Minerals Technologies (MTX) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales were $492 million, down 8% year-over-year, with demand weak in January and February but stabilizing in March; a $215 million reserve for talc-related claims and BMI OldCo Chapter 11 costs led to a net loss of $144 million.

• Adjusted EPS was $1.14, excluding special items, and a $10 million cost savings program was initiated, with $5.5 million in severance charges recorded.

• Operating loss was $160 million, but operating income excluding special items was $63 million (12.9% of sales).

• Strong liquidity was maintained, with over $650 million available and new credit facilities established.

Financial highlights

• Net loss attributable to shareholders was $144 million, compared to net income of $47 million in Q1 2024, driven by a $215 million litigation reserve and $5.5 million in restructuring charges.

• Adjusted EBITDA was $84.7 million (17.2% of sales), down from $100.6 million (18.8%) in Q1 2024.

• Free cash flow was negative $22.7 million, compared to $39.4 million in Q1 2024.

• Capital expenditures were $18.3 million; $15 million was returned to shareholders via buybacks and dividends.

Outlook and guidance

• Q2 2025 sales are expected to be $520–$535 million, with operating income around $75 million and EPS near $1.40 at the midpoint.

• Operating margin is expected to improve significantly in Q2, with full-year margin potentially reaching 15% if volumes recover and cost savings ramp up.

• Free cash flow conversion is expected to improve in the second half as working capital normalizes.

• Full run-rate cost savings from the $10 million program anticipated by early 2026.