MTRN
Materion Corporation125.79
-0.20-0.16%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Clad fixes detailed, growth momentum affirmed
Q&A drilled into the Precision Clad Strip quality event—a production control failure undetected by systems—now fixed with enhanced controls and extra resources, ramping in Q1 despite added costs but set for 2026 volumes exceeding 2025. Management waved off Q4 EM margin softness as quarterly mix quirks, stressing diverse semi exposure and 14% order growth ex-China, with China stable. Energy new business orders doubled; space gaining smaller customers. Capacity ample, Korea facility qualifies H2, working capital to improve. No metal price risks. Q&A reaffirms upbeat outlook. Clad execution matters most.
Key Stats
Market Cap
2.61BP/E (TTM)
135.26Basic EPS (TTM)
0.93Dividend Yield
0%Recent Filings
8-K
Q4 profit, defense win
Materion reported Q4 2025 net sales of $489.7M and full-year $1.79B, with net income swinging to $6.6M from a $48.8M loss; adjusted EBITDA hit 20.7% of value-added sales, up from 20.2%. Secured $65M customer investment to expand beryllium capacity for US defense. Guides 2026 adjusted EPS to $6.00-$6.50. Momentum builds.
10-K
FY2025 results
Materion posted $1.8B net sales for FY2025 ended December 31, 2025, up 6% y/y, driven by Electronic Materials' 19% surge from semiconductor strength (21% volume gain) despite Albuquerque divestiture; value-added sales dipped 5% to $1.0B as Performance Materials fell 10% on Q4 consumer electronics quality hiccup idling clad strip lines—$27M hit, yet resumed December shipments with process fixes. Precision Optics rebounded to $101M sales (7% up) and positive EBITDA after 2024 impairments. Gross margins slipped to 17% of sales from volume/mix pressures, but operating profit soared to $110M (vs $47M) with lower SG&A/incentives; net income hit $75M or $3.58 diluted EPS. Q4 momentum faltered on quality woes, but Electronic/Precision gains signal recovery. Cash from ops jumped to $103M; $50M buyback authorized October, no Q4 repurchases. Backlog climbed to $579M. Defense contract delays threaten quarterly beats.
8-K
Quality issue resolved, charge booked
Materion disclosed a quality issue with precision clad strip material, prompting a customer-requested production idle and a $20-25 million charge for claims, scrap, and idling costs in Q4 2025. Issue resolved; production ramping through Q1 2026 with shipments resumed and no material 2026 volume impact expected. Adjusted EPS guidance holds at $1.50-1.55 for Q4, $5.40-5.45 for the year. Strong execution persists.
8-K
Board refresh with Edman
Materion's Board announced N. Mohan Reddy's retirement at the 2026 annual shareholder meeting after 25+ years. It expanded to ten members, appointing Thomas T. Edman effective January 21, 2026, to the Audit and Risk and Nominating Committees. Edman brings CEO experience from TTM Technologies and Applied Materials. New directors get $145,000 in RSUs.
10-Q
Q3 FY2025 results
Materion posted Q3 sales of $444.8M, up 2% y/y, with operating profit climbing 12% to $34.9M on steady 19% gross margins despite Performance Materials downtime; Electronic Materials surged on semiconductor strength (56% of sales), while Precision Optics grew 21%. Diluted EPS hit $1.22, matching 20,883k shares. Closed July 2025 Konasol acquisition for $19.5M cash, adding $14.9M goodwill and $2.1M intangibles in Electronic Materials. Cash steady at $16.4M, revolver availability $214M, total debt $457M under June 2025 credit facility to 2030. Operating cash flow YTD $83.7M minus $58.7M capex yields positive FCF. Value-added sales not disclosed in the 10-Q. Semiconductor pricing stays competitive.
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