Minerals Technologies Inc. Reports Decrease in Net Sales but Increase in Net Income for Q2 2025

Minerals Technologies Inc. reported a decrease in net sales for the second quarter of 2025, totaling $528.9 million, down 2% from $541.2 million in the same period last year. The company's income from operations, however, increased significantly to $74.6 million compared to $50.6 million in the prior year. This improvement was attributed to a $5.8 million charge related to the consolidation of two facilities, offset by a $5.6 million gain from the sale of refractories manufacturing assets in China. Net income for the quarter was $45.4 million, a substantial increase from $19.7 million in the previous year, resulting in diluted earnings per share of $1.44, up from $0.61.

For the first half of 2025, the company experienced a net loss of $96.7 million, a stark contrast to the net income of $68.5 million reported in the same period of 2024. This loss was primarily driven by a $215 million provision for litigation reserves and credit losses associated with the bankruptcy proceedings of its subsidiary, BMI Oldco Inc. The total net sales for the six-month period were $1,020.7 million, down 5% from $1,075.7 million in the prior year, with both U.S. and international sales declining.

Operationally, the company has been focusing on restructuring efforts, which included a workforce reduction and the consolidation of facilities, leading to a total restructuring charge of $11.3 million for the first half of 2025. The Consumer & Specialties segment saw a 6% decrease in sales to $546 million, while the Engineered Solutions segment reported a 4% decline to $474.7 million. The company also noted a slight increase in marketing and administrative expenses, which totaled $102.8 million for the first half of 2025.

Minerals Technologies Inc. continues to maintain a strong balance sheet, with cash, cash equivalents, and short-term investments amounting to $319.9 million as of June 29, 2025. The company has also repurchased $19 million in shares under its $200 million buyback program. Looking ahead, the company plans to focus on innovation and new product development, particularly in the Consumer & Specialties segment, while also navigating the uncertainties posed by recent U.S. tariffs on imported goods.

The company remains committed to exploring selective acquisitions and enhancing operational excellence across its segments. However, it acknowledges the potential risks associated with ongoing litigation related to talc products and the broader economic impacts of tariff implementations. The management's outlook emphasizes a cautious approach as they continue to monitor market conditions and implement strategies to mitigate potential adverse effects.