MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--April 29, 2026--
Materion Corporation $(MTRN)$ today reported first quarter 2026 financial results and provided an update to the full-year outlook.
Financial Summary
-- Net sales were $549.8 million versus $420.3 million in the prior year
quarter; value-added sales1 were $261.8 million versus $259.3 million in
the prior year quarter
-- Net income of $19.4 million, or $0.92 per share, diluted, versus net
income of $17.7 million, or $0.85 per share, in the prior year quarter;
adjusted earnings of $1.27 per share versus $1.13 in the prior year
quarter
-- Operating profit of $28.2 million versus operating profit of $27.2
million in the prior year quarter; adjusted EBITDA2 of $52.9 million or
20.2% of value-add sales versus $48.7 million or 18.8% in the prior year
quarter, representing 140 basis point margin expansion
Business Highlights
-- Value-added sales grew 10% year on year, excluding precision clad
strip
-- Electronic Materials delivered 18% value-added sales growth with record
adjusted EBITDA and EBITDA margin
-- Precision Optics transformation delivered its strongest top line since
2021 and the 5th consecutive quarter of bottom-line improvement
-- Exiting the quarter with record backlog, up more than 20% year on year
and up 15% since the beginning of the year
"I am very pleased with the strong start to the year, as our teams delivered double-digit growth across most of our end markets and improved operational performance throughout the company. Electronic Materials achieved its strongest results on record, while the Precision Optics transformation took another meaningful step forward, delivering well ahead of expectations," said Jugal Vijayvargiya, President & CEO of Materion.
"We continue to see unparalleled momentum in our order rates, and we exited the quarter with a record backlog, increasing our confidence in the results we expect to achieve in 2026."
FIRST QUARTER 2026 RESULTS
Net sales for the quarter were $549.8 million, compared to $420.3 million in the prior year period. Value-added sales were $261.8 million for the quarter, up 1% from the prior year period driven by growth across most end markets, partially offset by lower precision clad strip shipments.
Operating profit for the quarter was $28.2 million and net income was $19.4 million, or $0.92 per diluted share, compared to operating profit of $27.2 million and net income of $17.7 million, or $0.85 per share, in the prior year period.
Excluding special items(3) , adjusted EBITDA was $52.9 million, a first quarter record of 20.2% of value-added sales, compared to $48.7 million or 18.8% of value-added sales in the prior year period. The adjusted EBITDA margin was driven primarily by higher volume, favorable price/mix and strong operational performance in Electronic Materials and Precision Optics.
Adjusted net income was $26.7 million excluding acquisition amortization, or $1.27 per diluted share, compared to $1.13 per share in the prior year period.
OUTLOOK
Supported by the momentum in our order book and an all-time high backlog as we exited the first quarter, our confidence in delivering strong results has meaningfully strengthened. We now expect top--line growth in the low double--digit range. We are reaffirming our full--year adjusted earnings per share guidance of $6.00 to $6.50, with increasing conviction in achieving results toward the high end of the range.
ADJUSTED EARNINGS GUIDANCE
It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 8 to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, April 29, 2026. The conference call will be available via webcast through the Company's website at www.materion.com. By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 960083. A replay of the call will be available until May 13, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53274. The call will also be archived on the Company's website.
FOOTNOTES
(1) Value-added sales deducts the impact of pass-through metals from net sales
(2) EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization
(3) Details of the special items can be found in Attachments 4 through 8
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 specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries.
FORWARD-LOOKING STATEMENTS
Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in identifying acquisition candidates and in acquiring and integrating such businesses; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions; our success in implementing our strategic plans and the timely and successful start-up and completion of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company's stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks from infectious diseases and other extraordinary events including geopolitical conflicts such as the conflict between Russia and Ukraine and the conflict between the United States and Iran; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2025 Annual Report on Form 10-K and in other reports that we file with the SEC.
Attachment 1
Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
First Quarter Ended
-----------------------------------
(Thousands, except per share amounts) April 3, 2026 March 28, 2025
--------------- ------------------
Net sales $ 549,824 $ 420,330
Cost of sales 467,989 344,151
---------- -----------
Gross margin 81,835 76,179
Selling, general, and
administrative expense 36,200 35,445
Research and development expense 6,157 6,505
Restructuring expense 2,295 2,038
Other -- net 9,008 4,996
---------- -----------
Operating profit 28,175 27,195
Other non-operating income--net (309) (666)
Interest expense -- net 7,578 6,917
---------- -----------
Income before income taxes 20,906 20,944
Income tax expense 1,533 3,246
---------- -----------
Net income $ 19,373 $ 17,698
========== ===========
Basic earnings per share:
Net income per share of common
stock $ 0.93 $ 0.85
Diluted earnings per share:
Net income per share of common
stock $ 0.92 $ 0.85
Weighted-average number of shares of
common stock outstanding:
Basic 20,762 20,780
Diluted 21,007 20,913
Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
--------------- ---------------------
(Thousands) April 3, 2026 December 31, 2025
--------------- ---------------------
Assets
Current assets
Cash and cash equivalents $ 16,189 $ 13,681
Accounts receivable, net 267,209 222,916
Inventories, net 493,687 461,231
Prepaid and other current
assets 98,664 91,692
---------- --------------
Total current assets 875,749 789,520
Deferred income taxes 7,718 7,727
Property, plant, and equipment 1,390,729 1,376,703
Less allowances for
depreciation, depletion, and
amortization (860,870) (841,245)
---------- --------------
Property, plant, and
equipment, net 529,859 535,458
Operating lease, right-of-use
assets 59,024 62,036
Intangible assets, net 102,739 105,874
Other assets 21,975 21,529
Goodwill 280,335 280,657
---------- --------------
Total Assets $ 1,877,399 $ 1,802,801
========== ==============
Liabilities and Shareholders'
Equity
Current liabilities
Short-term debt $ 23,050 $ 22,445
Accounts payable 189,036 148,642
Salaries and wages 12,751 19,312
Other liabilities and accrued
items 47,563 45,445
Income taxes 4,156 5,054
Unearned revenue 11,929 12,685
---------- --------------
Total current liabilities 288,485 253,583
Other long-term liabilities 12,680 12,556
Operating lease liabilities 59,539 60,568
Finance lease liabilities 12,950 13,384
Retirement and post-employment
benefits 23,360 23,931
Unearned income 53,303 55,862
Long-term income taxes 536 532
Deferred income taxes 2,712 2,760
Long-term debt 466,871 436,348
Shareholders' equity 956,963 943,277
---------- --------------
Total Liabilities and
Shareholders' Equity $ 1,877,399 $ 1,802,801
========== ==============
Attachment 3
Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
-----------------------------------
(Thousands) April 3, 2026 March 28, 2025
--------------- ------------------
Cash flows from operating
activities:
Net income $ 19,373 $ 17,698
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation, depletion, and
amortization 18,426 16,538
Amortization of deferred
financing costs in interest
expense 239 450
Stock-based compensation expense
(non-cash) 3,371 2,986
Deferred income tax (benefit)
expense (3) 22
Changes in assets and
liabilities:
Accounts receivable (45,097) (24,912)
Inventory (28,916) 421
Prepaid and other current
assets (8,406) (10,428)
Accounts payable and accrued
expenses 36,420 19,191
Unearned revenue (1,956) (4,616)
Interest and taxes payable (179) (404)
Other-net 2,421 (1,444)
---------- -----------
Net cash provided by (used
in) operating activities (4,307) 15,502
Cash flows from investing
activities:
Payments for purchase of
property, plant, and equipment (15,289) (12,321)
Payments for mine development (60) (8,683)
Proceeds from sale of property,
plant, and equipment -- 266
---------- -----------
Net cash used in investing
activities (15,349) (20,738)
Cash flows from financing
activities:
Proceeds from (repayments of)
borrowings under credit
facilities, net 32,783 16,190
Repayment of debt (1,572) (7,522)
Principal payments under finance
lease obligations (153) (163)
Cash dividends paid (2,905) (2,803)
Payments of withholding taxes
for stock-based compensation
awards (5,772) (2,224)
---------- -----------
Net cash provided by
financing activities 22,381 3,478
Effects of exchange rate changes (217) 679
---------- -----------
Net change in cash and
cash equivalents 2,508 (1,079)
Cash and cash equivalents
at beginning of period 13,681 16,713
---------- -----------
Cash and cash equivalents
at end of period $ 16,189 $ 15,634
========== ===========
Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit,
and EBITDA
(Unaudited)
First Quarter Ended
---------------------------------
(Millions) April 3, 2026 March 28, 2025
--------------- ----------------
Net Sales
Performance Materials $ 155.7 $ 174.0
Electronic Materials 363.3 224.8
Precision Optics 30.8 21.5
Other -- --
--- ---------- --- -----------
Total $ 549.8 $ 420.3
Less: Pass-through Metal Cost
Performance Materials $ 16.2 $ 14.0
Electronic Materials 271.7 147.0
Precision Optics 0.1 --
Other -- --
--- ---------- --- -----------
Total $ 288.0 $ 161.0
Value-added Sales (non-GAAP)
Performance Materials $ 139.5 $ 160.0
Electronic Materials 91.6 77.8
Precision Optics 30.7 21.5
Other -- --
--- ---------- --- -----------
Total $ 261.8 $ 259.3
Gross Margin
Performance Materials(1) $ 31.0 $ 48.2
Electronic Materials(1) 39.8 23.8
Precision Optics(1) 11.0 4.2
Other -- --
--- ---------- --- -----------
Total (1) $ 81.8 $ 76.2
(1) See reconciliation of gross margin to adjusted gross margin in
Attachment 8
First Quarter Ended
-----------------------------------
(Millions) April 3, 2026 March 28, 2025
--------------- ------------------
Operating Profit
Performance Materials $ 12.9 $ 31.3
Electronic Materials 20.9 6.8
Precision Optics 2.2 (4.1)
Other (7.8) (6.8)
--- --------- -----------
Total $ 28.2 $ 27.2
Non-Operating (Income)/Expense
Performance Materials $ 0.1 $ --
Electronic Materials -- --
Precision Optics (0.2) (0.3)
Other (0.2) (0.4)
--- --------- -----------
Total $ (0.3) $ (0.7)
Depreciation, Depletion, and
Amortization
Performance Materials $ 11.0 $ 9.4
Electronic Materials 4.6 4.3
Precision Optics 2.3 2.3
Other 0.5 0.5
--- --------- -----------
Total $ 18.4 $ 16.5
Segment EBITDA
Performance Materials $ 23.8 $ 40.7
Electronic Materials 25.5 11.1
Precision Optics 4.7 (1.5)
Other (7.1) (5.9)
--- --------- -----------
Total $ 46.9 $ 44.4
=== ========= ===========
Special Items(2)
Performance Materials $ 4.2 $ 0.2
Electronic Materials 0.4 2.2
Precision Optics 0.8 1.4
Other 0.6 0.5
--- --------- -----------
Total $ 6.0 $ 4.3
Adjusted EBITDA Excluding Special
Items
Performance Materials $ 28.0 $ 40.9
Electronic Materials 25.9 13.3
Precision Optics 5.5 (0.1)
Other (6.5) (5.4)
--- --------- -----------
Total $ 52.9 $ 48.7
=== ========= ===========
The cost of gold, silver, platinum, palladium, copper, ruthenium, iridium,
rhodium, rhenium, and osmium is passed through to customers and,
therefore, the trends and comparisons of net sales are affected by
movements in the market price of these metals. Internally, management also
reviews net sales on a value-added basis. Value-added sales is a non-GAAP
financial measure that deducts the value of the pass-through metals sold
from net sales. Value-added sales allows management to assess the impact
of differences in net sales between periods or segments and analyze the
resulting margins and profitability without the distortion of the
movements in pass-through market metal prices. The dollar amount of gross
margin and operating profit is not affected by the value-added sales
calculation. The Company sells other metals and materials that are not
considered direct pass throughs, and these costs are not deducted from net
sales to calculate value-added sales.
The Company's pricing policy is to pass the cost of these metals on to
customers in order to mitigate the impact of price volatility on the
Company's results from operations. Value-added information is being
presented since changes in metal prices may not directly impact
profitability. It is the Company's intent to allow users of the financial
statements to review sales with and without the impact of the pass-through
metals.
(2) See additional details of special items in Attachment 5.
Attachment 5
Materion Corporation and Subsidiaries
Reconciliation of Net sales to Value-added sales, Net Income to EBITDA and
Adjusted EBITDA
(Unaudited)
First Quarter Ended First Quarter Ended
----------------------- -----------------------
(Millions) April 3, 2026 March 28, 2025
----------------------- -----------------------
Net sales $ 549.8 $ 420.3
Pass-through metal cost 288.0 161.0
---- ------------ --- --- ------------ ----
Value-added sales $ 261.8 $ 259.3
Net income $ 19.4 $ 17.7
Income tax expense 1.5 3.3
Interest expense - net 7.6 6.9
Depreciation, depletion
and amortization 18.4 16.5
---- ------------ --- --- ------------ ----
Consolidated EBITDA $ 46.9 $ 44.4
Net Income as a % of
Net sales 3.5% 4.2%
Net Income as a % of
Value-added sales 7.4% 6.8%
EBITDA as a % of Net
sales 8.5% 10.6%
EBITDA as a % of
Value-added sales 17.9% 17.1%
Special items
Restructuring and cost
reduction $ 2.4 $ 2.1
Merger, acquisition and
divestiture related
costs -- 2.1
Product quality issue 3.5 --
Business transformation
costs 0.1 0.1
---- ------------ --- --- ------------ ----
Total special items 6.0 4.3
---- ------------ --- --- ------------ ----
Adjusted EBITDA $ 52.9 $ 48.7
==== ============ === === ============ ====
Adjusted EBITDA as a
% of Net sales 9.6% 11.6%
Adjusted EBITDA as a
% of Value-added
sales 20.2% 18.8%
In addition to presenting financial statements prepared in accordance with
U.S. generally accepted accounting principles (GAAP), this earnings release
contains financial measures, including operating profit, segment operating
profit, earnings before interest, taxes, depreciation, depletion and
amortization (EBITDA), net income, and earnings per share, on a non-GAAP
basis. As detailed in the above reconciliation and Attachment 6, we have
adjusted the results for certain special items, including the following:
Restructuring and cost reduction -- Costs include restructuring charges,
costs associated with temporarily idled facilities as a result of decreased
demand and costs associated with disposal of assets associated with obsolete
products. Merger, acquisition and divestiture related costs -- Includes due
diligence costs associated with potential merger, acquisition and
divestitures as well as loss on asset disposals. Product quality issue -
Represents costs incurred related to a previously identified quality issue
in the fourth quarter of 2025 identified by a large precision clad strip
customer which led to temporarily idling production facilities within the
Performance Materials segment. Business transformation costs -- Represents
project management and implementation expenses related to the Company's
automation and transformation initiatives.
Internally, management reviews the results of operations without the impact
of these costs in order to assess the profitability from ongoing activities.
We are providing this information because we believe it will assist
investors in analyzing our financial results and, when viewed in conjunction
with the GAAP results, provide a more comprehensive understanding of the
factors and trends affecting our operations.
Attachment 6
Materion Corporation and Subsidiaries
Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings
per Share to Adjusted Diluted Earnings per Share
(Unaudited)
First Quarter First Quarter
Ended Diluted Ended Diluted
-------------- --------------
(Millions) April 3, 2026 EPS March 28, 2025 EPS
-------------- --------- -------------- ---------
Net income and EPS $ 19.4 $ 0.92 $ 17.7 $ 0.85
Special items
Restructuring
and cost
reduction 2.4 2.1
Merger,
acquisition
and
divestiture
related costs -- 2.1
Product quality
issue 3.5 --
Business
transformation
costs 0.1 0.1
Provision for
income
taxes(1) (0.7) (0.5)
--- ---- --- ----
Total special
items 5.3 0.25 3.8 0.18
--- ---- --- ----- --- ---- --- -----
Adjusted net
income and
adjusted EPS $ 24.7 $ 1.17 $ 21.5 $ 1.03
Acquisition
amortization
(net of tax) 2.0 0.10 2.2 0.10
--- ---- --- ----- --- ---- --- -----
Adjusted net
income and
adjusted EPS
excl.
amortization $ 26.7 $ 1.27 $ 23.7 $ 1.13
=== ==== === ===== === ==== === =====
(1) Provision for income taxes includes the net tax impact on pre-tax
adjustments (listed above), the impact of discrete tax items recorded
during the respective periods as well as other adjustments to reflect
the use of one overall effective tax rate on adjusted pre-tax income in
interim periods.
Attachment 7
Reconciliation of Segment Net sales to Segment Value-added sales and Segment
EBITDA to Adjusted Segment EBITDA
(Unaudited)
Performance Materials
First Quarter Ended First Quarter Ended
----------------------- -----------------------
(Millions) April 3, 2026 March 28, 2025
----------------------- -----------------------
Net sales $ 155.7 $ 174.0
Pass-through metal cost 16.2 14.0
---- ------------ --- --- ------------ ----
Value-added sales $ 139.5 $ 160.0
EBITDA $ 23.8 $ 40.7
Restructuring and cost
reduction 0.6 0.2
Product quality issue 3.5 --
Business transformation
costs 0.1 --
---- ------------ --- --- ------------ ----
Adjusted EBITDA $ 28.0 $ 40.9
EBITDA as a % of Net
sales 15.3% 23.4%
EBITDA as a % of
Value-added sales 17.1% 25.4%
Adjusted EBITDA as a
% of Net sales 18.0% 23.5%
Adjusted EBITDA as a
% of Value-added
sales 20.1% 25.6%
Electronic Materials
First Quarter Ended First Quarter Ended
----------------------- -----------------------
(Millions) April 3, 2026 March 28, 2025
----------------------- -----------------------
Net sales $ 363.3 $ 224.8
Pass-through metal cost 271.7 147.0
---- ------------ --- --- ------------ ----
Value-added sales $ 91.6 $ 77.8
EBITDA $ 25.5 $ 11.1
Restructuring and cost
reduction 0.4 0.5
Merger, acquisition and
divestiture related
costs -- 1.7
---- ------------ --- --- ------------ ----
Adjusted EBITDA $ 25.9 $ 13.3
EBITDA as a % of Net
sales 7.0% 4.9%
EBITDA as a % of
Value-added sales 27.8% 14.3%
Adjusted EBITDA as a
% of Net sales 7.1% 5.9%
Adjusted EBITDA as a
% of Value-added
sales 28.3% 17.1%
Precision Optics
First Quarter Ended First Quarter Ended
----------------------- -----------------------
(Millions) April 3, 2026 March 28, 2025
----------------------- -----------------------
Net sales $ 30.8 $ 21.5
Pass-through metal cost 0.1 --
---- ------------ --- --- ------------ ----
Value-added sales $ 30.7 $ 21.5
EBITDA $ 4.7 $ (1.5)
Restructuring and cost
reduction 0.8 1.4
---- ------------ --- --- ------------ ----
Adjusted EBITDA $ 5.5 $ (0.1)
EBITDA as a % of Net
sales 15.3% (7.0)%
EBITDA as a % of
Value-added sales 15.3% (7.0)%
Adjusted EBITDA as a
% of Net sales 17.9% (0.5)%
Adjusted EBITDA as a
% of Value-added
sales 17.9% (0.5)%
Other
First Quarter Ended First Quarter Ended
----------------------- -----------------------
(Millions) April 3, 2026 March 28, 2025
----------------------- -----------------------
EBITDA $ (7.1) $ (5.9)
Restructuring and cost
reduction 0.6 --
Merger, acquisition and
divestiture related
costs -- 0.4
Business transformation
costs -- 0.1
---- ------------ --- --- ------------ ----
Adjusted EBITDA $ (6.5) $ (5.4)
==== ============ === ============ ===
Attachment 8
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
First Quarter Ended First Quarter Ended
--------------------- ---------------------
(Millions) April 3, 2026 March 28, 2025
--------------------- ---------------------
Gross Margin
Performance Materials $ 31.0 $ 48.2
Electronic Materials 39.8 23.8
Precision Optics 11.0 4.2
Other -- --
----- -------------- ---- ---------------
Total $ 81.8 $ 76.2
Special Items (1)
Performance Materials $ 3.5 $ --
Electronic Materials -- --
Precision Optics -- --
Other -- --
----- -------------- ---- ---------------
Total $ 3.5 $ --
Adjusted Gross Margin
Performance Materials $ 34.5 $ 48.2
Electronic Materials 39.8 23.8
Precision Optics 11.0 4.2
Other -- --
----- -------------- ---- ---------------
Total $ 85.3 $ 76.2
===== ============== ==== ===============
(1) Special items impacting gross margin represent the product quality issue
identified in the fourth quarter of 2025.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260428896039/en/
CONTACT: Investor Contact:
Kyle Kelleher
(216) 383-4931
kyle.kelleher@materion.com
Media Contact:
Jason Saragian
(216) 383-6893
jason.saragian@materion.com
https://materion.com
(END) Dow Jones Newswires
April 29, 2026 06:47 ET (10:47 GMT)