MTX - Earnings call transcript Q3 2024 | Minerals Technologies Inc.

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Operator

Good day, everyone, and welcome to the Third Quarter 2024 Minerals Technologies Earnings Call. Today's call is being recorded. At this time, I would like to turn the call over to Lydia Kopylova, Head of Investor Relations for Minerals Technologies. Please go ahead, Ms. Kopylova.

Lydia Kopylova

Shelly. you, Thank and conference everyone, our quarter third Good welcome earnings call. XXXX morning, to will Chairman Aldag. Today's Officer, led be call by and Financial Doug and Chief Officer, Erik Dietrich; Executive Chief

open Following Erik's Doug to prepared we'll and questions. it remarks, up

statements the of constitute within forward-looking our contained cautionary of language reminder, meaning this securities federal earnings statements during on in the about a call made release this As laws. the the some may forward-looking Please slide. and note statements

which uncertainties, statements. and cause risks on this of that release certain A disclose filings GAAP measures materially are refer forward-looking which SEC results presentation, reconciliation actual the some today financial earnings differ and measures. can Please may an website. to non-GAAP comments Our our posted our note financial be appendix to to our of found from our also in

to it Now over I'll Doug. Doug? turn

Douglas Dietrich

Good Lydia. today. Thanks, everyone, joining morning, for thanks and

outline call. over today's a go quick Let's for

that of I'll the review First, development progress highlights then will of reviewing with minutes a we've a held And key want the quarter. made as activities for some business Day through and a quarter. in provide to takeaways financials as from through Innovation Investor September. run key Erik the you then and our few variety the spend take quick our initiatives highlights detailed performance I well we for

we have for keep prepared shorter time our call remarks more to try so questions. bit We'll a your this

Let's our start with highlights. QX

primarily portfolio solid industrial for structure experience often businesses. the through balanced quarter, in that to, deliver a it general can segment, for record of did prove that another our third this a Engineered softness It This in and track results consumer-based conditions. the of Solutions growth to was by our continues year. I across range market asset it a us, refer is our and the quarter on we're but record slowdown We markets

newest was are profitability markets, remained third and a company. record increased conditions the quarter, operating sheet and contributed Price our balance operating over across cash and of for our year, softer in our income both Operating shape. to improvements, last we in great gross flow higher driving the input Despite improvements sales is the industrial margins productivity increased cost this all reflecting products, and performance. a strong, savings

to sufficient growth target broad cash manufacturing our and organic in cost have flow financial With We in facilities. revenue, to around our opportunities of our with our invest support and to flexibility. free have X% both capture generation we capital leverage improvements debt ourselves at levels of

to while and capital our to We the our initiative. balanced $XX our for to inorganic back continue follow repurchase approach allocation, retaining announced to flow week program repurchase last share million of cash last We the on new shareholders week, balance previous sheet XX% is share return growth a opportunities. other million which completed free XX% $XXX

how well increased of the at the positioned growth and performance strong performance pleased time, I'm our track. MTI our long-term We ongoing continue have is strength team's this we with Overall, prospects. and confidence our same in demonstrating the dividend proud financial quarter XX% to by

the in will We past initiatives made future. company in strategies meaningful have to like leadership highlight our and the significant markets the segments and on key both and a progress several for impact quarters accomplishments over with our expanding I'd growth few that a positioning

launched SIVO. Personal BXB we global Care, brand recently new and a Household In called

on and improve both the this brands. owners cats. global SIVO years, past solutions litter and their pet we've the For identity partner the was emerging business, that The well-known of and of for and label cat focus its private embody established to leading the leading a business few built unify lives as strength

that as we The see an this the which for SIVO growth. to service can manufacturer our extremely best litter mining, -- packaging, long-term expertise and our very global through offer positioned level can of No region, offer is processing, strong assortment logistics. we every cat base through other business in the customers and innovation of products

Additives product line, expanded Specialty new products this for launched sustainable technology. the and of called deployment paper position Bio. grown offering targeting our we market We've the a new packaging yield Within we bioplastic technology recycling additive specialty our And markets through EMforce the year in recently our solutions. of

the the additional LSC the maintain MINSCAN X to fully in and with and conversion to applications, helps to blended we in for functionality and additive deploy blends of we and compostable. continue certain our be enables foundry properties Solutions automation our QX, to the segment, plastics' technology with penetration it This In our installations physical into refractories customers new India several markets increase expected of China continue to solution. Engineering the

the and progress solution. We've with PFAS deployment of validation made significant FLUORO-SORB, our remediation

the As the in EPA have in treatment been and at effectiveness know, of collaborating with drinking utilities. FLUORO-SORB pilots X demonstrate water you we're water to further included closely

The results the so of will promising, U.S. the across that anticipate adoption accelerate we this very are far FLUORO-SORB and

pursued future We of are with the few these growth new developing the examples demonstrate company a and year, growth have trends, for of growth. that other how revenue secular we aligning sources company initiatives this that we've are but positioning

several and constantly and on on. regarding new we innovation One inefficiencies, our also development. remove We MTI, within safety improve last processes. advancements I our look capability. back-office process tend made for ways move We've to At to our comments innovative increase comment before product focus operations

both insight beginning optimization. We've processes and these maintenance into areas give Over activities from our the initiatives, capabilities. R&D see past to tools deployed in lowering shared and benefits more and efficient becoming our manufacturing which service in like business years, We're several to AI-based predictive intelligent greater R&D us business to few costs, processes. manufacturing supplement we've aid tools process our deployed also aiding operations even the and our

a refine technology together the for with we announced years. technology X recent us to this past significant can safety, help improve company productivity deploy We've We employee working example capabilities. and One mining just to this to partnership increase see to autonomous is been mining efficiencies product of mentioned of and a all innovation equipment. I It's our deeper excellence utilization MTI drive is across highlight just our is at tenets driving improvements development. core company. the of and operational this the higher one culture new of than that

taking day they we technological on of products bentonite-based and only manufacture and in not how and who of they versatility just that to of business innovation primarily customers' in core how we processes. MTI, by health high-temperature We investors these marketplace valuable technologies, these system our this businesses. our of development X remediation, supported technologies capabilities, our on the truly at capabilities, pet you during The are important point products. our those be in trying as are day the and and and September and we and our thank our beauty, the are, create X Innovation apply to one our around what the demonstrate deliver our latest The supports It to culture problems. our for X expertise at over to solutions showcased of core hosted demonstrated intimate how of are you event focused of time care. But is deep of Speaking and An products water world-class to excellence piece long was XX, positions Hoffman X key applications products applied unique. We day R&D the of join convey of combination architecture to additional their Day MTI knowledge that our and the what some wide in solutions the term. technological of systems technologies center. And our makes show reserves, the Estates them highlight event. how leadership attended, can characteristics for variety apply was and our us these depth intended develop, was foundry what a be MTI to describing the environmental our we MTI. It's these to operational they of for able differentiates mineral

showcasing attend to the encourage I at event, to another and on access this future. minerals innovation to would materials in other and our weren't you forward you our day If website, we the look able presentation technologies

to it segment who Erik, outlook financial Erik? hand QX. highlights for will walk over details, and us through the our I'll Now

Erik Aldag

Doug, quarter results Thanks, third performance of morning, wrap and by up followed for our good everyone. by providing detail I'll of overview an with outlook some the the and segments, on I'll fourth quarter. our begin our

questions. the Following I'll my over remarks, call for turn

another third our We review let's quarter delivered quarter. strong results. Now

Our results represented quarter items. operating excluding EPS, special income records for and third

points sales product environmental operating We on quarter, third in can were growth in offset high-temperature by the that sales last quarter experienced lines as underlying on X% income of the in in the basis sales of basis bridge, year, bridge year volume from the down was how & Solutions. which Engineered pricing versus and industrial Specialties slowing Consumer XX with cost million basis XXX and in prior improvements cost market and to increases improvements more reflects which margin translated of see totaled can you $X Selling mix margin this over points higher improvement million performance. market a infrastructure an our lower million, continued Third contributed the and technologies slide. In activity year. income last $X softness, impact you see and improvement impacted than offset and this we $XXX price and

delivering $XX a and well, year quarter in XX.X% X% and up strong our to special the operating with points we're prior operations year. productivity share benefits to implemented third in cost was third performance. X% versus Altogether, from million from the mining XXX income teams realizing by last quarter. flow per savings to Our finally, excluding manage continue we program And year. remained rose from $XX strong by costs And cash last margin of million the sales. Earnings cash increased basis $X.XX, operating items,

and segments Consumer the review let's beginning with Now Specialties.

[indiscernible] underlying in Specialties to Third increased X% year year-over-year basis on from an $XXX segment Consumer in last $XXX quarter sales million. Sales million. the to &

were applications fuel year. which temporarily oil our Health, due was summer to reverse Meanwhile, After versus up in quarter. Cat quarter underlying personal We continued solid customer Animal late high-single-digit sales also lower X% is year realize We're a an litter the construction than demand expect volumes fourth specialty on setting such were and volumes a litter packaging period demand growth our additives driven sales sales in satellites entire care, third fourth in U.S. trend early sales mid- fabric in were to digits and sequentially quarter product to cat care our care nicely purification year we X% automotive renewable of and serving edible continue consumer slower-than-usual that our the America and household North and by up to over for up expecting next In and year. for paper X%; to and markets Europe, and several in and and and as higher sales of the line, last October. grow personal X% last up newest Europe upward basis, Asia XX% last been to are compared the high-margin of in last tempered. has in have picked the more stronger timing Specialty indications our improved growth. up low-single that Additives, grew continued year. Meanwhile, across for and to orders,

our drive improved Third X% year-on-year Operating improvements year as and production captured as We volume XXX to $XX cat cost segment segment prior the from in underlying to up we continue of as quarter well the savings points for operating favorable strong XX.X% margin efficiencies productivity for sales. million, litter cost facilities. income basis input control. acquired was on

construction. Overall, segment, In our its satellite personal fourth seasonal help offset period. to versus our slow income and we operating care, we outlook. expect And up household last from entering cat litter to the the is for expect and period similar residential and packaging Turning volume in over seasonal business be Specialty strong sequentially XX% paper to Additives, ramp-ups quarter for year.

to Now let's the Engineered segment. Solutions turn

conditions. delivered remain X% a and environmental than were line construction softness were income solid million, in XX% Sales and impacted applications. prior lining year-over-year and equipment in line, X% the year, operating softer execution in of continued from Operating is last were points $XXX $XX customers technologies, segment lower remained XX lower last in commercial high as our volumes. lower demand infrastructure in million, most year. agricultural steel temperature of environmental industrial that from teams sales industry. Sales largest on by product margin $XXX market is Segment was and heavy market our and This off million by than cost on our Third some year, to lower from strong, focused by XX.X% improving foundries the driven sales Solutions X% Engineered the of product quarter performance. basis serving driven

quarter, we is Looking fourth remain soft market to income activity when ahead segment period industrial approximately months. will to lower uncertainty are is Operating high-temperature next to project expect environmental out the the the be for entering market slower which for is conditions we the seasonal expected and technologies, for and more industrial little a typical that few a note change. I seasonal for sequentially, XX% there's there infrastructure.

we expect interest interest backdrop feel strengthen rate both for will we However, Overall, is segments positive end setting year. rate around how up next about these sensitive the of greater more markets reductions. visibility with economic our

delivered summary quarter. $XXX million from was cash another XX% XX% to me increase a turn the in prior let $XXX year. sheet over bringing highlights. $XX year. cash was flow our in a year-to-date the third of total quarter, cash a and million, increase balance We operations free to performance flow prior Year-to-date, Cash from million, strong our Now flow

cash full totaled free year $XX $XX continue $XXX approximately we cash We million to at flow spend expect million around year free X% be million. full flow full sales. to third the put in of range, would and the in our CapEx expect which quarter, our conversion capital year

We deployed million previous the toward in and also share X year million debt month. repurchase this repayment we program quarter, our completed $X $XX

million and program, increase As we approach share part which to new as approved over the Board XX% to dividend expect Doug quarterly highlighted, execute repurchase of recently our $XXX of coming years a allocation. our our Directors a balanced in capital

leverage with X.Xx Our net $XXX remains at sheet balance very over strong of million EBITDA. and liquidity

for outlook our summarize fourth quarter. I'll Now the

the We lower In similar expect the year. past to of normally expect end overall years, markets. fourth to our the sales to some sequentially in quarter we be of seasonality would prior and sales similar due

our industrial However, of to portfolio balanced the offset more combination and of our seasonality. growth that helping initiatives is consumer and products,

Specialties higher in mining product that $X.XX. to We litter sales lower sales soft end to the paper with packaging typical stronger solutions. Overall, expect quarter, growth less and with sequentially reflects industrial between $XX and we income strong some market see Engineered lower also and expected we'll and cash Consumer activity. sales expecting satellites Specialties and the expect offset to year-over-year and $X.XX residential within generation. energy product entering period we expect sales per and and We're project we Consumer guidance helping costs In operating our fourth in overall seasonality. we share another margin variance million continued high-margin engineered be mix earnings lines given the Solutions, $XX favorable sequentially seasonally million -- be construction are & cat and flow quarter of And typically between expect deliver lower as margin improvement low in new in and sales for remain environmental conditions seasonal infrastructure to activity. We

set operating is performance be call for operating target year. Overall, the questions. into end positioned are ahead MTI value. and conditions, the this shareholder next growth turn well with I'll mixed XX%, and the our year, we year XX% on long-term multiple over close With record margin market levers despite another we that, EPS, full income to full year to for we expect to for drive heading and for track For of

Operator

coming with CJS question first is Moore Our Instructions] [Operator from Securities. Daniel

Dan Moore

think high-single-digit remarks, one. you for products said you right, set and growth mid- I prepared Consumer markets category innovations what that and key or up across the a well down mentioned products next heard can with confidence? specialties. end give and your Starting that to if little Number break new two, by you I year Did hear you are bit that you new number that right, I

Erik Aldag

Yes.

is seeing quarter growth the fourth and we're we in and out Care, Household the Personal was, remarks not but the think, purification, product and the edible we've for of we Specialty pet health. There's that fact and Consumer the in low-single reference and comment it's generally, oil just high-margin in care personal specialties talking the purification, into the about. about, and heading renewable lot care, in the animal and good third that next feel Personal it's that and earth a about digits Care, October been to bleaching line, strong quarter pet lines year. And So good growth particular, care, was household pretty I the looking the that confident feel segments product fuel there of Fabric in Care

And the to year around next was what's mid- for that's so high-single-digit growth about. statement

Douglas Dietrich

further. a said, little that it take Again, we'll

household But next is Erik sets another line. So year -- the the comment think both. backdrop do to up mid-single digits positive that personal product very be could and high- for care I that for

some delay they'll of rates these Now take we especially more -- that a and the sidelines that down, year impact terms could both move trend provide growth. in backdrop very commercial that to on are segments and go. This for that of the will kind have nice interest the how we which ready when construction, it projects the know are of to next industrial markets, of some

direction, mid- digits to mid-single at that's And to to set that think where Consumer a high-single business. where could segments in we back take in So for can growth. up nicely some up nicely be to the setting Specialties least revert or both digits revert year, we're we're see next for go And that place the going I if trends & we company. that

Dan Moore

down demands working so? over softening Very seeing related cyclical if helpful. of end kind of slowdown cautious customers quarter next the to relates market or of in actually it, the of Near pieces across the much their How any, more inventories business? versus the term, how you're being much to

Douglas Dietrich

Group Solutions. give Engineered for Brett, who's I'll then to the and off start it President me Let

a I of think it's bit both.

we're at to I we think -- in see movement not -- lot all of in or seeing weakness continue construction. commercial a

of interest economic and the rate driven some and the environmental larger projects, with that's think So of I projects. activity environmental just the kind same

Foundry bit color give some difference. seeing? lines in it's on you're a what do to of Brett, think and X a I want you Refractories, product the and

Brett Argirakis

has from metal market. ag Dan, really casting America, the standpoint, North softened. Demand it's mainly Sure. a really

declined bit the quarter third second. a The further than little

supplier market. a out production of major pulling equipment a the have lot We of

farming driven and okay. Reduction be and is slowdown -- We market in also the rates, go there's take used just but it's to don't We equipment the of really down -- further. so the core much We it's expected -- saw inventories the interest though, new other that a foundries high market in fourth outages, ag to itself. ag to the hold. quarter, extended continues high still anticipate business by

up segment that XX% castings up -- makes about makes the of metal market. segment of And the that total part

So be in America. okay. North Automotive seems holding. It's to

in So still steel fourth we're a is we're in America think the the side, year, to steel. been rolled have but market. performance From we -- bit seeing well. XX%. They the little we last flat similar some of in softening doing mid decline in North in about quarter. it's see are higher that going the rates XXs, a are Utilization Most

just seeing centers some demand trying higher on based are of and just softer pricing some to We some back to get levels. is reducing inventories that's the service pricing and for and

start think back in going as flat is going just pretty overall flat said rates first in see to trajectory. to in by what in the come and Our is We think once similar the interest over, probably expectation to foundries. be flat quarter steel quarter quarter, the the still that's Europe overall, increase election I for is to fourth but second we're the production down, an well. we

any past. drop we feel seeing major -- So years have don't like we're like we we feel

the and So overall, in moving the good we about pretty few feel it forward next market quarters.

Dan Moore

That's great color.

bit a really to Just I'll and little replenishment, jump get but from Last boost there turns, of speak, so helpful. whether when sense it trying for one, be might extra to out. inventory a

or so, op You've goals? been this the targets? to And margin the think longer-term establishing at And you when if about updating might XX% about think your kind margin of year. on those do we congrats running ahead targets execution. new of upside How

Douglas Dietrich

Dan, I appreciate that.

there's Regarding margins, think some yes, we to upside our XX%.

when it which, I -- I come X it's I going as It's up revenue volume think going places way, that from think next a segments, a year. me preface to we mentioned from this are of well the let have year. think, next come in growth couple growth, set to I to deliver and

relatively tight. capacity us, to know we have that growth. in We our you costs As handle keep plants revenue our do fixed

that line. That's positive. so going going margin bottom the drop think to And is to contribution -- I contribution those be to a

we year. from is also technologies thing our acceleration a that some products, but Those are We've as quarter seen of or half. Second they seeing this the slower new all second of in products. second are rebound slower higher-margin some high-temperature

I next think accrete margins are going our going to year. those forward to

we price see you So cost, that. we're pressures, we're going cost think know keep our largely if through us, to pricing I margins. But to adjust

year, you year, see quarter, on year, and of some outlook targets going diligent see time, next bit we looks the next volume going be like better you're you're we'll revenue to the volume that line. in Where year. think But election will I at bottom end the all higher-margin the getting through look products give the what ends to probably to fourth and We think little up the accrete pricing. that growth, at same growth, a need the at I next

Operator

Seaport from line next Research with of question Partners. the coming Your Mike Harrison is

Michael Harrison

could hoping of the couple little had there. I softer was bit that business. dig quarters in We've a HPC we maybe on a

I business. were impacted changeovers Pet think the we about that last some Care quarter, talking

growing nicely, Fabric you else growing give really were was of to number kind that of got seemed This you that Fabric was growth you business? seeing everything soft. and in Care type Can everything curious X% just just it was was or of lines pretty on except some details different what if us that through how And we I'm it quarter, Care. as went the product like within business, X% kind more

Douglas Dietrich

Sure.

Yes, it a couple well. it of then rebounding pattern couple Let pass give a up more products was still in set to me nicely. And some think a is mean, I our of line normal, These off, softer care in look, to DJ color. slower some customers. growing. our are areas. newest and product I you a bit of It's this season slow little I'll of and Mike, kick bit than the order change shift pet largely Care of yes, to -- the months but of Fabric some really Asian

it's I and but So think businesses ahead. anything It's going these there. -- don't have a forward lot going

D.J., Let them the me give what do and to you seeing? lines through product take want you're

D. J. Monagle

-- so Yes. pet me on let talk some Fabric then provide and about more a specifically, little Care Gladly address well. you color side Mike, just then we'll specialties as bit

the as mostly some primarily -- Care, little that at said, Fabric yes, Asia. Doug But pattern issues, slow. On you if was with a look order

the that will pull our product back that in out got particular. of look those term, that with long line there at expected and coming we've I environmentally we're quarter substantial we're general, Fabric So things doing, if to natural be on Care, guess, pace solutions and customer macro trends -- but seeing you All this some approaches. in lineup next. The that in the friendly

eliminating plastics in some where to fragrance requests is will do we're detergents higher-performing dry that control from consumption line. and be products dry our reducing water towards into go for through working expertise getting trend that additives further and lies, This that increased new products, everything

solutions get particular we're there, of that the out with Animal protein these pull, to that's performing improved Bleaching look kind the the fuels. line, continue especially you animals, those strong still mineral from GMOs. nutrition trend go nice a especially along perspective of of the product away for Earth, and and we food that at the that drivers, of natural up if And again, lining -- But from moving with just broader is are source Health, space. and -- that in antibiotics that renewable sorts

bit pets, comfortable a really all surprise slow look those the we're we're right seeing quarter. them. caught space little bit me by you part a from right little items. the of at in strong on quarter, the of a When So early now for orders We're that of

this go both sequential So as we'll we growth see into quarter. year growth and

highlighted those already Erik items.

As upscale expansion that everything some year, pull we downscale where and go strategy pretty are, just be be more less specific a we're but for would existing higher versus particular And people with brightness new new it, out private the on going we to from into downscale have. or some substantial label. a depending that that's something private seeing boxes new an That's strategies upscale packaging, new going price something move would offerings what some seeing something are products, like litter dust robots, hygiene there. improvement, on these call we're a their next competitive something fragrance label offering also an

So well, we're lined up Mike.

Douglas Dietrich

some Mike, the only thing perspective. you giving I would add to just that is

product these we years at on out of targets of Day, So think we longer-term quarter kind that pet this lines. But laid in some our basis, slower time a Investor of I the yes, of ago, a X.X a business some you. laid out for bit care

was $XXX I think million it business. a

million year. was next not if And to get XXXX probably pushing and $XXX on million, million, is to $XXX our by target of we thing be well $XXX ahead That track, that. going are

summer. with aligning in aging saw So some exceed meet around robotic new not maybe only the positioned of but target, a Hoffman initiatives litter little really have it. things just of bit think we're slower we you D.J. some up, our all with boxes lined to in e-commerce products ourselves is I Estates well the new that add business, But the with that terms

just the product lines of D.J. and So line that the rest pretty mentioned. similar on the and that track, it's products product say for I'd in

Michael Harrison

business then to All right. That's pretty Environmental & soft. be definitely And continues helpful that on Infrastructure, color.

talk rates help, particularly guys even customers, the materialize key that you bit as easier interest from lower. should I there's maybe or of you there though that backlog. just but pent-up start we're a coming the rapping kind of comps little And X, could curious you what lower if and about demand in next think saying interest I'm can hearing there they're are some kind about to mentioned some are rates what year your

Douglas Dietrich

you do of from Brett, sure. some our Yes, customers? we're want go what through to hearing

Brett Argirakis

drag Sure, look through construction go. product it. going just be -- -- you throughout from our We lines really -- depressed It's we is due let to supply think we've chain to with me so are interest When rates, key Mike, materials, really hasn't we fully at the as you market, it credit COVID, we've economic building world. crisis, walk continues know, tightening. the sure. and it's the frustrated and you where where recovered our to been seen

to starting starting stability we're the spec we're see is, to several opinion of more more political But some of our We're optimistic start rates projects. further, been into years. And seeing getting products stabilizes, But the year couple used globally. activity. for next extra front We're we drop when in projects. going XXXX way than are again, more see And situation movement. have in we're end last the to on consensus the

dug to projects, So are holes going to as products our on construction be these start be there. these

more ash. and waste optimistic. an which standpoint, From So environmental coal we are municipal is primarily

Europe, continue continue grow. And we they In landfills will U.S. The plan. And our clay case. they when hierarchy part use use Landfills a geosynthetic the more course, waste continues EPA's liners. the me Let of landfills -- need There's about airspace, large -- that's not liners. that. the to compact incineration. little to municipal to be a talk of the waste, bit in

for business, this are then base ash been ash, key coal for -- has our business. And part a in is key of that's and business. a So a drilling cyclical us. that the more And slow our very coal those products

lot stages in a And There's that. takes planning that longer. of sometimes,

So for those more getting key and stage, XXXX lot think a was a XXXX inquiries we planning we that for are businesses.

anticipate as drilling. that So we And well. getting better then

Drilling without actually the of and pretty highlight has produced been business construction environmental year. is heavy and has sales -- decent this the it infrastructure drilling. traditional It the that's

selling when back clean think been construction have So that we into I kicks then, Internet of drilling a what situ projects mainly drinking for then, of heavy in, broadband back the ongoing traditional remediation in into course, And to grid, water. of kicks going decent we're discharge sewers in, wastewater, energy that initiatives. When year. we've in water, industrial electrical be set manufacturing course, of and outside municipal up and wastewater the

lot well activity set these are think we So some unfortunately, that up for waiting really to been for slow, on, and it's pretty of there's a going projects we're initiated. of but be

Michael Harrison

All And helpful. a right. Super quick maybe just follow-up.

in think a environmental to activity incremental being high line. bottom infrastructure nicely very the Is that about that really business? and as having the project-based a I can way place more of that right be or to is where both still leverage business thinking margin

Douglas Dietrich

is. it Yes,

I think segment, look has it's whole the if in Solutions you as the at the Engineered company. margins it -- segment a highest

margin see improvement question margin that coming as market, And but growth, the from only that projects on contribution improvement, not we you contribution, of in some next around earlier the that's improvement on profit as these and starts that refractories come industrial foundry will have move so high and back think in to I that that construction to see the activity year. and where back especially in,

Operator

with Kyle is question coming Sidoti. from of line next May Our the

Steve Ferazani

Kyle. Ferazani wanted Steve share is about ask I to the buyback. -- on for upsized This upside

a candidates being glass empty ton that's this or there the either still are priced decision if they it cash maybe side curious X-year or term. too the the improved M&A upsizing? question. flip a half maybe out high glass And a greater out the look Was Just there? balance sheet, aren't just related you'll valuation. at full type or I conversion, to is Just also what's still a Board know

Douglas Dietrich

here. But question. definitely glass thanks full for the Steve, half We're

other at take of And flow X.Xx. our it and is the or on year at kind average, balance We like to and M&A. like to free our on capital around to is to shareholders, shareholders opportunistic back our cash now balance each leverage back the we to for goes sheet policy. XX% XX% Xx we're generally, when to allocation Let And steer just of the keep below. as back sheet we're where capital mentioned, it me Erik

shareholders. flow, $XX million about did $XX $XX a $XX a We past finish through year to to repurchase year, back million that of this shareholders, so free I dividends, -- cash million think and million, a $XX million, $XX back on share We $XXX totaled $XXX million million did million year.

see additional And that they and if supports the we improved margins, I allocation growth, strategy forward, arise. that improved Going both think capital and cash inorganic we see we flows. see opportunities

years little So XX-XX the we that doing did through we'll really repurchase that. There's sales with we'll saw allocation company X $XXX that we And on initiative. positions -- generating our shares, kind year, confidence on with another capital, frame kind that and is share next million see program this XX% but the of year, or in, doubled one. years. how through probably this of year, gives those X flexibility finish that add but to a time, balanced no purchasing that of to goes. last we flow more forward projections increased now a us the time It's the not also be we're the okay? So up, cash a X X over plan but we that to that dividend

financial gives a great for our and retained the the dividend with options time, in keep shares, mentioned, think still of flexibility I strength, as So we have same both the the at shape, opportunity to M&A. it us increase and sheet balance you repurchase lot

or or do can So it's not a we others, not give one We repurchase M&A. share both. the think

Steve Ferazani

be productivity. you you term? level think know your about And you're enhancing goal but if that for investments, Can talked And would what I'm these if could the AI you I you're you contribute confidence some longer safety, the to think I that highlighted make these in the that stages. ask know about to investments that I process. worker making margin the potential, early I'm assuming enhancement? you're those applications Is see mining I assuming going margin

Douglas Dietrich

I think so.

day couple want years, did I products concepts. were to that and my of it's just one to of I the we want comments. off new past And highlight over I because So around highlighted came just -- Those this on we've on an working been just innovation innovation -- deeper than that.

the can just every And in announce. looking operations. And that are but way one here out tools, tools, use tools, we other interesting to that that at because, the very some savings help to direct that, are and typically reason is it. use wouldn't more it there we when this But important in efficiencies yes, our is it's day We us was fuel. equipment was use felt AI we one --

of weather safer because not are at running night, this So inclement sometimes challenging weather, with is in equipment helping ways if with our these operations circumstances in employees. But also of that It's running asset do But we're ultimately cost which for to to savings. long-term equipment. not the times this gives safe us be going be where so. improvement, that utilization opportunity will

So margin improvement. be it may huge not a

thing. but at basis fantastic are do. to they big is a folks mining use this being XX/X what Our on equipment able a

Steve Ferazani

Excellent.

you Is Okay. on Last the Can those move phase. pilot regulatory programs the when me the on FLUORO-SORB, X one more we actually some can progress to driven be an for about those to about timing-wise? going programs. you of talked by requirements, that implementation success or talk

Douglas Dietrich

timing the Well, already just it's implementation and the trajectory a marketplace. adoption stage. in we from guess of and I are matter

X already. from utilities utilities I'm X got in sorry, water. already are just We ourselves, I PFAS by removing [indiscernible]

implementing that. already we're So

kind already studies. -- the being out think removal as them with of that technologies, engagement agent. are is very is primary PFAS ours having of is the technologies we're the a I one there, utilize EPA doing this What really high-functioning validated the EPA X X in

a media. level just to effective of very the Now add I will as confidence that PFAS think removal FLUORO-SORB

accelerate this It that I accelerate solution give it good for it. think PFAS, will is And the its utilities we'll and a adoption. will and confidence likely

not Now regulation until utilities the waiting. XXXX. is in not water in are It's say that utility really going to

environmental as and So it working up ramp will get also that. And will in systems remediation, to up well. we it we're as ramp closer groundwater, capping

of removal only water. drinking element PFAS one it's So

projects water well. other as have We cleanup environmental

implementation. So already the in we're

Operator

the next is question King. line with CL Silver of coming Our from David

David Silver

Yes.

like I go of at think kind quarter. performance I'd the the this to cost first is topic

wondering, Slide X, I'm up I the the year-over-year. highlighted but Erik at marginally as $X about looking prices So do at million line bottom just operating see corner, income well. mean, And right-hand benefit I

materials? ago? up that, Is of you characterize mean mining lower point raw versus of So kind cost benefit more net-net, mean, that $X year the that cost fixed Is down. But is that side, on would better would function say benefit little that what a this to experienced to, cost you price X a year it the you costs efficiency? I lower million

Erik Aldag

it perspective, raw the driving in still to and kind automate up plants to above above productivity, those care our efficiencies tons-per-hour-worked company. in and And aggressive this X/X productivity you new of we're we fixed of acquired that but about I targets. Dave. I'll of as -- MTI as variable conversion a these lot it's X/X This Thanks, we improvements is It's Erik. well. from well into a down, coming productivity X/X from improvements. -- facilities standpoint. X% pet the And all savings of -- you cost energy perspective and mentioned. across bring It's Yes. kind break conversion productivity cost-per-ton from about really typically of those variable X% newly to savings the materials, if and year a this and productivity we're facilities. We're throw in every productivity But cost performing a continue are that standard perspective just year. We from kind year, from go XX% targeting want is a mentioned

disciplined So we costs. QX. there's then last there. we And I fixed around side, the have fixed program savings that on that cost mentioned did staying we're savings implemented

that run And so rate we've got well. full effect as the of in

it's the well So cost from We're across a performing board. standpoint.

David Silver

I'd Great. to Okay. question. like ask a

positioning where in economic steep plan thing your but opinion, that but out X But kind when customers sticking increased the company? in my with you or a of is going to let's up is wondering think EPA and have that I'm other upfront to you the guessing between words, ramp the their utilities question relative be meaningful, said -- but in you build for for I'll going impact. think I and whether maybe kind to And well. a and this the causes a I'm this to as beta so impact testing for say, interim define I that don't testing throw has potential remediation. But rollout cost products XXXX water know, it's net now just particular pilot In a of your I sketch there's and asked so, then of whatnot. And projects PFAS MINSCAN pilot to and underway. PFAS for have projects standards previously, cost the period, on minute, was

So your about historically rolling you're maybe than I'll just upfront targeted. out price should about might the testing think thinking we impacts more But always How stop about scale initiatives expenses new we're with products be think financials? product more a pilot we there. how broad on that or volume. But if period the how and larger maybe -- new should other

Douglas Dietrich

Sure. Thanks, David.

move be EPA, a bit We're trials. PFAS, me of perspective, of around and right? full-scale them we to in just X different pilot water more can Brett XXX talk it terms Let -- -- trials small tests We utilities. with about with I'll and actually these pass talk pilots the So into about again. running X world, and they we're in

situations. -- different broad just we're here. We're this this we're of in terms So testing isn't how in small it's scale pretty --

Now getting those paid were most of for.

to -- they paid cost them. us but but and profit those and we're getting on do revenue, for making manufacture, in small be may they So

next of volume Now -- pulled XXX, over if the they pilots the the X, type the that of of to full will kind and as they scale go scale, into. years, be technologies breadth become that's they they potential move with as those that X their through different

might And different and start in and and some some used for might But volumes to when really in we of drive them the with kick to contribution others, conjunction will product. will start use will the PFAS be that's use this technologies.

know, I little just give before That's a I perspective color more some want that? to So do I on you pass. give to don't -- bit want Brett,

Brett Argirakis

it -- Gary have mentioned no may Doug Mike XXX pilots right. over mentioned I it keep there's capital. conference mind, we or we minimal to in have -- I And our Yes. pilots. at is think mean active

we Our used municipality can The equipment. equipment in capitalize equipment. -- existing FLUORO-SORB don't have to be

equipment. those us outlay designed through the for existing work the right product cost it's -- because to minimal through very was So products is our or

just of probably in we're So next with to that time. pilots it. accelerate X -- on. a Doug said, some should again, we When with work it's we the doing that's hockey that But brought stick years, not we take the as to going have going the EPA, couple see

water full-scale that X have drinking utilizing We FLUORO-SORB. our systems are

We have that the in X quarter. on going are additional full-scale projects fourth

as active So this for we the really mind, uptick product excited we're it. we for seeing are in drinking about in can FLUORO-SORB used, keep piloting other mentioned be And water. But in an water. internationally, EU earlier, countries drinking in

[indiscernible], have We landfill wastewater remediation. and

soon going we excited hit And to it's bit stick yes, we're but it. How our we'll to -- that. about hope we're little $XX going and So XXXX. is million accelerate by got to target with iffy, of still a to -- we

David Silver

I supporting slow part is economic Chinese had part your has And question all or view that. XXXX? is that casting, a your been for this relevant on -- related, -- But I of measures your guess of the has impact is metal China noticeable into your that's businesses more there know Great. have that thus part Has accounts, But by rebound Okay. -- if a there? period so PCC. mean, slower -- into measures taken I the the some government. factored gear. I there you economy improvement incentive incentive higher see get far, to I is there, by economic to any any what economy don't could from a limited. that the China. know, recently in And And government kicking or of has the try activity slower through

Douglas Dietrich

to that last it's -- question. I So a answer bit think

a in a will couple I our -- years. say, our of the that one but early been been a the thought in track China China bit was though, past is on to terms We've having it to it's in will, business growth whether slower has impact. My put too over and there continued is, in the call see volumes. economy yes, place bit though of think a that little maybe stimulus early major bit foundry. I has that

always the I comments highlight and fact up at folks look, put for I in that lower I that to we but because Asia wanted that will over at and back penetration guess, to solution XX% lot in about are X% is And a of of higher relatively, India we weaker more years X% able are economy. or to that And Our volumes X% is India, my this and to and demand the grow have because XX%, market the demand been. to both. is we're that now penetration. call And thesis there's year we've what would into been XX help a China build driving continuing terms Chinese our says, further this XX%, we're rate. We of go that the a now in to that kind have right periods levels, of levels still of is more even through from at to India like past even it, foundry, only on moderate

market And past So despite and there's able to years, penetration China us, enabling an economy of for that continue enormous the over there. our addressable in we're be it company. it's for drive us weaker growth to volume drive might couple

consolidation different packaging little kind it's there. dynamic of things, paper economic newer side different production a newer come of paper in But of technologies India will and a into China than where of the help as penetration stimulus machines, in. that. it's bit both and some Again, On

hold are to newest those paper that we we forefront technologies packaging becoming are of of production China latest environmental and penetrate of so technology, there into provider again the are our with and market. the even and are India, technologies to flat able and and in We recycling, taking with the how continue sell

economies or streams. only drive really terms will what's further. economics revenues those that's continue driving move Should to it our those So our least higher in of GDP, at

David Silver

Last of question, my the is little about the ever of probably than to years, first announced in other on a been I've can But and a X this probably hand, X Okay. context dividend question hike. the or asked that fit opinion, confess, Very your the one recent is that think for with think time, most time over left you've I on fingers you're I XX number good. over. dividend you've companies public have focused and most -- for different increases for mean, kind I I follow. I over

And later, So we're did year historically back you in modest a hike. you're coming more year X but ago. dividend double with environment dividend now a an sizable the

So I a a distributing should now. hikes more little strategy than when dividend of that -- the base this common? part event previous about think more more longer-term you're than of doubling now off or relatively for the a I becoming shareholders doubling X now, cash about rare Is think to how

Douglas Dietrich

Well, right. a a is David, dividend, X of The increased I -- think, different company's total think times me of let history. the take I place. we've number to the it's But in you're it

company than -- was the than it think ago. it different I is XX X, now is different years

that does opportunities share I we flexibility still and but company. also profile are the on I'm our not out and okay? move the toward a maturing stable repurchases where just and think growth. I to to of versus earlier cash it giving there, in think hey, this company positions tending a repurchase, forward share inorganic provides think put acquisition company towards flow history, think flexibility dividend. and is that there's growth and support ourselves more we And more company's notice is we growth, so flow growth, a the high-value profit share stable today that repurchase more more ability focused share much that for company, we you repurchase pursue stable revenue the we gave in saying, And

might Now XX% say you is modest.

place we'll We'll a doubling up go opportunities, we feel of year. bit repurchase regularly. to a growth that just cash end easily getting support and financial as power our year. quite could to for something a and this we inorganic where flow can evaluate increase, continue a it's flexibility company. year share But program I Also that think last dividend we another being next and increase It do that's a

And structure, dividend, help? the we'll have in share we still structure have, that we reflective to we'll increase left company also the program, being still capital economic the of and able think a company that's think, it's model of for well, repurchase that move I the opportunities. to okay, confidence and X% So cash through where we sits a conditions today. and inorganic flow we the have that sales. And generate have balanced of the just Does

David Silver

the it for Yes. I No, appreciate me. really context there. That's

Operator

time, this call And for Mr. remarks. closing the any to turn at like I'd to back Dietrich

Douglas Dietrich

in quarter's very call. January. year-end much We look and attending to our you this Thank giving care. results for full you with at chatting you forward Take year

Operator

This concludes Thank you your today's for participation. call.

You now disconnect. may

Minerals (MTX) 25 Oct 242024 Q3 Earnings call transcript