Highlights

  • Net sales for the second quarter of 2026 were $548.4 million, compared with $528.9 million in the prior year.
  • The company recorded a $290 million charge to increase its reserve for estimated costs of resolving talc-related claims.
  • Net loss attributable to the company was $183.6 million, or $5.90 per diluted share, against net income of $45.4 million.
  • Management said it expects third quarter earnings per share of between $1.55 and $1.60 and operating income of around $75 million.

Minerals Technologies Inc. (NYSE: MTX) shares were trading at USD 63.05 on October 27, 2026, up 1.14%, with a relative volume at time of 3.61. The company filed a Plan of Reorganization for its subsidiary BMI Oldco Inc. on June 29, 2026, filed its 10-Q for the quarter ended July 5, 2026 on July 31, 2026, and reported a second quarter net loss that includes a $290 million charge.

Minerals Technologies is incorporated in Delaware and lists its principal executive offices in New York, New York. It reports two segments. Consumer & Specialties covers Household & Personal Care, which includes cat litter, and Specialty Additives, which includes calcium carbonate products for paper and packaging. Engineered Solutions covers High-Temperature Technologies, which serves steel and foundry customers, and Environmental & Infrastructure, which includes building materials, geosynthetic clay liners and FLUORO-SORB adsorbent products.

Second Quarter 2026 Results

Net sales were $548.4 million for the three months ended July 5, 2026, against $528.9 million in the prior year. Cost of goods sold was $414.6 million, and production margin was $133.8 million, or 24.4% of sales, against 25.9%.

The company recorded a $290.0 million provision for litigation accrual and credit losses, and litigation expenses were $4.9 million. Loss from operations was $220.3 million, against income from operations of $74.6 million. The benefit for taxes on income was $46.2 million. Net loss attributable to Minerals Technologies was $183.6 million, which included a $233.4 million charge, net of tax. Diluted loss per share was $5.90, against earnings of $1.44.

Consumer & Specialties net sales were $274.5 million, against $277.7 million, and income from operations was $29.3 million, against $34.0 million. The company cited product mix and higher energy, transportation and raw material costs not fully recovered within the quarter. Engineered Solutions net sales were $273.9 million, against $251.2 million, and income from operations was $48.8 million.

For the six months, net sales were $1,095.3 million and net loss attributable to the company was $147.4 million.

Talc Litigation and Chapter 11 Cases

Subsidiaries Oldco and Barretts Ventures Texas LLC filed voluntary Chapter 11 petitions on October 2, 2023. On June 29, 2026, the company filed a Plan of Reorganization that would provide for funding a Talc Personal Injury Trust with $450 million from the company and a waiver of more than $100 million in claims against the debtors.

The filing states that the plan is subject to the resolution of District Court proceedings, which are ongoing. It also states that the company is unable to estimate the possible loss or range of loss beyond the amount accrued, and that it cannot predict the form or timing of a resolution. The Chapter 11 debtors have been deconsolidated from the company's financial statements.

Cash, Debt and Capital

Cash flow provided by operations was approximately $95.1 million for the six months. Cash and cash equivalents were $342.2 million at July 5, 2026, and cash, cash equivalents and short-term investments were $346.2 million. The company said it had more than $700 million of available liquidity.

Long-term debt, net of unamortized discount and deferred financing costs, was $952.9 million, and current maturities were $6.0 million. The company said it was in compliance with all covenants of its Amended Credit Agreement. Under its $200 million repurchase authorization, 1,102,129 shares had been repurchased for $68.3 million as of July 5, 2026. Cash dividends declared were $0.12 per common share for the quarter.

Outlook

On its earnings call, management said it expects third quarter sales of approximately $550 million, operating income of around $75 million, and earnings per share of between $1.55 and $1.60. It expects full year capital expenditures of $90 million to $100 million, free cash flow of 6% to 7% of sales, and mid-single-digit full year sales growth. Management also said price increases lag cost increases in Consumer & Specialties by about 90 days.