Luxfer Holdings PLC Q1 FY2025 earnings call

• Team delivered adjusted earnings per share of $0.23, up from $0.20 a year ago. - Sales revenues grew significantly led by Elektron, with order books up 12% at quarter end. - Planned divestiture of Graphic Arts business nearing completion. - UGR-E backlog to more than double in 2025. - Proactive tariff management to avoid or neutralize incremental direct duty costs. - Efficiency initiatives in Gas Cylinders starting to stabilize margins.

Elektron: In Q1 2025, Elektron sales rose to $49.4 million, up 31% from $37.7 million in Q1 2024. Adjusted EBITDA increased to $8.7 million with an EBITDA margin of 17.6%, a 120 basis point improvement. Growth was broad-based across defense, first response, healthcare, aerospace, etc. Gas Cylinders: Revenue was $41.1 million, down 9% from Q1 2024. Adjusted EBITDA was $2.6 million with a margin of 6.3%. Softness in alternative fuel cylinders but strength in aerospace and specialty industrial with a 25% increase in Specialty Industrial.

• Reaffirmed full-year 2025 guidance with adjusted diluted earnings per share in the range of $0.95 to $1.05, adjusted EBITDA between $48 million and $52 million, and free cash flow generation of $20 million to $25 million. - Flat revenue growth expected. - Foreign exchange remains a key sensitivity, with a $0.05 move in dollar vs sterling shifting full-year earnings by ~$1 million. - Routine share repurchase program with board authorization for up to $10 million of additional opportunistic buybacks. - Evaluating further simplification and cost reduction initiatives.

• Monitoring ongoing developments around rare earth supply channels from China and broader trade policy dynamics. - Prepared to adjust sourcing, pricing, and operational strategies if new duties emerge.

Q: Any special things in Q1, pull forwards, impact on year?

A: Yes, pleased with Q1 results, strong in defense market with flameless ration heaters, UGR-E ramping, reaffirmed guidance.

Q: Specialty industrial in Gas Cylinders?

A: Long-term trends in specialty industrial gas cylinders for high-purity gases in electronics, calibration, etc.

Q: Capital allocation, buybacks, M&A?

A: $10M buyback authorization, CapEx expected to ramp up to $12M-$15M, open to M&A with pipeline of opportunities.

Q: Sustainability of defense MREs?

A: Driven by UGR-E ramp and military replenishments continuing through at least quarter 3.