Minerals Technologies : MTX Q1 2025 Analyst Call Presentation

Published: 2025-04-25 11:07:05 ET MTX

-8%

-18%

-160bps

 Abnormally slow January and February driven by customer order changes

 Return to more stable demand in March

-23%

 Operating margin impacted by lower volumes, unfavorable product mix, and higher costs

 Cost savings program initiated

 Reserve established for BMI OldCo Chapter 11 case

Operating income, operating margin, and earnings per share exclude special items All changes are versus prior year

Q1 Dynamics

Current Conditions

Household & Personal Care

 Broad-based consumer order pattern shift

 More stable order patterns in cat litter

 Destocking activities across the segment

 Extended customer outages

 Continued growth in other consumer-oriented applications including animal health, edible oil, and renewable fuel purification

Specialty Additives

 Strong pipeline of packaging opportunities and start-ups of new satellites

Consumer & Specialties

High-Temperature Technologies

 Continued soft steel market conditions

 Improved refractory order volumes

 Stable foundry market in N. America with continued growth in China

 Stable foundry market

 Solid start in environmental/building construction projects

 Continued stabilization in environmental and building materials applications

 Growth in PFAS remediation solutions

Environmental & Infrastructure

 Large Fluoro-Sorb drinking water application contract

Engineered Solutions

MTI is well-positioned: market leader, grTowtatlhCaolimgnpeadnywith secular3a-5n%d sustainable trends, and a strong financial foundation

First Quarter versus Fourth Quarter ($M)

First Quarter versus Prior Year ($M)

Sales

Q1 '24

Sales -5%

518

5

492

(6)

(25)

(1%)

(5%)

+1% FX

Vol / Mix Price

Q1 '25

Q4 '24

FX

Vol / Mix Price

Q1 '25

Cost

Q1 '24

FX Vol / Mix Price Cost Q1 '25

14.5%

Operating Margin

12.9%

Operating Margin

Operating Income

Q4 '24

FX Vol / Mix Price

Q1 '25

14.3%

Operating Margin

12.9%

Operating Margin

$279M

$268M

$285M $275M -

Q4 '24

Q1 '25

Q2 '25

Operating Income

$38M

Sales Performance

• Significant order pattern changes in cat litter, fabric care, and automotive sealants

• Lower paper & packaging due to unusually high customer maintenance downtime

• Continued growth in edible oil and renewable fuel purification +6% YoY

• Stronger residential construction, with ground calcium carbonates +6% YoY

Operating Performance

• Temporarily lower productivity and higher operating costs

• Proactively moved to address costs in the quarter

$38M $35M -

Q4 '24

Second Quarter Outlook

• More normal order patterns

• Seasonally higher residential construction

Q1 '25

Q2 '25

• Improved product mix

Q4 '24

$255M $245M - Q1 '25

Q2 '25

Operating Income

$42M

$40M

Sales Performance

• Stable market conditions in N. America foundry and steel, still below last year

• Continued soft EMEA steel market; additional destocking in Q1

• Stronger foundry volumes in Asia; some pull forward into Q1 due to tariffs

• Increase in sales in PFAS remediation and environmental lining projects

• Slower offshore water filtration and services activity levels

Operating Performance

• Stable margin above 15% in Q1 despite lower sales

$40M -

Q4 '24

Second Quarter Outlook

Q1 '25

• Modest sequential improvement in N. America and EMEA foundry and steel

• Asia foundry growth temporarily moderating; similar volume YoY

Q2 '25

• Seasonally higher period for large-scale environmental and construction project activity

Working Capital and Capital Deployment

Liquidity

First Quarter Working Capital

$528M

90

103

$569M Q1 '24

Q1 '25

Working CapitalWC Days

Capital Deployment

Total Liquidity

$684M

Debt and Leverage

$681M

Net Debt -1%

$674M Q1 '24

Q1 '25

Working capital includes net accounts receivable, inventories, and accounts payable EBITDA excludes special items

Second Quarter Sales Outlook

+5% to +10%

+10% to +15%

$492M

Q1 '25

Consumer & Specialties Engineered Solutions

$520M to $535M

Q2 '25

 Seasonally higher period for construction activity

 Continued growth in high-value consumer specialties

 Modest improvement in N. America and EMEA foundry and steel

 Margin improvement driven by volume, mix, and cost savings measures

 Uncertainty persists around tariff policies and potential end market impacts

Disclaimer

Minerals Technologies Inc. published this content on April 25, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 25, 2025 at 15:06 UTC.