Minerals Technologies (NYSE:MTX) executives said 2025 was a “more challenging year” than 2024 as the company navigated softer market demand, changing tariffs and a volatile operating environment, while continuing to invest in growth initiatives expected to contribute meaningfully in 2026.
2025 results and key drivers
Chairman and CEO Doug Dietrich reported full-year 2025 sales of $2.1 billion, operating income of $287 million and earnings per share of $5.52. Dietrich said sales were at a similar level to the prior year, but several end markets remained flat or weakened. Management emphasized that teams focused on cost control and inventory management while remaining attentive to quality, customers and safety.
Management said the company launched and expanded several initiatives during 2025, including upgrades at pet litter facilities in the U.S., Canada and China; an expansion of natural oil purification operations in Turkey; new paper and packaging satellite plants in Asia; and expansion of FLUORO-SORB production. Dietrich said these investments have “led to significant new sales growth in 2026,” with details discussed later in the call.
Chief Financial Officer Erik Aldag added that 2025 sales were down 2% from the prior year, driven by $74 million of unfavorable volume and mix, partly offset by $21 million of selling price increases and an $8 million foreign exchange benefit. Aldag said selling price increases “completely offset inflationary impacts, including the impact from tariffs,” but the company faced unfavorable productivity and fixed-cost absorption, particularly tied to volume weakness in the first and fourth quarters, as well as temporarily higher logistics costs related to cat litter plant upgrades.
Operating margin was 13.9% in 2025 versus 14.9% in the prior year, with lower volume accounting for about 80 basis points of the decline. Aldag said the company expects margin to revert toward 15% as volumes improve and one-time cost impacts roll off.
Fourth-quarter performance
Aldag said the fourth quarter “played out largely as we expected,” with sales, operating income and EPS roughly in the middle of prior ranges shared on the third-quarter call. Fourth-quarter sales were $520 million, slightly above the prior year, as 2% growth in Engineered Solutions offset a 2% decline in Consumer and Specialties.
Fourth-quarter operating income was $67 million and operating margin was 12.8%. Aldag said margin was pressured by lower U.S. residential construction and foundry volumes, as well as lower productivity and fixed-cost absorption at plants serving those markets. EPS excluding special items was $1.27 for the quarter.
Segment trends: Consumer and Specialties
Fourth-quarter Consumer and Specialties sales were $274 million. Household and Personal Care sales increased 2% sequentially to $133 million and were 1% below the prior year. Aldag said momentum in cat litter continued, with sales up 8% sequentially and up slightly year-over-year. He also cited continued growth in edible oil and renewable fuel purification and in animal feed additives, offset by lower fabric care sales as customers reduced inventories in the fourth quarter.
Specialty Additives fourth-quarter sales were $142 million, down 2% year-over-year, as higher paper and packaging sales were offset by a pronounced slowdown in residential construction. Aldag said some residential construction customers took “unusually long downtime” in December, resumed ordering in January, but the company did not expect that market to improve significantly from the fourth quarter to the first quarter.
Consumer and Specialties operating income in the fourth quarter was $29 million, down $9 million year-over-year, driven by unfavorable volume and weaker fixed-cost absorption, particularly at facilities serving residential construction.
For the full year, Consumer and Specialties sales were $1.1 billion. Household and Personal Care sales were $513 million, down 3%, but improved 5% in the second half compared with the first half. Aldag said the second-half improvement was led by cat litter sales, which were 7% higher in the second half as the company worked with retail partners to drive volumes. Full-year sales into edible oil and renewable fuel purification rose 17%, and animal feed additives rose 12%.
Specialty Additives sales were $585 million, down 4%, with residential construction weakness cited as a major macro headwind in the second half. Aldag said paper and packaging volumes were also lower year-over-year as new satellites in Asia were offset by declines in North America and Europe, including two U.S. paper machine shutdowns. Still, he said paper and packaging customer sales picked up 3% in the second half versus the first half as satellites ramped and volumes in Europe and Latin America improved. He added customer operating rates in North America were “very healthy, in the 90% range.”
Segment trends: Engineered Solutions and growth initiatives
Engineered Solutions fourth-quarter sales rose 2% to $245 million. High Temperature Technologies sales were $178 million, up 1%, as higher steel sales offset lower foundry sales in North America. Environmental and Infrastructure sales were $67 million, up 7%, driven by infrastructure drilling, offshore services and environmental lining systems, partly offset by lower waterproofing materials sales for commercial construction.
Full-year Engineered Solutions sales were $975 million. High Temperature Technologies sales were $705 million, down 1%, as growth in Asia foundry helped offset slower North American foundry demand tied to agricultural equipment and heavy truck end markets. Steel sales were described as relatively flat, with North American growth offset by softness in Europe. Environmental and Infrastructure full-year sales rose 2% to $270 million, driven by infrastructure drilling products, environmental lining systems and offshore water treatment.
The segment delivered record operating income of $163 million and record operating margin of 16.7%, according to Aldag, despite mixed market conditions and tariff impacts.
Looking ahead, management outlined multiple growth drivers for 2026. Dietrich said major new cat litter business with retailers is expected to begin ramping at the start of the second quarter, following facility investments in North America and China. He also said the company is completing an expansion of its bleaching earth facility in Turkey to support rapid growth in edible oil and renewable fuel purification, citing regulatory changes driving increased use of sustainable aviation fuels and a recent product qualification at a large Asian refinery.
In Specialty Additives, Dietrich said three new paper and packaging satellite plants are coming online in Asia in 2026. In High Temperature Technologies, management said it plans to commission six additional MINSCAN units this year and continues to see demand for newer refractory formulations, while U.S. foundry output remains slow. In Environmental and Infrastructure, Dietrich said FLUORO-SORB continues its qualification track, with “hundreds of trials” across U.S. and European utilities and 10 new U.S. water utility installations scheduled for the year.
Outlook, cash flow, and other items
For the first quarter, Aldag said the company expects sales and operating income to be similar to the fourth quarter, representing about 5% growth over the prior year. He projected mid-single-digit sales growth year-over-year for both segments, with Household and Personal Care expected to be up mid- to high-single digits on cat litter momentum and other consumer-oriented products. Specialty Additives growth in paper and packaging is expected to offset continued softness in residential construction.
Aldag also flagged $2 million to $3 million of higher energy and mining costs in the first quarter versus the fourth quarter, which management expects to offset with pricing and productivity as the quarter progresses, limiting the margin impact to the first quarter.
On cash flow and capital deployment, Aldag reported 2025 operating cash flow of $194 million and capital expenditures of $107 million, resulting in free cash flow of $87 million. He said the company expects 2026 free cash flow of 6% to 7% of sales. Management said it returned $73 million to shareholders in 2025 through dividends and share repurchases, ended the year with more than $700 million in liquidity, and had net leverage of 1.7x EBITDA. On the call, Aldag said the company had about $140 million remaining on its share repurchase authorization and intends to continue repurchases, while maintaining a “balanced” approach that keeps roughly 50% of free cash flow on the balance sheet for inorganic opportunities.
In response to a question on talc litigation, Dietrich said reserves remain sufficient and that the company is making “constructive progress” toward establishing a 524(g) trust, emphasizing the goal of a fair outcome and finality for the company.
About Minerals Technologies (NYSE:MTX)
Minerals Technologies Inc develops, produces and processes a broad range of mineral-based products and solutions that serve a variety of industrial applications. Its offerings include bentonite, perlite, precipitated calcium carbonate (PCC), mineral sands, foundry additives, performance minerals and specialty chemicals designed to enhance performance in markets such as paper, steel, construction, oil and gas, environmental remediation and consumer products.
The company operates through several business segments, including Specialty Minerals, Refractory Minerals, Performance Materials and Recycled Materials.
