The annual shareholder's meeting is set for May 7, 2026, offering a platform for engagement on future strategies and financial performance.Recent stock activity includes a significant sale by CEO Vijayvargiya Jugal K., impacting his holdings but showing active market transactions.The company's stock price reflects a slight decrease, amidst a backdrop of volatility and strong investor interest.Materion Corporation (NYSE:MTRN) is a global leader in advanced materials, providing innovative solutions to various ...

MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--Materion Corporation (NYSE: MTRN) will hold its annual shareholder's meeting (the Annual Meeting) on May 7, 2026, at 8 a.m. MT at the Asher Adams, Autograph Collection, hotel at 2 400 W, Salt Lake City, Utah. About Materion Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in special. ...

Backlog and Orders - The backlog of unshipped orders as of December 31, 2025, was $579.0 million, an increase from $537.6 million in 2024 and a decrease from $573.4 million in 2023, with expectations to fill substantially all orders over the next 18 months [28]. Workforce and Talent Development - The company employed approximately 2,880 people globally as of December 31, 2025, with 1,847 in manufacturing roles, indicating a strong workforce to support operations [32]. - The company has implemented a robust talent development program, including mentoring and apprenticeship opportunities, to build a strong pipeline of future leaders [38]. - The company tracks and reports on key talent metrics to ensure alignment with diversity and inclusion goals, fostering a positive work environment [35]. - The company has established employee resource groups to support diversity and inclusion initiatives, with four ERGs currently active and plans to introduce a new group in 2026 [36]. - Retaining qualified management and skilled employees is critical for the company’s ability to provide high-quality products and services, with intense competition for such personnel [96]. Research and Development - Continuous investment in R&D drives the development of advanced coatings and optical solutions, maintaining a competitive edge in the market [29]. Financial Risks and Debt - A significant portion of the company's bank debt consists of variable-rate obligations, exposing it to interest rate fluctuations that could adversely affect net income [87]. Regulatory and Compliance Challenges - The company is subject to various laws and regulations that may increase costs and affect operations, including trade regulations and data protection laws, which may require material investments for compliance [31]. Growth Strategies and Acquisitions - The company is actively pursuing acquisitions to drive growth, but there are risks associated with successfully integrating acquired businesses and achieving expected synergies [91]. Health and Safety - The company prioritizes health and safety, with mature EHS systems based on ISO 45001 standards and ongoing investments to reduce injury risks [34]. Operational Efficiency and Restructuring - The company has implemented restructuring actions to reduce structural costs and improve operational efficiency, but future economic disruptions may still impact these efforts [95]. - Restructuring initiatives and labor relations changes could lead to workforce interruptions, potentially affecting business operations [97].

Financial Data and Key Metrics Changes - Fourth quarter sales were impacted by a quality event with the largest customer, but excluding this event, the company delivered strong financial results with 7% year-on-year organic growth [4][15] - Adjusted earnings per share for the quarter were $1.53, up 9% sequentially [15] - Adjusted EBITDA was $57 million, or 22.5% of Value-Added Sales, down 7% year-over-year but up 170 basis points from a margin perspective [16] Business Line Data and Key Metrics Changes - Electronic materials experienced a 20% increase in sales, driven by growth in the semiconductor market, marking the strongest sales quarter in nearly three years [7][17] - Precision optics delivered a 26% increase in sales, marking the third consecutive quarter of top-line improvement [8][18] - Performance materials saw Value-Added Sales of $132.4 million, down 32% year-over-year, primarily due to lower Precision Clad Strip sales [16] Market Data and Key Metrics Changes - The semiconductor business saw order rates up 6% year-on-year, with a 14% increase excluding China [9] - The new energy market experienced more than double sales year-on-year, supported by a multi-year supply agreement with Commonwealth Fusion Systems [10] - Defense sales surpassed $100 million for the second consecutive year, with 10% yearly growth since 2020 [10] Company Strategy and Development Direction - The company is focused on growth in the new energy market and has made significant investments to enhance its capacity, particularly in beryllium production [11][38] - The transformation of precision optics is expected to unlock additional growth and margin expansion opportunities [13] - The company anticipates continued progress toward a midterm EBITDA margin target of 23% supported by top-line growth and operational improvements [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, expecting approximately 15% earnings growth driven by new business wins and market recovery [11][22] - The company is addressing the quality event with corrective actions and enhanced quality control measures to minimize future risks [6][29] - Management highlighted the importance of strong partnerships with customers and the commitment to delivering high-quality products [6][14] Other Important Information - The company ended the quarter with a net debt position of approximately $445 million and $224 million of available capacity on its existing credit facility [21] - The first quarter of 2026 is expected to be slower due to normal seasonality and additional costs related to ramping up production [22][49] Q&A Session Summary Question: Details on the Precision Clad Strip quality issues and customer expectations - Management explained the quality event was due to a control failure in production, which was addressed with corrective actions and a revised quality system [27][28] Question: Electronic materials business performance and margin expectations - Management noted strong top-line growth in electronic materials but highlighted mixed factors affecting margin performance [31][34] Question: Beryllium capacity and strategic mineral reserves - Management confirmed a $65 million investment from a defense prime to expand beryllium capacity, with additional capacity expected by 2028 [11][38] Question: Working capital needs and inventory management - Management acknowledged increased working capital due to growth and acquisitions but emphasized ongoing initiatives to manage inventory efficiently [71][74] Question: Energy market contributions and order book dynamics - Management confirmed initial shipments to Commonwealth Fusion Systems and discussed the implications for future energy market contributions [85][87]

Financial Data and Key Metrics Changes - Fourth quarter sales were impacted by a quality event with the largest customer, but excluding this event, the company delivered strong financial results with 7% year-on-year organic growth [4][15] - Value-Added Sales were $253.9 million, up 7% organically from the prior year, excluding precision clad strip, but down 14% overall due to the quality event [15] - Adjusted EBITDA was $57 million, or 22.5% of Value-Added Sales, down 7% year-over-year, but up 170 basis points from a margin perspective [16][20] - Adjusted earnings per share was $5.44 for the year, up 2% compared to the prior year [20] Business Line Data and Key Metrics Changes - Electronic Materials experienced a 20% increase in Value-Added Sales, driven by strength in the semiconductor market, with an EBITDA margin of 23.4%, up nearly 500 basis points year-over-year [17][18] - Precision Optics delivered a 26% increase in sales, marking the third consecutive quarter of top-line improvement, with an EBITDA margin of 15.7% [18] - Performance Materials saw Value-Added Sales of $132.4 million, down 32% year-over-year, primarily due to lower precision clad strip sales [16] Market Data and Key Metrics Changes - The semiconductor market is experiencing strong growth, with order rates up 6% year-on-year, and 14% excluding China [9] - The new energy market saw more than doubling of sales year-on-year, supported by a multi-year supply agreement with Commonwealth Fusion Systems [10] - Defense sales surpassed $100 million for the second consecutive year, with 10% yearly growth since 2020 [10] Company Strategy and Development Direction - The company is focused on operational improvements, disciplined cost management, and strategic investments to achieve a midterm EBITDA margin target of 23% [12][20] - The transformation of Precision Optics is expected to unlock additional growth and margin expansion opportunities [13] - The company aims to capitalize on the growth in the semiconductor market driven by AI and data center demand [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, expecting approximately 15% earnings growth driven by new business wins and market recovery [11][22] - The company anticipates continued progress toward its midterm EBITDA margin target, with free cash flow generation expected to strengthen [12][22] - Management highlighted the importance of strong partnerships with customers and the commitment to delivering high-quality products [6][14] Other Important Information - The company completed the acquisition of Konasol's semiconductor manufacturing footprint in Korea, positioning it to deliver locally to leading semiconductor manufacturers [10] - A $65 million investment from a major U.S. defense prime was secured to expand beryllium capacity, enhancing long-term growth prospects [11] Q&A Session Summary Question: Details on the precision clad strip quality issues and customer expectations - Management explained the quality event was due to a control failure in production, which was addressed with corrective actions and enhanced quality control measures [26][27] Question: Electronic Materials business performance and margin expectations - Management noted that while there was strong sequential growth in sales, margin performance was affected by mixed factors and one-time items [31][34] Question: Beryllium capacity and government strategic reserves - Management stated that while they cannot discuss government plans in detail, they are well-positioned to support customer needs and have good beryllium capacity [36][38] Question: Working capital needs and inventory management - Management acknowledged that growth has led to increased working capital needs, particularly in inventory, but they are implementing initiatives to manage it efficiently [71][74] Question: Energy market contributions and order book dynamics - Management confirmed that the energy market is seeing significant growth, with new contracts contributing to the order book, and they expect this trend to continue [61][85]

Financial Data and Key Metrics Changes - Fourth quarter sales were impacted by a quality event with the largest customer, but excluding this event, the company delivered strong financial results with 7% year-on-year organic growth [4][6] - Adjusted EBITDA was $57 million, or 22.5% of Value-Added Sales, down 7% year-over-year but up 170 basis points from a margin perspective [16] - Adjusted earnings per share for the year was $5.44, up 2% compared to the prior year [20] Business Line Data and Key Metrics Changes - Electronic materials experienced a 20% increase in sales, driven by growth in the semiconductor market, marking the strongest sales quarter in nearly three years [6][16] - Precision optics delivered a 26% increase in sales, marking the third consecutive quarter of top-line improvement [8][18] - Performance materials saw a 32% decrease in Value-Added Sales, primarily due to lower Precision Clad Strip sales [16] Market Data and Key Metrics Changes - The semiconductor business saw order rates up 14% year-on-year, excluding China, indicating strong demand [9][54] - The new energy market sales more than doubled year-on-year, reflecting the company's focus on accelerating energy needs [10] - Defense sales surpassed $100 million for the second consecutive year, with a 10% yearly growth since 2020 [10] Company Strategy and Development Direction - The company aims for approximately 15% earnings growth in 2026, supported by new business wins and market recovery [11] - Focus on operational improvements and disciplined cost management to achieve a midterm EBITDA margin target of 23% [12] - Continued investment in capacity expansion, particularly in beryllium, to support long-term growth in defense and energy markets [11][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering 2026, citing strong order rates and market dynamics [4][12] - The quality event with the Precision Clad Strip customer was addressed with enhanced quality control measures, ensuring future production meets customer expectations [5][30] - The company anticipates a slower start to 2026 due to normal seasonality and ramping production, but expects sequential earnings growth throughout the year [22][52] Other Important Information - The company completed the acquisition of Conasol's semiconductor manufacturing footprint in Korea, enhancing its position in the semiconductor market [10] - New business bookings reached nearly $140 million, the highest ever, with a $200 million pipeline of new business RFQs [10] Q&A Session Summary Question: Details on the Precision Clad Strip quality issues and customer expectations - Management explained the quality event was due to a control failure in production, which was addressed with a revised quality system and additional resources [28][30] Question: Electronic materials business performance and margin expectations - Management noted that while sequential sales increased, margin performance was affected by mixed factors and one-time items, but overall improvement is expected in 2026 [33][36] Question: Beryllium capacity and strategic mineral reserves - Management confirmed a $65 million investment from a defense prime to expand beryllium capacity, with additional capacity expected by 2028 [41][42] Question: First quarter earnings expectations and China sales stability - Management indicated a slower start to Q1 due to seasonality and ramping production, but expects a 10% increase in earnings compared to last year [52][54] Question: Working capital needs and inventory management - Management acknowledged that growth has led to increased working capital needs, particularly in inventory, but emphasized ongoing initiatives to manage it efficiently [76][79]

分组1 - Materion reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.51 per share, but down from $1.55 per share a year ago, representing an earnings surprise of +1.66% [1] - The company achieved revenues of $489.75 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 10.92% and increasing from $436.87 million year-over-year [2] - Materion has outperformed the S&P 500, with shares increasing approximately 26.4% since the beginning of the year compared to the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.15 on revenues of $435.9 million, and for the current fiscal year, it is $6.29 on revenues of $1.9 billion [7] - The Mining - Miscellaneous industry, to which Materion belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a favorable outlook [8]

Materion Corporation 4Q 2025 Earnings Presentation February 12, 2026 © 2026 Materion Corporation | Agenda | | | --- | --- | | Introduction | Kyle Kelleher – Director, Investor Relations and Corporate FP&A | | Opening Remarks & Business Update | Jugal Vijayvargiya – President and Chief Executive Officer | | Financial Review | Shelly Chadwick – Vice President and Chief Financial Officer | | Q&A | Question and Answer Session | 2 © 2026 Materion Corporation Forward-looking Statements and Non-GAAP Financial Info ...

Financial Performance - Fourth quarter net sales were $489.7 million, up from $436.9 million in the prior year, representing a growth of 12%[7] - Full-year net sales reached $1.79 billion, compared to $1.68 billion in the previous year, marking a 6.5% increase[9] - Net income for the fourth quarter was $6.6 million, or $0.31 per diluted share, compared to a net loss of $48.8 million, or $2.33 loss per share, in the prior year quarter[6] - Full-year net income was $74.8 million, or $3.58 per diluted share, compared to $5.9 million, or $0.28 per diluted share, in the prior year[9] - Total net cash provided by operating activities rose to $103,243,000 in 2025, up from $87,817,000 in 2024, reflecting an increase of 17.5%[23] - Net income surged to $74,823,000 in 2025, a significant increase from $5,888,000 in 2024, marking a growth of 1166.5%[23] - The company reported a net income of $6.6 million in Q4 2025, a significant recovery from a net loss of $48.8 million in Q4 2024, with a full-year net income of $74.8 million compared to $5.9 million in 2024[28] EBITDA and Margins - Adjusted EBITDA for the fourth quarter was $57.0 million, or 22.5% of value-added sales, compared to $61.5 million, or 20.8% in the prior year[8] - Full-year adjusted EBITDA was $217.0 million, or 20.7% of value-added sales, compared to $221.2 million, or 20.2% in the prior year[10] - Consolidated EBITDA for Q4 2025 was $28.9 million, compared to a loss of $20.5 million in Q4 2024, with total EBITDA for the year at $181.3 million, up from $118.3 million[28] - Adjusted EBITDA for Q4 2025 was $57.0 million, representing 11.6% of net sales, while for the twelve months, it was $217.0 million, or 12.1% of net sales[28] - Adjusted EBITDA for the Performance Materials segment was $35.8 million in Q4 2025, representing 24.1% of net sales, compared to $53.6 million and 25.4% in Q4 2024[33] - The Electronic Materials segment achieved an adjusted EBITDA of $22.0 million in Q4 2025, which is 7.0% of net sales, compared to $14.7 million and 7.2% in Q4 2024[33] Sales Performance by Segment - Electronic Materials achieved 8% organic year-over-year value-added sales growth with approximately 300 basis points of margin expansion[6] - Performance Materials segment net sales for Q4 2025 were $148.3 million, a decrease from $211.0 million in Q4 2024, while total net sales for the twelve months ended December 31, 2025, were $675.9 million compared to $744.5 million in 2024[33] - Electronic Materials segment net sales increased significantly to $313.9 million in Q4 2025 from $204.2 million in Q4 2024, with total net sales for the twelve months reaching $1,010.0 million, up from $845.7 million[33] - Value-added sales for the year ended December 31, 2025, totaled $1,046,200,000, compared to $1,097,600,000 in 2024, indicating a decrease of 4.7%[24] - Value-added sales decreased to $253.9 million in Q4 2025 from $296.1 million in Q4 2024, with total value-added sales for the twelve months at $1,046.2 million, down from $1,097.6 million[28] Investments and Future Outlook - The company secured a $65 million investment from a major defense prime to expand beryllium capacity in support of U.S. defense initiatives[6] - For 2026, the company expects adjusted earnings per share in the range of $6.00 to $6.50, reflecting a 15% increase from the prior year at the midpoint[11] - The company aims for a mid-term adjusted EBITDA margin target of 23%[11] - The company plans to continue focusing on automation and transformation initiatives, which are expected to enhance operational efficiency and profitability[31] Asset and Debt Management - Total assets increased to $1,802,801,000 in 2025 from $1,697,632,000 in 2024, representing a growth of 6.2%[21] - Long-term debt increased to $436,348,000 in 2025 from $407,734,000 in 2024, representing a rise of 7%[21] - Cash and cash equivalents decreased to $13,681,000 at the end of 2025 from $16,713,000 at the end of 2024, a decline of 18.2%[23] Special Items and Costs - Special items in Q4 2025 totaled $28.1 million, including $27.3 million related to a product quality issue, impacting overall profitability[28][29] - The company incurred $3.5 million in merger, acquisition, and divestiture-related costs for the twelve months ended December 31, 2025[28] - The company reported a restructuring and cost reduction expense of $0.5 million for the Performance Materials segment over the twelve months ended December 31, 2025[33] Impairments and Quality Issues - The Precision Optics segment recorded impairments of $73.2 million in 2024, impacting overall performance metrics[34] - Total gross margin for the company in Q4 2025 was $63.7 million, down from $93.0 million in Q4 2024, with special items impacting gross margin primarily due to product quality issues and environmental remediation[36] - The total adjusted gross margin for the twelve months ended December 31, 2025, was $335.0 million, slightly down from $338.4 million in 2024[36]

Core Insights - Materion Corporation reported strong financial results for the fourth quarter and full year of 2025, with a net income of $6.6 million, or $0.31 per share, compared to a net loss of $48.8 million, or $2.33 loss per share, in the previous year [1] Financial Performance - Fourth quarter net sales reached $489.7 million, while value-added sales were $253.9 million [1] - The company provided strong earnings guidance for 2026, indicating positive expectations for future performance [1] Strategic Initiatives - Materion announced a $65 million customer investment aimed at supporting US defense initiatives, highlighting its commitment to the defense sector [1]