Minerals Technologies Inc. Q1 FY2026 earnings call

• Delivered strong first quarter with broad-based double-digit growth. Sales in Q1 were $547 million, up 11% from the prior year. Operating income was $68 million, excluding special items, up 7% from last year. - Impact of current events: Avoided material impact on sales or operations from Middle East events, but faced higher energy and freight costs, addressed via pricing actions. - Growth investments: On track to deliver $100 million of incremental revenue. In consumer and specialty segment, facilities are being upgraded/expanded, and there are growth in various product lines. In engineered solution segment, MINSCAN installations are on track, and there are improvements in different product lines' demands

Consumer and specialty segment: First quarter sales were $297 million, up 11% from the prior year. In household and personal care, sales of $142 million were up 16% year over year, with cat litter sales up 19% and bleaching earth for edible oil and renewable fuel purification up 14%. Sales in specialty additives grew 6% from the prior year to $154 million. Engineered solution segment: First quarter sales were $250 million, up 12% from the prior year. Sales in high-temperature technologies were $183 million, 8% higher, and sales in environmental and infrastructure were $67 million, up 24% from the prior year

• 2026 expected mid-single-digit sales growth, could be higher if end markets remain constructive. - Second quarter outlook: Expect sales of approximately $560 million, up around 6% from prior year. Operating income expected to be approximately $80 million and earnings per share between $1.60 and $1.65. Includes $12 million of higher inflationary costs on a year-over-year basis, with a ~$3 million temporary impact on operating income in the second quarter. Full-year operating margin tracking at about 14%, expecting improvement from first half to second half

• Impact from rapidly changing geopolitical environment causing higher energy and freight costs. - Potential supply chain and logistics disruptions though geographically diverse business structure helps. - Macro uncertainty around energy costs and end market dynamics

Q: Daniel Moore on growth, Enviro and infrastructure visibility, margin performance.

A: Growth in cat litter outpaced market growth, Enviro and infrastructure has increasing RFQs, margin impacted by freight, corporate costs, and residential construction mix.

Q: Mike Harrison on FX, margin, price-cost lag.

A: FX impact in Q1 was about 3%, extra days contributed ~2 - 3% to growth, margin impacted by freight, corporate costs, and residential construction mix, ~$3 million price-cost lag expected in Q2.

Q: Pete Osterlund on growth investments, demand impacts.

A: Growth investments are on track, some early pull in cat litter, potential demand impacts in Asia and Europe.

Q: David Silver on pet litter growth, Fluorosorb installations, PCC satellite activity.

A: Pet litter growth was mostly volume, 10 Fluorosorb installations in second half, PCC satellite pipeline is flush with opportunities and mix is shifting