STOCK TITAN
  1. Home
  2. Sec-filings
  3. MTRN
  4. [8-K] MATERION Corp Reports Material Event

Record Q2 profit as Materion Corporation (NYSE: MTRN) lifts 2026 EPS outlook

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Materion Corporation reported record second-quarter 2026 results, with net sales of $613.9 million versus $431.7 million a year earlier and value-added sales of $308.2 million, up 15%. Net income rose to $38.8 million, or $1.84 diluted EPS, and adjusted EPS reached $1.90.

Operating profit was $51.7 million and record adjusted EBITDA was $71.8 million, 23.3% of value-added sales versus 20.8% a year ago, supported by higher volume, price/mix and operational performance. Free cash flow was about $59 million with roughly 150% cash conversion. All segments delivered double-digit sales growth and backlog ended the quarter at a record level, up about 30% year over year and 20% since year-end. On this basis, Materion now expects mid-teens full-year revenue growth and has raised 2026 adjusted EPS guidance to $6.80–$7.20, about 30% above 2025 at the midpoint.

Positive

  • Net sales increased to $613.9 million from $431.7 million, with record value-added sales of $308.2 million and each business segment delivering double-digit year-over-year sales growth.
  • Adjusted diluted EPS rose to $1.90 from $1.37, and record adjusted EBITDA reached $71.8 million, representing a margin of 23.3% of value-added sales versus 20.8% a year earlier.
  • Full-year 2026 adjusted EPS outlook was raised to $6.80–$7.20, described as a 30% increase versus 2025 at the midpoint, supported by record backlog up about 30% year over year.

Negative

  • None.

Insights

Analyzing...

Item 0.6 Item 0.6
Item 0.9 Item 0.9
Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.2 Item 5.2
Item 6.7 Item 6.7
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $613.9 million Second quarter 2026 net sales vs $431.7 million in the prior-year quarter
Q2 2026 Value-added Sales $308.2 million Value-added sales for the quarter, described as up 15% from the prior-year period
Q2 2026 Net Income $38.8 million Net income for the second quarter of 2026 vs $25.1 million a year earlier
Q2 2026 Diluted EPS $1.84 per share Diluted earnings per share in Q2 2026 vs $1.21 in the prior-year period
Q2 2026 Adjusted EBITDA $71.8 million Record adjusted EBITDA, 23.3% of value-added sales vs 20.8% in the prior-year quarter
Q2 2026 Free Cash Flow $58.7 million Free cash flow in Q2 2026 with 151% conversion as a percentage of net income
2026 Adjusted EPS Guidance Range $6.80–$7.20 Full-year 2026 adjusted EPS guidance, stated as 30% above 2025 at the midpoint
Backlog Growth approximately 30% year-over-year, 20% since year-start Backlog at quarter-end reached a record level, up ~30% vs prior year and ~20% since year-beginning
Value-added sales financial
"Value-added sales were $308.2 million for the quarter, up 15%..."
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
"record adjusted EBITDA of $71.8 million or 23.3% of value-add 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.
Free cash flow financial
"Strong free cash flow generation of $59 million in the quarter with ~150% cash conversion"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Pass-through metal cost financial
"Less: Pass-through metal cost Performance Materials $17.9..."
Non-GAAP measure financial
"Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA"
A non-GAAP measure is a company-crafted financial metric that adjusts or excludes items from standard accounting numbers to highlight what management sees as the business’s core performance. Investors use these figures like a filtered photo to reveal trends or cash flow drivers that raw accounting totals might hide, but because companies decide which items to remove, these measures should be compared with standard statements to avoid being misled.
Net sales $613.9 million vs $431.7 million in the prior-year quarter
Net income $38.8 million vs $25.1 million in the prior-year quarter
Diluted EPS $1.84 vs $1.21 in the prior-year quarter
Adjusted diluted EPS $1.90 vs $1.37 in the prior-year quarter
Adjusted EBITDA $71.8 million vs $55.8 million in the prior-year quarter
Guidance

Full-year 2026 adjusted earnings per share guidance raised to $6.80–$7.20, described as a 30% increase versus 2025 at the midpoint, with an expectation of mid-teens top-line growth.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

What were Materion (MTRN)'s net sales and earnings in the second quarter of 2026?
Materion reported net sales of $613.9 million for Q2 2026, up from $431.7 million a year earlier. Net income was $38.8 million, equal to diluted EPS of $1.84 and adjusted diluted EPS of $1.90 for the quarter.

How did Materion (MTRN)'s margins and EBITDA perform in Q2 2026?
Materion generated record adjusted EBITDA of $71.8 million, or 23.3% of value-added sales, compared with 20.8% in the prior-year quarter. The improvement was attributed to higher volume, favorable price and mix, operational performance and some one-time benefits.

What guidance did Materion (MTRN) provide for full-year 2026 adjusted EPS?
Materion raised its full-year 2026 adjusted EPS guidance to $6.80–$7.20, which it describes as a 30% increase versus 2025 at the midpoint. Management also indicated expectations for mid-teens top-line growth supported by strong demand trends.

How strong was Materion (MTRN)'s free cash flow in the second quarter of 2026?
Materion generated free cash flow of $58.7 million in Q2 2026, compared with $35.7 million a year earlier. Free cash flow conversion was 151% of net income, reflecting strong cash generation relative to earnings and disciplined capital and mine development spending.
0001104657false00011046572026-08-052026-08-05

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) August 5, 2026
MATERION CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 001-15885 34-1919973
(State or other jurisdiction of incorporation or organization)(Commission File Number)(I.R.S. Employer Identification No.)
6070 Parkland Blvd., Mayfield Hts., Ohio 44124
(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:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, no par value MTRN New York Stock Exchange

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 August 5, 2026, Materion Corporation issued a press release announcing its results for the second 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 NumberDescription of Exhibit
99.1
Materion Corporation press release, dated August 5, 2026
104Cover 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
August 5, 2026By:
/s/ Melissa A. Fashinpaur
Melissa A. Fashinpaur
Chief Accounting Officer













































image_2heading.jpg
q226pressreleasebanner.jpg

MATERION CORPORATION REPORTS RECORD
SECOND-QUARTER 2026 FINANCIAL RESULTS AND
RAISES FULL-YEAR OUTLOOK

MAYFIELD HEIGHTS, Ohio – Materion Corporation (NYSE: MTRN) today reported strong second-quarter 2026 financial results and raised its full-year outlook.

Financial Summary
•Net sales were $613.9 million versus $431.7 million in the prior year period; value-added sales1 were $308.2 million versus $269.0 million in the prior year period
•Net income of $38.8 million, or $1.84 per share, diluted, versus $25.1 million, or $1.21 per share, in the prior year period; adjusted earnings of $1.90 per share versus $1.37 in the prior year period
•Operating profit of $51.7 million versus $36.8 million in the prior year period; record adjusted EBITDA2 of $71.8 million or 23.3% of value-add sales versus $55.8 million or 20.8% in the prior year period, with 250 basis points margin expansion
•Strong free cash flow3 generation of $59 million in the quarter with ~150% cash conversion
•Increasing full-year adjusted earnings per share outlook to $6.80 – $7.20, up 30% versus 2025 at the midpoint

Business Highlights
•Delivered record quarterly value-added sales, adjusted EBITDA and adjusted EPS
•Each business segment delivered double-digit year over year sales growth
•Exceeded 23% quarterly adjusted EBITDA margin for the first time in Company’s history
•Exited the quarter with record backlog, up ~30% year over year and ~20% since the beginning of year
•Awarded ~$15M in new business to supply advanced materials critical to engine performance for a large commercial space customer

“It is an exciting time at Materion, as our advanced material solutions are powering the critical technologies that are moving the world forward, and demand across our diverse end markets continues to accelerate. Thanks to the dedication and flawless execution across our teams, we achieved record sales and profitability in the second quarter, setting a strong foundation for the rest of the year,” said Jugal Vijayvargiya, President & CEO of Materion.
1




“We continue to see strong order rate momentum, driven by new business wins and rising demand from our existing customers. We closed out the quarter once again with record backlog, giving us the confidence to meaningfully raise our full-year outlook.”

SECOND-QUARTER 2026 RESULTS
Net sales for the quarter were $613.9 million, compared to $431.7 million in the prior year period. Value-added sales were $308.2 million for the quarter, up 15% from the prior year period driven by the highest quarterly aerospace & defense sales with significant growth seen across semiconductor, industrial, energy and telecom & data center end markets.

Operating profit for the quarter was $51.7 million and net income was $38.8 million, or $1.84 per diluted share, compared to operating profit of $36.8 million and net income of $25.1 million, or $1.21 per share, in the prior year period.

Excluding special items4, adjusted EBITDA was at an all-time quarterly high of $71.8 million, a quarterly record of 23.3% of value-added sales, compared to $55.8 million or 20.8% of value-added sales in the prior year period. The record adjusted EBITDA and margin was driven by higher volume, strong price/mix and operational performance, as well as some favorable one-time items.

Adjusted net income was $40.1 million excluding acquisition amortization, or $1.90 per diluted share, compared to $1.37 per share in the prior year period.

OUTLOOK
Our first half results combined with increasing backlog and strong order rate momentum improves our confidence in delivering record full-year results. We now expect mid-teens top‑line growth and are raising our full‑year adjusted earnings per share guidance to $6.80 to $7.20, a 30% increase from prior year at the midpoint.

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, August 5, 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 962575. A replay of the call will
2


be available until August 19, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53275. 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 See reconciliation of operating cash flow to free cash flow in Attachment 9
4 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
3


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.


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)

Second Quarter EndedSix Months Ended
(In thousands except per share amounts)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net sales$613,906 $431,658 $1,163,730 $851,988 
Cost of sales509,564 349,000 977,553 693,151 
Gross margin104,342 82,658 186,177 158,837 
Selling, general, and administrative expense42,321 35,039 78,521 70,484 
Research and development expense6,562 6,413 12,719 12,918 
Restructuring expense324 479 2,619 2,517 
Other — net3,424 3,908 12,432 8,904 
Operating profit 51,711 36,819 79,886 64,014 
Other non-operating income—net(317)(567)(627)(1,233)
Interest expense — net7,526 8,230 15,104 15,147 
Income before income taxes44,502 29,156 65,409 50,100 
Income tax expense 5,744 4,016 7,277 7,262 
Net income$38,758 $25,140 $58,132 $42,838 
Basic earnings per share:
Net income per share of common stock$1.86 $1.21 $2.80 $2.06 
Diluted earnings per share:
Net income per share of common stock$1.84 $1.21 $2.76 $2.05 
Weighted-average number of shares of common stock outstanding:
Basic20,821 20,779 20,791 20,779 
Diluted21,075 20,833 21,048 20,874 

























5


Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets

(Unaudited)
(Thousands)July 3, 2026December 31, 2025
Assets
Current assets
Cash and cash equivalents$19,987 $13,681 
Accounts receivable, net260,779 222,916 
Inventories, net487,444 461,231 
Prepaid and other current assets101,746 91,692 
Total current assets869,956 789,520 
Deferred income taxes8,816 7,727 
Property, plant, and equipment1,408,924 1,376,703 
Less allowances for depreciation, depletion, and amortization(877,237)(841,245)
Property, plant, and equipment—net531,687 535,458 
Operating lease, right-of-use assets56,974 62,036 
Intangible assets, net99,893 105,874 
Other assets23,185 21,529 
Goodwill280,186 280,657 
Total Assets$1,870,697 $1,802,801 
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt$17,478 $22,445 
Accounts payable192,292 148,642 
Salaries and wages24,074 19,312 
Other liabilities and accrued items46,328 45,445 
Income taxes3,349 5,054 
Unearned revenue12,271 12,685 
Total current liabilities295,792 253,583 
Other long-term liabilities13,286 12,556 
Operating lease liabilities58,170 60,568 
Finance lease liabilities12,671 13,384 
Retirement and post-employment benefits23,155 23,931 
Unearned income46,454 55,862 
Long-term income taxes901 532 
Deferred income taxes2,191 2,760 
Long-term debt423,210 436,348 
Shareholders’ equity994,867 943,277 
Total Liabilities and Shareholders’ Equity$1,870,697 $1,802,801 









6


Attachment 3

Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
(Thousands)July 3, 2026June 27, 2025
Cash flows from operating activities:
Net income $58,132 $42,838 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization37,614 34,047 
Amortization of deferred financing costs in interest expense478 1,412 
Stock-based compensation expense (non-cash)
8,635 5,437 
Deferred income tax expense (benefit)(1,618)(25)
Changes in assets and liabilities:
Accounts receivable
(39,130)(949)
Inventory(21,938)94 
Prepaid and other current assets(11,861)(3,029)
Accounts payable and accrued expenses45,579 4,193 
Unearned revenue(7,098)(8,525)
Interest and taxes payable
(591)(1,230)
Other-net2,304 (8,821)
Net cash provided by operating activities70,506 65,442 
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment(29,818)(25,003)
Payments for mine development(1,661)(10,175)
Proceeds from sale of property, plant, and equipment— 266
Net cash used in investing activities(31,479)(34,912)
Cash flows from financing activities:
Proceeds from repayments under credit facilities, net(14,962)(2,219)
Repayment of debt(3,033)(15,111)
Principal payments under finance lease obligations(306)(306)
Cash dividends paid(5,926)(5,705)
Deferred financing costs— (2,856)
Repurchase of common stock— (7,843)
Payments of withholding taxes for stock-based compensation awards(7,888)(2,337)
Net cash used in financing activities(32,115)(36,377)
Effects of exchange rate changes(606)1,725 
Net change in cash and cash equivalents6,306 (4,122)
Cash and cash equivalents at beginning of period13,681 16,713 
Cash and cash equivalents at end of period$19,987 $12,591 

7


Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net Sales
Performance Materials$207.9 $182.8 $363.6 $356.8 
Electronic Materials375.2 224.4 738.5 449.2 
Precision Optics30.8 24.5 61.6 46.0 
Other— — — — 
 Total$613.9 $431.7 $1,163.7 $852.0 
 Less: Pass-through Metal Cost
Performance Materials$17.9 $14.3 $34.1 $28.3 
Electronic Materials287.8 148.3 559.5 295.3 
Precision Optics— 0.1 0.1 0.1 
Other— — — — 
 Total$305.7 $162.7 $593.7 $323.7 
 Value-added Sales (non-GAAP)
Performance Materials$190.0 $168.5 $329.5 $328.5 
Electronic Materials87.4 76.1 179.0 153.9 
Precision Optics30.8 24.4 61.5 45.9 
Other— — — — 
 Total$308.2 $269.0 $570.0 $528.3 
Gross Margin
Performance Materials(1)
$51.5 $48.9 $82.6 $97.1 
Electronic Materials(1)
40.8 27.2 80.6 51.0 
Precision Optics (1)
12.0 6.5 23.0 10.7 
Other— — — — 
 Total$104.3 $82.6 $186.2 $158.8 
(1) See reconciliation of gross margin to adjusted gross margin in Attachment 8
Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding


8


Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Operating Profit
Performance Materials$36.5 $31.0 $49.5 $62.3 
Electronic Materials23.1 13.3 44.0 20.1 
Precision Optics4.3 (0.6)6.5 (4.7)
Other(12.2)(6.9)(20.1)(13.7)
Total$51.7 $36.8 $79.9 $64.0 
Non-Operating (Income)/Expense
Performance Materials$0.1 $0.1 $0.3 $0.1 
Electronic Materials(0.1)(0.1)(0.1)(0.1)
Precision Optics(0.1)(0.1)(0.3)(0.4)
Other(0.2)(0.5)(0.5)(0.9)
Total$(0.3)$(0.6)$(0.6)$(1.3)
Depreciation, Depletion, and Amortization
Performance Materials$11.9 $10.2 $22.9 $19.6 
Electronic Materials4.6 $4.2 9.3 8.5 
Precision Optics2.2 2.6 4.5 4.9 
Other0.5 0.5 0.9 1.0 
Total$19.2 $17.5 $37.6 $34.0 
Segment EBITDA
Performance Materials$48.3 $41.1 $72.1 $81.8 
Electronic Materials27.8 17.6 53.4 28.7 
Precision Optics6.6 2.1 11.3 0.6 
Other(11.5)(5.9)(18.7)(11.8)
Total$71.2 $54.9 $118.1 $99.3 
Special Items(2)
Performance Materials$— $0.4 $4.3 $0.6 
Electronic Materials0.2 $0.2 0.5 2.4 
Precision Optics— 0.1 0.9 1.5 
Other0.4 0.2 1.0 0.7 
 Total$0.6 $0.9 $6.7 $5.2 
Adjusted EBITDA Excluding Special Items
Performance Materials$48.3 $41.5 $76.4 $82.4 
Electronic Materials28.0 17.8 53.9 31.1 
Precision Optics6.6 2.2 12.2 2.1 
Other(11.1)(5.7)(17.7)(11.1)
Total$71.8 $55.8 $124.8 $104.5 
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)
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net sales$613.9 $431.7 $1,163.7 $852.0 
Pass-through metal cost305.7 162.7 593.7 323.7 
Value-added sales$308.2 $269.0 $570.0 $528.3 
Net income$38.8 $25.1 $58.1 $42.8 
Income tax expense5.7 4.0 7.3 7.3 
Interest expense - net7.5 8.3 15.1 15.2 
Depreciation, depletion and amortization19.2 17.5 37.6 34.0 
Consolidated EBITDA$71.2 $54.9 $118.1 $99.3 
Net Income as a % of Net sales6.3 %5.8 %5.0 %5.0 %
Net Income as a % of Value-added sales12.6 %9.3 %10.2 %8.1 %
EBITDA as a % of Net sales11.6 %12.7 %10.1 %11.7 %
EBITDA as a % of Value-added sales23.1 %20.4 %20.7 %18.8 %
Special items
Restructuring and cost reduction$0.3 $0.5 $2.7 $2.6 
Other0.2 — 0.2 — 
Product quality issue— — 3.5 — 
Merger, acquisition and divestiture related costs— 0.2 — 2.3 
Business transformation costs
0.1 0.2 0.3 0.3 
Total special items0.6 0.9 6.7 5.2 
Adjusted EBITDA$71.8 $55.8 $124.8 $104.5 
Adjusted EBITDA as a % of Net sales11.7 %12.9 %10.7 %12.3 %
Adjusted EBITDA as a % of Value-added sales23.3 %20.8 %21.9 %19.8 %

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.Other – Costs primarily consist of miscellaneous expenses that are not indicative of current performance and are therefore included within our EBITDA adjustments, but are not significant enough to warrant separate presentation.
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.Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.
5.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)
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026Diluted EPSJune 27, 2025Diluted EPSJuly 3, 2026Diluted EPSJune 27, 2025Diluted EPS
Net income and EPS$38.8 $1.84 $25.1 $1.21 $58.1 $2.76 $42.8 $2.05 
Special items
Restructuring and cost reduction$0.3 $0.5 $2.7 $2.6 
Other0.2 — 0.2 — 
Product quality issue— — 3.5 — 
Merger, acquisition and divestiture related costs— 0.2 — 2.3 
Business transformation costs
0.1 0.2 0.3 0.3 
Debt extinguishment costs(1)
— 0.5 — 0.5 
Provision for income taxes(2)
(1.3)(0.2)(2.0)(0.7)
Total special items(0.7)(0.03)1.2 0.05 4.7 0.22 5.0 0.24 
Adjusted net income and adjusted EPS$38.1 $1.81 $26.3 $1.26 $62.8 $2.98 $47.8 $2.29 
Acquisition amortization (net of tax)2.0 0.09 2.2 0.114.0 0.19 4.4 0.21
Adjusted net income and adjusted EPS excl. amortization$40.1 $1.90 $28.5 $1.37 $66.8 $3.17 $52.2 $2.50 
(1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025.
(2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain 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
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net sales$207.9 $182.8 $363.6 $356.8 
Pass-through metal cost17.9 14.3 34.1 28.3 
Value-added sales$190.0 $168.5 $329.5 $328.5 
EBITDA$48.3 $41.1 $72.1 $81.8 
Restructuring and cost reduction— 0.3 0.6 0.5 
Business transformation costs— 0.1 0.2 0.1 
Product quality issue— — 3.5 — 
Adjusted EBITDA$48.3 $41.5 $76.4 $82.4 
EBITDA as a % of Net sales23.2 %22.5 %19.8 %22.9 %
EBITDA as a % of Value-added sales25.4 %24.4 %21.9 %24.9 %
Adjusted EBITDA as a % of Net sales23.2 %22.7 %21.0 %23.1 %
Adjusted EBITDA as a % of Value-added sales25.4 %24.6 %23.2 %25.1 %
Electronic Materials
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net sales$375.2 $224.4 $738.5 $449.2 
Pass-through metal cost287.8 148.3 559.5 295.3 
Value-added sales$87.4 $76.1 $179.0 $153.9 
EBITDA$27.8 $17.6 $53.4 $28.7 
Restructuring and cost reduction— 0.1 0.4 0.6 
Merger, acquisition and divestiture related costs— 0.1 — 1.8 
Other0.2 — 0.1 — 
Adjusted EBITDA$28.0 $17.8 $53.9 $31.1 
EBITDA as a % of Net sales7.4 %7.8 %7.2 %6.4 %
EBITDA as a % of Value-added sales31.8 %23.1 %29.8 %18.6 %
Adjusted EBITDA as a % of Net sales7.5 %7.9 %7.3 %6.9 %
Adjusted EBITDA as a % of Value-added sales32.0 %23.4 %30.1 %20.2 %
Precision Optics
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net sales$30.8 $24.5 61.6 $46.0 
Pass-through metal cost— 0.1 0.1 0.1 
Value-added sales$30.8 $24.4 $61.5 $45.9 
EBITDA$6.6 $2.1 $11.3 $0.6 
Restructuring and cost reduction— 0.1 0.9 1.5 
Adjusted EBITDA$6.6 $2.2 $12.2 $2.1 
EBITDA as a % of Net sales21.4 %8.6 %18.3 %1.3 %
EBITDA as a % of Value-added sales21.4 %8.6 %18.4 %1.3 %
Adjusted EBITDA as a % of Net sales21.4 %9.0 %19.8 %4.6 %
Adjusted EBITDA as a % of Value-added sales21.4 %9.0 %19.8 %4.6 %
12


Other
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
EBITDA$(11.5)$(5.9)$(18.7)$(11.8)
Restructuring and cost reduction0.3 — 0.8 — 
Business transformation costs0.1 0.1 0.1 0.2 
Other— — 0.1 — 
Merger, acquisition and divestiture related costs
— 0.1 — 0.5 
Adjusted EBITDA$(11.1)$(5.7)$(17.7)$(11.1)


13


Attachment 8
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Gross Margin
Performance Materials$51.5 $48.9 $82.6 $97.1 
Electronic Materials40.8 27.2 80.6 51.0 
Precision Optics12.0 6.5 23.0 10.7 
Other— — — — 
Total$104.3 $82.6 $186.2 $158.8 
Special Items (1)
Performance Materials$— $— $3.5 $— 
Electronic Materials— — — — 
Precision Optics— — — — 
Other— — — — 
Total$— $— $3.5 $— 
Adjusted Gross Margin
Performance Materials$51.5 $48.9 $86.1 $97.1 
Electronic Materials40.8 27.2 80.6 51.0 
Precision Optics12.0 6.5 23.0 10.7 
Other— — — — 
Total$104.3 $82.6 $189.7 $158.8 
1) Special items impacting gross margin represent the product quality issue identified in the fourth quarter of 2025.
14


Attachment 9
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow
(Unaudited)

Second Quarter EndedSix Months Ended
(Millions)July 3, 2026June 27, 2025July 3, 2026June 27, 2025
Net Income$38.8 $25.1 $58.1 $42.8 
Net cash provided by (used in) operating activities$74.8 $49.9 $70.5 $65.4 
Payments for purchase of property, plant and equipment(14.5)(12.7)(29.8)(25.0)
Payments for mine development(1.6)(1.5)(1.7)(10.2)
Free cash flow (FCF)$58.7 $35.7 $39.0 $30.2 
Free cash flow conversion as a % of Net Income151 %142 %67 %71 %

Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes FCF is an important performance measure of the business. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP.
15

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Press Releases

Other Documents