Slide 1: Fourth Quarter 2024 Earnings Conference Call
FOURTH QUARTER 2024 EARNINGS CONFERENCE CALL February 7, 2025 © 2024 Minerals Technologies Inc. All Rights Reserved.
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures This presentation may contain "forward‐looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements provide current expectations and forecasts of future events such as new products, revenue
Slide 3: Douglas T. Dietrich, Chairman and Chief Executive Officer
Douglas T. Dietrich Chairman and Chief Executive Officer
Slide 4: 2024 Year-In-Review: Delivered Another Year of Strong Operating Performance
2024 Year-In-Review: Delivered Another Year of Strong Operating Performance Sales Operating Income Adj. EBITDA Earnings per Free Cash Flow $2.12B $316M $406M Share $147M $6.15 14.9% of sales 19.2% of sales 7% of sales -0.5%* +16%* +10% +18% +5% Record operating income, EBITDA, and earnings per sha
Slide 5: Progress on Growth Strategies
Progress on Growth Strategies Expansion in higher- Deepening positions in growth consumer- core markets and Product innovation oriented markets geographies SIVO - established the largest Delivering higher value for steel Innovations in consumer markets: global private label pet care and foundr
Slide 6: Erik C. Aldag, Chief Financial Officer
Erik C. Aldag Senior Vice President, Finance and Treasury and Chief Financial Officer
Slide 7: Fourth Quarter Financial Summary
Fourth Quarter Financial Summary Sales vs Prior Year ($M) -1% Q4 ’24 Q4 ’23 YoY 525 0 (3) 2 518 Sales ($M) 518 525 -1% (6) Gross Margin (%) 25.6 23.9 +170bps Q4 ’23 H & PC Spec Adds High-Temp Env & Q4 ’24 Tech Infrastructure Consumer & Specialties Engineered Solutions Operating Income ($M) 74 69 +7%
Slide 8: Full Year 2024 Financial Summary
Full Year 2024 Financial Summary Sales vs Prior Year ($M) 2,170 -0.5% 2024 2023 YoY 8 12 2,129 2,119 (8) 2.17/ -2%/ (41) (24) Sales ($B) 2.12 2.13* -0.5%* Gross Margin (%) 25.9 23.4 +250bps 2023 Exited 2023 H & PC Spec Adds High-Temp Env & 2024 Business Underlying Tech Infrastructure Consumer & Spec
Slide 9: Consumer & Specialties Segment Financial Performance
CONSUMER & SPECIALTIES SEGMENT Financial Performance Fourth Quarter Full Year Sales Operating Income Sales Operating Income -1% +4% +2%* +25%* $281M $279M $37M $38M $1.12B $1.14B $166M $133M Q4’23 Q4’24 Q4’23 Q4’24 FY’23* FY’24 FY’23* FY’24 13.0% 13.6% 11.9%* 14.5% Operating Margin Operating Margin
Slide 10: Engineered Solutions Segment Financial Performance
ENGINEERED SOLUTIONS SEGMENT Financial Performance Fourth Quarter Full Year Sales Operating Income Sales Operating Income -2% +8% -3% +7% $243M $239M $40M $1.01B $0.98B $162M $37M $151M Q4’23 Q4’24 Q4’23 Q4’24 FY’23 FY’24 FY’23 FY’24 15.1% 16.6% 15.0% 16.5% Operating Margin Operating Margin High-Tem
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow and Capital Deployment Debt Refinancing $234M $236M Debt Structure Post-Refinancing Extended maturities $147M $575M $140M Increased liquidity $400M $4M 1.6X 2023 2024 2025 2026 2027 2028 2029 2030 2031 EBITDA Net Leverage Cash From Operations Free Cash Flow
Slide 12: First Quarter Outlook
First Quarter Outlook ~$500M Sales Slow start in January Consumer and industrial markets remain similar to Q4 ~$70M Operating Income Stronger U.S. dollar expected to reduce sales by ~2-3% YoY Return to YoY growth in Q2 in all product lines ~$1.30-$1.35 EPS 12
Slide 13: MTI Trade Dynamics
MTI Trade Dynamics Raw Material Imports / Exports Imports to U.S. <3% of COGS Annualized COGS Exports from U.S. ~1% of COGS MTI primarily sources and sells locally Imports Exports Prior to mitigating actions, potential tariff impact: • China ~$2M/year Finished Goods Exports • Canada/Mexico ~$10M/yea
Slide 14: 2025 Sales Outlook
2025 Sales Outlook Segment growth expectations Consumer & Specialties Household & Clear line of sight for growth in consumer-oriented markets Personal Care including pet care, oil purification, animal health, and others Strong demand for specialty additives for consumer, residential construction
Slide 15: © 2024 Minerals Technologies Inc. All Rights Reserved.
© 2024 Minerals Technologies Inc. All Rights Reserved.
Slide 16: Appendix
Appendix © 2024 Minerals Technologies Inc. All Rights Reserved.
Slide 17: Net Income and Diluted EPS Excluding Special Items
Reconciliation Net Income and Diluted EPS Excluding Special Items To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP earnings per share, excluding special items, for the quarterly periods ended De
Slide 18: Free Cash Flow
Reconciliation Free Cash Flow Free cash flow is defined as cash flow from operations less capital expenditures. The following is a presentation of the Company's non-GAAP free cash flow for the quarterly periods ended December 31, 2024, September 29, 2024 and December 31, 2023, and the twelve month p
Slide 19: Sales and Operating Income Growth
Reconciliation Sales and Operating Income Growth To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of (i) the Company's year over year sales growth, excluding the sales of Oldco for the twelve months ended December 31, 20
Slide 20: Adjusted EBITDA Excluding Special Items
Reconciliation Adjusted EBITDA Excluding Special Items “Adjusted EBITDA” is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization (EBITDA), excluding special items. The following is a presentation of the Company's non-GAAP EBITDA and Adjusted EBITD
Slide 21: Segment Operating Income Excluding Special Items
Reconciliation Segment Operating Income Excluding Special Items To supplement the Company's consolidated financial statements presented in accordance with GAAP, the following is a presentation of the Company's non-GAAP operating income. This excludes special items (set forth in the above table), for