Materion Corporation Reports First Quarter 2025 Financial Results
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: |
||||||||
|
||||||||
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