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Third Quarter 2025 O c t o b e r 2 9 , 2 0 2 5 FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limited to: (i) statements regarding the Company's results of operations and financial condition; (ii) statements of plans, objectives or goals of the Company or its ...

Financial Data and Key Metrics Changes - Adjusted earnings per share increased to $0.23 from $0.20 year-over-year, with net debt maintained at approximately $42 million, reflecting a leverage ratio of 0.7x [5][9] - Sales revenues grew by 8.9% year-over-year to $90.5 million, with adjusted EBITDA rising 9.7% to $11.3 million, resulting in a 12.5% margin [9][10] - Cash generated from operations was $5.1 million, an increase of $1.5 million compared to the previous year [10] Business Line Data and Key Metrics Changes - The Electron segment saw sales rise to $49.4 million, up 31% from $37.7 million a year ago, with adjusted EBITDA increasing to $8.7 million and an EBITDA margin of 17.6% [11][12] - Gas cylinders revenue decreased by 9% to $41.1 million, with adjusted EBITDA at $2.6 million, reflecting a margin of 6.3% [15][16] - Specialty Industrial posted a notable 25% increase in revenue, driven by electronic and calibration gas applications [16] Market Data and Key Metrics Changes - Overall order books increased by 12%, indicating strong demand across various sectors, particularly in defense and aerospace [6][8] - Demand for flameless ration heaters and meals ready to eat products remained elevated, contributing to the positive outlook for the defense sector [28] Company Strategy and Development Direction - The planned divestiture of the Graphic Arts business is on track to close by mid-2025, allowing the company to focus on higher-margin growth opportunities [6][22] - The company is expanding its international gas solutions portfolio, highlighted by securing an order for its first bulk gas transportation system in Europe [6][19] - The Luxfer business system emphasizes innovation and efficiency, with a focus on customer needs and profitable growth [20][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic risks, including potential tariffs and supply chain issues [8][19] - The company reaffirmed its full-year 2025 guidance, expecting flat revenue growth and adjusted diluted earnings per share in the range of $0.95 to $1.05 [17][18] - Management remains attentive to foreign exchange volatility, which could impact earnings, and is prepared to adjust strategies accordingly [18] Other Important Information - The company is maintaining a share repurchase program with authorization for up to $10 million for opportunistic buybacks [31][32] - Capital expenditures are expected to increase to a range of $12 million to $15 million for the year, reflecting growth opportunities [32] Q&A Session Summary Question: Any special factors in the quarter and guidance outlook - Management noted strong performance in the defense market, particularly in sales of flameless ration heaters and UGRE products, contributing to a positive outlook for 2025 [27][28] Question: Strength in Specialty Industrials - The increase in Specialty Industrial gas cylinders is attributed to long-term trends in high-purity gases for electronics applications, indicating a growing market [29][30] Question: Capital allocation and buybacks - The company is considering opportunistic buybacks and plans to increase capital expenditures this year, with a focus on growth opportunities [31][32][33] Question: Sustainability of strong defense business performance - Management highlighted that the strong performance is driven by both the ramp-up of UGRE and elevated military stocking levels, indicating a positive trend [34]

Financial Performance - Adjusted sales reached $90.5 million, representing an 8.9% year-over-year increase[5, 9] - Adjusted EBITDA was $11.3 million, a 9.7% increase compared to the previous year[5, 9] - Adjusted EPS stood at $0.23, reflecting a 15% increase year-over-year[5, 9] - Net debt was maintained below $42 million, with a low leverage ratio of 0.7x[6] - Cash from operations increased by $1.5 million to $5.1 million[9] Segment Results - Elektron segment sales grew to $49.4 million, a 31% increase year-over-year, with an adjusted EBITDA of $8.7 million[15, 20] - Gas Cylinders segment sales were $41.1 million, a 9.5% decrease year-over-year, with an adjusted EBITDA of $2.6 million[26, 55] - Elektron segment achieved a 17.6% adjusted EBITDA margin[15] - Gas Cylinders segment experienced a margin compression, with adjusted EBITDA margin falling to 6.3%[26] Outlook and Strategy - The company reaffirmed its 2025 outlook, projecting adjusted EBITDA between $48 million and $52 million and adjusted EPS between $0.95 and $1.05[29] - The company anticipates interest expense of approximately $4 million, capital expenditures between $12 million and $15 million, and a tax rate of around 23%[31]

Financial Performance - Q4 2024 - Adjusted sales for Q4 2024 were $96 million[7], a 9.3% increase year-over-year[7] - Adjusted EBITDA for Q4 2024 was $13.8 million, with a margin of 14.4%[5, 7], a 45.3% increase year-over-year[7] - Adjusted EPS for Q4 2024 was $0.29[5, 7], a 61.1% increase year-over-year[7] - Free cash flow for Q4 2024 was $30 million[5, 7], a $15.9 million increase year-over-year[7] Financial Performance - Full Year 2024 - Adjusted sales for FY 2024 were $362.3 million[5, 11], a 3% decrease year-over-year[42] - Adjusted EBITDA for FY 2024 was $49.8 million, with a margin of 13.7%[5, 11], a 1.2% increase year-over-year[42] - Adjusted EPS for FY 2024 was $0.99[5, 11], a 2.1% increase year-over-year[42] - Free cash flow for FY 2024 was $47.7 million[11, 42], a $30.9 million increase year-over-year[42] Segment Performance - Elektron Q4 2024 sales were $47.5 million, a 31.6% increase year-over-year[12, 35], with an adjusted EBITDA of $9.4 million, a 213.3% increase year-over-year[12, 36] - Gas Cylinders Q4 2024 sales were $48.5 million, a 6.2% decrease year-over-year[17, 39], with an adjusted EBITDA of $4.4 million, a 32.3% decrease year-over-year[17, 40] 2025 Guidance - The company expects flat sales revenue[22] - Adjusted EBITDA is projected to be between $48 million and $52 million[22] - Free cash flow is expected to be between $20 million and $25 million[22] - Adjusted EPS is projected to be between $0.95 and $1.05[22]