Luxfer : Q4 Earnings Release
LXFR
LUXFER REPORTS STRONG FOURTH QUARTER 2024 DRIVEN BY KEY END MARKETS SALES
Provides Full Year 2025 Guidance
Fourth Quarter 2024 Highlights*
Full Year 2024 Highlights*
1 Note: Adjusted Results Excludes Graphic Arts business and impact of Legal Cost Recovery / Expense * Comparative information is relative to prior-year fourth quarter and full year
Luxfer delivered a strong fourth quarter, reflecting the progress we have made in executing our strategy. Sales of $96.0 million increased 9.3 percent year over year, demonstrating solid demand in key markets. This contributed to adjusted earnings per share of $0.29 and enabled us to exceed our full-year financial targets, with full year EPS of $0.99. Strong financial performance also allowed us to generate significant cash flow and greatly reduce net debt.
While challenges persist in auto catalysis and Industrial end markets, growth in Defense, First Response and Healthcare continues to drive positive momentum, and we have capitalized on higher demand for Flares and Flameless Ration Heaters, reinforcing our ability to adapt and deliver value in evolving market conditions.
Looking ahead, we expect a relatively stable performance in 2025 as we navigate near-term headwinds in clean energy and macroeconomic uncertainties including tariffs. Our disciplined execution, focus on operational efficiency, and leadership in critical end markets position us well to drive long-term value for our customers and shareholders.
Andy Butcher
CEO, Luxfer
Key Results* (amounts in millions, except EPS)
Net Sales and Gross Profits
$
Q4 2024
% Change
$
FY 2024
GAAP Net Sales
103.4
7.8%
391.9
Adjusted Net Sales1
96.0
9.3%
362.3
GAAP Gross Profit
22.9
37.1%
85.7
Adjusted Gross Profit1
22.5
34.7%
82.2
Adjusted Gross Margin1
23.4%
440bps
22.7%
Net Income, Adjusted EBITDA and EPS
$
Q4 2024
% Change
$
FY 2024
GAAP Net Income / (Loss)
3.3
n.a.
18.3
Adjusted EBITDA1
14.3
76.5%
57.5
Adjusted EBITDA1 ex. Legal Cost Recovery / Expense
13.8
45.3%
49.8
GAAP Diluted EPS
$
0.12
n.a.
$
0.68
Adjusted Diluted EPS1
0.31
138.5%
1.21
Adjusted Diluted EPS1 ex. Legal Cost Recovery / Expense
0.29
61.1%
0.99
32.8%
1.2%
n.a.
51.3%
2.1%
Fourth Quarter Financials
GAAP net sales of $103.4 million increased by $7.5 million from $95.9 million in the fourth quarter of 2023. This growth was driven by an $8.6 million improvement in volume/mix, partially offset by a $0.7 million negative impact from lower pricing and a $0.4 million negative impact from foreign exchange rates.
Additionally, certain defense customers requested expedited order fulfillment in the fourth quarter of approximately $3.4 million, pulling shipments forward from the first quarter of 2025. This contributed to a robust Q4 performance, resulting in higher sales volumes and bolstered margins.
GAAP net income from continuing operations was $3.3 million, or $0.12 per diluted share, compared to a net loss of $6.5 million, or loss of $0.24 per diluted share, in the fourth quarter of 2023.
Adjusted net income (excluding Graphic Arts) was $8.4 million, or $0.31 per diluted share, compared to $3.6 million, or $0.13 per diluted share, in the fourth quarter of 2023. Excluding net legal expense recovery in the quarter, adjusted net income (excluding Graphic Arts) was $8.0 million, or $0.29 per diluted share, compared to $4.8 million, or $0.18 per diluted share, in the prior year period.
Adjusted EBITDA (excluding Graphic Arts) increased to $14.3 million, 76.5% improvement compared to $8.1 million in the prior year. This growth was primarily driven by a $2.9 million positive impact from improved volume/mix, a $3.0 million benefit from net cost deflation (mainly magnesium), and a $1.9 million net benefit from legal expense / cost recovery. These gains were partially offset by a $0.7 million impact from lower prices, $0.6 million in adverse cost movements and a $0.3 million negative impact from foreign exchange during the quarter.
Segment Results* (amounts in millions)
Elektron
Q4 2024
% Change
FY 2024
% Change
Net Sales
$
47.5
31.6%
$
176.0
-5.9%
Gross Profit
15.1
106.8%
52.0
4.4%
Gross Margin
31.8%
1,160bps
29.5%
290bps
518.8%
48.5%
Adjusted EBITDA
$
9.9
$
39.5
Adjusted EBITDA Margin
20.8%
1,640bps
22.4%
820bps
Adjusted EBITDA (ex. Legal)
9.4
213.3%
31.8
-2.2%
Adjusted EBITDA Margin (ex. Legal)
19.8%
1,150bps
18.1%
70bps
Gas Cylinders
Q4 2024
% Change
FY 2024
% Change
Net Sales
$
48.5
-6.2%
$
186.3
-0.1%
Gross Profit
7.4
-21.3%
30.2
9.8%
Gross Margin
15.3%
-290bps
16.2%
140bps
-32.3%
7.8%
Adjusted EBITDA
$
4.4
$
18.0
Adjusted EBITDA Margin
9.1%
-350bps
9.7%
70bps
* Comparative information is relative to prior-year fourth quarter and full year; results exclude discontinued operations and Graphic Arts business
Capital Resources and Liquidity
Net cash provided by continuing operations for the fourth quarter of 2024 was $25.7 million, an improvement of $9.7 million compared to the fourth quarter of 2023. Free cash flow from continuing operations was $30.0 million, an increase of $15.9 million over the same period last year. Full year free cash flow from continuing operations was $47.7 million, an increase of $30.9 million over the prior year and included approximately $13 million of non-recurring inflows from legal cost recovery and the sale of land. As of December 31, 2024, net debt totaled $41.0 million, resulting in a net debt-to-adjusted EBITDA ratio of 0.8x. Excluding Graphic Arts, the net debt-to-adjusted EBITDA ratio was 0.7x.
During the fourth quarter of 2024, approximately $0.7 million of common stock, equating to 50,000 shares, was repurchased. In the full year 2024 a total of approximately $2.3 million in common stock, or 200,000 shares, has been repurchased. Additionally, $3.5 million was returned to shareholders through dividends during the quarter, bringing the full year 2024 total to $14.0 million.
2025 Guidance Update (excluding Graphic Arts)
The 2025 guidance reflects a relatively stable business performance as the Company capitalizes on strong positioning in core Defense and First Response markets while navigating continued softness in the clean energy sector. Although near-term growth remains pressured, Luxfer remains focused on new product innovation, executing operational efficiencies, and driving long-term value through disciplined capital management.
Full Year Guidance
2025
Sales Revenue
Flat
Adjusted Diluted EPS
$0.95
- $1.05
Adjusted EBITDA
$48M
- $52M
Free Cash Flow
$20M
- $25M
Further details and assumptions regarding the 2025 guidance will be discussed on the 2024 fourth quarter and full-year earnings teleconference at 8:30 a.m. ET on Wednesday February 26, 2025.
2025 Upcoming Events
Fourth Quarter 2024 Earnings Conference Call Information
Luxfer will conduct an investor teleconference at 8:30 a.m. ET on Wednesday February 26, 2025. Investors can access this conference via any of the following:
About Luxfer
Luxfer is a global industrial company innovating niche applications in materials engineering. Using its broad array of proprietary technologies, Luxfer focuses on value creation, customer satisfaction, and demanding applications where technical know-how and manufacturing expertise combine to deliver a superior product. Luxfer's high-performance materials, components, and high-pressure gas containment devices are used in defense and emergency response, clean energy, healthcare, transportation, and general industrial applications. For more information, please visit www.luxfer.com. Luxfer is listed on the New York Stock Exchange and its ordinary shares trade under the symbol LXFR.
Non-GAAP Financial Measures
Luxfer Holdings PLC prepares its financial statements using U.S. Generally Accepted Accounting Principles (GAAP). When a company discloses material information containing non-GAAP financial measures, SEC regulations require that the disclosure include a presentation of the most directly comparable GAAP measure and a reconciliation of the GAAP and non-GAAP financial measures. Management's inclusion of non-GAAP financial measures in this release is intended to supplement, not replace, the presentation of the Company's financial results in accordance with GAAP. Luxfer management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the Company's business trends and understand the Company's performance. In addition, management may utilize non-GAAP financial measures as a guide in the Company's forecasting, budgeting, and long-term planning process. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP.
With respect to the Company's 2025 adjusted earnings per share guidance, the Company is not able to provide a reconciliation of the non-GAAP financial measure to GAAP because it does not provide specific guidance for the various extraordinary, nonrecurring, or unusual charges and other certain items. These items have not yet occurred, are out of the Company's control, and/or cannot be reasonably predicted. As a result, reconciliation of the non-GAAP guidance measure to GAAP is not available without unreasonable effort, and the Company is unable to address the probable significance of the unavailable information.
Forward-Looking Statements
This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limited to: (i) statements regarding the Company's results of operations and financial condition; (ii) statements of plans, objectives or goals of the Company or its management, including those related to financing, products, or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "forecasts," and "plans," and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. By their very nature, forward- looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections, and other forward-looking statements will not be achieved. The Company cautions that several important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates, and intentions expressed in such forward-looking statements. These factors include but are not limited to: (i) lower than expected future sales;
Forward-Looking Statements (con't)
comply with the covenants contained therein. The Company cautions that the foregoing list of important factors are not exhaustive. These factors are more fully discussed in the sections entitled "Forward-Looking Statements" and "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the U.S. Securities and Exchange Commission on February 25, 2025. When relying on forward-looking statements to make decisions with respect to the Company, investors and others should carefully consider the foregoing factors and other uncertainties and events. Forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update or revise any such statement, whether because of new information, future events, or otherwise.
Contact Info:
Kevin Cornelius Grant
Vice President of Investor Relations and Business Development
LUXFER HOLDINGS PLC
CONSOLIDATED STATEMENTS OF INCOME / (LOSS) (UNAUDITED)
Fourth Quarter
Years ended
In millions, except share and per-share data
2024
2023
2024
2023
Net sales
$
103.4
$
95.9
$
391.9
$
405.0
Cost of sales
(80.5)
(79.2)
(306.2)
(328.4)
Gross profit
22.9
16.7
85.7
76.6
Selling, general and administrative expenses
(13.2)
(12.1)
(48.1)
(48.7)
Research and development
(1.1)
(1.2)
(4.4)
(4.6)
Restructuring charges
(2.4)
(2.0)
(4.7)
(6.4)
Impairment charges
-
(12.7)
-
(12.7)
Acquisitions and disposals costs
(2.7)
-
(12.2)
-
Other income
0.5
-
7.7
-
Gain on disposal of assets held-for-sale
-
-
6.1
-
Operating income / (loss)
4.0
(11.3)
30.1
4.2
Net interest expense
(1.1)
(1.6)
(5.2)
(6.3)
Defined benefit pension credit / (charge)
0.8
0.4
1.6
(7.6)
Income / (loss) before income taxes
3.7
(12.5)
26.5
(9.7)
(Provision) / credit for income taxes
(0.4)
6.0
(8.2)
7.1
Net income / (loss) from continuing operations
3.3
(6.5)
18.3
(2.6)
Income from discontinued operations, net of tax
0.2
0.7
0.1
0.7
Net income / (loss)
$
3.5
$
(5.8)
$
18.4
$
(1.9)
Earnings / (loss) per share(1)
Basic from continuing operations
0.12
(0.24)
0.68
(0.10)
Basic from discontinued operations
0.01
0.03
-
0.03
Basic
$
0.13
$
(0.22)
$
0.69
$
(0.07)
Diluted from continuing operations
0.12
(0.24)
0.68
(0.10)
Diluted from discontinued operations
0.01
0.03
-
0.03
Diluted
$
0.13
$
(0.22)
$
0.68
$
(0.07)
Weighted average ordinary shares outstanding
Basic
26,759,539
26,848,665
26,804,873
26,897,556
Diluted
27,131,543
26,888,034
27,083,901
27,020,959
LUXFER HOLDINGS PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31,
In millions, except share and per-share data
2024
2023
Current assets
Cash and cash equivalents
$
4.1
$
2.3
Restricted cash
2.2
0.3
Accounts and other receivables, net of allowances of $0.3 and $0.7, respectively
58.8
54.2
Prepayments and accrued income
4.6
5.7
Inventories
83.6
95.9
Current assets held-for-sale
22.5
8.9
Other current assets
-
1.5
Total current assets
175.8
168.8
Non-current assets
Property, plant and equipment, net
62.8
63.8
Right-of-use assets from operating leases
11.5
15.4
Goodwill
67.0
67.5
Intangibles, net
11.5
12.0
Deferred tax assets
4.1
3.9
Pensions and other retirement benefits
49.3
40.3
Investments and loans to joint ventures and other affiliates
0.4
0.4
Total assets
$
382.4
$
372.1
Current liabilities
Current maturities of long-term debt and short-term borrowings
$
3.1
$
4.6
Accounts payable
29.6
26.5
Accrued liabilities
24.0
20.9
Taxes on income
5.6
-
Current liabilities held-for-sale
12.8
3.9
Other current liabilities
18.6
8.9
Total current liabilities
93.7
64.8
Non-current liabilities
Long-term debt
42.0
67.6
Pensions and other retirement benefits
0.1
0.1
Deferred tax liabilities
14.0
10.2
Other non-current liabilities
13.1
16.8
Total liabilities
$
162.9
$
159.5
Commitments and contingencies
Shareholders' equity
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2024 and
2023; issued 28,944,000 for 2024 and 2023; outstanding 26,742,074 and
$
26.5
$
26.5
26 834 628 for 2024 and 2023 respectively
Additional paid-in capital
226.1
223.5
Treasury shares
(24.9)
(22.9)
Company shares held by ESOP
(0.8)
(0.9)
Retained earnings
108.7
104.3
Accumulated other comprehensive loss
(116.1)
(117.9)
Total shareholders' equity
$
219.5
$
212.6
Total liabilities and shareholders' equity
$
382.4
$
372.1
LUXFER HOLDINGS PLC CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Years Ended December 31,
In millions
2024
2023
Operating activities
Net income / (loss)
$
18.4
$
(1.9)
Net loss / (income) from discontinued operations
(0.1)
(0.7)
Net income / (loss) from continuing operations
18.3
(2.6)
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities
Depreciation
Depreciation of right of use assets Amortization of purchased intangible assets Amortization of debt issuance costs Share-based compensation charge
9.3
3.3
0.8
0.3
3.5
11.9
3.3
0.8
0.4
2.8
Deferred income taxes
1.1
(0.6)
Loss on disposal of property, plant and equipment
0.1
-
Loss on disposal of business
-
-
Asset impairment charges and non-cash restructuring charges Gain on disposal of held for sale assets
Loss on held for sale asset group
Defined benefit pension (credit) / charge
Defined benefit pension contributions
Changes in assets and liabilities
Accounts and notes receivable
Inventories
Current assets held-for-sale
2.8
(6.1)
9.8
(1.0)
-
(4.3)
(4.1)
(4.7)
15.9
-
-
7.9
(2.3)
17.5
16.6
1.0
Other current assets
1.5
(1.5)
Prepayments and accrued income
1.1
(0.9)
Accounts payable
4.8
(19.0)
Accrued liabilities
Current liabilities held-for-sale Other current liabilities
Other non-current assets and liabilities
4.6
5.7
6.8
(2.5)
(9.2)
0.5
(4.3)
(12.0)
Net cash provided by operating activities - continuing
51.1
26.2
Net cash provided by operating activities - discontinued
-
0.1
Net cash provided by operating activities
51.1
26.3
Investing activities
Capital expenditures
(10.3)
(9.4)
Purchase of intangible assets
(0.4)
-
Proceeds from disposal of assets held for sale
7.3
-
Net cash used for investing activities - continuing
(3.4)
(9.4)
Net cash used for investing activities - discontinued
-
(0.1)
Net cash used for investing activities
(3.4)
(9.5)
Financing activities
Repayment of loan notes
-
(25.0)
(Repayment) / drawdown of bank overdraft
(1.5)
4.6
Net (repayment) / drawdown of long-term borrowings
(25.7)
10.2
Debt issuance costs
Dividends paid
Share-based compensation cash paid Repurchase of ordinary shares
-
(14.0)
(0.5)
(2.3)
(0.2)
(14.0)
(0.4)
(2.7)
Net cash used for financing activities
(44.0)
(27.5)
Effect of exchange rate changes on cash and cash equivalents
-
0.4
Net increase / (decrease)
3.7
(10.3)
Cash, cash equivalents and restricted cash; beginning of year
2.6
12.9
Cash, cash equivalents and restricted cash; end of year
$
6.3
$
2.6
Supplemental cash flow information:
Interest payments
$
5.8
$
6.1
Income tax (receipts) / payments
(1.2)
3.3
LUXFER HOLDINGS PLC
SUPPLEMENTAL INFORMATION
SEGMENT INFORMATION (UNAUDITED)
Net sales
Adjusted EBITDA
Fourth Quarter
Year-to-date
Fourth Quarter
Year-to-date
In millions
2024
2023
2024
2023
2024
2023
2024
2023
Gas Cylinders segment
$
48.5
$
51.7
$
186.3
$
186.4
$
4.4
$
6.5
$
18.0
$
16.7
Elektron segment
47.5
36.1
176.0
187.1
9.9
1.6
39.5
26.6
Excluding Graphic Arts segment
96.0
87.8
362.3
373.5
14.3
8.1
57.5
43.3
Graphic Arts segment
7.4
8.1
29.6
31.5
(1.2)
(1.0)
(2.9)
(4.5)
Consolidated
$
103.4
$
95.9
$
391.9
$
405.0
$
13.1
$
7.1
$
54.6
$
38.8
Depreciation and amortization
Restructuring charges
Fourth Quarter
Year-to-date
Fourth Quarter
Year-to-date
In millions
2024
2023
2024
2023
2024
2023
2024
2023
Gas Cylinders segment
$
0.8
$
0.9
$
3.4
$
4.1
$
2.4
$
1.8
$
4.5
$
5.9
Elektron segment
1.8
1.5
6.7
6.6
-
0.2
0.2
0.5
Excluding Graphic Arts segment
2.6
2.4
10.1
10.7
2.4
2.0
4.7
6.4
Graphic Arts segment
-
0.5
-
2.0
-
-
-
-
Consolidated
$
2.6
$
2.9
$
10.1
$
12.7
$
2.4
$
2.0
$
4.7
$
6.4
Gross Profit
Fourth Quarter
Year-to-date
In millions
2024
2023
2024
2023
Gas Cylinders segment
$
7.4
$
9.4
$
30.2
$
27.5
Elektron segment
15.1
7.3
52.0
49.8
Excluding Graphic Arts segment
22.5
16.7
82.2
77.3
Graphic Arts segment
0.4
-
3.5
(0.7)
Consolidated
$
22.9
$
16.7
$
85.7
$
76.6
Disclaimer
Luxfer Holdings plc published this content on February 25, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 25, 2025 at 21:36:12.933.