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Luxfer (LXFR)

Participants
Heather Harding Chief Financial Officer
Alok Maskara Chief Executive Officer
Steve Webster Incoming Chief Executive Officer
Chris Moore CJS Securities
Craig Irwin ROTH Capital Partners
Phil Gibbs KeyBanc Capital
Call transcript
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Operator

Good morning. My name is Ashley, and I'll be your conference operator today. Welcome to Luxfer 2021 Fourth Quarter and Full Year Earnings Conference Call. All lines have been placed on mute. After the speakers' remarks, there will be a question-and-answer session.

call Heather the Luxfer. turn I'll over from to Now, Heather, ahead. please go

Heather Harding

accompanied Financial Luxfer’s quarter And I'm and outlined yesterday. Chief and today references Steve Ashley. our reconciled Financial Executive you, fourth Incoming Please and On Luxfer's fourth a is Alok Heather in With Maskara, is welcome Luxfer’s Webster, call. Today's this Thank of provide press of XXXX luxfer.com. as the full in Officer; earnings can details performance today's to to that issued the release quarter call, webcast at Chief will me are XXXX be full Harding, Chief by presentation Luxfer's Officer. Officer. year year we appendix presentation. non-GAAP accessed financials any note

a Slide of Now subject results financial reminder refer to Harbor before Company's forward-looking the and Please that for are the about statements uncertainties. X begin, Safe friendly today's on we presentation made further expected details. to risks future any statement

me provide share let goals results. comments, to details closing. Alok provide will quarter call turn XXXX for Steve our over financial summary fourth I which remarks, will my full of year after After and our for financial longer-term guidance and his the before Now,

So Alok, please go ahead.

Alok Maskara

Thanks, Heather, everyone. and welcome

into her in Webster March X. for past best starting four the we dive to thank wish CFO partner business all our Heather while I the as I the Before want CFO welcome Luxfer years. results, my Harding for new and being retirement her Steve We

as difficult our are facing and majeure. gratitude for entire that declaring want role. has successful through challenges unprecedented more our our these to the thank necessary in also of first, to put races primary want talent by customers Luxfer two management this confident I continue Luxfer support the As express customers team their the driven overcome to succession Steve supply experience force and patience processes, times our of my impacting crisis to an chain. who the a we to while be planning suppliers, supply team, to result knowledge I and than our

Now, to results. key or this X four a messages full want page. please I Slide highlights fourth quarter highlight year on and turn to from

XX% are growth are the from by our ongoing end higher aided contributions a First, we delivered our in solid we acquisition. revenue that quarter demand Strong supply sales comparable levels despite pre-pandemic sales to was year-over-year fourth than and report pleased basis. challenges, on SCI markets our across

XX.X% unable year achieved and as with convert we the into strong backlog sales. we acquisition, growth organic SCI ended the record were Excluding to fully demand

XX.X% For increased XX.X% manufacturing year, increased EBITDA SCI. sales the despite at while full inefficiencies

deficit we Second, achieve year after valuation. on pension our cash total payments a flow based even made was zero triennial in to million $XX.X full XXXX our of strong

returned we million addition, shareholders about XXXX. In to and to dividends $XX in share buyback

to EBITDA continue a debt strong with X.X balance sheet maintain net We ratio of times. a to

of supply $X.XX current XXXX. revenue, Third, EBITDA is anticipated range for outlook. year in be clouding full EPS to to in EPS uncertainties to the deliver XXXX despite we expect the the growth $X.XX the and

growth introducing also chain of per goal macro of SCI elimination aerospace Finally, we our are and driven inefficiencies, share, XXXX $X by or normalization more recovery, continued productivity. EPS supply and

Now, chain supply an please status. manufacturing for recovery turn to and Slide the of overview X

sales of but our impact evolving by ability We challenges demand including continue fully constrained to on our experience strong remains into to manufacturing end convert workforce. market demand, COVID-XX the

facing many and three and zirconium own are unprecedented carbon In primary addition, in their materials. two we magnesium, shortages challenges. while others force of fiber Currently, our raw suppliers labor are of our of material experiencing are primary majeure

As negatively are impacted constraints. magnesium by being outlook the XXXX supply an recent our example, performance and

our of LLC new power declared Magnesium the by in global but needs ramping up driven we many shortages, customers, of and supplier, Luxfer's As restrictions by are overseas US magnesium them majeure. meet overwhelmed are environmental primary suppliers, alternate force China. To

and we look now, While continuing continues long-term is majeure, forward our XXXX shortages. clouding returning were LLC anticipated would be our and after regular by business supply to suppliers, and the We to outlook. US optimistic that issue resolved shortage our magnesium the relationships the each with magnesium Magnesium force levels including and

face In Richards primary addition, Africa, at of sand. our in we majeure is continue which South force Bay mine zirconium to supplier

to options, availability. satisfy were material supply we current unable our are levels to to but are We forced adjust ramping as match demand fully alternate rates up still production

volatility facing we higher are addition zirconium. significant raw to and magnesium availability material carbon materials fiber, with critical aluminum, cost input for In issues, as such

presence, confident The have chain to pass-through supply cost our service inflation implemented manufacturing may pass-through remain cornerstone in We fully to In suppliers. our response over and the customer Luxfer's the volatile in our environment, lag months. confident ability and high cost remain long-term inflation to six with ability the to compared six inflationary our is fully as to three in to response inflation nine current navigate levels. crisis the of supply presence significant time months, our timeline of improve typical expertise, multiple relationships to long-term. adjustments our We successfully local our our and be

products provides new uncertain soon, begin and time. for accepting a the chain will We confident so and be this competitors established year. orders manufacturing that this versus the supplier half inflation us force with sustainable and majeure that Overall, customers that impacted our localized of unprecedented in we are our we us second supply are advantage can behind optimistic during

the update for Slide X drivers to on the Now, please year. coming key growth an for turn

macro in products first as such and user investing fuel, aerospace, in healthcare, on defense new our markets alternative trends to capitalize attractive response. continue We end

in user continued user the product in new market products. Specifically, electronics be the anticipate recently we In we growth from zirconium flameless and to UGRE and medical expect introduced end ration and XXXX growth magnesium in driven by from aerospace the continued line, a our recovery heater market.

automotive product line, growing gasoline in to we as our acquisition product In and continued hydrogen growth benefits. auto likely accelerate by expect cylinder growth composite SCI alternative post-COVID shortages. penetration applications reverts post-chip addition, to In double-digits storage fuel continue the and the industry is to from particulate fueled filtration of

Our labor be on in update on going are faster an to when progress. volume he our customers. will the this inflation SCI color outlook. and to X material increase will passing additional Slide we than integration XXXX XXXX to as revenues on Steve for discusses Please turn provide

and our pleased cost are performance has SCI's made activities. and We integration continued team synergy with on progress

end due to driving were organic with the inflation. For synergies even cost cost the year though progress our better-than-expected was growth some positive The were the operating of performance synergies expectations on low SCI's year-over-year XXXX, cash. double-digit and by EBITDA financial of offset losses

migrating to Luxfer's successfully through overhead and the shared We have cost driven cost ERP Luxfer sources. spreading synergies business system by

like SCI's building kit. We a remain additional Luxfer service. employees to I customers. as I who improving made as have our during now Pomona. focused operations of improved on capabilities, all single our in and and delivery have efficiencies to expanded offerings, seamless We standard transition of this through possible into the technological would implementation on-time output consolidations look tool improved offering excellence customers product business Cylinders Gas thank forward for our

details our to Heather the quarter over year for full and let fourth financials. Now, me of call turn

Heather Harding

Alok. Thanks,

our by Now performance end user I'll markets. start on summary the Slide of X with

and defense, only. first and year of into QX end impacted temper classified transportation, a of references replenishment healthcare which is relief fuel military industrial. our for XX% of can reminder, the three for the In the response lower be On demand on this markets. first the sales market. automotive end and key of a Annual healthcare, user in We sales numbers full in and aerospace end-user market, the include which the and alternative partially acquisition Slide disaster response SCBA for sales year increased SCI this X As saw by and while and slide we year. products. general sales user Defense, will strong transportation combination magnesium numbers full products, grew commentary positively and X.X%

you general generated the particular Cylinders. industrial year, products, magnesium about delivered driven at full filtration. million When demand in significant XXXX. revenues $X of recovery the around further auto levels products for We in still growth also gasoline we Gas aerospace increased in wider pre-pandemic in feel double-digit aerospace base market in by by comparable Overall, were below driven our in recovery catalyst especially from in specialty XXXX business, look the strong XX.X% the end solid market. optimistic Sales user growth. We adoption the end-user

adjusted our million unprecedented a were Now in in $X revenue $XX.X of partially Organic the pressures million by $XX.X the prior fully price cost material pass-through of offset XX.X% results. prices. an driven as be including EBITDA million please inflation. we X.X% for the despite Consolidated were writing rising was inflationary XX.X% volatility fourth from prior year In volume X.X% acquisition for industrial Fourth by also growth. headwinds positive and quarter the to of year P&L quarter from million as growth from we quarter, the unable products. decreased quarter raw to Slide mostly was SCI's summary labor of in costs. X increase will faced material transportation turn sales increased sales Quarterly of $X.X our impacted

obligations. ability adjustments remain cost We pass-through have surcharges, inflation to adjustments. We to already implemented confident to our customers in contractual multiple our for

the net entered quarter SCI and to X.X% acquired the SCI than Consolidated XXXX $XXX.X with growth inflation. reductions offset difference but industrial stronger increased increased the anticipate EBITDA beyond XXXX. year expected QX million with volume unprofitable. our to $XX.X XXXX business the As adjusted making in backlog. Alok and sales a by cost Overall, record strong We perspective, higher revenues year XX.X% mentioned to and recently ending is cost a Luxfer as grew earlier, in from XX.X% remain we of to including million From products. revenues delivered full levels by cash we and anticipated the transportation acquisition a pre-pandemic exceeding synergies in expected and remain have accretive and

Gas by sales to acquisition. from XX.X% year, results $XX.X of our X. for and to auto million military EBITDA X.X $X.X as the sales to industrial million unable products million X.X% Elektron grew SCI at offset sales look sales. Now to decreased Cylinders magnesium the segment volume we pass-through timely the customers. segment were by were including in on recovery let's million Slide catalyst from X.X% lower of $XX product prior stronger inflation

products. In XX.X% SCIs, of EBITDA reduction segment specific gas grew million resulting year inflation. EBITDA Full $XXX.X in year and $XXX.X the strength cost from grew reductions. From products. cost grew Elektron felt XX.X% industrial filtration Resulting Cylinders SCI $X by for offsetting volume and $XX.X with particulate year efficiencies from industrial million sales Gas XX.X% of full with XX.X% including addition, Gas strong prior including million and specialty perspective, X.X% EBITDA we Cylinders including of grew $XX.X and a million by by demand of SCBA X.X% to and unrecovered growth grew million sales unrecovered inflation.

let's our Slide on strong Now, balance look and balance at XXXX. sheet sheet cash We in our maintained flow key metrics XX.

at a for million prior finished million, to $XX.X to the million XX.X% the capital of increased a which EBITDA which ensure for X.X materials $XX net We year year working made key prior and $XX.X customers. net pension raw total of one-time is delivery as Our from the In up is UK XX.X%. debt we from $XX.X for Fourth year available December, inventory expansion of operating sales, the million of into time. finished our funds speeder of debt quarter year. results slight a payment the was they at slightly our became or

target the continue in cash range operating free an of working that to sales. XX% in one XX% quarter, UK We consumed capital We pension million primarily payments. to due flow $XX.X of to time

report continue that to cash cash improved payment I'm operating generation based basis, adjusted with balance we XX deliver generating on year trend this and to of We earnings. month balance minimal And a enabled position. impacts sheets that on solid ROIC trailing sheet. our pension operating XXXX was XX.X% solid flow flows with happy another

another for as flexibility terms. years we balance In us addition, greater with This significantly facility better XXXX. sheet affords five renewed our we revolving enter credit strong

Now let's XX. Slide our review allocation capital on priorities

value by Our allocation shareholder priorities towards enhance capital remain Strong capital balance operational growth investments allows and unchanged. sheet initiatives. deploying excellence us to

buybacks, accelerate bolt-on creation. million maintain can quarterly shareholder our In to total that further of share it's shareholders. synergistic returning explore value to million $X.X addition, million been of quarter, dividends fourth we continue we a In in $X.X acquisitions $X

spent XXXX. For the we $XX $XX.X million year, share dividends shareholders in full buybacks, to paid million in to $X.X and returning million

over go financial Slide key XXXX some for specific let outlooks beyond, XX. provide and we before Now XXXX guidance assumptions me behind on our

with and cost and Now, of the uncertainty rising we chain pressures concern regarding constraints. increase supply enter XXXX a sense

today are time any and more recent stronger resilient we in However, history. at than our

growth and Our We're technology are our drivers. products. in aligned the continue secular sustainable through investing operations with innovation growth to

first challenging customer guide times. us through have to We value these

Going we're and current energy the growth by massive level and environments XXXX demand prices. into including encouraged the macro robust level growth of

In addition, UGRE, will fuel differentiated in end promote growth ongoing as deployment capital our is which will by and and defense XXXX investment driven such market, deliver user products alternative delivering in the be new growth results. strategy

shareholder bolt-on sheet, the growth that have cash As investing don't opportunities. continue acquisitions We XX next to value. and enabling maturities while a any built in enhance return balance us our we and months to to will and pursue organic strong flexible debt we'll synergistic in have organic shareholders

of challenging headed right that chain the direction. to beginning XXXX be due disruptions, I'm likely in confident supply the While will we're

before customers accomplished, excel the time team thank as Financial to my I over experience to at continue my confident for my in. to call wonderful our phase Steve and to next will and this very next Luxfer Company. life, Chief first. personal at team forward proud Alok Luxfer Officer as enhance shareholder Webster of Steve, the here always I'm know while pleased all a the wanted of entire looking will Luxfer to especially turn I'm value he the introduce I And has role I'm I'm Now, putting I for and Well,

So, ahead. Steve, go

Steve Webster

to pleasure I guidance support years, and four and a the and I appreciate today the retirement. Heather. all wish really here past It's you valuable your be your Thanks, for over best

Slide turn Now please to XX our guidance. for financial XXXX

XX% between a by our XX% volume, increase assumptions to acquisition. lag project will our months. impact that currently of nine the price to and by inflation revenues three expect We driven material We to pricing SCI small

drive fuel volume the low-to aerospace market. in our to and end-user transportation recovery grow in double-digit Alternative expect and defense end will We mid-single-digits industrial user markets. growth

ongoing demand previously strong by order our Given and constrained levels material growth a and supply backlog, as shortages challenges healthy discussed. assumptions are labor

ease can on impact full the as expect cost our the timing in will profitability. be by to environment and range year differences $X.XX year. We near the EPS gradually customer and supply half assumption disruptions The second $X.XX our that of between visibility time increases to continues achieve current based inflation of limit normalcy to pass-through near

flow We management conversion targeting initiatives, year, excluding executing cash free the for cash continue restructuring. XXX% full

to restructuring down factory related Our wind are and in as last needs to exceptional European XXXX to year, cash continue potential liabilities expected to be XXXX our similar we consolidation.

We make to compares cash million favorably which pension XXXX. additional not pension in in payments $XX.X any XXXX, contributions will the

metrics of the to XX. entered wanted longer-term we provide a on Slide phase As for we've final transformation our key financial outlook plan,

culture. savings Luxfer's years, the growth a simplified few plan significant and generated past the high performance Over transformation has cost Company, instilled

improved trends we repositioned addition, with In align to have growth margins. portfolio sustainably secular it our and better

are more of phase XXXX. revenues, or forecasted driven pass-through final the SCI longer-term restoration growth by in our the a manufacturing or the of pleased efficiencies at large are of and transformation EPS introduce the goal be part by in will we recovery $X aerospace that to impact. of inflationary Given recent full of A plan, we

deployment, capital growth and continuous of In addition and expansion. with by innovation, a growth will lead productivity improvements EPS will revenue which margin product all disciplined to earnings strategy accelerated driven new to also consistent recovery, solid be of

for turn up. to back the over I'll Now, call Alok wrap

Alok Maskara

Steve. Thanks

history. is valuable believe other I any that, stronger XXX I time year than to today in and wanted share I XX, Before up, Slide why more on wrap Luxfer at

landscape. pleased the unstable performance despite our and macro operating in XXXX are financial We with

optimized needs long-term utilizing have our forward in and growth remains our we to have meeting we advantage. operational our solid flexibility top portfolio customers' products new cost In competitive financial low our stronger and explore priority, created a company. Luxfer's for structure continued even foundation footprint invest an look success opportunities created a to build summary, While sustainable to as

niche enable most growth where competency are engineering our materials valued. innovating in end of technologies addition, applications markets will In in proprietary

and values us for continue customers. culture of performance also fostering excellence innovation partner environment will an where our strengthened choice based commercial makes have the our and We high

continue you environment, to again, growth the Finally, new listening. for I our tough optimistic our a operator session. want operating look progresses. Thank we thank we factor are key a who strategy. customers turn about always despite to the serve forward and to first. pursuit in call all of to and Overall, over around updates begin Luxfer bolt-on that, employees our With I year the the in will acquisitions world as beyond, question-and-answer to providing the will for put growth opportunities Once XXXX as

Operator

Thank with And from will we you. CJS Moore first Securities. Instructions] question [Operator ahead. Chris take go Please our

Chris Moore

a we raw a a taking press can pricing kind few of for that start just the a with you material by pricing can catch catch from little further, the is the From assumption the a deeper the questions. maybe be on Maybe second we the just perspective, Thanks thoughts half up bit that'll going or bit any of on of a about kind balanced side, standpoint? more up just year, little shortages. talk

Alok Maskara

been we traditionally, balance inflation from of like we and within recover a medium. talked or pricing that can always matter a kind So, days XX price of have so, perspective, that's a shown about

think six three as the to more to going Given the uncertain right to months six volatility months probably nine to to that earlier. extend compared higher now, of to talk about challenges, significantly used and we closer some we

additional with work more anything that higher in in the in all the the we challenging time, get At than we the same which and seen have satisfy past. is sense, demand doing our it's than level, we core past. to had material, they've So suppliers, can are

shortages. in get higher It's with any it and far, our so situation benefit the the kind of would better supply and to get So, but been in change have the as think we things concerned optimistic the with able other And Chris the have second freight second about macro. started core not on gotten remain of half. our we work the in based in and scenario, works been than conversations suppliers. when will we suppliers would additional demand favor. are that's that better optimistic our our availability which you shortages We the we talked which half in question to secure the QX, as condition such better But

Chris Moore

the you a if rank say with start it We with then zirconium minute, shortages for uncertainty, of the to were sands. kind magnesium is and

about to magnesium carbon the product? is get in able talk of are sands, were one which actually fiber really aluminum, two being visibility or leaked zirconium You terms the

Alok Maskara

I that product on magnesium remains impacted our since our line So, is think uncertainty. largest of being high list

and Second materials We we talk all us. long aluminum. would then really our from zirconium typically looking premium be are relationships with standing fiber suppliers. about In for good stand suppliers, we our carbon cases, would for are and

confident call So, be will is through to out that it. highest the of script. in work we The the magnesium currently hence we that disruption mortgage able more in

Chris Moore

slight with Last had than bit you a to talking better so SCI, then one $X.XX 'XX. about sounds for 'XX Was dilutive EBITDA expected. I like me that for you It was for on creativity a just And regards about talked little still close? or 'XX, took wasn't 'XX, 'XX, loss are in we know for SCI? you I XX sure. breakeven my

Alok Maskara

question, Chris. Great

expect the we So forecasts. come but losses to it at this the for of expect by current year, the for breakeven to back, to we operating end would XXXX, be year full have maybe would

it and cost range we we're because and $X.XX $X.XX, the because a to better For of the forecasted. we talking was of sooner, some last was performance than synergies had volume year, $X.XX closer better to of sort about

some are So would through to year. do accretive complete. that be we legacy loss about half inflation get as to we achieve synergy have contracts it end the And year, $X.XX this year, expect And faster say going in loss ability so that of the working to increases. by We actions there. breakeven are XXXX, the cost we next this of

Operator

We'll ahead. Irwin with take Craig ROTH next from go our Partners. question Please Capital

Craig Irwin

last Steve, First, Heather, I much a with I should standpoint pricing the you. look our welcome to this quarter, say, And you. forward working as crossed call. aboard. in was been great from very working it's with Look, you future. Hopefully, paths describe

to you're price be that but expected get these were other headwinds lag chain said commodities, to supply issues, the the little a to able and You things offset bit.

handle Can you Elektron, incremental there's from two maybe detail in in maybe these more a sort differently maybe have what a So Gas little right. of more you actions to better in done might Cylinders, little it give Gas us seems already little ketchup. be seems a and pricing bit how little a Elektron bit segments? Cylinders And played bit like taken? things on price available than

Heather Harding

Sure.

on from perspective, So taken I that. think if I just actions already back step

up taken through. hesitant inflation actions the adjustments we taken, like going high four we or if yes, The of matter also cases, come want markets. going to given just the multiple conservative backlog pretty is of, work they high But again. going like do think five going to are of don't have as nature In go the forced be reason flow actions So already four we we been don't it's or just some to Whether have the of amount to uncertainty or and or to I months have five to where in next. think to know inflation of we it of it's heading rapid that's you is would impact imagine. pricing if be down the

a percent five and plus yearly taken of pricing contracts up actions XXXX, impact for basis as did at we doing if come to and we see a looking as adjustment certain right a automatically more that perspective mean, will I be But in from I in row. a QX mean, do you just obligations fixed now, six can nothing we on renewal. take plus other you be that months the We if in further,

a of impact So, actions already a yes, bit of have taken. we quite

accelerate passes. The uncertainty more, timing inflationary they of We to the whether normal. come more will would as would ability get have us more is, not our back or it's kind whether they and largest for to pricing, the impact

Craig Irwin

My question Gas the Excellent. Cylinders specifically about next segment. is

handled you for for content the bridge profitability at So EBITDA. sales us the that sales, out for already clearly. you when give you the and EBITDA outlook there but But look in for the quite 'XX fourth quarter, break acquisition we not in

So, we incremental of assume XX tease is that matches that help EBITDA if you're you mix, very volume the and apart that volume margin margin in driving volume understand, a that's maybe XX on EBITDA looking number Can the seeing pretty, pretty are you incremental EBITDA chunky, there. what high for at growth? incremental this

Heather Harding

Good Yes. Heather. Craig. morning, It's

I start one. to I'll take that So

And QX think you're bridge I so, the -- at looking and if specifically, there. you're

kind some lower and And rid to operations is, to our healthy we have margin exercise remember, when discontinued we margin. margins, the through that XX%. so, think think I ago, a or and XX% a XX% incremental got we And of we performing that margin of so very of XX% went incremental you business, year lower if think

a was that this quarter. higher it So the we're slightly, of end range at

lot have of look were a with QX So that at segment, the you segments. we positioned with where especially for the now. Certainly, right product this pleased is the expectation various when we the performance,

and something aerospace has higher that's did behind it still that think, out see I margins. while we levels. our it's We improving call that pre-pandemic certainly

XX% believe range, it's when at where to we and So, a I the is incremental within to. here certainly, that think, think level, guided have XX%, about I I XX%

Craig Irwin

past, are Excellent the see again. What rich the for conversation these your a the going then actually thoughts business? to events, higher products it the it of Is impact last sales et that U.S. some to then float through? imports, There about but we gas tracking as talk contribution start very lot may. on that some but the cetera. Oil they is margins macro today prices if does the at a and your possible outlook question, shale press exports, of I SoluMag in oil political in

Alok Maskara

Yes. Craig, I'll take that.

from us have oil talked into the mean, for for just industrial CNG, from I are when obviously comes better looking SoluMag. us higher general like past better buses better diesel product for conversion in better all, of we it First and perspective, in at our to prices that us, from for of us save about activity,

all pleased three perspectives. I'm fracking I think the level with mean, On SoluMag, yes, So I from for activity. they're of good

results with we we have made continue last focusing and and same past product. to stabilize progress a time the time, is pleased from over we that. We much that have too that business the the Absolutely, few the talked likely mean, while because of and are it significant that single product what But as products could momentum take on broader than will the investor a lesson that's to and outpacing, continuing one volatile. are our communication we year. you backfire SoluMag a and date and about We at hydrogen, to prices learned years other got development did be any happen. upsides to year? that double compared our to notoriously growth SoluMag the we that's has better years. every growth company, At do to And yes, But this last I growth I want few like and going view get of confident don't things hydrogen past many going

answering I product. what question, on hate just just focus to also I one single your So I'm Craig, too much and

Craig Irwin

to That's growth SoluMag $X at with question. make be expect or several growth? overall SoluMag obviously you working? percentage bigger growth, It's compare material completely you 'XX? to So, the this And really yes. how comparing are are hydrogen to when contribution will understood, volume No, you so would material, business to things momentum make a

Alok Maskara

I fair. think that's

sales. more $X SoluMag to million maybe we've So in historically, to being of talked precise, kind about million give $XX

year, to of XX. X talk we end to about Towards the the starting were

we'll maybe XX. talk Now XX to about

the So portfolio thing think us bigger it's you last Alternate I I is with range that again. be mean, in and as for like be year fuel, know, about healthy for that talking probably would SoluMag we in much margins. product doubled double hydrogen will

sure. I hydrogen would number think the higher be dollar in for So,

Operator

So, question with ahead. go Phil our we'll Please Gibbs take next from KeyBanc Capital.

Phil Gibbs

echo Steve the a fourth I good do quarter, Alok, and in and that job Heather, team, on tough environment.

you much to growth. and much split it of guidance midpoint Is As XX% pretty I how equally? is range that look that is out volume prices? rev of the of was How think XXXX,

Alok Maskara

good a assumption out think I that's start with Phil. to

point, As way volume will if better inflation availability gets you at a it. I think lower and a think about starting But material good half as know, to drive gets then is and higher. half

Phil Gibbs

then, got how commercial historically, quarter aerospace an aero big exposure. has And on also mixed commercial bought remind defense some fourth just revenue was which there you've your but the in basis in us you where magnesium, SCI, maybe annualized

to get size lot pieces business that moved of and a have moving trying a market now years? around, couple clearly that of the better should up just So with in next

Alok Maskara

you Heather, a take that? to do crack at want

Heather Harding

Yes.

So, I can that for start yourself.

fourth SCI in from our some yes, was aerospace the So, quarter And business total are $X There the million. correct. contribution acquisition. was you

of been Within between might contributes play, some is to the defense it So, and always $X couple aerospace, a be bit completely, or in aero, has SCI of that a mainly commercial. in predominantly, fuel, there but they million. terms challenging do so so segment

base business skew So, said, or the other. we any the a historically, about bit can think one given way of half and I time little half it think kind we quarter over being

Phil Gibbs

includes aerospace X So some defense? commercial you just million that is or the think portion

Heather Harding

X million Alok. defense, is ahead Include go

Alok Maskara

a includes million. should running it it's I to we're will separate, think kind hard that's full take think I helicopters, million we I defense basically but XX $XX at wide-body, I mean million all and because it high about put to where mean level, we together. million are recovery. we a On and X sales up recovery think that be number sale to total to XX behind we on of take some

we So, as growth XXXX. drivers of XXXX the see one and that key of in

Phil Gibbs

what though, world? full the get can million in that So toward you don't as of get to that's you more XXXX, what of a that or seeing XXXX excuse recovery cycle recovery back me, XX you're

Alok Maskara

are orders all starting takes to I into the two now that think or just company. start other aerospace will about that going XXXX. to, The so years like get so

full think when So, it the get we 'XX up be rate. end I run to will

Operator

April hours. further www.luxfer.com. questions a webcast call This us when the in of of to The regularly Thank be Luxfer joining ends be and link this financial be website the Company have a will will for available An there quarter today. call will recording at conference wonderful call results. this day. time. the scheduled next at And are this two you encore discusses its first no available of at about A XXXX Luxfer recording conference XXXX