Minerals Technologies Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated net sales for the third quarter ended October 4, 2026, were $555 million, representing a 4% increase year-over-year and a 1% increase sequentially.
• Year-to-date consolidated sales for the first nine months of 2026 were $1.7 billion, up 6% compared to the prior year.
• Reported earnings per share (EPS) for the quarter were $1.37; non-GAAP EPS excluding special items was $1.53.
• Reported operating income was $65 million, or $72 million excluding special items, resulting in an operating margin of 11.7% (12.9% excluding special items).
• Cash flow from operations was $76 million, and free cash flow was $52 million for the quarter.
• Year-to-date cash flow from operations increased 32% compared to the prior year.
• Total debt stood at $957.8 million as of October 4, 2026, with adjusted net leverage at 1.5x.

Guidance and Future Outlook:

• Management remains on track to achieve mid-single-digit revenue growth for the full year 2026.
• The company estimates that two new opportunities in rare earths and critical minerals could generate over $200 million in revenue over the next five years.

Business Segments and Product Lines:

• Consumer & Specialties Segment: Sales were $278 million, up slightly year-over-year and 1% sequentially.
  • Household & Personal Care product line sales were $131 million, up 1% year-over-year and 6% sequentially, driven by higher cat litter volumes in North America and growth in edible oil, renewable fuel purification, personal care, and fabric care.
  • Specialty Additives product line sales were $148 million, flat year-over-year and 2% lower sequentially.
  • Segment operating income was $25 million, down 34% year-over-year due to higher energy, transportation, and raw material costs not fully recovered due to pricing adjustment timing.
• Engineered Solutions Segment: Sales were $277 million, up 9% year-over-year and 1% sequentially.
  • High-Temperature Technologies product line sales were $192 million, up 7% year-over-year and 1% sequentially, driven by higher sales to steel and foundry customers.
  • Environmental & Infrastructure product line sales were $85 million, up 11% year-over-year and 1% sequentially, driven by stronger sales in environmental lining, remediation, building materials, and infrastructure drilling.
  • Segment operating income was $49 million, up 9% year-over-year, with an operating margin of 17.6%.

Market and Competitive Landscape:

• The company serves customers in consumer and industrial markets worldwide with 4,000 employees in 34 countries.
• Growth in the Engineered Solutions segment was driven by demand in steel, foundry, environmental lining, remediation, and infrastructure drilling markets.

Risks and Challenges:

• The Consumer & Specialties segment faced margin pressure from higher energy, transportation, and raw material costs that were not fully recovered within the quarter.
• Significant risks include the volatility of worldwide economic conditions, cyclicality of customer businesses, raw material availability, and regulatory changes.
• The company faces ongoing legal and bankruptcy-related risks associated with its subsidiaries BMI OldCo Inc. and Barretts Ventures Texas LLC, including talc-related settlements and litigation costs.

Management Commentary and Tone:

• Douglas T. Dietrich, Chairman and CEO, stated that sales growth continued in the third quarter and the company remains on track for mid-single-digit full-year revenue growth.
• Management highlighted the ability to extend core technologies to new applications in rare earths and critical minerals to deliver long-term growth.
• The Board of Directors authorized a fourth consecutive year of dividend increases, reflecting confidence in the company's ability to deliver steady cash flow and execute its growth strategy.

Other Key Points:

• Investor Day: On September 22, 2026, MTI hosted an Investor Day introducing new technologies to support U.S. production of rare earths and critical minerals, including high-purity calcium metal production and waste repurposing technology for steel slag.
• Debt Refinancing: On October 13, 2026, MTI completed a $400 million private offering of 7.5% senior notes due 2032 to repay $400 million in senior notes due in 2028. The credit agreement was amended to increase the revolving credit facility to $500 million with a maturity extension to 2031.
• Dividend Increase: On October 21, 2026, the regular quarterly dividend was increased by 8% to $0.13 per share, payable on December 3, 2026.
• Special Items: The quarter included $6.7 million in litigation expenses related to the bankruptcy of BMI OldCo Inc. and talc lawsuits. The prior year quarter included a $290 million provision for litigation accrual and credit losses.