Minerals Technologies Inc. Reports 8% Revenue Decline and $144M Net Loss in Q1 2025

Minerals Technologies Inc. reported a significant decline in financial performance for the first quarter of 2025, with net sales totaling $491.8 million, an 8% decrease from $534.5 million in the same period last year. The company experienced a loss from operations of $160.1 million, compared to an income of $75.2 million in the prior year. This downturn was primarily attributed to a $215 million provision established for estimated costs related to a trust for resolving talc-related claims and associated litigation costs. The net loss attributable to shareholders was $144.0 million, a stark contrast to the net income of $46.7 million reported in the first quarter of 2024.

The company's operational metrics reflected challenges across its two segments. In the Consumer & Specialties segment, net sales fell to $268.3 million from $296.9 million, driven by decreased demand and customer inventory destocking. The Engineered Solutions segment also saw a decline, with sales dropping to $223.5 million from $237.6 million, impacted by soft demand in industrial markets. The overall production margin decreased from 25.4% to 24.3%, indicating increased operational costs and unfavorable product mix.

Strategically, Minerals Technologies initiated a cost savings program, incurring $5.5 million in restructuring costs during the quarter. The company also recorded litigation expenses of $2.8 million related to the ongoing bankruptcy proceedings of its subsidiary, BMI Oldco Inc., which filed for Chapter 11 in October 2023. As of March 30, 2025, the company had 31,732,168 shares of common stock outstanding, with a cash and cash equivalents balance of $306.6 million, reflecting a decrease from $333.1 million at the end of 2024.

Looking ahead, the company is focused on mitigating the impacts of recent U.S. tariffs and exploring growth opportunities in both segments. Plans include increasing market share in global pet care products, expanding the use of calcium carbonate in various applications, and enhancing environmental solutions. However, the company acknowledged the uncertainty surrounding the economic effects of tariffs and the ongoing litigation related to talc claims, which could further influence its financial outlook.

Overall, while Minerals Technologies Inc. faces significant challenges, including a substantial loss and ongoing legal issues, it is actively pursuing strategic initiatives aimed at stabilizing and potentially growing its business in the coming quarters.