segment | $ | 33.6 | $ | 52.0 | $ | 38.5 | (35)% | (13)% | ||||||
| % of Sales | 15.0% | 21.7% | 16.2% | |||||||||||
| Unallocated and Other Corporate Expenses | $ | (221.2) | $ | (5.8) | $ | (5.3) | * | * | ||||||
| MTI Consolidated | $ | (160.1) | $ | 84.1 | $ | 75.2 | * | * | ||||||
| % of Sales | * | 16.2% | 14.1% | |||||||||||
| SPECIAL ITEMS | ||||||||||||||
| Consumer & Specialties Segment | $ | 2.5 | $ | 0.0 | $ | 0.0 | * | * | ||||||
| Engineered Solutions Segment | $ | 0.8 | $ | (12.3) | $ | 0.0 | * | * | ||||||
| Unallocated and Other Corporate Expenses | $ | 220.0 | $ | 2.4 | $ | 2.1 | * | * | ||||||
| MTI Consolidated | $ | 223.3 | $ | (9.9) | $ | 2.1 | * | * | ||||||
| To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP operating income, excluding special items (set forth in the above table), for the quarterly periods ended | ||||||||||||||
| Quarter Ended | % Growth | |||||||||||||
| SEGMENT OPERATING INCOME, | ||||||||||||||
| EXCLUDING SPECIAL ITEMS | 2025 | 2024 | 2024 | Prior Qtr. | Prior Year | |||||||||
| Consumer & Specialties Segment | $ | 30.0 | $ | 37.9 | $ | 42.0 | (21)% | (29)% | ||||||
| % of Sales | 11.2% | 13.6% | 14.1% | |||||||||||
| Engineered Solutions Segment | $ | 34.4 | $ | 39.7 | $ | 38.5 | (13)% | (11)% | ||||||
| % of Sales | 15.4% | 16.6% | 16.2% | |||||||||||
| Unallocated and Other Corporate Expenses | $ | (1.2) | $ | (3.4) | $ | (3.2) | (65)% | (63)% | ||||||
| MTI Consolidated | $ | 63.2 | $ | 74.2 | $ | 77.3 | (15)% | (18)% | ||||||
| % of Sales | 12.9% | 14.3% | 14.5% | |||||||||||
| * Percentage not meaningful | ||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| ASSETS | |||||||||
| (In Millions of Dollars) | |||||||||
| 2025* | 2024** | ||||||||
| Current assets: | |||||||||
| Cash & cash equivalents | $ | 306.6 | $ | 333.1 | |||||
| Short-term investments | 5.6 | 4.0 | |||||||
| Accounts receivable, net | 405.9 | 385.2 | |||||||
| Inventories | 352.5 | 342.1 | |||||||
| Prepaid expenses and other current assets | 65.6 | 66.6 | |||||||
| Total current assets | 1,136.2 | 1,131.0 | |||||||
| Property, plant and equipment | 2,261.6 | 2,236.6 | |||||||
| Less accumulated depreciation | 1,269.7 | 1,246.9 | |||||||
| Net property, plant & equipment | 991.9 | 989.7 | |||||||
| 914.6 | 913.8 | ||||||||
| Intangible assets | 215.8 | 218.1 | |||||||
| Other assets and deferred charges | 142.7 | 141.3 | |||||||
| Total assets | $ | 3,401.2 | $ | 3,393.9 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Short-term debt | $ | 19.7 | $ | 5.1 | |||||
| Current maturities of long-term debt | 6.6 | 6.5 | |||||||
| Accounts payable | 189.9 | 185.5 | |||||||
| Other current liabilities | 383.7 | 200.6 | |||||||
| Total current liabilities | 599.9 | 397.7 | |||||||
| Long-term debt | 960.1 | 959.6 | |||||||
| Deferred income taxes | 87.9 | 130.5 | |||||||
| Other non-current liabilities | 118.5 | 122.9 | |||||||
| Total liabilities | 1,766.4 | 1,610.7 | |||||||
| Total MTI shareholders' equity | 1,598.2 | 1,747.0 | |||||||
| Non-controlling Interests | 36.6 | 36.2 | |||||||
| Total shareholders' equity | 1,634.8 | 1,783.2 | |||||||
| Total liabilities and shareholders' equity | $ | 3,401.2 | $ | 3,393.9 | |||||
| * | Unaudited | ||||||||
| ** | Condensed from audited financial statements. | ||||||||