Minerals Technologies Beats Q2 Profit

Core Viewpoint - Minerals Technologies reported a sequential improvement in earnings for Q2 2025, surpassing analyst profit expectations but falling short of revenue forecasts, indicating operational recovery amidst mixed market demand [1][5]. Financial Performance - Non-GAAP earnings per share (EPS) for Q2 2025 reached $1.55, exceeding the analyst estimate of $1.41 but down 6.1% from $1.65 in Q2 2024 [2][5]. - GAAP revenue was $528.9 million, missing the consensus estimate by $1.57 million and down 2.3% year-over-year [2][5]. - Operating income (non-GAAP) was $79.0 million, a decrease of 6.8% from the previous year [2]. - Adjusted EBITDA stood at $99.1 million, down 8% compared to Q2 2024 but up 17% from Q1 2025 [2][9]. - Free cash flow increased to $33.8 million, a 13.1% rise from the previous year [2][10]. Business Segments Overview - The Consumer & Specialties segment reported sales of $277.7 million, a 4% increase from Q1 but a 2% decrease year-over-year [6]. - The Engineered Solutions segment generated $251.2 million in sales, growing 12% sequentially but declining 2% year-over-year [7]. - High-Temperature Technologies within Engineered Solutions reported $178.4 million in sales, up 5% sequentially but down 3% year-over-year [7]. Operational Highlights - Margins improved in both segments, with Consumer & Specialties achieving a 13.4% margin and Engineered Solutions posting a 17.4% margin, driven by cost efficiencies and productivity [8][9]. - Cash flow from operations was $62.9 million, reversing a negative result from the previous quarter [10]. Innovation and Sustainability - The company emphasized innovation with an annual R&D spend of approximately $23 million and holds around 240 patents [4]. - Recent product developments include FluoroSorb, aimed at addressing PFAS contamination in drinking water, with over two-thirds of new products featuring sustainable properties [11]. Outlook - Management maintains a positive outlook for the second half of FY2025, focusing on improving operating margins and restoring growth in core consumer lines while navigating raw material cost pressures [13].