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1. Company Snapshot

1.a. Company Description

Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and emergency response, healthcare, transportation, and general industrial end-market applications.It operates in two segments, Elektron and Gas Cylinders.The Elektron segment focuses on specialty materials based on magnesium and zirconium.


It provides magnesium alloys for use in variety of industries; magnesium powders for use in countermeasure flares, as well as heater meals; photoengraving plates for graphic arts; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, and other performance products.The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial.Luxfer Holdings PLC has operations in the United States, the United Kingdom, Germany, Italy, France, rest of Europe, the Asia Pacific, and internationally.


The company was founded in 1898 and is based in Manchester, the United Kingdom.

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1.b. Last Insights on LXFR

Luxfer Holdings PLC's recent performance was driven by strong Q2 earnings, beating estimates with $0.3 per share, and a rebound in growth driven by defense, aerospace, and clean-energy demand. The company's strategic review led to the divestiture of its Graphic Arts business, streamlining its portfolio. Additionally, Luxfer's appointment of Stewart Watson to its Board of Directors and its low-leverage position amid market uncertainty have contributed to its positive momentum. Its improved margins, accelerating revenue, and robust free cash flow have positioned the company for sustained growth.

1.c. Company Highlights

2. Luxfer's Q3 2025 Earnings: A Strong Beat

Luxfer reported adjusted earnings per share of $0.30, beating estimates of $0.25, with adjusted EBITDA of $13.6 million, resulting in an adjusted EBITDA margin of 14.6%. Revenue was $92.9 million, up 1.6% year-over-year, driven by continued strength in defense and aerospace. The company's EPS beat was accompanied by a margin expansion, supported by a favorable mix in key end markets.

Publication Date: Nov -29

📋 Highlights
  • Adjusted Earnings Growth:: Q3 2025 adjusted EPS reached $0.30, with adjusted EBITDA of $13.6M and a 14.6% margin, reflecting sequential margin expansion.
  • Elektron Performance:: Generated $50M in sales (+2.5% YoY) and $9.9M adjusted EBITDA at a 19.8% margin, reinforcing its role as a core profit driver.
  • Raised Full-Year Guidance:: 2025 adjusted EPS guidance lifted to $1.04–$1.08 (up from $0.97–$1.05), citing strong first three quarters.
  • Balance Sheet Strength:: Net debt reduced to $37.3M, with $11.8M in operating cash flow, achieving a 0.7x leverage ratio.
  • Operational Efficiency:: Powders Center of Excellence projected to deliver $2M annual savings, enhancing quality and throughput for defense/customers.

Segment Performance

The Elektron segment remained a clear revenue and profit engine, with sales of $50 million, up 2.5% year-over-year, and adjusted EBITDA of $9.9 million at a 19.8% margin. The Gas Cylinders segment performed stably, with sales of $42.9 million, up slightly year-over-year, driven by steady demand in SCBA, and adjusted EBITDA of $3.7 million with margins holding near 9%. As Andy Butcher noted, "The strong demand continued in both aerospace and defense... We also saw slightly better order intake in zirconium."

Guidance and Outlook

Luxfer raised its full-year guidance, reflecting strong performance from the first three quarters of the year, with the adjusted EPS range increased to $1.04 to $1.08, up from $0.97 to $1.05 previously. The company's strategic approach is centered on focus and prioritization, aligning the business around specialized high-value products and markets where it holds leading positions.

Valuation and Metrics

With a P/E Ratio of 23.38 and an EV/EBITDA of 8.64, the market appears to be pricing in a certain level of growth. However, analysts estimate next year's revenue growth at -0.9%, which may indicate a potential headwind. The company's dividend yield of 4.16% and free cash flow yield of 10.94% may provide some support to the stock.

Operational Optimization

Luxfer continues to optimize its operations through the Centers of Excellence, which are expected to deliver tangible cost savings and improved capital efficiency across both segments. The establishment of a Powders Center of Excellence is expected to deliver approximately $2 million of annualized savings while enhancing quality, throughput, and service for defense and specialty customers.

3. NewsRoom

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Luxfer Holdings PLC $LXFR Shares Acquired by American Century Companies Inc.

Dec -03

Source: defenseworld.net

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Luxfer Holdings PLC (LXFR) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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Luxfer (LXFR) Q3 Earnings and Revenues Top Estimates

Oct -28

Source: zacks.com

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Luxfer Reports Strong Profitablity and Cash Generation in Third Quarter

Oct -28

Source: businesswire.com

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Luxfer Declares Quarterly Dividend

Oct -06

Source: businesswire.com

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LXFR vs. SXI: Which Stock Is the Better Value Option?

Sep -24

Source: zacks.com

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Strength Seen in Luxfer (LXFR): Can Its 5.4% Jump Turn into More Strength?

Sep -19

Source: zacks.com

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5 Low-Leverage Stocks to Watch Ahead of a Possible September Rate Cut

Aug -25

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.00%)

6. Segments

Elektron

Expected Growth: 5%

Elektron's 5% growth is driven by increasing demand for lightweight, high-performance materials in electric vehicles and renewable energy systems. Luxfer's strategic expansion into new markets, such as Asia, and investments in R&D to enhance product offerings also contribute to growth. Additionally, the rising need for energy storage and grid modernization fuels demand for Elektron's specialized materials.

Gas Cylinders

Expected Growth: 3%

Luxfer Holdings PLC's Gas Cylinders segment growth is driven by increasing demand for alternative fuel vehicles, rising adoption of clean energy solutions, and growing need for medical oxygen cylinders. Additionally, the company's focus on innovation, quality, and customer service has enabled it to expand its market share and capitalize on emerging opportunities.

Graphic Arts

Expected Growth: 4%

Luxfer Holdings PLC's Graphic Arts segment growth is driven by increasing demand for specialty inks and coatings, expansion in emerging markets, and strategic acquisitions. Additionally, the segment benefits from the company's focus on innovation, leading to the development of new, high-margin products. Furthermore, the growing trend towards sustainable and eco-friendly packaging solutions also contributes to the segment's growth.

7. Detailed Products

Cylinders

Luxfer Holdings PLC designs and manufactures high-pressure aluminum and composite cylinders for a variety of applications, including scuba diving, industrial gas, and medical oxygen.

Alternative Fuel Systems

Luxfer provides compressed natural gas (CNG) and liquefied natural gas (LNG) fuel systems for vehicles, as well as hydrogen fuel systems for fuel cell electric vehicles.

High-Pressure Gas Cylinders

Luxfer manufactures high-pressure gas cylinders for industrial, medical, and specialty gas applications, including CO2, helium, and hydrogen.

Superform Components

Luxfer's Superform components are used in the aerospace, defense, and industrial markets, providing complex, high-strength, and lightweight components.

Electrical Energy Storage

Luxfer provides high-performance, lightweight, and compact energy storage solutions for electric vehicles, renewable energy systems, and industrial applications.

8. Luxfer Holdings PLC's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Luxfer Holdings PLC is moderate due to the availability of alternative materials and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Luxfer's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market, but Luxfer's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including the need for significant capital investment and technical expertise.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, leading to a competitive pricing environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 30.18%
Debt Cost 8.17%
Equity Weight 69.82%
Equity Cost 8.17%
WACC 8.17%
Leverage 43.23%

11. Quality Control: Luxfer Holdings PLC passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Luxfer

A-Score: 6.1/10

Value: 6.7

Growth: 5.4

Quality: 5.8

Yield: 7.0

Momentum: 6.0

Volatility: 5.7

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Omega Flex

A-Score: 4.7/10

Value: 4.4

Growth: 3.2

Quality: 8.2

Yield: 6.0

Momentum: 0.5

Volatility: 5.7

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Thermon

A-Score: 4.6/10

Value: 5.2

Growth: 5.8

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 6.0

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Park-Ohio

A-Score: 4.3/10

Value: 8.5

Growth: 3.9

Quality: 2.7

Yield: 5.0

Momentum: 1.5

Volatility: 4.3

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American Superconductor

A-Score: 4.1/10

Value: 0.2

Growth: 7.2

Quality: 6.1

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

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Hurco

A-Score: 3.6/10

Value: 8.8

Growth: 1.4

Quality: 3.4

Yield: 1.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.9$

Current Price

12.9$

Potential

-0.00%

Expected Cash-Flows