Luxfer reported lower third-quarter sales and earnings, with weakness in its Elektron business weighing on results while Gas Cylinders delivered stronger profitability. The company also generated $12.4 million of free cash flow during the quarter, and net debt fell to $37.8 million.
For the first nine months of 2026, sales and earnings were also below the year-earlier period, although adjusted EBITDA and adjusted diluted earnings per share declined by less than 3%.
Key details
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Third-quarter sales declined: GAAP net sales were $91.7 million, down 4.1% from $95.6 million a year earlier. On an adjusted basis—which excludes the Superform and Graphic Arts businesses—sales were $89.3 million, down 3.9% from $92.9 million.
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Profitability was mixed: GAAP gross profit eased to $22.4 million from $22.8 million, but the gross margin rose about 60 basis points to 24.4%. Adjusted gross profit increased slightly to $21.8 million from $21.7 million, and adjusted gross margin expanded about 100 basis points to 24.4%.
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Adjusted earnings fell: Adjusted EBITDA was $12.2 million, down 10.3% from $13.6 million. Its margin declined about 100 basis points to 13.7%, reflecting lower sales in Elektron’s defense business, partly offset by improved Gas Cylinders performance.
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GAAP net income was $0.9 million: That compares with $2.7 million in the prior-year quarter. Luxfer said transaction expense was a primary factor in the decline. GAAP diluted earnings per share were $0.03, versus $0.10. Adjusted net income was $7.0 million, or $0.25 per diluted share, compared with $8.1 million, or $0.30, a year earlier.
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Elektron was the weaker segment: Third-quarter sales fell 6.6% to $46.7 million. Adjusted EBITDA declined 25.3% to $7.4 million, and its margin contracted 400 basis points to 15.8%.
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Gas Cylinders held sales steady and improved earnings: Sales were $42.6 million, down 0.7%. Gross profit rose 20.3% to $8.3 million, while adjusted EBITDA increased 29.7% to $4.8 million. Its adjusted EBITDA margin expanded 270 basis points to 11.3%.
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Year-to-date results remained lower: Through the first nine months, GAAP sales were $273.1 million, down 9.2%; adjusted sales were $266.7 million, down 4.9%. GAAP net income fell 13.9% to $9.3 million, and GAAP diluted EPS declined 15.0% to $0.34. Adjusted EBITDA was $37.9 million, down 2.6%, while adjusted diluted EPS was $0.81, down 2.4%.
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Cash flow and debt: Free cash flow was $12.4 million in the quarter, and net debt declined to $37.8 million.
The results show a clear split between the two businesses: Elektron’s lower sales and profitability pressured quarterly adjusted earnings, while Gas Cylinders improved margins and earnings despite nearly flat sales. The difference between GAAP and adjusted net income was substantial; Luxfer attributed the low GAAP result primarily to transaction expense.