Question · Q3 2025
Pete Osterlund asked about the proportion of the $50 million growth investments and $100 million additional revenue targets already represented by announced projects, and where additional organic growth investments are being targeted. He also inquired about the timeframe for realizing the incremental revenue from pet care investments and sought an update on talc litigation, including the expected cost run rate and resolution timeframe.
Answer
CFO Erik Aldag clarified that the announced investments are a subset of growth opportunities, with much growth supported by existing capacity. CEO Douglas Dietrich elaborated that these specific investments are expected to generate $100 million in incremental revenue over the next 12-18 months, with significant long-term opportunities in MiniSCANs, bleaching earth (targeting $75 million in two years), and pet care (targeting $500 million by 2027). He specified that pet care contracts worth $25 million-$30 million annually will ramp up in Q1 2026 and be at full run rate by Q2 2026. Regarding talc litigation, Douglas Dietrich noted Q3 expenses were higher than the typical $3 million-$4 million run rate, and the company is diligently working to establish a 524G trust, awaiting court decisions, with the current balance sheet reserve deemed sufficient.