Record backlog and higher earnings mark Materion (NYSE: MTRN) Q1 2026
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Materion Corporation reported strong first quarter 2026 results with net sales of $549.8 million, up from $420.3 million a year earlier. Value-added sales were $261.8 million versus $259.3 million, reflecting underlying growth despite lower precision clad strip shipments.
Net income rose to $19.4 million, or $0.92 diluted EPS, compared with $17.7 million, or $0.85. Adjusted diluted EPS increased to $1.27 from $1.13, and adjusted EBITDA reached $52.9 million, or 20.2% of value-added sales, up from 18.8%. Electronic Materials delivered record adjusted EBITDA and margin, while Precision Optics posted its strongest revenue since 2021 and a fifth straight quarter of bottom-line improvement.
The company exited the quarter with a record backlog, up more than 20% year over year and 15% since the start of the year. Materion now expects full-year top-line growth in the low double digits and reaffirmed adjusted EPS guidance of $6.00–$6.50, with greater confidence toward the high end.
Positive
- Robust top-line and earnings growth: Net sales increased to $549.8 million from $420.3 million, diluted EPS rose to $0.92 from $0.85, and adjusted diluted EPS climbed to $1.27 from $1.13.
- Margin expansion and segment strength: Adjusted EBITDA reached $52.9 million, lifting value-added EBITDA margin to 20.2% from 18.8%, driven by record results in Electronic Materials and improving Precision Optics performance.
- Record backlog and confident guidance: Backlog ended the quarter more than 20% higher year over year, supporting expectations for low double-digit top-line growth and adjusted EPS of $6.00–$6.50 toward the high end.
Negative
- Performance Materials under pressure: Segment EBITDA fell to $23.8 million from $40.7 million, with lower value-added sales and special items including $3.5 million tied to a product quality issue in precision clad strip.
- Weaker operating cash flow: Net cash from operating activities was a $4.3 million use in the quarter, compared with $15.5 million provided in the prior-year period, reflecting working capital outflows.
Insights
Materion posted strong Q1 growth, rising margins and a record backlog, supporting a confident full-year outlook.
Materion grew net sales to $549.8 million from $420.3 million, while value-added sales edged up to $261.8 million. Earnings quality improved: diluted EPS rose to $0.92 and adjusted diluted EPS to $1.27, with adjusted EBITDA at $52.9 million and a higher 20.2% value-added margin.
Segment data show a mix of trends. Electronic Materials had 18% value-added sales growth and much stronger EBITDA margins, while Precision Optics turned prior weakness into positive EBITDA and its best top line since 2021. Performance Materials declined amid product quality-related costs and restructuring, highlighted in the special items.
The record backlog, up more than 20% year over year and 15% since year start, underpins management’s expectation for low double-digit top-line growth. Reaffirmed full-year adjusted EPS guidance of $6.00–$6.50, with confidence toward the higher end, ties near-term performance to stronger order momentum disclosed for full-year 2026.
8-K Event Classification
8 items: 0.18, 0.25, 2.02, 3.8, 4.3, 5.3, 6.0, 9.01
8 items
Item 0.18
Item 0.18
Item 0.25
Item 0.25
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 3.8
Item 3.8
Item 4.3
Item 4.3
Item 5.3
Item 5.3
Item 6.0
Item 6.0
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $549.8 million
Net income: $19.4 million
Diluted EPS: $0.92 per share
+5 more
8 metrics
Net sales
$549.8 million
First quarter 2026 vs $420.3 million prior-year quarter
Net income
$19.4 million
First quarter 2026 vs $17.7 million prior-year quarter
Diluted EPS
$0.92 per share
First quarter 2026 vs $0.85 per share prior-year quarter
Adjusted diluted EPS
$1.27 per share
First quarter 2026 vs $1.13 per share prior-year quarter
Adjusted EBITDA
$52.9 million
20.2% of value-added sales vs $48.7 million and 18.8% a year ago
Backlog growth
More than 20%
Year-over-year increase in backlog exiting Q1 2026; 15% above beginning of year
Operating cash flow
-$4.3 million
Net cash used in operating activities in first quarter 2026 vs $15.5 million provided prior-year
2026 adjusted EPS guidance
$6.00–$6.50
Full-year 2026 adjusted earnings per share guidance reaffirmed
Key Terms
value-added sales, adjusted EBITDA, backlog, pass-through metal cost, +2 more
6 terms
value-added sales financial
"Value-added sales were $261.8 million for the quarter, up 1% from the prior year period"
Sales of products or services that include extra features, services, customization or processing beyond the basic commodity, so the company can charge more than for the plain version. Investors care because value-added sales typically bring higher profit margins, stronger customer loyalty and more predictable revenue than selling undifferentiated goods—much like selling a decorated, customized cake instead of a plain one increases both price and repeat business.
adjusted EBITDA financial
"adjusted EBITDA was $52.9 million, a first quarter record of 20.2% of value-added sales"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
backlog financial
"Exiting the quarter with record backlog, up more than 20% year on year"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
pass-through metal cost financial
"Pass-through metal cost 288.0 ... Value-added sales 261.8"
business transformation costs financial
"Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives."
Precision Optics financial
"Precision Optics transformation delivered its strongest top line since 2021 and the 5th consecutive quarter of bottom-line improvement"
Earnings Snapshot
Net sales: $549.8 million · Guidance included
Q1 2026
Net sales
$549.8 million
+31% vs prior-year net sales of $420.3 million
Net income
$19.4 million
vs $17.7 million in prior-year quarter
Diluted EPS
$0.92
vs $0.85 in prior-year quarter
Adjusted diluted EPS
$1.27
vs $1.13 in prior-year quarter
Adjusted EBITDA margin
20.2% of value-added sales
vs 18.8% in prior-year quarter
Backlog
Record level
up more than 20% year over year and 15% since beginning of year
Adjusted EPS guidance
$6.00–$6.50
full-year 2026 range reaffirmed with confidence toward high end
Guidance
Materion expects low double-digit top-line growth for 2026 and reaffirmed full-year adjusted EPS guidance of $6.00–$6.50, indicating stronger confidence toward the high end of the range.
| UNITED STATES | ||||||||||||||
| SECURITIES AND EXCHANGE COMMISSION | ||||||||||||||
| Washington, D.C. 20549 | ||||||||||||||
FORM 8-K
| CURRENT REPORT | ||||||||||||||
| Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||||||||||||
Date of Report (Date of earliest event reported) April 29, 2026
| (Exact name of registrant as specified in its charter) | ||||||||||||||
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant's telephone number, including area code (216 ) 486-4200
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§204.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Materion Corporation issued a press release announcing its results for the first quarter of 2026. The press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibits.
| Exhibit Number | Description of Exhibit | |||||||
| 99.1 | Materion Corporation press release, dated April 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Materion Corporation | ||||||||
April 29, 2026 | By: | /s/ Melissa A. Fashinpaur | ||||||
Melissa A. Fashinpaur | ||||||||
| Chief Accounting Officer | ||||||||
MATERION CORPORATION REPORTS STRONG FIRST QUARTER 2026 FINANCIAL RESULTS AND IMPROVES FULL-YEAR OUTLOOK
MAYFIELD HEIGHTS, Ohio – Materion Corporation (NYSE: 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.”
1
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 items3, 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.
2
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.
3
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
4
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 | |||||||||
5
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 | ||||||||||
6
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 | ||||||||||
7
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 | |||||||||||
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.
9
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:
1.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.
2.Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.
3.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.
4.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.
10
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 Ended | Diluted | First Quarter 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.
11
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) | % | |||||||
12
| 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) | |||||||
13
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.
14
FAQ
How did Materion (MTRN) perform financially in Q1 2026?
Materion delivered stronger Q1 2026 results, with net sales of $549.8 million versus $420.3 million a year earlier. Net income was $19.4 million, diluted EPS reached $0.92, and adjusted diluted EPS improved to $1.27, reflecting higher volume and better mix.
What were Materion (MTRN)’s margins and adjusted EBITDA in Q1 2026?
Adjusted EBITDA in Q1 2026 was $52.9 million, up from $48.7 million in the prior-year quarter. This equated to 20.2% of value-added sales, compared with 18.8% previously, indicating margin expansion from higher volume, favorable price/mix and stronger operational performance.
How did Materion’s business segments perform in Q1 2026?
In Q1 2026, Electronic Materials grew value-added sales to $91.6 million with much higher EBITDA, while Precision Optics lifted value-added sales to $30.7 million and turned prior EBITDA losses positive. Performance Materials declined in value-added sales and EBITDA amid special items.
What is Materion (MTRN)’s Q1 2026 backlog and what does it imply?
Materion exited Q1 2026 with a record backlog, more than 20% higher year over year and 15% above the beginning of the year. This elevated order book supports management’s view of sustained demand and underpins expectations for low double-digit top-line growth in 2026.
What full-year 2026 guidance did Materion (MTRN) provide?
Materion reaffirmed full-year 2026 adjusted EPS guidance of $6.00 to $6.50, stating greater confidence in achieving results toward the high end. The company now anticipates low double-digit top-line growth, supported by strong order momentum and a record backlog.
How did Materion’s cash flow and balance sheet look after Q1 2026?
In Q1 2026, Materion used $4.3 million of cash in operating activities, versus $15.5 million generated a year earlier, mainly from working capital changes. Cash ended at $16.2 million, with total assets of $1.88 billion and shareholders’ equity of $957.0 million.