Materion : First Quarter 2026 Presentation

Published: 2026-04-29 06:55:09 ET MTRN

Published on 04/29/2026 at 06:55 am EDT

‌Materion Corporation

1Q 2026 Earnings Presentation

April 29, 2026

‌Agenda

Introduction

Kyle Kelleher - Director, Investor Relations and Corporate FP&A

Opening Remarks & Business Update

Jugal Vijayvargiya - President and Chief Executive Officer

Financial Review

Shelly Chadwick - Vice President and Chief Financial Officer

Q&A

Question and Answer Session

‌Forward-looking Statements and Non-GAAP Financial Information

These slides contain (and the accompanying oral discussion will contain, where applicable) "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the results expressed or implied by these 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, including changes in tax regulations or guidance promulgated pursuant to the new legislation implemented in the One Big Beautiful Bill Act; 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 of infectious diseases and other extraordinary events including geopolitical events such as the conflict between Russia and Ukraine and the conflict between the United States and Iran and other risk factors disclosed in periodic reports filed with the Securities and Exchange Commission. Consequently, these forward-looking statements should be regarded as the Company's Current plans, estimates, and beliefs.

The Company does not undertake and specifically declines any obligation to update or publicly release the results of any revisions to these forward-looking statements that may be made to reflect any future events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

To supplement our consolidated financial statements presented in accordance with GAAP, the Company considers certain financial measures that are not prepared in accordance with GAAP, including value-added sales (VA sales), adjusted earnings before interest and taxes depreciation and amortization (EBITDA), adjusted net income, adjusted earnings per diluted share and net debt (cash). The Company uses these non-GAAP financial measures, in addition to GAAP financial measures, to evaluate our operating and financial performance and to compare such performance to that of prior periods and to the performance of our competitors. Also, the Company uses these non-GAAP financial measures in making operational and financial decisions and in establishing operational goals. The Company also believes providing these non-GAAP financial measures to investors, as a supplement to GAAP financial measures, helps investors evaluate our operating and financial performance and trends in our business, consistent with how management evaluates such performance and trends. The Company also believes these non-GAAP financial measures may be useful to investors in comparing its performance to the performance of other companies, although its non-GAAP financial measures are specific to the Company and the non-GAAP financial measures of other companies may not be calculated in the same manner.

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 slides 20 through 26 in the appendix.

For more information on Non-GAAP measures, please refer to the appendix.

‌Opening Remarks & Business Update

Jugal Vijayvargiya

President and Chief Executive Officer

‌Q1 2026 Highlights

Order Book Acceleration Continues; Exceptional Profitability Improvement in Electronic Materials and Precision Optics

Up 1% YoY driven by growth across most end markets

Electronic Materials up 18% YoY

Precision Optics up 43% YoY; highest quarterly sales since 2021

Strongest start to the year with record 1st quarter adjusted EBITDA margin

Increase driven primarily by higher volume, favorable price/mix and operational performance in Electronic Materials & Precision Optics

Highest quarterly adjusted EBITDA and margin in Electronic Materials

Fifth consecutive quarter of profitability improvement in Precision Optics; approaching 20% margin

5 © 2026 Materion Corporation See appendix for reconciliations of value-added sales, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS (which excludes acquisition amortization) to their most comparable GAAP financial measures. Certain data presented above has been rounded for presentation purposes.

‌End Market Performance

026 Materion Corporation

Q1 2026

Market

VA Sales

vs. Q1 2025

Comments

Semiconductor

$79.5

16%

Capturing outsized growth from proliferation of AI and new business wins

Strongest Q1 since 2023, third consecutive quarter of YoY growth

Aerospace & Defense

$52.5

11%

Increase driven by continued growth in space and defense

Strong Q1 order rate supports full year double digit growth expectation

Industrial

$42.8

Increase due to market strength across all businesses

Consumer Electronics

$26.3

-44%

Reflects lower precision clad strip sales as production ramps

Energy

$17.0

13%

Decrease driven by order timing; with large one-time shipment in Q1 '25

Automotive

$14.2

New business wins in Precision Optics

Life Sciences

$10.1

15%

Increase driven by strength in Precision Optics

Third consecutive quarter of YoY growth

Telecom & Data Center

$9.1

AI continues to support strong demand for data and undersea cable connectors

Fourth consecutive quarter of YoY growth

6 © 2

‌2026 Sales Outlook Improving; Now Expecting Double-Digit YoY Growth

Aerospace & Defense orders up ~50%

Energy order rates up ~20%

Semiconductor order rates up ~10%

*Calculated using order rate data from Q2 2025-Q1 2026 versus comparative period Q2 2024-Q1 2025.

‌Materion Enabling the Proliferation of AI

Semiconductor materials for high performance memory and data storage

Beryllium (Be) nickel material for fire protection

Alloys for connector technology

Components for high-speed fab processing equipment

Vast portfolio of deposition materials for semiconductor chips

Optics and alloy materials for fabrication equipment components

Alloys for wireless infrastructure (towers, undersea, base stations)

Optics for AR/VR and other applications

Be materials and other alloys serving nuclear reactor technology

ToughMet, Be alloys and optics for oil & gas drilling and processing equipment

ToughMet, alloyed materials and sputtering targets for hydrogen ecosystem

Materials for rocket launch components

Broad portfolio of alloys for satellite technology

Base station components for satellite communications

Optics and structures for science, research, and exploration devices

Performance Materials

Electronic Materials

Precision Optics

‌Key Takeaways

Revising top line expectation from "mid-single digit+" to "low-double digit"

Expect to deliver toward higher end of the earnings guidance range

Achieve >20% adjusted EBITDA margin for the full year

Deliver strong free cash flow with higher earnings and working capital improvements

‌Financial Review

Shelly Chadwick

Vice President and Chief Financial Officer

‌Q1 2026 Operating Performance

Value-added Sales ($M)

Adj. EBITDA ($M)

20.2%

+9%

$52.9

Adj. EPS

$1.27

$259.3

$261.8

18.8%

$48.7

+12%

$1.13

+1%

Q1 2025 Q1 2026

Value-added sales were $261.8 million, up 1% YoY

Excluding precision clad strip, up 10% YoY

Increase driven by strong growth across most end markets

Electronic Materials up 18% YoY

Precision Optics up 43% YoY; highest quarterly sales since 2021

Q1 2025 Q1 2026

Adjusted EBITDA at $52.9 million, margin of 20.2%

Record 1st quarter adjusted EBITDA margin

Delivered 140 bps YoY of margin improvement

Increase driven primarily by higher volume, favorable price/mix and operational performance in Electronic Materials & Precision Optics

Q1 2025 Q1 2026

Adjusted EPS of $1.27, up 12% YoY

See appendix for reconciliations of value-added sales, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS (which excludes acquisition amortization) to their most comparable GAAP financial measures. Certain data presented above has been rounded for presentation purposes.

‌Q1 2026 Financial Comparison

Increase driven by higher volume and favorable price/mix

Strong performance within Electronic

Materials and Precision Optics

FX/Other includes and increase in consignment fees due to higher precious metals pricing in Electronic Materials

See appendix for reconciliations of value-added sales, adjusted EBITDA and adjusted EBITDA margin to their most comparable GAAP financial measures.

Certain data presented above has been rounded for presentation purposes.

‌Performance Materials Segment

Value-added Sales ($M)

$139.5

-13%

$160.0

Q1 Performance by End Market

Q1 2025 Q1 2026

Adj. EBITDA ($M)

25.6%

$40.9

-32%

$28.0

20.1%

Q1 2025 Q1 2026

Energy

Consumer Electronics Telecom & Data Center

Decrease driven primarily by lower precision clad

strip volume

Remainder of business flat YoY; strength in aerospace & defense and telecom & data center, offset by lower energy sales (timing)

Decrease driven by lower precision clad strip volume and impact of unfavorable operational performance from prior year

Expect meaningful step up in top and bottom line in Q2 led by stronger aerospace & defense and PMI shipments

Further improvement expected in back half

Continued focus on operational improvement initiatives

See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for

presentation purposes.

‌Electronic Materials Segment

Value-added Sales ($M)

$91.6

Q1 2025 Q1 2026

Life Sciences

Adj. EBITDA ($M)

$77.8

+18%

28.3%

$25.9

+95%

$13.3

17.1%

Q1 Performance by End Market

Q1 2025 Q1 2026

Industrial Energy

Aerospace & Defense

Increase driven primarily by strength in semiconductor

Growth supported by proliferation of AI, fueling high-performance memory demand and new business wins

Increase driven by higher volume, favorable price/mix and strong operational performance

4th consecutive quarter of YoY margin expansion

Continued top-line growth primarily from semiconductor market upturn and outgrowth

See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for

presentation purposes.

‌Precision Optics Segment

Value-added Sales ($M)

$21.5

+43%

$30.7

Q1 2025 Q1 2026

Aerospace & Defense

Adj. EBITDA ($M)

$5.5

++%

17.9%

$(0.1)

Q1 2025 Q1 2026

Consumer Electronics Automotive Semiconductor

Increase led by market improvement and new business opportunities across each end market

4th consecutive quarter of top-line improvement, highest quarterly sales since 2021

Increase driven by higher volume, favorable price/mix and performance

5th consecutive quarter of bottom-line improvement

Q1 Performance by End Market

Business transformation continues contributing towards top and bottom-line improvement

New business initiatives in space, defense, semiconductor, automotive contribute to continued YoY growth

See appendix for reconciliation of value-added sales to the most comparable GAAP financial measure. Certain data presented above has been rounded for

presentation purposes.

‌Cash, Debt and Liquidity

($M)

Q1 2025

Q1 2026

Short-term Debt

$52.6

$23.1

Long-term Debt

$398.7

$466.9

Total Debt

$451.3

$490.0

Cash & Cash Equivalents

$15.6

$16.2

Net Debt (Cash)

$435.7

$473.8

TTM Adjusted EBITDA

$224.7

$221.2

Net Debt (Cash) / TTM Adj. EBITDA

1.9x

2.1x

Adequate liquidity remains to support growth initiatives

Board authorization in place for up to $50M of

‌Full Year 2026 Guidance

$6.00 - $6.50

Full year adjusted EPS guidance of $6.00 - $6.50

Increased optimism in achieving upper end of the range

Expect sequential improvement throughout the

year

$5.44

+15-20%

2025 2026E

2026 Modeling Assumptions

Capital Expenditures

$75M

Interest Expense

$28M

Mine Development - New Pit Openings

$25M

Effective Tax Rate

13-14%

Depreciation and Amortization

$73M

Acquisition Amortization

$10M

Note: This guidance was provided on April 29, 2026, and has not been confirmed or updated. The Company disclaims any obligation to do so based on any

subsequent event or any other reason. In addition, as discussed on slide 3, it is not possible for the Company to forecast future adjustments to GAAP earnings.

‌Invest in Materion as We Advance Our Strategy

Becoming a global leader in high-performing advanced materials serving

diverse and attractive markets well aligned with megatrends

Building robust pipeline with investments in R&D as we focus on

developing innovative solutions for our customers

Leveraging strong cash flow and deploying a disciplined, strategic approach toward profitable growth opportunities, both organic and inorganic

Energized management team laser focused on execution

and increasing value for all stakeholders

‌Appendix

‌Reconciliation for Value-added Sales

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. The use of value-added sales allows management to assess the impact of differences in net sales and analyze the resulting profitability without the distortion of metal pricing movements, which the Company believes would be useful information for investors.

‌Reconciliation for Non-GAAP Measures

We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, environmental remediation, Precision Optics impairments, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.

‌Reconciliation for Non-GAAP Measures (Cont.)

($ in millions)

Q1 2026

Q1 2025

Q1 2026 TTM

Q1 2025 TTM

GAAP as Reported

Net income

$ 19.4

$ 17.7

$ 76.5

$ 10.2

Income tax expense (benefit)

1.5

3.3

5.0

11.2

Interest expense

7.6

6.9

31.5

33.3

Depreciation, depletion, and amortization

18.4

16.5

70.9

68.9

Consolidated EBITDA

46.9

44.4

$ 183.9

$ 123.6

Special Items

Restructuring and cost reduction

$ 2.4

$ 2.1

$ 3.5

$ 11.1

Electronic Materials inventory adjustment

0.0

2.8

Business transformation costs

0.1

0.8

1.4

Product quality issue

3.5

0.0

30.8

0.0

Environmental Remediation

0.6

Precision Optics impairments

73.2

Merger, acquisition and divestiture related costs

2.1

1.3

10.2

Pension settlement

0.3

Additional start-up resources and scrap

2.4

Total Special Items

6.0

4.3

37.3

101.1

Adjusted EBITDA

$ 52.9

$ 48.7

$ 221.2

$ 224.7

We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), Electronic Materials inventory adjustment, business transformation costs, additional start up resources and scrap, and merger, acquisition and divestiture related costs from the applicable GAAP financial measure. Management reviews the results of operations without the impact of these items to assess profitability from ongoing activities and believes this will assist investors in analyzing our financial results.

‌Materion enables what's next Materion Corporation

+1 216.486.4200

http://www.materion.com

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Disclaimer

Materion Corporation published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 10:54 UTC.