Core Insights - Minerals Technologies Inc. (MTI) achieved 11 out of 12 environmental targets a year ahead of schedule, demonstrating a strong commitment to sustainability [1][4] - The company reported a 14% reduction in Scope 1 emissions and a 10% reduction in Scope 2 emissions year over year, contributing to a 32% and 36% reduction since 2018, respectively [4] - MTI's new product portfolio is increasingly sustainable, with 66% of new products having a sustainable profile [1][4] Sustainability Achievements - MTI delivered world-class safety performance, with a total recordable injury rate of 0.77 and a lost workday injury rate of 0.15, as defined by OSHA [4] - The company reduced water usage by 4% year over year, achieving a 30% decrease since 2018, and decreased water discharge by 13% year over year, or 52% since 2018 [4] - Over 1.1 million metric tons of waste CO2 were extracted and sequestered in usable consumer products [4] Community Engagement - MTI's employees participated in various community engagement projects, including fundraisers, book donations, and environmental clean-ups [3] - The company emphasizes the importance of sustainable operations as a core aspect of its business strategy, benefiting both growth and environmental goals [2] Financial Performance - In 2024, MTI reported global sales of $2.1 billion, reflecting its strong market position and commitment to sustainability [5]

Core Points - Minerals Technologies Inc. (MTI) will release its second quarter results for the period ending June 29, 2025, on July 24, 2025, after market close [1] - A conference call to discuss the results will be held on July 25, 2025, at 11 a.m. Eastern Time [1] - The company reported global sales of $2.1 billion in 2024, indicating a strong market presence [4] Company Overview - Minerals Technologies Inc. is a technology-driven specialty minerals company based in New York [4] - The company develops, produces, and markets a wide range of mineral and mineral-based products, serving various consumer and industrial markets [4] - Key markets include household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental sectors [4]

Company Overview - Minerals Technologies Inc. (MTI) is a technology-driven specialty minerals company based in New York, developing, producing, and marketing a wide range of mineral and mineral-based products, systems, and services [2] - The company serves various consumer and industrial markets, including household, food and pharmaceutical, paper, packaging, automotive, construction, and environmental sectors [2] - In 2024, MTI reported global sales of $2.1 billion [2] Dividend Announcement - The Board of Directors of MTI declared a regular quarterly cash dividend of $0.11 per share on the outstanding common stock [1] - This quarterly cash dividend is payable on June 12, 2025, to shareholders of record at the close of business on May 30, 2025 [1]

Financial Data and Key Metrics Changes - First quarter sales were $492 million, an 8% decrease year-over-year primarily due to lower volumes and unfavorable mix, along with unfavorable foreign exchange [20][22] - Operating income was $63 million, with an operating margin of 12.9%, impacted by temporary cost increases in the Consumer and Specialty segment [22][23] - Earnings per share excluding special items was $1.14, with several special items recorded including a $215 million provision for BMI Old Co [23][24] Business Line Data and Key Metrics Changes - In the Consumer and Specialties segment, first quarter sales were $268 million, adversely affected by changes in customer order patterns and cautious inventory management [24][25] - The Engineered Solutions segment reported first quarter sales of $224 million, with stable market conditions in North America but softer demand in Europe [26][27] - Positive trends were noted in Household and Personal Care, with sales up 6% from the prior year in edible oil and renewable fuel purification [25][28] Market Data and Key Metrics Changes - The North American foundry market remained stable, while the China foundry business experienced strong growth due to higher export production [15][27] - Environmental and Infrastructure projects showed stability, with a 19% increase in sales for Environmental Lighting applications [28] - The overall market remains uncertain, with expectations of a significant downturn in the U.S. economy potentially affecting future performance [16][18] Company Strategy and Development Direction - The company aims to penetrate core markets further, focusing on higher-margin consumer-oriented products and driving innovation [17][18] - Strategies are aligned with secular trends, targeting efficiency and cost savings for customers, particularly in water filtration and renewable fuels [17][18] - The company is prepared to make operational adjustments and has a strong foundation to navigate uncertainties ahead [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first quarter but noted an uptick in sales in March, indicating potential recovery [6][11] - The forecast for the second quarter encompasses a range of outcomes based on customer reactions to the economic landscape [11][34] - Confidence remains in long-term growth targets despite current market uncertainties, with a focus on maintaining a strong financial position [17][18] Other Important Information - The company identified $10 million in cost savings targeted at efficiency improvements and general reductions in overhead [8][9] - A reserve of $215 million was established for estimated costs related to talc claims and ongoing litigation [9][23] - The company has nearly $700 million in liquidity and a net leverage ratio of 1.7 times EBITDA, indicating a solid balance sheet [33] Q&A Session Summary Question: Update on talc litigation and reserve estimates - Management reported progress in mediation and confidence in the estimates for funding the trust and ongoing litigation costs [40][41] Question: Expectations for organic top-line growth amid macro impacts - Management indicated uncertainty in growth projections but noted a stable base demand and potential for low single-digit growth [43][46] Question: Cadence of cost savings and margin improvement - Cost savings are expected to ramp up meaningfully in the third quarter, contributing to margin improvement [50][51] Question: Operating margin outlook for 2025 - Management expects operating margins to potentially improve in the second half of the year, with a target of 15% [62][63] Question: Impact of tariffs on magnesium oxide sourcing - Management confirmed that magnesium oxide is sourced from multiple locations, including China, and inventory levels are being built up in anticipation of tariff impacts [66][68] Question: Volatility in Household and Personal Care business - Management acknowledged recent volatility but expressed confidence in the long-term growth potential of the category [70][74] Question: Customer attitudes towards R&D and product development amid tariffs - Management reported no significant changes in customer engagement regarding new product developments, indicating continued interest in high-value products [80][82] Question: Update on PFAS remediation projects - Management highlighted a strong pipeline for PFAS remediation projects, with ongoing trials and significant contract wins [90][92]

Core Insights - Minerals Technologies (MTX) reported a revenue of $491.8 million for the quarter ended March 2025, reflecting an 8% decline year-over-year, with EPS at $1.14 compared to $1.49 in the same quarter last year [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $492 million, resulting in a surprise of -0.04%, while the EPS fell short of the consensus estimate of $1.16 by -1.72% [1] Revenue Performance - Revenue from the Engineered Solutions segment was $223.50 million, exceeding the two-analyst average estimate of $217.25 million, but showing a year-over-year decline of 5.9% [4] - Revenue from the Consumer & Specialties segment was $268.30 million, which was below the two-analyst average estimate of $274.75 million, marking a year-over-year decrease of 9.6% [4] Operating Income - Operating income for the Engineered Solutions segment was reported at $33.60 million, slightly above the average estimate of $33.10 million from two analysts [4] - Operating income for the Consumer & Specialties segment was $27.50 million, significantly lower than the two-analyst average estimate of $33.90 million [4] Stock Performance - Over the past month, shares of Minerals Technologies have returned -9.4%, underperforming the Zacks S&P 500 composite, which saw a change of -4.8% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]