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Financial Data and Key Metrics Changes - The company achieved all-time high EBITDA margins of 27% in electronic materials, reflecting improved cost structure and operational performance [5] - Sales increased by approximately 1% year-over-year, with adjusted earnings per share at $1.41, flat compared to the prior year and up 3% sequentially [12][13] - Adjusted EBITDA was $55.5 million, down 2% year-over-year, primarily due to lower volume from equipment downtime in Performance Materials [13][14] Business Line Data and Key Metrics Changes - Performance Materials reported value-added sales of $157.1 million, down 4% year-over-year, impacted by equipment downtime [14] - Electronic materials saw value-added sales of $79.7 million, up 2% from the prior year and up 7% organically, with EBITDA margins reaching a record 27.1% [15][16] - Precision Optics experienced value-added sales of $27.1 million, up 21% year-over-year, returning to double-digit EBITDA margins [16][17] Market Data and Key Metrics Changes - Semiconductor sales, excluding China, increased by 7% year-to-date, with high-performance memory applications growing over 30% [7] - The defense market saw record bookings up roughly 40% year-to-date, with about $150 million in RFQs being worked on [10] - The commercial space sector has seen a fivefold increase in sales over three years, driven by macro trends in AI and connectivity [11] Company Strategy and Development Direction - The company is focusing on high-growth markets such as semiconductor, defense, space, and energy, with a strong order book and improved operational performance expected to drive growth [6][11] - Strategic partnerships, such as with Kairos Power and Commonwealth Fusion Systems, are aimed at expanding into new energy solutions [9][25] - The company aims to achieve midterm target margins of 23% and is actively addressing operational reliability issues in Performance Materials [14][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in finishing 2025 positively, driven by strong order rates and market demand [11][18] - There is uncertainty regarding the impact of geopolitical tensions, particularly concerning China, which has seen a 20% year-over-year decline in business [71][87] - The company anticipates continued growth in high-demand sectors, despite challenges in the automotive market [56][44] Other Important Information - The company ended the quarter with a net debt position of approximately $441 million and authorized a new $50 million stock repurchase program [17] - Free cash flow is expected to be roughly 70% of adjusted net income, with strong cash generation year-to-date [17] Q&A Session Summary Question: Why didn't the company narrow the full-year outlook range? - Management cited uncertainty around China and potential impacts from the government shutdown as reasons for maintaining the range [24] Question: What financial impact is expected from the new agreement with Commonwealth Fusion Systems? - Initial shipments are expected to contribute a few million this year, with a more significant annualized run rate anticipated next year [25][27] Question: What is the nature of the equipment downtime in Performance Materials? - The downtime was due to issues with equipment in the largest plant, but it has been resolved, and the company expects to catch up on sales in Q4 [35][36] Question: What are the expectations for 2026 growth? - Management is optimistic about growth in key markets, despite challenges in China, and expects to leverage high-growth opportunities [44][46] Question: How is the company addressing operational reliability? - The company is focused on capital improvements and maintenance to minimize future disruptions in Performance Materials [39][40] Question: What is the expected impact of tariffs on financial results? - The China business is down about 20% year-over-year, with some tariff impacts being manageable through pricing strategies [70][71] Question: Will beryllium be stockpiled by the government? - With increased U.S. defense spending, there is a likelihood of increased usage of beryllium, and the company is prepared to meet that demand [95][96]

Materion (NYSE:MTRN) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Company ParticipantsKyle Kelleher - Director of Investor Relations and Corporate FP&AJugal Vijayvargiya - President and CEOShelly Chadwick - Vice President and CFOShelly Chadwick - VP and CFODaniel Moore - Partner and Director of ResearchKyle Kelleher - Director, Investor Relations and Corporate FP&AConference Call ParticipantsPhilip Gibbs - Director and Metals Equity Research AnalystDavid Silver - Managing Director and Senior Equity Re ...

Materion (NYSE:MTRN) Q3 2025 Earnings Call October 29, 2025 10:00 AM ET Speaker5Greetings and welcome to the Materion third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode, and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mr. Kyle ...

Materion Corporation 3Q 2025 Earnings Presentation October 29, 2025 The Company does not undertake and specifically declines any obligation to update or publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events. © 2025 Materion Corporation | Agenda | | | --- | --- | | Introduction | Kyle Kelleher – Director, Investor Rela ...

Materion (MTRN) came out with quarterly earnings of $1.41 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $1.41 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this supplier of engineered materials to technology companies would post earnings of $1.18 per share when it actually produced earnings of $1.37, delivering a surprise of +16.1%.Over the last four quarters, the company has surpassed consensus EPS estimat ...

MATERION CORPORATION REPORTS STRONG THIRD QUARTER 2025 FINANCIAL RESULTS AND AFFIRMS FULL YEAR OUTLOOK MAYFIELD HEIGHTS, Ohio – Materion Corporation (NYSE: MTRN) today reported third-quarter 2025 financial results and affirmed full year outlook. Financial Summary Business Highlights "I am incredibly proud of our team's performance in the third quarter, with both Electronic Materials and Precision Optics achieving significant milestones. The record margin performance in Electronic Materials underscores the s ...

Core Insights - Materion Corporation reported strong financial results for the third quarter of 2025, with net sales of $444.8 million, an increase from $436.7 million in the prior year period, and affirmed its full-year outlook [1][4][11] - The company highlighted significant improvements in its Electronic Materials and Precision Optics segments, with record margin performance and a return to double-digit EBITDA margins in Precision Optics [3][4] Financial Summary - Net sales for Q3 2025 were $444.8 million, up 1% from $436.7 million in Q3 2024 [4][11] - Value-added sales were $263.9 million, reflecting a 1% organic growth driven by non-China semiconductor and space markets [4][11] - Operating profit increased to $34.9 million from $31.3 million year-over-year, while net income rose to $25.4 million, or $1.22 per diluted share, compared to $22.3 million, or $1.07 per share, in the prior year [5][11] - Adjusted EBITDA was $55.5 million, representing 21.0% of value-added sales, slightly down from 21.5% in the prior year [6][11] Business Highlights - The Electronic Materials segment achieved record EBITDA margins of 27.1%, up 700 basis points year-on-year, while Precision Optics saw a significant sales increase and approximately 1000 basis points of margin expansion [11][11] - Order rates increased double-digit sequentially across all business segments, driven by strong macroeconomic trends in semiconductor, energy, space, and defense markets [4][11] - Materion announced a supply agreement with Commonwealth Fusion Systems to provide materials for fusion technologies, indicating a strategic move into emerging energy markets [11] Outlook - The company expects a strong fourth quarter and has reaffirmed its guidance for adjusted earnings per share for the full year to be between $5.30 and $5.70 [8][11]

Core Insights - Materion Corporation has entered into an agreement with Commonwealth Fusion Systems to supply beryllium fluoride for fusion power plants [1] Company Summary - Materion Corporation is recognized as a global leader in advanced materials solutions [1] - The agreement involves the provision of beryllium fluoride for the production of FLiBE molten salt [1] Industry Summary - Commonwealth Fusion Systems is identified as the leading and largest commercial fusion energy company [1] - The beryllium fluoride supplied will be utilized in CFS' ARC power plants [1]

Core Thesis - Materion Corporation is positioned as a key player in the defense and aerospace sectors due to its unique production of beryllium and beryllium alloys, which are critical for advanced systems [2][4] Company Overview - Materion Corporation's shares were trading at $126.86 as of October 9th, with trailing and forward P/E ratios of 160.34 and 19.08 respectively [1] - The company is the only fully integrated beryllium supplier globally, with mining operations at the Spor Mountain Mine in Utah and processing facilities nearby, ensuring supply chain security [3] Strategic Importance - The unique properties of beryllium, such as light weight, exceptional stiffness, and high thermal stability, make it essential for missile guidance, long-range targeting, and high-performance aircraft components [2] - U.S. defense priorities have increasingly focused on domestic sourcing of critical minerals, enhancing Materion's role as a partner for the Pentagon [3] Government Collaboration - Materion has a long-standing collaboration with the U.S. Department of Defense, which began in 2013 to re-establish domestic beryllium production capacity [3] - In 2019, the partnership was renewed with support for the construction of a high-purity beryllium processing facility in Ohio, solidifying Materion's position in national defense supply chains [4] Growth Potential - The growing strategic importance of secure material sourcing and the potential for future Pentagon-backed capacity expansions suggest strong growth prospects for Materion as a defense-aligned materials supplier [4]