Luxfer Reports Third Quarter 2024 Results With Ongoing Margin Improvement

Rhea-AI Summary

Luxfer Holdings PLC (NYSE: LXFR) reported its Q3 2024 results, highlighting improved profitability and raising its 2024 guidance. The company achieved its third consecutive quarter of Adjusted EBITDA margin growth, reaching 14.8%. The new 2024 guidance projects Adjusted EPS of $0.88-$0.94, Adjusted EBITDA of $45-$47 million, and Free Cash Flow of $35-$37 million. Notable events include the sale of Lakehurst, NJ property in Q3 with cash proceeds of $7.3 million to be reflected in Q4, and the ongoing sale of the Graphic Arts business expected to close in H1 2025.

Positive

• Raised 2024 guidance for Adjusted EPS ($0.88-$0.94) and EBITDA ($45-$47M)
• Achieved third consecutive quarter of EBITDA margin growth to 14.8%
• Successful sale of Lakehurst property generating $7.3M in cash proceeds
• Free Cash Flow guidance of $35-$37M including legal recoveries and land sale

Negative

• Graphic Arts business sale delayed to H1 2025

Insights

Financial Analyst

The Q3 results demonstrate significant operational improvements with Adjusted EBITDA margin reaching 14.8%, marking the third consecutive quarter of margin growth. The upward revision of 2024 guidance is particularly noteworthy, with $45-47 million expected in Adjusted EBITDA and $35-37 million in Free Cash Flow.

The sale of the Lakehurst property, generating $7.3 million in cash proceeds, strengthens the company's balance sheet and demonstrates effective asset management. The planned divestiture of the Graphic Arts business, expected to close in H1 2025, aligns with strategic portfolio optimization efforts. The improved guidance and margin expansion suggest successful execution of operational efficiency initiatives, potentially leading to sustained profitability improvements.

Raising 2024 guidance amid continuing strong efficiencies and enhanced profitability.

Third Quarter 2024 Highlights

• Raising 2024 Guidance (Excluding Legal Recovery): Adjusted EPS: $0.88-$0.94; Adjusted EBITDA: $45-$47 million; Free Cash Flow: $35-$37 million, including legal recoveries and Lakehurst, NJ land sale.
• Sustained Margin Growth: Achieved third consecutive quarter of Adjusted EBITDA margin growth, reaching 14.8%, demonstrating ongoing operational efficiency improvements.
• Land Sale: Sold Lakehurst, NJ property in Q3, recognized profit and receivables impact. Cash proceeds of $7.3 million to be reflected in Q4, banked in early October.
• Strategic Review: Sale of the Graphic Arts business is progressing and currently expected to close in H1 2025.

MILWAUKEE--(BUSINESS WIRE)-- Luxfer Holdings PLC (NYSE: LXFR) (“Luxfer” or the “Company”), a global industrial company innovating niche applications in materials engineering, today announced financial results for the third quarter 2024, ended September 30, 2024.

Conference call information

Luxfer will conduct an investor teleconference at 8:30 a.m. ET on Wednesday October 30, 2024. Investors can access this conference via any of the following:

• Webcast: Accessible by clicking on this link Luxfer Q3 2024 Earnings
• Live Telephone: Call 800-579-2543 within the U.S. or +1 785-424-1789 outside the U.S. Please join the call at least 15 minutes before the start time (Conference ID:LXFRQ324).
• Webcast Replay: Available on Luxfer’s website beginning at approximately 4:30 p.m. Eastern Time on October 30, 2024.
• Telephone Replay: Call 800-839-7406 within the U.S. or +1 402-220-6065 outside the U.S. (for both U.S. and outside the U.S. access code is 6639).
• Presentation Material: Earnings presentation material and podcasts can be accessed through the Investors portion of the Company’s website at luxfer.com under Quarterly Reports and Presentations.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029040024/en/

Kevin Cornelius Grant

Vice President of Investor Relations and Business Development

Kevin.Grant@luxfer.com

Source: Luxfer Holdings PLC

FAQ

What is Luxfer's (LXFR) adjusted EPS guidance for 2024?

Luxfer raised its 2024 guidance with adjusted EPS expected to be between $0.88-$0.94.

What was Luxfer's (LXFR) EBITDA margin in Q3 2024?

Luxfer achieved an Adjusted EBITDA margin of 14.8% in Q3 2024, marking the third consecutive quarter of margin growth.

When will Luxfer (LXFR) complete the sale of its Graphic Arts business?

The sale of Luxfer's Graphic Arts business is expected to close in the first half of 2025.

How much did Luxfer (LXFR) receive from the Lakehurst property sale?

Luxfer sold its Lakehurst, NJ property for $7.3 million, with cash proceeds to be reflected in Q4 2024.