Luxfer : Earnings Presentation - Q4 2024

Published: 2025-02-26 07:24:05 ET LXFR

FOURTH QUARTER 2024 EARNINGS PRESENTATION

February 26, 2025

Q4 2024 KEY HIGHLIGHTS & 2024 KEY METRICS

Profitability: Adjusted EBITDA margin of 14.4%, reflecting

consistent operational performance throughout the year.

Financials

Balance sheet: Reduced net debt and low leverage (0.7x),

reflecting solid financial health.

Strong Cash Delivery: Delivered $30.0M in free cash in the

quarter, underscoring strong liquidity management.

Operational Efficiency Gains: Leveraging market tailwinds

Lean Operating

to boost productivity, especially in DFR&H.

Structure

Leaner Operations: Consolidating U.S. Alternative Fuel

and Powders businesses has created a more efficient,

profitable structure.

Graphic Arts Divestiture: The sale process is progressing

Strategic

and expected to conclude in H1 2025.

Alignment

Luxfer Business System: Driving long-term growth

through targeted initiatives, lean processes, and

operational excellence.

*Note: Adjusted financials exclude Graphic Arts & Legal Fee Recovery; exclusion does not impact reported cash flow metrics

Q 4 2 0 2 4

F I N A N C I A L S *

$96.0M

Adjusted Sales

23.4%

Adj Gross Margin

$13.8M

Adjusted EBITDA

14.4% Margin

$0.29

Adjusted EPS

$25.6M

Cash from Operations

F Y 2 0 2 4

F I N A N C I A L S *

$362.3M

Adjusted Sales

22.7%

Adj Gross Margin

$49.8M

Adjusted EBITDA

13.7% Margin

$0.99

Adjusted EPS

$50.8M

Cash from Operations

Concluded 2024 Strongly; Focused on Steady Performance in the Year Ahead

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

3

Q4'24 FINANCIAL RESULTS & BRIDGES

(amounts in millions, except EPS)

G r o s s

G r o s s

A d j .

A d j . E B I T D A

A d j .

F r e e C a s h

S a l e s

P r o f i t

M a r g i n

E B I T D A

M a r g i n

E P S

F l o w

N e t D e b t

Q4 2024

$96.0

$22.5

23.4%

$13.8

14.4%

$0.29

$30.0

$41.0

vs. Q4 2023 (YoY)

+9.3%

+34.7%

+440bps

+45.3%

+360bps

+61.1%

+$15.9

+$28.9

vs. Q3 2024 (QoQ)

+5.0%

+8.7%

+80 bps

+2.2%

-40 bps

+7.4%

+$20.7

+$25.0

S A L E S ( $ M )

A d j E B I T D A ( $ M )

$0.6

$0.5

$0.7

$9.4

$96.0

$2.9

$13.8

$87.8

$0.3

$0.7

$3.0

$9.5

Q4 2023

FX

Price

Volume/Mix

Q4 2024

Q4 2023

FX

Price

Net Deflation Vol/Mix

Other

Q4 2024

*Note: Adjusted financials exclude Graphic Arts & Legal Fee Costs & Recovery; exclusion does not impact reported cash flow metrics *Note: Free Cash Flow defined as Operating Cash Flow less Capital Expenditures plus Proceeds from Asset Sales

Full Year Adjusted Sales $362.3M, Adj. EBITDA $49.8M, Adj. EPS $0.99 and Free Cash Flow $47.7M

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

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ELEKTRON Q4 '24 FINANCIAL RESULTS

(amounts in millions)

Q 4

V s . Q 4

V s . Q 3

F Y

V s .

2 0 2 4

2 0 2 3

2 0 2 4

2 0 2 4

2 0 2 3

Sales

$47.5

+31.6%

-2.7%

$176.0

-5.9%

Gross Margin

31.8%

+1160bps

+330bps

29.5%

+290bps

Adj. EBITDA

$9.4

+213.3%

+5.6%

$31.8

-2.2%

Adj. EBITDA Margin

19.8%

+1150bps

+160bps

18.1%

+70bps

*Note: Adjusted EBITDA excludes legal recovery and cost in 2024 & 2023

Q4'24 SALES

BY SEGMENT ($M)

$7.3

$12.5 $27.7

V s . Q 4

V s . Q 3

F Y

' 2 3

' 2 4

V s . ' 2 3

Defense,

First Response,

+12.2

+$3.7

-

Healthcare

Transportation

+$2.4

+$1.0

-$3.8

General

-$3.2

-$6.0

-$7.3

Industrial

F I N A N C I A L P E F O R M A N C E O V E R V I E W :

S E G M E N T C O M M E N TA R Y:

Operational Focus and Strategic Execution Delivered Strong Margins Across Key Segments

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

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GAS CYLINDERS Q4 '24 FINANCIAL RESULTS

(amounts in millions)

Q 4

V s . Q 4

V s . Q 3

F Y

V s .

Q4'24 SALES

2 0 2 4

2 0 2 3

2 0 2 4

2 0 2 4

2 0 2 3

BY SEGMENT ($M)

Sales

$48.5

-6.2%

+13.8%

$186.3

-0.1%

$7.4

Gross Margin

15.3%

-290bps

-70bps

16.2%

+140bps

$24.0

Adj. EBITDA

$4.4

-32.3%

-4.3%

$18.0

+7.8%

$17.1

Adj. EBITDA Margin

9.1%

-350bps

-170bps

9.7%

+70bps

V s . Q 4

V s . Q 3

F Y

' 2 3

' 2 4

V s . ' 2 3

Defense,

First Response,

-$0.5

+$4.8

+$4.6

Healthcare

Transportation

-$2.9

+$2.9

-$3.0

General

+$0.2

-$1.8

-$1.7

Industrial

F I N A N C I A L P E F O R M A N C E O V E R V I E W :

S E G M E N T C O M M E N TA R Y:

Positive Sequential Sales, although Adverse Mix Impacted Margins

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

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2025 GUIDANCE

Sales Revenue

Flat

Adjusted EPS

$0.95 to $1.05

Adjusted EBITDA

$48M to $52M

Free Cash Flow

$20M to $25M

Primary Drivers:

Key Assumptions

•

Interest Expense:

$4M - $5M

•

v

Capex:

$12M - $15M

•

Tax Rate:

~23%

•

FX GBP:

1.25

•

Net Debt/Adj EBITDA:

~0.7x

Focused on Navigating Near-term Uncertainties while Maintaining Strategic Discipline for Long-term Growth

*Note: The 2025 Full Year guidance excludes Graphic Arts business

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

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LUXFER BUSINESS SYSTEM - DRIVEN INNOVATION

T H E L U X F E R B U S I N E S S S Y S T E M :

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Driving Innovation and Operational Excellence through the Luxfer Business System

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

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KEY HIGHLIGHTS AND ACHIEVEMENTS

G R O W I N G C O N F I D E N C E A N D R E S I L I E N C E W I T H C L E A R PAT H TO VA LU E C R E AT I O N

Operational

Driving Innovation

Sustained Margin

Strategic

Positioning for

Execution & Stability:

in Clean Energy:

Improvements:

Priorities:

2025 and beyond:

"Executed with

"Secured European

"Operational

"Advanced key

"Focused on

discipline to drive strong

certifications for bulk

efficiencies drove

initiatives, including

innovation,

cash generation and

hydrogen storage,

Q4 adjusted EBITDA

facility consolidations

disciplined execution,

reinforce our financial

reinforcing our

margins to 14.4%

and the planned

and navigating

foundation, enabling

capabilities as clean

and full-year

Graphic Arts sale,

evolving market

continued investment in

energy markets

margins to 13.7%,

driving efficiency and

conditions to drive

strategic priorities."

evolve."

marking continued

profitability."

long-term value."

progress."

Executing with Discipline to Strengthen Operations, Drive Innovation, and Position Luxfer for Long-term Growth

CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK

9

Q&A

FOURTH QUARTER 2024 EARNINGS PRESENTATION

Disclaimer

Luxfer Holdings plc published this content on February 26, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 26, 2025 at 12:23:05.792.