Luxfer (LXFR) AI Stock Analysis

• Market Cap: $338.07M
• Dividend Yield: 3.7%
• Average Volume (3M): 142.04K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.16
• Revenue Growth: 3.36%
• EPS Growth: 57.40%
• Country: US
• Employees: 1,450
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.28
• Shares Outstanding: 26,640,434
• 10 Day Avg. Volume: 160,894
• 30 Day Avg. Volume: 142,039
• PEG Ratio: 0.17
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.94
• P/FCF Ratio: 13.81
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 0.96
• Enterprise Value/Gross Profit: 4.15
• Enterprise Value/Ebitda: 10.52
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): $383.80M

• Rating: 60 Neutral
• Price Target: $13.50 ▲(7.66% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven mainly by improving financial strength and earnings recovery with conservative leverage, supported by constructive (but cautious) guidance from the latest call. These positives are tempered by weak technicals (below key moving averages with oversold momentum) and a demanding valuation (high P/E), partially offset by the ~4% dividend yield.

Positive Factors

Deleveraging / Balance sheet

Luxfer has materially reduced leverage and improved returns: declining debt-to-equity and a net-debt reduction to about 0.6x provide durable financial flexibility. This supports strategic optionality for capex, M&A or dividends and lowers refinancing risk across planning horizons.

Consistent cash generation

Free cash flow has been positive each year and translated to roughly 77% of net income in 2025, showing earnings largely convert to cash. Persistent cash generation underpins capital returns, funds efficiency programs and funds elevated but targeted capex without materially stressing the balance sheet.

High‑margin Electron segment

Electron is a structurally stronger, higher‑margin business driven by aerospace/defense and Magtech volume gains. Its outperformance and margin expansion diversify Luxfer away from cyclical gas cylinders, providing a durable profit pool and a platform for sustained organic growth in advanced materials.

Negative Factors

Multi‑year revenue drift

Top-line has declined over multiple years, limiting organic growth runway and making the company more dependent on margin gains and cost saves to improve earnings. Persistent revenue shrinkage increases sensitivity to cyclicality in end markets and raises the bar for structural recovery initiatives.

Gas Cylinders weakness

The gas cylinders segment is experiencing tangible volume deterioration (SCBA, alternative fuels, absence of prior-year Air Force deliveries). Given its material contribution to revenue, continued softness there could persistently pressure consolidated sales and compress lower segment margins.

Elevated capex and execution risk

Planned higher capex for Saxonburg and Riverside consolidation increases near-term cash demands and introduces commissioning inefficiencies. Realizing promised $2–$4M savings requires multi-quarter execution; timing and implementation risk may weigh on margins and free cash flow in the medium term.

Luxfer Business Overview & Revenue Model

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.

How the Company Makes Money

Luxfer generates revenue primarily through the sale of its gas cylinders, which are utilized in various industries such as industrial gas, medical, and aerospace. The Gas Cylinders segment contributes a significant portion of the company's income through the production and sale of lightweight cylinders that cater to a growing demand for efficient gas storage solutions. Additionally, the Electric Vehicles segment has emerged as a key revenue stream, capitalizing on the increasing adoption of electric vehicles and the need for advanced battery materials. Luxfer has established partnerships with major automotive manufacturers and energy companies, enhancing its market presence and driving sales. The company also engages in research and development to innovate and expand its product offerings, further contributing to its revenue growth.

Luxfer Financial Statement Overview

Summary

Balance sheet strength and deleveraging are clear positives (debt-to-equity down to ~0.17 and ROE recovered to ~14% in 2025). Profitability improved versus the 2023 loss, but revenue has drifted lower over multiple years and operating/cash-flow results remain uneven (FCF down ~28% in 2025 vs. 2024).

Income Statement

Revenue has been drifting lower for several years (down again in 2025 vs. 2024), which caps the growth outlook. Profitability rebounded meaningfully from the 2023 loss to healthy profits in 2024–2025, with net margin improving to ~8% in 2025. However, operating profitability has been volatile (strong in 2021–2022, weak in 2023, partial recovery thereafter), and the step-down in EBITDA margin in 2025 versus 2024 points to some pressure on operating leverage.

Balance Sheet

Leverage looks conservative and improving: debt-to-equity declined steadily from ~0.50 (2022) to ~0.17 (2025), indicating balance-sheet de-risking. Equity and assets are stable-to-up over time, supporting financial flexibility. Returns on equity recovered strongly after turning negative in 2023, reaching ~14% in 2025, though the recent profitability volatility is the main balance-sheet risk factor (earnings durability matters for sustaining returns).

Cash Flow

Cash generation is solid overall, with free cash flow positive each year and free cash flow running at ~77% of net income in 2025 (similar in 2024), suggesting earnings are translating into cash reasonably well. That said, cash flow is uneven: free cash flow fell sharply in 2025 versus 2024 (down ~28%), and the operating cash flow-to-net income conversion is not consistently strong across years, indicating periodic working-capital or operating volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	384.60M	391.90M	405.00M	423.40M	374.10M
Gross Profit	89.20M	85.70M	76.60M	95.00M	96.00M
EBITDA	35.20M	45.10M	12.60M	62.90M	54.10M
Net Income	31.30M	18.40M	-1.90M	26.90M	29.90M
Balance Sheet
Total Assets	369.70M	382.40M	372.10M	407.10M	368.80M
Cash, Cash Equivalents and Short-Term Investments	8.30M	4.10M	2.30M	12.60M	6.20M
Total Debt	39.40M	59.80M	91.90M	104.10M	72.40M
Total Liabilities	143.30M	162.90M	159.50M	199.80M	159.70M
Stockholders Equity	226.40M	219.50M	212.60M	207.30M	209.10M
Cash Flow
Free Cash Flow	26.20M	40.80M	16.90M	7.60M	17.00M
Operating Cash Flow	34.00M	51.10M	26.30M	15.90M	26.10M
Investing Cash Flow	-5.10M	-3.40M	-9.50M	-5.70M	-5.10M
Financing Cash Flow	-25.00M	-44.00M	-27.50M	-2.00M	-16.10M

Luxfer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LXFR, the sentiment is Negative. The current price of 12.54 is below the 20-day moving average (MA) of 14.73, below the 50-day MA of 14.58, and below the 200-day MA of 12.95, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 30.05 is Neutral, neither overbought nor oversold. The STOCH value of 11.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LXFR.

Luxfer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GHM	76 Outperform	$953.03M	62.02	12.15%	―	16.04%	75.37%
OFLX	73 Outperform	$372.78M	21.34	19.37%	4.80%	-2.73%	-11.67%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TWIN	63 Neutral	$256.56M	2.69	0.22%	0.95%	14.24%	-96.24%
LXFR	60 Neutral	$338.07M	11.56	5.88%	3.70%	3.36%	57.40%
PKOH	59 Neutral	$383.73M	12.14	8.13%	2.32%	-3.90%	61.80%
BW	56 Neutral	$1.31B	-13.10	―	―	-38.45%	-148.99%

Luxfer Corporate Events

Luxfer declares quarterly interim dividend, signaling confidence

On January 13, 2026, Luxfer Holdings PLC announced that its board of directors had declared a quarterly interim dividend of $0.13 per ordinary share, payable on February 4, 2026 to shareholders of record as of the close of business on January 23, 2026. The dividend declaration underscores the company’s ongoing capital return policy and provides income to shareholders while reflecting management’s confidence in Luxfer’s financial position and its role as a niche supplier of high-performance materials and gas containment products to critical end markets.

The most recent analyst rating on (LXFR) stock is a Buy with a $16.50 price target. To see the full list of analyst forecasts on Luxfer stock, see the LXFR Stock Forecast page.