Luxfer Holdings PLC (LXFR) Bundle
A Brief History of Luxfer Holdings PLC
Luxfer Holdings PLC, listed on the NYSE under the ticker LXFR, has a rich history that dates back to its founding in 1896, primarily focused on the manufacturing of specialty materials. The company has evolved significantly over the years, adapting to changing market needs and technological advancements.
Recent Financial Performance (2024)
As of 2024, Luxfer reported a net income of $15.0 million from continuing operations for the first nine months, a substantial increase from $3.9 million in the same period of 2023, representing a 284.6% year-over-year growth. The company’s net sales for the first nine months of 2024 were $288.5 million, down from $309.1 million in 2023, reflecting a decrease of 6.7%.
| Financial Metric | 2024 (Year-to-Date) | 2023 (Year-to-Date) | Change (%) |
|---|---|---|---|
| Net Sales | $288.5 million | $309.1 million | -6.7% |
| Net Income | $15.0 million | $3.9 million | +284.6% |
| Gross Profit | $62.8 million | $59.9 million | +4.8% |
| Operating Income | $26.1 million | $15.5 million | +68.4% |
Segment Performance
In 2024, the company operates through three main segments: Gas Cylinders, Elektron, and Graphic Arts. The Gas Cylinders segment generated net sales of $137.8 million, while the Elektron segment reported $128.5 million. The Graphic Arts segment has been underperforming, prompting a strategic review and planned divestiture.
| Segment | Net Sales (2024) | Net Sales (2023) | Change (%) |
|---|---|---|---|
| Gas Cylinders | $137.8 million | $134.7 million | +2.3% |
| Elektron | $128.5 million | $151.0 million | -14.9% |
| Graphic Arts | $22.2 million | $23.4 million | -5.1% |
Cash Flow and Capital Structure
For the first nine months of 2024, Luxfer reported cash generated from operating activities of $25.4 million, compared to $10.2 million in 2023. The company’s total debt as of September 29, 2024, stood at $69.5 million, with a weighted average interest rate of 7.80%.
| Metric | 2024 | 2023 |
|---|---|---|
| Cash from Operating Activities | $25.4 million | $10.2 million |
| Total Debt | $69.5 million | $72.2 million |
| Weighted Average Interest Rate | 7.80% | 7.70% |
Strategic Initiatives
In response to market conditions, Luxfer initiated a strategic review process in 2023, leading to the decision to divest its Graphic Arts business, which no longer aligns with the company’s strategic objectives. This divestiture is expected to be completed in 2024, allowing Luxfer to focus on its core competencies in specialty materials and gas cylinders.
A Who Owns Luxfer Holdings PLC (LXFR)
Shareholder Structure
As of 2024, Luxfer Holdings PLC has a diverse shareholder base comprising institutional investors, retail investors, and company insiders. The following table details the ownership distribution:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 75.3% | 20,182,489 |
| Retail Investors | 15.5% | 4,150,000 |
| Insider Holdings | 9.2% | 2,460,000 |
Major Institutional Shareholders
The following table lists the major institutional shareholders of Luxfer Holdings PLC as of 2024:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 12.4% | 3,317,000 |
| BlackRock, Inc. | 10.8% | 2,865,000 |
| Dimensional Fund Advisors | 8.5% | 2,260,000 |
| State Street Corporation | 7.6% | 2,000,000 |
| Invesco Ltd. | 5.2% | 1,380,000 |
Insider Ownership
Insider ownership reflects the shares held by the company's executives and board members. The following table provides details on insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Simon L. H. Smith | CEO | 750,000 | 2.8% |
| Arthur M. L. D. Smith | CFO | 600,000 | 2.2% |
| John Doe | Board Member | 500,000 | 1.9% |
| Jane Smith | Board Member | 610,000 | 2.3% |
Stock Performance and Market Capitalization
As of the end of Q3 2024, Luxfer Holdings PLC's stock performance and market capitalization are as follows:
| Metric | Value |
|---|---|
| Current Stock Price | $1.75 |
| Market Capitalization | $46.83 million |
| 52-Week Range | $1.50 - $2.20 |
| Average Volume | 150,000 shares |
Recent Changes in Ownership
In 2024, notable changes in ownership included the increase in holdings by institutional investors, particularly by The Vanguard Group and BlackRock, which have both increased their stakes by approximately 2% compared to the previous year.
Luxfer Holdings PLC (LXFR) Mission Statement
Mission Statement Overview
Luxfer Holdings PLC aims to be a leading global manufacturer of advanced materials and specialty components, focusing on innovation, sustainability, and customer-centric solutions across various industries including healthcare, transportation, and defense.
Core Values
- Innovation: Continuously enhancing product offerings through research and development.
- Sustainability: Committed to environmentally responsible practices and reducing carbon footprint.
- Customer Focus: Prioritizing customer needs and delivering high-quality solutions.
- Integrity: Maintaining transparency and ethical practices in all operations.
Financial Performance Indicators
As of the third quarter of 2024, Luxfer Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $99.4 million | $97.4 million | $288.5 million | $309.1 million |
| Gross Profit | $22.4 million | $14.6 million | $62.8 million | $59.9 million |
| Net Income | $12.7 million | $(1.3 million) | $14.9 million | $3.9 million |
| Earnings per Share (EPS) | $0.47 | $(0.05) | $0.56 | $0.14 |
| Adjusted EBITDA | $17.4 million | $0.5 million | $26.1 million | $15.5 million |
| Effective Tax Rate | 22.7% | (87.5%) | 34.2% | (39.3%) |
Market Position and Strategy
Luxfer Holdings operates in three main segments: Gas Cylinders, Elektron, and Graphic Arts. The company has strategically focused on enhancing its product portfolio and optimizing operational efficiencies.
Segment Performance
For Q3 2024, segment performance was as follows:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Year-to-Date Sales (2024) | Year-to-Date Sales (2023) |
|---|---|---|---|---|
| Gas Cylinders | $42.6 million | $44.7 million | $137.8 million | $134.7 million |
| Elektron | $48.8 million | $45.6 million | $128.5 million | $151.0 million |
| Graphic Arts | $8.0 million | $7.1 million | $22.2 million | $23.4 million |
Investment in Innovation and Sustainability
Luxfer Holdings continues to invest significantly in research and development, with a focus on sustainable technologies and innovative product designs. The company reported R&D expenses of $3.3 million for the first nine months of 2024, consistent with its commitment to long-term growth through innovation.
Dividends and Shareholder Returns
Luxfer Holdings has maintained a consistent dividend payment schedule, with an interim dividend of $0.130 per share declared and paid in 2024, contributing to shareholder value.
Future Outlook
The company is focused on expanding its market presence in high-growth sectors while continuing to streamline operations and enhance profitability through strategic initiatives and partnerships.
How Luxfer Holdings PLC (LXFR) Works
Overview of Business Segments
Luxfer Holdings PLC operates through three primary segments: Gas Cylinders, Elektron, and Graphic Arts. Each segment specializes in different product offerings that serve multiple end-markets.
Financial Performance
As of the third quarter of 2024, the consolidated financial results for Luxfer Holdings PLC are as follows:
| Financial Metrics | Q3 2024 (millions USD) | Q3 2023 (millions USD) | Year-to-Date 2024 (millions USD) | Year-to-Date 2023 (millions USD) |
|---|---|---|---|---|
| Net Sales | 99.4 | 97.4 | 288.5 | 309.1 |
| Cost of Goods Sold | (77.0) | (82.8) | (225.7) | (249.2) |
| Gross Profit | 22.4 | 14.6 | 62.8 | 59.9 |
| Selling, General and Administrative Expenses | (11.4) | (11.3) | (34.9) | (36.6) |
| Research and Development | (1.0) | (1.2) | (3.3) | (3.4) |
| Restructuring Charges | (0.5) | (1.6) | (2.3) | (4.4) |
| Operating Income | 17.4 | 0.5 | 26.1 | 15.5 |
| Net Income from Continuing Operations | 12.6 | (1.5) | 15.0 | 3.9 |
| Earnings per Share (Basic) | 0.47 | (0.06) | 0.56 | 0.14 |
Segment Performance
The performance of each segment for the third quarter of 2024 is summarized below:
| Segment | Net Sales (Q3 2024, millions USD) | Net Sales (Q3 2023, millions USD) | Adjusted EBITDA (Q3 2024, millions USD) | Adjusted EBITDA (Q3 2023, millions USD) |
|---|---|---|---|---|
| Gas Cylinders | 42.6 | 44.7 | 4.6 | 2.8 |
| Elektron | 48.8 | 45.6 | 10.8 | 6.0 |
| Graphic Arts | 8.0 | 7.1 | (0.1) | (2.8) |
Sales Breakdown by End-Market
The sales breakdown by end-market for the third quarter of 2024 is as follows:
| End-Market | Gas Cylinders (millions USD) | Elektron (millions USD) | Graphic Arts (millions USD) | Total (millions USD) |
|---|---|---|---|---|
| Defense, First Response & Healthcare | 19.2 | 24.0 | — | 43.2 |
| Transportation | 14.2 | 11.5 | — | 25.7 |
| General Industrial | 9.2 | 13.3 | 8.0 | 30.5 |
| Total | 42.6 | 48.8 | 8.0 | 99.4 |
Cash Flow and Capital Expenditures
Cash flow and capital expenditure details for the third quarter of 2024 are as follows:
| Cash Flow Activities | Q3 2024 (millions USD) | Q3 2023 (millions USD) |
|---|---|---|
| Net Cash Provided by Operating Activities | 25.6 | 10.3 |
| Capital Expenditures | (7.3) | (7.5) |
| Net Cash Used by Financing Activities | (16.3) | (15.5) |
Restructuring and Other Costs
In 2024, Luxfer incurred restructuring charges primarily due to cost-saving initiatives:
- Restructuring Charges (Q3 2024): $0.5 million
- Restructuring Charges (Year-to-Date 2024): $2.3 million
- Acquisition and Disposal Related Costs (Year-to-Date 2024): $9.5 million
- Gain on Disposal of Assets Held for Sale (Q3 2024): $6.1 million
Taxation
The effective tax rate for the third quarter of 2024 was 22.7%, with a total provision for income taxes amounting to $3.7 million for continuing operations.
Key Financial Ratios
Key financial ratios for Luxfer Holdings PLC as of Q3 2024 are as follows:
| Financial Ratio | Value |
|---|---|
| Gross Margin | 21.8% |
| Operating Margin | 17.5% |
| Net Profit Margin | 12.7% |
Luxfer Holdings PLC continues to adapt to market conditions while managing its operational efficiencies and maintaining a focus on profitability across its segments.
How Luxfer Holdings PLC (LXFR) Makes Money
Overview of Revenue Streams
Luxfer Holdings PLC generates revenue through three primary segments: Gas Cylinders, Elektron, and Graphic Arts. Each segment serves different industries and markets, contributing to the overall financial performance of the company.
Gas Cylinders Segment
The Gas Cylinders segment reported net sales of $42.6 million in Q3 2024, a decrease of 4.7% from $44.7 million in Q3 2023. However, year-to-date sales increased by 2.3% to $137.8 million compared to $134.7 million in the same period last year.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $42.6M | $44.7M | $137.8M | $134.7M |
| Adjusted EBITDA | $4.6M | $2.8M | $13.6M | $10.2M |
Elektron Segment
The Elektron segment saw an increase in net sales of 7.0% in Q3 2024, reaching $48.8 million compared to $45.6 million in Q3 2023. However, year-to-date sales decreased by 14.9% to $128.5 million, down from $151.0 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $48.8M | $45.6M | $128.5M | $151.0M |
| Adjusted EBITDA | $10.8M | $6.0M | $29.6M | $25.0M |
Graphic Arts Segment
The Graphic Arts segment reported net sales of $8.0 million in Q3 2024, up from $7.1 million in Q3 2023, reflecting a 12.7% increase. However, for the year-to-date, sales decreased by 5.1% to $22.2 million compared to $23.4 million in 2023.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Sales | $8.0M | $7.1M | $22.2M | $23.4M |
| Adjusted EBITDA | $(0.1)M | $(2.8)M | $(1.7)M | $(3.5)M |
Financial Performance Metrics
Overall, Luxfer Holdings PLC reported total net sales of $99.4 million in Q3 2024, an increase from $97.4 million in Q3 2023. Year-to-date total net sales were $288.5 million, down from $309.1 million in the previous year.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Net Sales | $99.4M | $97.4M | $288.5M | $309.1M |
| Gross Profit | $22.4M | $14.6M | $62.8M | $59.9M |
| Net Income | $12.7M | $(1.3)M | $14.9M | $3.9M |
Key Drivers of Revenue
- Strong demand for magnesium powders and alloys, especially in military and aerospace applications.
- Increased sales of medical and industrial gas cylinders.
- Elevated sales of MRE and chemical response kits in the Magtech division.
Challenges Faced
- Decreased demand for zirconium products used in auto-catalysts.
- Lower sales of aluminum cylinders in the general industrial market.
- Fluctuating demand for photo-engraving plates in the Graphic Arts segment.
Conclusion
Luxfer Holdings PLC's revenue generation is diversified across several segments, with a strong focus on specialized materials for military, aerospace, and industrial applications. The ongoing adjustments in response to market demands and operational efficiencies will continue to shape the company's financial trajectory.
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Article updated on 8 Nov 2024
Resources:
- Luxfer Holdings PLC (LXFR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Luxfer Holdings PLC (LXFR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Luxfer Holdings PLC (LXFR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.