Minerals Technologies (NYSE:MTX) reported second-quarter sales of $548 million, up 4% from a year earlier, while operating income totaled $75 million. Earnings per share were $1.60, up 3% year over year, Chairman and Chief Executive Officer Doug Dietrich said on the company’s second-quarter 2026 earnings call.
For the first half of 2026, sales rose 7%, including 5% growth in Consumer & Specialties and 10% growth in Engineered Solutions. The company said volume growth from strategic projects and improved end-market conditions supported the increase. Excluding special items, second-quarter earnings per share increased 3%, while year-to-date earnings per share rose 11%, according to Chief Financial Officer Erik Aldag.
Engineered Solutions posts record margin
Engineered Solutions delivered second-quarter sales of $274 million, an increase of 9% from the prior year, and operating income of $49 million. The segment’s operating margin reached a record 17.8%, which Aldag said reflected sales growth translating effectively into income as price adjustments kept pace with cost increases.
High-Temperature Technologies sales rose 7% to $190 million in the quarter. The company cited continued strength among North American steel customers, improved demand signs in Europe, and strong sales to Asian foundry customers. Foundry sales in Asia rose 14% during the quarter.
Environmental & Infrastructure sales increased 15% to $84 million. Building materials sales climbed 41%, aided by large projects, while drilling products sales rose 20% and environmental lining solutions sales increased 18%, supported by mining-sector project activity.
Brett Argirakis, Group President of Engineered Solutions, said European steel markets remain soft but have improved from the preceding quarter. He cited carbon-regulation safeguards intended to address imports, improved production in Germany, and the nationalization of a major U.K. steel mill that the company has served for many years.
The company expects Engineered Solutions sales to grow 3% to 5% year over year in the third quarter, led by steady steel demand and continued improvement in Environmental & Infrastructure markets.
Consumer & Specialties faces cost and timing pressures
Consumer & Specialties generated second-quarter sales of $275 million. Sales in Household & Personal Care totaled $123 million, with cat litter demand moderating after a strong first quarter. Dietrich said first-quarter cat litter sales benefited from distribution-center inventory fills tied to new products, while order patterns slowed during the second quarter as those distribution centers became stocked.
Still, cat litter sales increased 9% during the first half of the year. D.J. Monagle III, Group President of Consumer & Specialties, said the business is gaining traction with new products and major retailers and remains positioned for strong second-half growth.
Minerals Technologies said its edible oil and renewable fuel expansion reached target production levels at the end of the second quarter. The RAFINOL bleaching earth expansion is intended to support a strong order book from sustainable aviation fuel customers, with sales expected to ramp through the third quarter. The company also said a new Fabricare production program is ramping up and is expected to strengthen sales early in the fourth quarter.
Specialty Additives sales rose 1% in the quarter and 3% year to date. Paper and packaging sales increased 7% in the first half, supported by volumes from new satellite facilities in Asia. The company said slower demand for residential construction products partially offset that growth.
Consumer & Specialties operating income was $29 million in the quarter and $62 million for the first half. Aldag said the segment absorbed much of the company’s higher freight, energy and energy-linked costs, including mining costs. Contractual pricing mechanisms have created a lag between cost increases and customer price adjustments, particularly in Household & Personal Care.
“Until cost pressures plateau,” Aldag said, “we’re still about 90 days away from fully catching up in this segment.” He added that the company expects to remain about $5 million to $6 million behind on pricing versus costs in the third quarter as costs continued rising from the second to third quarter.
Consumer & Specialties sales are expected to increase 3% to 5% in the third quarter, driven primarily by Household & Personal Care. The company said it is seeing stronger early-quarter cat litter sales and expects continued growth from natural oil purification products, while residential construction remains soft compared with last year.
Outlook, legal matter and sustainability targets
For the third quarter, Minerals Technologies expects sales of approximately $550 million, representing growth of about 4% from the prior-year period. The company forecast operating income of about $75 million and earnings per share of $1.55 to $1.60. It continues to expect full-year sales growth in the mid-single-digit range.
Aldag said the company expects overall operating margin to recover in the fourth quarter to slightly above prior-year levels as pricing catches up with costs in Consumer & Specialties. The company expects full-year capital expenditures of $90 million to $100 million and free cash flow of 6% to 7% of sales.
Dietrich also discussed the Chapter 11 cases involving BMI OldCo, formerly Barretts Minerals, and affiliated debtors. The company filed a reorganization plan and recorded a $290 million charge to increase its reserve for potential trust funding and estimated related costs. Aldag said potential funding for a 524G trust is approximately $450 million, with about $35 million designated for ongoing process funding.
The bankruptcy cases have since been abated while a district court considers the underlying talc causation issue. Dietrich said the company maintains that talc sold by BMI OldCo “has always been safe” and that the company is seeking a fair, final resolution.
The company also released its 18th annual sustainability report. Dietrich said Minerals Technologies reduced carbon dioxide emissions by about 40% from its 2018 baseline, reduced landfill waste by 44%, and cut water consumption by more than 30%. The company established new 2035 targets to reduce environmental impacts by another 20% on an absolute basis and 30% on a per-ton basis.
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.
