Luxfer Holdings PLC (LXFR) 2025 Q1 法說會逐字稿

(Operator Instructions)

（操作員指示）

Good morning. My name is Madison, and I will be your conference operator today. Welcome to Luxfer's first quarter 2025 earnings conference call.

早安.我叫麥迪遜，今天我將擔任您的會議主持人。歡迎參加 Luxfer 2025 年第一季財報電話會議。

(Operator Instructions)

（操作員指示）

Now I will turn the call over to Kevin Grant, Vice President of Investor relations and business development at Wexford. Kevin, please go ahead.

現在我將電話轉給韋克斯福德投資者關係和業務發展副總裁凱文·格蘭特 (Kevin Grant)。凱文，請繼續。

Thank you, Madison, and good morning, everyone. Welcome to Luxfer's first quarter of 2025 earnings conference call. This morning we'll be reviewing Luxfer's financial results for the first quarter ended March 30, 2025. I'm pleased to be joined today by Andy Butcher, our Chief Executive Officer, and Steve Webster, our Chief Financial Officer.

謝謝你，麥迪遜，大家早安。歡迎參加 Luxfer 2025 年第一季財報電話會議。今天上午，我們將回顧 Luxfer 截至 2025 年 3 月 30 日的第一季財務表現。我很高興今天能與我們的執行長安迪·布徹 (Andy Butcher) 和財務長史蒂夫·韋伯斯特 (Steve Webster) 一起出席。

Today's webcast is accompanied by a presentation that can be accessed at Luxfer.com. Please note any references to non-gap financials are reconcile in the appendix of the presentation.

今天的網路直播附帶一份演示文稿，可在 Luxfer.com 上觀看。請注意，任何涉及非缺口財務報表的內容均已在簡報的附錄中進行了核對。

Before we begin, a friendly reminder that any forward-looking statements made about the company's expected financial results are subject to future risks and uncertainties.

在我們開始之前，友情提醒您，任何有關公司預期財務表現的前瞻性陳述都可能受到未來風險和不確定性的影響。

We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

我們不承擔更新任何前瞻性陳述的義務，無論由於新資訊、未來事件或其他原因。

Please refer to the safe harbor statement on slide two of today's presentation for further details.

請參閱今天簡報第二張投影片上的安全港聲明以了解更多詳細資訊。

During today's call, we'll be providing adjusted first quarter of 2025 financial results, excluding the graphic arts business and 2024 legal recoveries.

在今天的電話會議中，我們將提供 2025 年第一季調整後的財務業績，不包括平面藝術業務和 2024 年合法追償。

Now let me introduce Luxfer's CEO Andy Butcher. Please turn to slide three.

現在讓我介紹一下 Luxfer 的執行長 Andy Butcher。請翻到第三張幻燈片。

Andy, please go ahead.

安迪，請繼續。

Thank you, Kevin, and good morning, everyone.

謝謝你，凱文，大家早安。

Thank you for joining us.

感謝您加入我們。

We are very pleased with our first quarter performance. Our team delivered adjusted earnings per share of $0.23, up from $0.20 a year ago, and maintained net debt at approximately $42 million or 0.7 times leverage.

我們對第一季的業績非常滿意。我們的團隊實現了每股 0.23 美元的調整後收益，高於一年前的 0.20 美元，並將淨債務維持在約 4,200 萬美元或槓桿率的 0.7 倍。

Sales revenues grew significantly led by Electron and driven especially by off-cycle demand in flameless Russian heaters as well as our group Russian UGREs, reflecting higher 2025 demand from our defense applications, as well as commercial customers replenishing inventories.

在 Electron 的推動下，銷售收入大幅成長，尤其受到俄羅斯無焰加熱器以及我們集團俄羅斯 UGRE 的非週期需求的推動，這反映了我們國防應用對 2025 年的需求增加，以及商業客戶補充庫存。

We also saw a continuation of the rebound in defense flares and aerospace, and our overall order books as we left the quarter were elevated by 12%.

我們也看到國防照明彈和航空航太領域的持續反彈，本季末我們的整體訂單量增加了 12%。

We'll dive deeper into the encouraging UGRE outlook later as a flagship example of our Luxfer business system in action.

稍後，我們將深入探討令人鼓舞的 UGRE 前景，作為我們 Luxfer 業務系統運作的旗艦範例。

The planned divestiture of our graphic arts business is nearing completion and remains on track to close by the middle of the year, which will enable us to sharpen our focus on higher margin growth opportunities.

我們的圖形藝術業務的剝離計劃即將完成，並將在今年年中完成，這將使我們能夠更加專注於更高利潤的成長機會。

I'm also pleased to announce the order has been secured for our first bulk gas transportation system in Europe, a milestone that underscores LuxA's expertise in large scale compressed gas handling as we expand our international gas solutions portfolio.

我還很高興地宣布，我們在歐洲的首個散裝氣體運輸系統已獲得訂單，這一里程碑凸顯了 LuxA 在大型壓縮氣體處理方面的專業知識，我們正在擴大我們的國際氣體解決方案組合。

Turning to tariffs through a variety of proactive and reactive steps, we have effectively avoided or neutralized incremental direct duty costs as of now. This insulation from recent tariff actions reflects deliberate forward-looking activities across the business.

透過採取各種主動和被動措施來解決關稅問題，我們目前已有效地避免或抵消了增量直接關稅成本。此次對近期關稅行動的抵禦反映了整個企業深思熟慮的前瞻性活動。

Based on work of the past several years, there are fully approved reciprocal tariff exemptions covering our electron alloys and most of our zirconium inputs. Nearly all cylinder trade within North America benefits from USMCA protections, and we have additionally used duty drawback programs and local sourcing to limit cross-border exposure.

根據過去幾年的工作，我們的電子合金和大部分鋯輸入已完全獲得批准的互惠關稅豁免。北美境內幾乎所有氣瓶貿易都受益於 USMCA 的保護，我們也使用了退稅計畫和當地採購來限制跨境風險。

Combined with some minor price changes where necessary, I'm pleased to say that these strategies have positioned us to minimize direct reciprocal tariff impacts today. That said, we remain attentive to evolving macro risks. We are very closely monitoring ongoing developments around rare earth supply channels from China and broader trade policy dynamics.

結合必要時的一些小幅價格調整，我很高興地說，這些策略使我們能夠最大限度地減少今天的直接互惠關稅影響。儘管如此，我們仍關注不斷演變的宏觀風險。我們正在密切關注中國稀土供應管道的進展以及更廣泛的貿易政策動態。

Furthermore, should new duties emerge, we are prepared to adjust our sourcing, pricing, and operational strategies as needed, and our heavy weighting in defense, first response and aerospace continues to position us well against any broader economic slowdown.

此外，如果出現新的職責，我們準備根據需要調整我們的採購、定價和營運策略，而我們在國防、第一反應和航空航天領域的重大投入將繼續使我們處於有利地位，抵禦任何更廣泛的經濟放緩。

Overall, Q1 demonstrates that Luxfer can execute effectively in a dynamic environment. With a strengthened backlog, we remain encouraged by our internal performance and the near-term outlook. With that, I'll hand the call over to Steve, who'll provide details of our financials and share our 2025 guidance.

總體而言，Q1 表明 Luxfer 可以在動態環境中有效執行。隨著積壓訂單的增加，我們仍然對內部業績和近期前景感到鼓舞。說完，我將把電話交給史蒂夫，他將提供我們的財務細節並分享我們的 2025 年指導。

Steve.

史蒂夫。

Thanks, Andy, and good morning, everyone.

謝謝，安迪，大家早安。

Let's turn to slide four for a review of our consolidated financial results.

讓我們翻到第四張投影片來回顧我們的合併財務結果。

In the first quarter, sales were $90.5 million up 8.9% year-over-year on solid and market demand. Adjusted EBITDA rose 9.7% to $11.3 million delivering a 12.5% margin. We generated $5.1 million of cash from operations, a $1.5 million dollar increase, and maintained a low net debt of $41.9 million.

第一季度，由於市場需求強勁，銷售額為 9,050 萬美元，年增 8.9%。調整後的 EBITDA 成長 9.7% 至 1,130 萬美元，利潤率為 12.5%。我們從營運中產生了 510 萬美元的現金，增加了 150 萬美元，並保持了 4,190 萬美元的低淨債務。

On the right, our sales bridge shows that volume and mix contributed $7.2 million driven by off-cycle defense pull-ins for MREs and flares, plus an improving aerospace backlog.

右側，我們的銷售橋顯示，銷售和產品組合貢獻了 720 萬美元，這得益於非週期性國防採購對 MRE 和照明彈的拉動，以及航空航天積壓訂單的增加。

Pricing added $0.5 million reflecting SCVA escalators and selected customer increases partially offset by repricing an electron due to certain lower input costs. FX was a modest $0.3 million dollar headwind.

定價增加了 50 萬美元，反映了 SCVA 自動調整和選定客戶的增加，但由於某些較低的投入成本而對電子產品重新定價，部分抵消了這一增加。外匯方面，逆風幅度僅 30 萬美元。

For our adjusted EBITDA walk, net deflation added $0.6 million. Volume and mix and pricing contributed $3.7 million and $0.5 million respectively, while adverse factors of $3.7 million largely reflect $1.7million of transitional production costs and $1.2million of elevated logistics and ongoing investments.

對於我們調整後的 EBITDA 成長，淨通貨緊縮增加了 60 萬美元。產量和產品組合以及定價分別貢獻了 370 萬美元和 50 萬美元，而 370 萬美元的不利因素主要反映了 170 萬美元的過渡生產成本和 120 萬美元的物流和持續投資增加。

For a full breakdown, please see the detailed waterfall in the appendix on slide 12.

如需完整細分，請參閱投影片 12 附錄中的詳細瀑布圖。

Now let's turn to slide five for a detailed review of Electron's first quarter financial performance.

現在讓我們翻到第五張投影片來詳細回顧 Electron 第一季的財務表現。

Our electron segment harnesses proprietary magnesium and zirconium platforms in markets where higher performance is critical.

我們的電子部門利用專有的鎂和鋯平台，在更高性能至關重要的市場中。

We serve customers who demand deep technical expertise, whether that's ultra lightweight alloys that extend aircraft range and cut fuel burn, countermeasure flares, and self-heating MRE powders that protect and sustain personnel in extreme conditions, or zirconium-based catalysts and oxides that drive precision in advanced manufacturing, clean energy solutions, and critical healthcare applications.

我們為需要深厚技術專業知識的客戶提供服務，無論是延長飛機航程和減少燃油消耗的超輕合金、對抗照明彈和在極端條件下保護和維持人員的自熱 MRE 粉末，還是推動先進製造、清潔能源解決方案和關鍵醫療保健應用精度的鋯基催化劑和氧化物。

By focusing on high barrier defense and aerospace driven end markets, Electron commands premium pricing and high margins, powering sustained growth as global demand for safety, reliability and performance continues to climb.

透過專注於高屏障國防和航空航天驅動的終端市場，Electron 擁有高定價和高利潤率，並隨著全球對安全性、可靠性和性能的需求不斷攀升而推動持續增長。

In the first quarter, electron sales rose to $49.4 million up 31% from $37.7 million a year ago.

第一季度，電子產品銷售額從去年同期的 3,770 萬美元成長至 4,940 萬美元，成長 31%。

Adjusted EBITDA increased to $8.7 million and our EBITDA margin expanded to 17.6%, 120 basis point improvement versus the prior year.

調整後的 EBITDA 增加至 870 萬美元，EBITDA 利潤率擴大至 17.6%，比上年提高 120 個基點。

Growth was broad based across our core end markets. Defense, first response and healthcare led the way up 76%. Customers continue to restock flameless ration heaters and meals ready to eat products, and demand for our related UGRE product is still increasing.

我們的核心終端市場普遍實現成長。國防、急救和醫療保健領域漲幅最大，達 76%。客戶繼續補充無焰定量加熱器和即食食品產品，對我們相關 UGRE 產品的需求仍在增加。

We also saw a meaningful pickup of demand for both our magnesium aerospace alloys and magnesium powders for countermeasure flares as customer manning and production issues began to ease across both market sectors.

隨著兩個市場領域的客戶人員配備和生產問題開始緩解，我們也看到對鎂航空合金和用於對抗照明彈的鎂粉的需求顯著回升。

Alloys lifted our transportation revenues by approximately 11% despite some softness in automotive catalysis. In specialty industrial market conditions resulted in flat to modest growth of around 1%.

儘管汽車催化領域有所疲軟，但合金業務仍使我們的運輸收入提高了約 11%。在專業工業市場條件下，成長率持平至 1% 左右。

Just at EBITDA margin expansion reflects the impact of higher volumes relative to fixed cost, as well as a favorable shift towards higher value defense programs.

EBITDA 利潤率的擴張僅反映了相對於固定成本而言更高的銷售的影響，以及向更高價值的國防計劃的有利轉變。

Furthermore, there is ongoing payoff from the site consolidation and lean operational efficiencies we embedded under our Lux for Business system last year, which will continue to deliver cost savings and margin resilience.

此外，我們去年在 Lux for Business 系統下嵌入的站點整合和精益營運效率正在持續帶來回報，這將繼續帶來成本節約和利潤彈性。

Overall, electron's performance underscores the power of focused execution and targeted innovation.

整體而言，電子的表現凸顯了專注執行和有針對性創新的力量。

With that, let's turn to slide six for our gas cylinders results.

有了這些，讓我們翻到第六張投影片來查看我們的氣瓶結果。

Lux for gas cylinders is the benchmark for mission critical pressure vessels anchored by SCBA market leadership and long-standing partnership with blue chip OEMs.

Lux 氣瓶是任務關鍵型壓力容器的基準，以 SCBA 市場領導地位和與藍籌 OEM 的長期合作關係為基礎。

Our lightweight rugged cylinders protect fire emergency and hazardous environment teams, while our high-performance high strength cylinders enable life support and operations in aerospace and space exploration applications.

我們的輕質堅固氣缸可保護消防緊急和危險環境團隊，而我們的高性能高強度氣缸可在航空航天和太空探索應用中實現生命維持和操作。

We also serve specialty industrial, medical, and alternative fuel markets with precision engineered solutions. Backed by proprietary processes and rigorous qualifications, this segment commands premium pricing and delivers resilient margins in high barrier markets.

我們也為專業工業、醫療和替代燃料市場提供精密設計的解決方案。憑藉專有流程和嚴格資格的支持，該細分市場在高障礙市場中擁有較高的定價能力並能提供穩定的利潤率。

In the first quarter, gas cylinder's revenue was $41.1 million down 9% from $45.4 million in quarter one 2024, and adjusted EBITDA came in at $2.6 million reflecting a 6.3% margin versus 9% last year.

第一季度，氣瓶業務的營收為 4,110 萬美元，較 2024 年第一季的 4,540 萬美元下降 9%，調整後的 EBITDA 為 260 萬美元，利潤率為 6.3%，而去年為 9%。

This performance was largely in line with our expectations. We saw softer demand in alternative fuel cylinders with the heavy-duty truck market still subdued. Aerospace and especially space exploration demand is robust, although overall transportation sales declined about 23% year-over-year.

這一表現基本上符合我們的預期。我們發現替代燃料氣瓶的需求疲軟，重型卡車市場仍然低迷。儘管整體運輸銷售額年減約 23%，但航空航太尤其是太空探索的需求依然強勁。

However, despite the anticipated softness in alternative fuels, the strong aerospace volumes and the order for our first bulk gas transportation module will open new opportunities for future growth.

然而，儘管預計替代燃料市場將出現疲軟，但強勁的航空航太產量和我們首個散裝氣體運輸模組的訂單將為未來的成長帶來新的機會。

Although down 7%, our defense first response and healthcare business held up relatively well with steady orders for SCBA and an improving outlook. Specialty Industrial posted a notable 25% increase driven by electronic and calibration gas applications.

儘管下降了 7%，但我們的國防急救和醫療保健業務表現相對良好，SCBA 訂單穩定，前景不斷改善。在電子和校準氣體應用的推動下，特種工業的銷售額顯著成長了 25%。

Margin compression resulted from the lower volumes. Although pricing actions helped offset some headwinds. Importantly, the efficiency initiatives we put in place last year are now starting to stabilize margins, and we expect these permanent measures to support stronger second half.

由於銷量下降，利潤率受到壓縮。儘管定價行動有助於抵消一些不利因素。重要的是，我們去年實施的效率措施現在開始穩定利潤率，我們預計這些永久性措施將支持下半年業績更加強勁。

In summary, while gas cylinders face headwinds in certain end markets, our core first responder, aerospace and healthcare related cylinders remain resilient, and our cost and efficiency focus will continue to drive improvements.

總而言之，雖然氣瓶在某些終端市場面臨阻力，但我們的核心急救員、航空航太和醫療保健相關氣瓶仍然具有彈性，而我們對成本和效率的關注將繼續推動改進。

Now please turn to slide seven for an update on our full year 2025 financial guidance.

現在請翻到第七張投影片，了解我們 2025 年全年財務指引的最新情況。

I'd like to reinforce two key themes from Andy's opening comments our tariff resilience and the strength of our backlog across defense, first response, and aerospace applications.

我想強調安迪開場白中的兩個關鍵主題：我們的關稅彈性以及我們在國防、第一反應和航空航天應用方面的積壓實力。

Combined with our diversified portfolio, these factors give us some confidence despite the uncertain macroeconomic outlook. Accordingly, we are reaffirming our full year 2025 guidance, unchanged from what we communicated in February, with expectations for flat revenue growth.

結合我們多元化的投資組合，儘管宏觀經濟前景不確定，但這些因素仍然給了我們一些信心。因此，我們重申 2025 年全年指引，與 2 月傳達的指引相同，預計收入將保持穩定成長。

We continue to anticipate adjusted diluted earnings per share in the range of $0.95 to $1.05 and adjusted EBITDA between $48 million and $52 million dollars, and free cash flow generation of $20 million to $25 million for the full year.

我們繼續預計全年調整後每股攤薄收益在 0.95 美元至 1.05 美元之間，調整後 EBITDA 在 4,800 萬美元至 5,200 萬美元之間，自由現金流在 2,000 萬美元至 2,500 萬美元之間。

This outlook reflects our confidence in the aggregate underlying demand from our end markets combined with discipline cost management, prudent price actions, and tight working capital controls. That said, foreign exchange does remain a key sensitivity, and indeed we have seen significant volatility in the last few weeks.

這一前景反映了我們對終端市場整體潛在需求的信心，以及嚴格的成本管理、審慎的價格行動和嚴格的營運資金控制。儘管如此，外匯仍然是一個關鍵的敏感因素，事實上，我們在過去幾週看到了顯著的波動。

For our business, a $0.05 move in the dollar versus sterling can shift our full year earnings by around $1 million although we continue to hedge selectively to mitigate some of that risk.

對於我們的業務而言，美元兌英鎊匯率每變動 0.05 美元，就可能使我們的全年收益發生約 100 萬美元的變化，儘管我們會繼續有選擇地進行對沖，以減輕部分風險。

On capital deployment, we'll maintain our routine share repurchase program with board authorization for up to $10 million of additional opportunistic buybacks. We're also evaluating further simplification and cost reduction initiatives to drive improved efficiencies across our operations.

在資本部署方面，我們將維持常規股票回購計劃，並經董事會授權進行最多 1000 萬美元的額外機會性回購。我們也正在評估進一步簡化和降低成本的舉措，以提高整個營運的效率。

We remain confident that our fortress balance sheet and diversified end market exposure will enable us to navigate any remaining headwinds and deliver on our projections.

我們仍然相信，我們穩固的資產負債表和多元化的終端市場曝險將使我們能夠克服任何剩餘的阻力並實現我們的預測。

Now I'd like to pass the call back to Andy.

現在我想把電話轉回給安迪。

Thank you, Steve. Please turn to slide eight.

謝謝你，史蒂夫。請翻到第八張幻燈片。

Our Lux for Business system gives us a structured way to innovate, drive efficiency, and stay agile, always focused on meeting customer needs and delivering profitable growth.

我們的 Lux for Business 系統為我們提供了一種結構化的方式來創新、提高效率和保持敏捷，始終專注於滿足客戶需求和實現獲利成長。

A prime example is our unitized group Russian's UGRE platform where lean principles and direct user feedback have produced a highly portable low touch module crafted with environmentally friendly materials perfectly suited for today's dynamic field environments.

一個典型的例子是我們聯合集團俄羅斯的 UGRE 平台，該平台採用精益原則和直接用戶反饋生產出高度便攜的低接觸模組，該模組採用環保材料製成，非常適合當今動態的現場環境。

Military teams operating in austere or rapidly changing settings have found this additional option vital, not only in deployments without dedicated kitchen staff, but also during training exercises where permanent mess facilities are not available.

在嚴酷或快速變化的環境中作戰的軍事團隊發現這種額外的選擇至關重要，不僅在沒有專門廚房工作人員的部署中，而且在沒有永久食堂設施的訓練演習中也是如此。

By minimizing manpower requirements and set up complexity, UGRE enables sustained operations anywhere. Sales of UGRE reached a record $4.6 million in 2024, and our backlog for this year indicates demand will more than double that level in 2025.

透過最大限度地減少人力需求和設置複雜性，UGRE 能夠在任何地方持續運作。2024 年，UGRE 的銷售額達到了創紀錄的 460 萬美元，而我們今年的積壓訂單表明，2025 年的需求將達到這一水平的兩倍以上。

I'm especially proud to share that the US military is tendering UGRE modules for its war stock under a vendor managed infantry program. This underscores our confidence in UGRE as a strategic complement to traditional single person meals ready to eat and highlights our ability to deliver and replenish these platforms seamlessly.

我特別自豪地告訴大家，美國軍方正在根據供應商管理的步兵計劃為其戰爭庫存招標 UGRE 模組。這強調了我們對 UGRE 作為傳統單人即食餐策略補充的信心，並強調了我們無縫交付和補充這些平台的能力。

These advancements, portability, low touch operation, and military validated inventory support exemplify how the Lux of business system embeds continuous customer driven innovation into everything we do.

這些進步、便攜性、低接觸操作以及經過軍事驗證的庫存支援體現了 Lux 業務系統如何將持續的客戶驅動創新融入我們所做的每一件事中。

Now please turn to slide nine to review the highlights and achievements of the First quarter.

現在請翻到第九張投影片，回顧第一季的亮點和成就。

We delivered solid operational execution in Q1, posting adjusted earnings per share of $0.23 and generating $5.1 million of cash from operations, turning a typically working capital intensive first quarter into a net inflow.

我們在第一季實現了穩健的營運執行，調整後每股收益為 0.23 美元，營運現金流為 510 萬美元，將通常營運資金密集的第一季轉變為淨流入。

The sale of our graphic arts business remains on track to close in the first half of 2025, freeing up capital and talents to fuel higher margin growth opportunities.

我們的平面藝術業務的出售預計將在 2025 年上半年完成，從而釋放資本和人才，以推動更高利潤的成長機會。

Margin and cash discipline remain at the core of our model. Permanent process improvements, disciplines work in capital management, and careful pricing decisions have not only widened margins, but also maintained low levels of net debt.

保證金和現金紀律仍然是我們模型的核心。持續的流程改善、嚴格的資本管理工作以及謹慎的定價決策不僅擴大了利潤率，而且還保持了較低的淨債務水準。

Our targeted innovation continues to drive results. The lean driven redesign of UGRE and standout MRE performance showcase how the Lux for business system accelerates customer focused solutions in one of our important defense-oriented product lines.

我們有針對性的創新不斷取得成果。UGRE 的精實驅動重新設計和出色的 MRE 性能展示了 Lux 業務系統如何在我們重要的國防產品線之一中加速以客戶為中心的解決方案。

Finally, our proactive approach to tariff risk from leveraging critical material exclusions and USMCA coverage to long-term supply agreements, inventory buffers, and dynamic pricing, positions as to whether tariff disruptions with minimal impact.

最後，我們採取主動的關稅風險應對方法，從利用關鍵材料排除和 USMCA 覆蓋範圍到長期供應協議、庫存緩衝和動態定價，以確定關稅中斷是否影響最小。

The results we've shared this morning reflect our long-term focus, executing today while investing in tomorrow.

我們今天上午分享的結果反映了我們的長期關注點，即執行今天的任務並投資明天。

Since our October 2023 strategic review, we've acted on key opportunities divesting graphic arts on track for H1 2025 and driving cost, innovation, and margin gains in both electron and gas cylinders to sharpen our portfolio and boost profitability.

自 2023 年 10 月進行策略評估以來，我們抓住關鍵機遇，在 2025 年上半年剝離圖形藝術業務，並推動電子和氣瓶的成本、創新和利潤增長，以完善我們的產品組合併提高盈利能力。

We also remain attentive in assessing market conditions to maximize future shareholder value. Thank you to our global associates for their dedication and thanks to all of you for your continued interest in LuxA.

我們也密切關注評估市場狀況，以最大化未來股東價值。感謝我們全球同事的奉獻，也感謝大家對 LuxA 的持續關注。

We'll now turn the call back to the operators for questions.

我們現在將電話轉回給接線員以回答問題。

Madison, please go ahead.

麥迪遜，請繼續。

(Operator Instructions)

（操作員指示）

We will take our first question from Steve Ferazani with Sidoti. Please go ahead. Your line is open.

我們將從 Sidoti 的 Steve Ferazani 那裡得到第一個問題。請繼續。您的線路已開通。

Morning, Andy. Morning, Steve. Appreciate all the detail on the call.

早安，安迪。早安，史蒂夫。感謝通話中的所有細節。

A certainly strong start to the year outperformed our expectations. I don't know if it outperformed your internal expectations, but just trying to find out anything special in the quarter, were there any pull forwards and does this set you up because you didn't raise guidance, does this set you up for a better year?

今年的開局確實強勁，超出了我們的預期。我不知道它是否超出了你的內部預期，但只是想找出本季度的任何特殊情況，是否有任何提前因素，這是否會為你帶來好處，因為你沒有提高指導，這是否會為你帶來更好的一年？

Thanks Steve, good morning. Yes, we were pleased with the Q1 results. I think the thing we were most pleased about was the strength in the defense market. Q1 was particularly encouraging in that respect.

謝謝史蒂夫，早安。是的，我們對第一季的業績感到滿意。我認為最讓我們高興的是國防市場的強勁表現。從這個方面來看，第一季尤其令人鼓舞。

The sales of the Flameless ration heaters were good and should remain elevated.

無焰定量加熱器的銷售良好，並且有望繼續保持高位。

UGRE range ramping up, that's helpful. Magnesium powders for flares, magnesium alloys for defense, and those are encouraging, especially flares. So overall we're very positive on the defense sector for 2025. And of course we're conscious about monitoring macroeconomic changes closely, thinking about future tariffs, exchange rates, supply of rare earths, but we like where we sit at the end of quarter one, and that's why we're reaffirming our guidance.

UGRE 範圍不斷擴大，這很有幫助。用於照明彈的鎂粉、用於防禦的鎂合金，這些都是令人鼓舞的，尤其是照明彈。因此，總體而言，我們對 2025 年的國防領域非常樂觀。當然，我們有意識地密切關注宏觀經濟變化，考慮未來的關稅、匯率、稀土供應，但我們對第一季末的狀況感到滿意，這就是我們重申指導的原因。

Okay. I was particularly surprised but I know it's off a small base, but the strength you saw in, specialty industrials in the gas cylinder side. Anything driving that?

好的。我特別驚訝，但我知道這只是一個小規模，但你在氣瓶方面的專業工業中看到了實力。有什麼因素推動了這個進程？

Yes, I think there's some long term trends in specialty industrial gas cylinders. Our product there is targeted on profitable niches where high value niches where customers are looking for special high purity gasses to be stored in cylinders with inert surfaces.

是的，我認為特種工業氣瓶有一些長期趨勢。我們的產品針對的是利潤豐厚的利基市場，即高價值的利基市場，客戶正在尋找特殊的高純度氣體，並將其儲存在具有惰性表面的氣瓶中。

So, these aren't routine industrial gas. These are specialty items. They find their way into gasses for semiconductors, for other electronics applications, for calibration gasses, and there are a number of reports suggesting that long term the need for those gasses will increase. So yes, that's encouraging.

所以，這些不是常規的工業氣體。這些都是特殊物品。它們被用於半導體氣體、其他電子應用氣體、校準氣體，並且有許多報告表明，從長遠來看，對這些氣體的需求將會增加。是的，這是令人鼓舞的。

Right, if I can ask about uses of cash, obviously your balance sheet now is in such virtually pristine shape. It sounded, Steve, like you had mentioned that you would increase the buyback by $10 million for opportunistic purchases.

好的，如果我可以問現金的用途，顯然您的資產負債表現在幾乎處於完美狀態。史蒂夫，聽起來你好像提到過，為了投機性購買，你會增加 1000 萬美元的回購金額。

Can you talk about capital allocation in this environment where your cap back is so low, how do you think about buybacks and also if you can touch on M&A potential?

您能否談談在資本回報率如此低的環境下的資本配置，您如何看待回購，以及您是否可以談談併購潛力？

Yeah, I mean, first of all, I'll cover that. Thanks, Steve. I'll cover the buyback. So what I said is that we're continuing our our standard buyback program, which is effectively an anti-dilution program for incentives. We have authorization of $10 million from the board to do opportunistic buybacks.

是的，我的意思是，首先，我會講到這一點。謝謝，史蒂夫。我將負責回購事宜。所以我說的是，我們將繼續我們的標準回購計劃，這實際上是一種激勵的反稀釋計劃。我們已獲得董事會 1000 萬美元的授權來進行機會性回購。

We have not commenced that yet, but we're clearly looking at that. That's an interesting area for us, particularly if the price, the stock price remains where it is.

我們尚未開始，但我們顯然正在考慮這一點。這對我們來說是一個有趣的領域，特別是如果價格、股價保持在目前的水平。

In terms of CapEx, yeah, I mean we only spent around $1 million in quarter one. That said, we will be expecting to spend more this year than we have in previous years. So, the guidance says $12 million to $15 million of CapEx.

就資本支出而言，是的，我的意思是我們在第一季只花了大約 100 萬美元。話雖如此，我們預計今年的支出將比往年更多。因此，指導意見稱資本支出為 1200 萬至 1500 萬美元。

We're still looking at, so we've maintained that that's the same as it was at the end of quarter four, so. Yeah, we are looking for a ramp up in CapEx this year.

我們仍在觀察，因此我們認為這與第四季末的情況相同。是的，我們希望今年的資本支出能夠增加。

There's some good opportunities for growth CapEx as well as our standard maintenance CapEx.

我們的資本支出和標準維護資本支出都存在一些良好的成長機會。

And on M&A, yeah, we always remain open minded. We have a pipeline of opportunities that we constantly review with our business units, so nothing imminent at the moment, but it is something we're always looking at.

對於併購，是的，我們始終保持開放的態度。我們擁有一系列機會，我們會不斷與業務部門一起審查，因此目前沒有什麼迫在眉睫的事情，但這是我們一直在關注的事情。

Great.

偉大的。

Can I just ask about, I know some of your defense business, some of the higher margin like MREs, can be lumpy, but you've had almost three consecutive quarters of very strong numbers there. Is that because of the UGRE launch, or is there something else driving that and how sustainable is it?

我可以問一下嗎，我知道你們的一些國防業務，一些利潤較高的業務，例如 MRE，可能會不穩定，但你們在那裡已經連續三個季度取得了非常強勁的業績。這是因為 UGRE 的推出，還是有其他因素推動，其永續性如何？

It's two things, Steve. It's the UGRE which continues to ramp up as you've highlighted, but it's also some elevated levels of replenishments that's going on most of most of this year, probably at least through quarter in military stockings. So, there's some way to go on that as well as stronger sales in the flares market. So yes, it does look positive at the moment.

這是兩件事，史蒂夫。正如您所強調的，UGRE 持續增加，但今年大部分時間軍用物資的補給量也處於較高水平，可能至少會持續一個季度。因此，在這方面還有很長的路要走，而且火炬市場的銷售也更加強勁。是的，目前看起來確實很正面。

Great start to the year, guys. Thanks, Andy. Thanks, Steve.

夥計們，今年的開始真棒。謝謝，安迪。謝謝，史蒂夫。

Thanks Steve.

謝謝史蒂夫。

Thank you.

謝謝。

There are no more questions than you. At this time, I'll turn the call over to CEO Andy Butcher for final remarks.

沒有比你更多的問題了。現在，我將把電話轉給執行長 Andy Butcher 進行最後的發言。

Thank you.

謝謝。

As we conclude, I want to remind you what makes Luxfer a compelling investment.

最後，我想提醒大家，是什麼讓 Luxfer 成為一項引人注目的投資。

In Q1, we not only delivered strong first quarter cash flow, but we also expanded margins and generated top line growth in our core defense and aerospace and markets.

在第一季度，我們不僅實現了強勁的第一季現金流，而且還擴大了利潤率，並在核心國防和航空航太市場實現了營收成長。

Our lean driven lux for business system has permanently embedded cost and process improvements, while targeted innovations such as UGRE and the recently launched bulk gas transportation module demonstrate our ability to respond to customer needs.

我們的精實驅動的豪華業務系統已永久嵌入成本和流程改進，而UGRE和最近推出的散裝氣體運輸模組等有針對性的創新則展示了我們響應客戶需求的能力。

We have a solid balance sheet, low leverage, and recurring demand in high barrier businesses. And with board authorized share repurchases, disciplined capital allocation. And a robust backlog underpinning our outlook, we are well positioned to deliver sustainable long-term value.

我們的資產負債表穩健，槓桿率低，高障礙業務有經常性的需求。且董事會授權股票回購，嚴格資本配置。強勁的積壓訂單支撐著我們的前景，我們有能力提供可持續的長期價值。

Thank you to our global team for their dedication and thank you all for your support.

感謝我們全球團隊的奉獻，也感謝大家的支持。

We look forward to updating you next quarter.

我們期待下個季度向您更新最新情況。

Thank you.

謝謝。

This concludes Luxfer's Q1 2025 earnings call. A recording of this conference call will be available in about two hours. A link to a recording of this webcast will be available on the Luxfer website at www.luxair.com.

Luxfer 2025 年第一季財報電話會議到此結束。本次電話會議的錄音將在約兩小時後提供。本次網路廣播的錄音連結將在 Luxfer 網站 www.luxair.com 上提供。