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    Materion Corporation Reports First Quarter 2025 Financial Results

    5/1/25 6:47:00 AM ET
    $MTRN
    Industrial Specialties
    Industrials
    Get the next $MTRN alert in real time by email

    Materion Corporation (NYSE:MTRN) today reported first quarter 2025 financial results and provided an update to the full year outlook.

    Financial Summary

    • Net sales were $420.3 million; value-added sales1 were $259.3 million
    • Net income of $17.7 million, or $0.85 per share, diluted, versus net income of $13.4 million, or $0.64 per share, in the prior year quarter; adjusted earnings of $1.13 per share versus $0.96 in the prior year quarter
    • Operating profit of $27.2 million versus operating profit of $22.2 million in the prior year quarter; adjusted EBITDA2 of $48.7 million versus $45.2 million in the prior year quarter

    Business Highlights

    • Delivered 130 basis points of margin improvement year over year with record first quarter adjusted EBITDA margins
    • $35 million free cash flow3 improvement year over year on reduced working capital
    • Secured a multi-year agreement with Idaho National Lab to supply materials in support of nuclear energy research and development

    "I am pleased with our strong start to the year, despite the volatile macro environment. Our teams executed well to deliver strong operational performance and record first quarter margins on modest top line growth," said Jugal Vijayvargiya, President & CEO of Materion. "We also drove significantly improved cash flow in the quarter, with a focus on reducing inventory and thoughtfully pacing investments.

    "While there is increased uncertainty around the eventual impact of tariffs on our results and the broader economy, we continue to expect our business to perform well for the balance of the year. We are actively managing our supply chains and making adjustments where necessary to minimize the disruption that tariffs may cause."

    FIRST QUARTER 2025 RESULTS

    Net sales for the quarter were $420.3 million, compared to $385.3 million in the prior year period. Value-added sales were $259.3 million for the quarter, up 1% from the prior year period driven by growth in the space and energy end markets and improving demand in semiconductor, partially offset by lower PMI shipments.

    Operating profit for the quarter was $27.2 million and net income was $17.7 million, or $0.85 per diluted share, compared to operating profit of $22.2 million and net income of $13.4 million, or $0.64 per share, in the prior year period.

    Excluding special items4, adjusted EBITDA was $48.7 million, a first quarter record of 18.8% of value-added sales, compared to $45.2 million or 17.5% of value-added sales in the prior year period. This record adjusted EBITDA margin was driven primarily by strong operational performance and structural cost improvements.

    Adjusted net income was $23.7 million excluding acquisition amortization, or $1.13 per diluted share, compared to $0.96 per share in the prior year period.

    OUTLOOK

    Our performance expectations for 2025 are largely unchanged from our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year, before a potential impact from the unresolved global tariff situation. Currently, we are expecting the second quarter to be slightly better than the first quarter, including a $0.10 to $0.15 earnings per share headwind relating to the current China tariffs which have customers electing to freeze orders as they await further clarity. Looking out to the second half of the year, if these conditions persist, we could expect an additional impact of $0.40 to $0.50 earnings per share. We are currently taking measures to adjust supply chains where possible while reducing costs and pacing investments to minimize the impact on our results.

    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 9 to this press release.

    CONFERENCE CALL

    Materion Corporation will host an investor conference call with analysts at 10:00 a.m. Eastern Time, May 1, 2025. 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 241119. A replay of the call will be available until May 15, 2025 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 51693. 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 9

    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 the conflict between Russia and Ukraine and other hostilities; 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 2024 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)

    March 28, 2025

     

    March 29, 2024

    Net sales

    $

    420,330

     

     

    $

    385,287

     

    Cost of sales

     

    344,151

     

     

     

    314,075

     

    Gross margin

     

    76,179

     

     

     

    71,212

     

    Selling, general, and administrative expense

     

    35,445

     

     

     

    35,844

     

    Research and development expense

     

    6,505

     

     

     

    7,142

     

    Restructuring expense

     

    2,038

     

     

     

    1,620

     

    Other — net

     

    4,996

     

     

     

    4,357

     

    Operating profit

     

    27,195

     

     

     

    22,249

     

    Other non-operating income—net

     

    (666

    )

     

     

    (643

    )

    Interest expense — net

     

    6,917

     

     

     

    8,279

     

    Income before income taxes

     

    20,944

     

     

     

    14,613

     

    Income tax expense

     

    3,246

     

     

     

    1,204

     

    Net income

    $

    17,698

     

     

    $

    13,409

     

    Basic earnings per share:

     

     

     

    Net income per share of common stock

    $

    0.85

     

     

    $

    0.65

     

    Diluted earnings per share:

     

     

     

    Net income per share of common stock

    $

    0.85

     

     

    $

    0.64

     

    Weighted-average number of shares of common stock outstanding:

     

     

     

    Basic

     

    20,780

     

     

     

    20,679

     

    Diluted

     

    20,913

     

     

     

    20,973

     

    Attachment 2

    Materion Corporation and Subsidiaries

     

    Consolidated Balance Sheets

     

     

     

    (Unaudited)

     

     

    (Thousands)

     

    March 28, 2025

     

    December 31, 2024

    Assets

     

     

     

     

    Current assets

     

     

     

     

    Cash and cash equivalents

     

    $

    15,634

     

     

    $

    16,713

     

    Accounts receivable, net

     

     

    219,320

     

     

     

    193,793

     

    Inventories, net

     

     

    439,763

     

     

     

    441,299

     

    Prepaid and other current assets

     

     

    84,325

     

     

     

    72,419

     

    Total current assets

     

     

    759,042

     

     

     

    724,224

     

    Deferred income taxes

     

     

    2,970

     

     

     

    2,964

     

    Property, plant, and equipment

     

     

    1,339,968

     

     

     

    1,315,586

     

    Less allowances for depreciation, depletion, and amortization

     

     

    (817,843

    )

     

     

    (804,781

    )

    Property, plant, and equipment, net

     

     

    522,125

     

     

     

    510,805

     

    Operating lease, right-of-use assets

     

     

    75,788

     

     

     

    64,449

     

    Intangible assets, net

     

     

    106,932

     

     

     

    109,312

     

    Other assets

     

     

    21,245

     

     

     

    22,140

     

    Goodwill

     

     

    264,255

     

     

     

    263,738

     

    Total Assets

     

    $

    1,752,357

     

     

    $

    1,697,632

     

    Liabilities and Shareholders' Equity

     

     

     

     

    Current liabilities

     

     

     

     

    Short-term debt

     

    $

    52,573

     

     

    $

    34,274

     

    Accounts payable

     

     

    136,860

     

     

     

    105,901

     

    Salaries and wages

     

     

    16,773

     

     

     

    20,939

     

    Other liabilities and accrued items

     

     

    43,664

     

     

     

    47,523

     

    Income taxes

     

     

    4,100

     

     

     

    4,906

     

    Unearned revenue

     

     

    13,082

     

     

     

    13,191

     

    Total current liabilities

     

     

    267,052

     

     

     

    226,734

     

    Other long-term liabilities

     

     

    12,333

     

     

     

    12,013

     

    Operating lease liabilities

     

     

    72,731

     

     

     

    62,626

     

    Finance lease liabilities

     

     

    12,707

     

     

     

    12,404

     

    Retirement and post-employment benefits

     

     

    25,341

     

     

     

    26,411

     

    Unearned income

     

     

    70,225

     

     

     

    75,769

     

    Long-term income taxes

     

     

    1,998

     

     

     

    1,818

     

    Deferred income taxes

     

     

    3,297

     

     

     

    3,242

     

    Long-term debt

     

     

    398,744

     

     

     

    407,734

     

    Shareholders' equity

     

     

    887,929

     

     

     

    868,881

     

    Total Liabilities and Shareholders' Equity

     

    $

    1,752,357

     

     

    $

    1,697,632

     

    Attachment 3

    Materion Corporation and Subsidiaries

     

    Consolidated Statements of Cash Flows

    (Unaudited)

     

     

     

    Three Months Ended

    (Thousands)

     

    March 28, 2025

     

    March 29, 2024

    Cash flows from operating activities:

     

     

     

     

    Net income

     

    $

    17,698

     

     

    $

    13,409

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

     

    Depreciation, depletion, and amortization

     

     

    16,538

     

     

     

    16,185

     

    Amortization of deferred financing costs in interest expense

     

     

    450

     

     

     

    429

     

    Stock-based compensation expense (non-cash)

     

     

    2,986

     

     

     

    2,495

     

    Deferred income tax (benefit) expense

     

     

    22

     

     

     

    (253

    )

    Changes in assets and liabilities:

     

     

     

     

    Accounts receivable

     

     

    (24,912

    )

     

     

    2,729

     

    Inventory

     

     

    421

     

     

     

    (26,539

    )

    Prepaid and other current assets

     

     

    (10,428

    )

     

     

    (10,274

    )

    Accounts payable and accrued expenses

     

     

    19,191

     

     

     

    (5,194

    )

    Unearned revenue

     

     

    (4,616

    )

     

     

    (5,860

    )

    Interest and taxes payable

     

     

    (404

    )

     

     

    (3,294

    )

    Other-net

     

     

    (1,444

    )

     

     

    2,362

     

    Net cash provided by (used in) operating activities

     

     

    15,502

     

     

     

    (13,805

    )

    Cash flows from investing activities:

     

     

     

     

    Payments for purchase of property, plant, and equipment

     

     

    (12,321

    )

     

     

    (21,314

    )

    Payments for mine development

     

     

    (8,683

    )

     

     

    (5,333

    )

    Proceeds from sale of property, plant, and equipment

     

     

    266

     

     

     

    348

     

    Net cash used in investing activities

     

     

    (20,738

    )

     

     

    (26,299

    )

    Cash flows from financing activities:

     

     

     

     

    Proceeds from (repayments of) borrowings under credit facilities, net

     

     

    16,190

     

     

     

    56,779

     

    Repayment of debt

     

     

    (7,522

    )

     

     

    (7,586

    )

    Principal payments under finance lease obligations

     

     

    (163

    )

     

     

    (191

    )

    Cash dividends paid

     

     

    (2,803

    )

     

     

    (2,692

    )

    Payments of withholding taxes for stock-based compensation awards

     

     

    (2,224

    )

     

     

    (6,013

    )

    Net cash provided by financing activities

     

     

    3,478

     

     

     

    40,297

     

    Effects of exchange rate changes

     

     

    679

     

     

     

    (383

    )

    Net change in cash and cash equivalents

     

     

    (1,079

    )

     

     

    (190

    )

    Cash and cash equivalents at beginning of period

     

     

    16,713

     

     

     

    13,294

     

    Cash and cash equivalents at end of period

     

    $

    15,634

     

     

    $

    13,104

     

    Attachment 4

    Materion Corporation and Subsidiaries

     

    Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA

    (Unaudited)

     

     

    First Quarter Ended

    (Millions)

    March 28, 2025

     

    March 29, 2024

    Net Sales

     

     

     

    Performance Materials

    $

    174.0

     

    $

    168.6

    Electronic Materials

     

    224.8

     

     

    192.0

    Precision Optics

     

    21.5

     

     

    24.7

    Other

     

    —

     

     

    —

    Total

    $

    420.3

     

    $

    385.3

     

     

     

     

    Less: Pass-through Metal Cost

     

     

     

    Performance Materials

    $

    14.0

     

    $

    13.0

    Electronic Materials

     

    147.0

     

     

    114.4

    Precision Optics

     

    —

     

     

    0.1

    Other

     

    —

     

     

    —

    Total

    $

    161.0

     

    $

    127.5

     

     

     

     

    Value-added Sales (non-GAAP)

     

     

     

    Performance Materials

    $

    160.0

     

    $

    155.6

    Electronic Materials

     

    77.8

     

     

    77.6

    Precision Optics

     

    21.5

     

     

    24.6

    Other

     

    —

     

     

    —

    Total

    $

    259.3

     

    $

    257.8

     

     

     

     

    Gross Margin

     

     

     

    Performance Materials(1)

    $

    48.2

     

    $

    40.1

    Electronic Materials(1)

     

    23.8

     

     

    25.0

    Precision Optics(1)

     

    4.2

     

     

    6.1

    Other

     

    —

     

     

    —

    Total (1)

    $

    76.2

     

    $

    71.2

    (1) See reconciliation of gross margin to adjusted gross margin in Attachment 8

     

    First Quarter Ended

    (Millions)

    March 28, 2025

     

    March 29, 2024

    Operating Profit

     

     

     

    Performance Materials

    $

    31.3

     

     

    $

    22.6

     

    Electronic Materials

     

    6.8

     

     

     

    9.8

     

    Precision Optics

     

    (4.1

    )

     

     

    (3.3

    )

    Other

     

    (6.8

    )

     

     

    (6.9

    )

    Total

    $

    27.2

     

     

    $

    22.2

     

     

     

     

     

    Non-Operating (Income)/Expense

     

     

     

    Performance Materials

    $

    —

     

     

    $

    0.1

     

    Electronic Materials

     

    —

     

     

     

    —

     

    Precision Optics

     

    (0.3

    )

     

     

    (0.1

    )

    Other

     

    (0.4

    )

     

     

    (0.7

    )

    Total

    $

    (0.7

    )

     

    $

    (0.7

    )

     

     

     

     

    Depreciation, Depletion, and Amortization

     

     

     

    Performance Materials

    $

    9.4

     

     

    $

    8.2

     

    Electronic Materials

     

    4.3

     

     

     

    4.6

     

    Precision Optics

     

    2.3

     

     

     

    2.9

     

    Other

     

    0.5

     

     

     

    0.5

     

    Total

    $

    16.5

     

     

    $

    16.2

     

     

     

     

     

    Segment EBITDA

     

     

     

    Performance Materials

    $

    40.7

     

     

    $

    30.7

     

    Electronic Materials

     

    11.1

     

     

     

    14.4

     

    Precision Optics

     

    (1.5

    )

     

     

    (0.3

    )

    Other

     

    (5.9

    )

     

     

    (5.7

    )

    Total

    $

    44.4

     

     

    $

    39.1

     

     

     

     

     

    Special Items(2)

     

     

     

    Performance Materials

    $

    0.2

     

     

    $

    5.0

     

    Electronic Materials

     

    2.2

     

     

     

    0.1

     

    Precision Optics

     

    1.4

     

     

     

    0.7

     

    Other

     

    0.5

     

     

     

    0.3

     

    Total

    $

    4.3

     

     

    $

    6.1

     

     

     

     

     

    Adjusted EBITDA Excluding Special Items

     

     

     

    Performance Materials

    $

    40.9

     

     

    $

    35.7

     

    Electronic Materials

     

    13.3

     

     

     

    14.5

     

    Precision Optics

     

    (0.1

    )

     

     

    0.4

     

    Other

     

    (5.4

    )

     

     

    (5.4

    )

    Total

    $

    48.7

     

     

    $

    45.2

     

    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)

    March 28, 2025

     

    March 29, 2024

    Net sales

    $

    420.3

     

     

    $

    385.3

     

    Pass-through metal cost

     

    161.0

     

     

     

    127.5

     

    Value-added sales

    $

    259.3

     

     

    $

    257.8

     

     

     

     

     

    Net income

    $

    17.7

     

     

    $

    13.4

     

    Income tax expense

     

    3.3

     

     

     

    1.2

     

    Interest expense - net

     

    6.9

     

     

     

    8.3

     

    Depreciation, depletion and amortization

     

    16.5

     

     

     

    16.2

     

    Consolidated EBITDA

    $

    44.4

     

     

    $

    39.1

     

    Net Income as a % of Net sales

     

    4.2

    %

     

     

    3.5

    %

    Net Income as a % of Value-added sales

     

    6.8

    %

     

     

    5.2

    %

    EBITDA as a % of Net sales

     

    10.6

    %

     

     

    10.1

    %

    EBITDA as a % of Value-added sales

     

    17.1

    %

     

     

    15.2

    %

     

     

     

     

    Special items

     

     

     

    Restructuring and cost reduction

    $

    2.1

     

     

    $

    2.4

     

    Additional start up resources and scrap

     

    —

     

     

     

    3.7

     

    Merger, acquisition and divestiture related costs

     

    2.1

     

     

     

    —

     

    Business transformation costs

     

    0.1

     

     

     

    —

     

    Total special items

     

    4.3

     

     

     

    6.1

     

    Adjusted EBITDA

    $

    48.7

     

     

    $

    45.2

     

    Adjusted EBITDA as a % of Net sales

     

    11.6

    %

     

     

    11.7

    %

    Adjusted EBITDA as a % of Value-added sales

     

    18.8

    %

     

     

    17.5

    %

     

    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. Additional start up resources and scrap – Represents incremental resource, consulting and specialists costs incurred related to the ramp of the precision clad strip facility and scrap related to product qualifications.
    3. Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.
    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.

    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)

     

    March 28, 2025

     

    EPS

     

    March 29, 2024

     

    EPS

    Net income and EPS

     

    $

    17.7

     

     

    $

    0.85

     

    $

    13.4

     

     

    $

    0.64

     

     

     

     

     

     

     

     

     

    Special items

     

     

     

     

     

     

     

     

    Restructuring and cost reduction

     

     

    2.1

     

     

     

     

     

    2.4

     

     

     

    Additional start up resources and scrap

     

     

    —

     

     

     

     

     

    3.7

     

     

     

    Merger, acquisition and divestiture related costs

     

     

    2.1

     

     

     

     

     

    —

     

     

     

    Business transformation costs

     

     

    0.1

     

     

     

     

     

    —

     

     

     

    Provision for income taxes(1)

     

     

    (0.5

    )

     

     

     

     

    (1.9

    )

     

     

    Total special items

     

     

    3.8

     

     

     

    0.18

     

     

    4.2

     

     

     

    0.20

    Adjusted net income and adjusted EPS

     

    $

    21.5

     

     

    $

    1.03

     

    $

    17.6

     

     

    $

    0.84

    Acquisition amortization (net of tax)

     

     

    2.2

     

     

     

    0.10

     

     

    2.5

     

     

     

    0.12

    Adjusted net income and adjusted EPS excl. amortization

     

    $

    23.7

     

     

    $

    1.13

     

    $

    20.1

     

     

    $

    0.96

     

    (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)

     

    March 28, 2025

     

    March 29, 2024

    Net sales

     

    $

    174.0

     

     

    $

    168.6

     

    Pass-through metal cost

     

     

    14.0

     

     

     

    13.0

     

    Value-added sales

     

    $

    160.0

     

     

    $

    155.6

     

     

     

     

     

     

    EBITDA

     

    $

    40.7

     

     

    $

    30.7

     

    Restructuring and cost reduction

     

     

    0.2

     

     

     

    1.3

     

    Additional start up resources and scrap

     

     

    —

     

     

     

    3.7

     

    Adjusted EBITDA

     

    $

    40.9

     

     

    $

    35.7

     

    EBITDA as a % of Net sales

     

     

    23.4

    %

     

     

    18.2

    %

    EBITDA as a % of Value-added sales

     

     

    25.4

    %

     

     

    19.7

    %

    Adjusted EBITDA as a % of Net sales

     

     

    23.5

    %

     

     

    21.2

    %

    Adjusted EBITDA as a % of Value-added sales

     

     

    25.6

    %

     

     

    22.9

    %

     

     

     

     

     

    Electronic Materials

     

     

    First Quarter Ended

     

    First Quarter Ended

    (Millions)

     

    March 28, 2025

     

    March 29, 2024

    Net sales

     

    $

    224.8

     

     

    $

    192.0

     

    Pass-through metal cost

     

     

    147.0

     

     

     

    114.4

     

    Value-added sales

     

    $

    77.8

     

     

    $

    77.6

     

     

     

     

     

     

    EBITDA

     

    $

    11.1

     

     

    $

    14.4

     

    Restructuring and cost reduction

     

     

    0.5

     

     

     

    0.1

     

    Merger, acquisition and divestiture related costs

     

     

    1.7

     

     

     

    —

     

    Adjusted EBITDA

     

    $

    13.3

     

     

    $

    14.5

     

    EBITDA as a % of Net sales

     

     

    4.9

    %

     

     

    7.5

    %

    EBITDA as a % of Value-added sales

     

     

    14.3

    %

     

     

    18.6

    %

    Adjusted EBITDA as a % of Net sales

     

     

    5.9

    %

     

     

    7.6

    %

    Adjusted EBITDA as a % of Value-added sales

     

     

    17.1

    %

     

     

    18.7

    %

     

     

     

     

     

    Precision Optics

     

     

    First Quarter Ended

     

    First Quarter Ended

    (Millions)

     

    March 28, 2025

     

    March 29, 2024

    Net sales

     

    $

    21.5

     

     

    $

    24.7

     

    Pass-through metal cost

     

     

    —

     

     

     

    0.1

     

    Value-added sales

     

    $

    21.5

     

     

    $

    24.6

     

     

     

     

     

     

    EBITDA

     

    $

    (1.5

    )

     

    $

    (0.3

    )

    Restructuring and cost reduction

     

     

    1.4

     

     

     

    0.7

     

    Adjusted EBITDA

     

    $

    (0.1

    )

     

    $

    0.4

     

    EBITDA as a % of Net sales

     

     

    (7.0

    )%

     

     

    (1.2

    )%

    EBITDA as a % of Value-added sales

     

     

    (7.0

    )%

     

     

    (1.0

    )%

    Adjusted EBITDA as a % of Net sales

     

     

    (0.5

    )%

     

     

    1.6

    %

    Adjusted EBITDA as a % of Value-added sales

     

     

    (0.5

    )%

     

     

    1.8

    %

     

     

     

     

     

     

     

     

     

     

    Other

     

     

    First Quarter Ended

     

    First Quarter Ended

    (Millions)

     

    March 28, 2025

     

    March 29, 2024

    EBITDA

     

    $

    (5.9

    )

     

    $

    (5.7

    )

    Restructuring and cost reduction

     

     

    —

     

     

     

    0.3

     

    Merger, acquisition and divestiture related costs

     

     

    0.4

     

     

     

    —

     

    Business transformation costs

     

     

    0.1

     

     

     

    —

     

    Adjusted EBITDA

     

    $

    (5.4

    )

     

    $

    (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)

     

    March 28, 2025

     

    March 29, 2024

    Gross Margin

     

     

     

     

    Performance Materials

     

    $

    48.2

     

    $

    40.1

    Electronic Materials

     

     

    23.8

     

     

    25.0

    Precision Optics

     

     

    4.2

     

     

    6.1

    Other

     

     

    —

     

     

    —

    Total

     

    $

    76.2

     

    $

    71.2

     

     

     

     

     

    Special Items (1)

     

     

     

     

    Performance Materials

     

    $

    —

     

    $

    4.2

    Electronic Materials

     

     

    —

     

     

    —

    Precision Optics

     

     

    —

     

     

    0.1

    Other

     

     

    —

     

     

    —

    Total

     

    $

    —

     

    $

    4.3

     

     

     

     

     

    Adjusted Gross Margin

     

     

     

     

    Performance Materials

     

    $

    48.2

     

    $

    44.3

    Electronic Materials

     

     

    23.8

     

     

    25.0

    Precision Optics

     

     

    4.2

     

     

    6.2

    Other

     

     

    —

     

     

    —

    Total

     

    $

    76.2

     

    $

    75.5

     

    (1) Special items impacting gross margin represent restructuring and cost reduction and additional start up resources and scrap in 2024.

    Attachment 9

     

    Materion Corporation and Subsidiaries

     

    Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow

    (Unaudited)

     

     

     

    Three Months Ended

     

    Three Months Ended

    (Millions)

     

    March 28, 2025

     

    March 29, 2024

    Net cash provided by (used in) operating activities

     

    $

    15.5

     

     

    $

    (13.8

    )

    Payments for purchase of property, plant and equipment

     

     

    (12.3

    )

     

     

    (21.3

    )

    Payments for mine development

     

     

    (8.7

    )

     

     

    (5.3

    )

    Free cash flow

     

    $

    (5.5

    )

     

    $

    (40.4

    )

     

    Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures. 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. 

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250430529149/en/

    Investor Contact:

    Kyle Kelleher

    (216) 383-4931

    [email protected]

    Media Contact:

    Jason Saragian

    (216) 383-6893

    [email protected]

    https://materion.com

    Mayfield Hts-g

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