Minerals Technologies Restores Profit After Talc Charge

The Tip Desk · October 31, 2026 · 3 min read

Third-quarter sales were $555 million, up 4 percent, and earnings were $1.37 a share, or $1.53 excluding special items.

Minerals Technologies Inc. (MTX) returned to reported operating profit in the third quarter ended October 4, 2026, after a $290 million talc-related reserve charge produced a $220 million operating loss in the prior quarter.

The specialty minerals company posted worldwide net sales of $555 million, up 4 percent from a year earlier and 1 percent higher sequentially. Reported operating income was $65 million, or $72 million excluding special items, for an 11.7 percent margin, or 12.9 percent excluding special items. Earnings were $1.37 a share, or $1.53 excluding special items.

Year-over-year sales growth had been 11 percent in the first quarter and 4 percent in the second. Chairman and Chief Executive Officer Douglas T. Dietrich said sales growth continued and that the company remains on track to achieve mid-single-digit revenue growth for the full year.

Consumer & Specialties sales were $278 million, up slightly from the year-earlier quarter and 1 percent higher sequentially, after a 1 percent year-over-year decline in the second quarter. Household & Personal Care sales were $131 million, up 1 percent from a year earlier and 6 percent sequentially, reversing a 3 percent year-over-year decline in the second quarter. The company said the sequential increase was driven by higher cat litter volumes in North America and growth in edible oil and renewable fuel purification, personal care, and fabric care. Specialty Additives sales were $148 million, flat with the prior year and 2 percent lower sequentially.

Consumer & Specialties operating income was $25 million, down 34 percent from the year-earlier quarter, with an 8.9 percent margin. The company said the decline was primarily due to higher energy, transportation, and raw material costs that were not fully recovered within the quarter because of the timing of contractual pricing adjustments.

Engineered Solutions sales were $277 million, up 9 percent from a year earlier and 1 percent sequentially, after 12 percent year-over-year growth in the first quarter. High-Temperature Technologies sales were $192 million, up 7 percent, which the company attributed to higher sales to steel and foundry customers. Environmental & Infrastructure sales were $85 million, up 11 percent, on stronger sales for environmental lining and remediation products, building materials, and infrastructure drilling products. Segment operating income was $49 million, up 9 percent, with a 17.6 percent margin.

Cash flow from operations was $76 million and free cash flow was $52 million, versus $63 million and $36 million in the second quarter. Adjusted EBITDA was $95 million, or 17.2 percent of sales. Adjusted net leverage was 1.5 times at October 4, versus 1.6 times at July 5.

On October 13, the company completed a $400 million private offering of 7.5 percent senior notes due 2032 and used the net proceeds to repay $400 million of senior notes due in 2028. It also amended its credit agreement to increase revolving capacity from $400 million to $500 million and extend maturity to 2031.

At a September 22 Investor Day, MTI introduced high-purity calcium metal to support U.S. heavy rare earth metallization and a waste-repurposing application to extract minerals from steel slag, estimating the two opportunities could create over $200 million in revenue over the next five years.

On October 21, the company increased its regular quarterly dividend by 8 percent to $0.13 a share, payable December 3, 2026. Dietrich said it was the fourth year in a row the board authorized an increase.