Specialty materials maker Materion Q3 sales beat expectations on strong orders, higher margins

Overview

• Materion Q3 net sales beat analyst expectations, reaching $444.8 mln

• Adjusted EPS for Q3 in-line with analyst expectations

• Company announces new $50 mln stock repurchase program

Outlook

• Materion affirms full-year adjusted EPS guidance of $5.30 to $5.70

• Company anticipates strong fourth quarter to close 2025

• Materion sees increasing order rates in semiconductor, energy, space, and defense

Result Drivers

• ELECTRONIC MATERIALS MARGINS - Record EBITDA margins in Electronic Materials driven by semiconductor sales rebound and improved cost structure

• PRECISION OPTICS TRANSFORMATION - Significant sales increase and margin expansion in Precision Optics due to transformation efforts

• ORDER RATE INCREASE - Double-digit sequential increase in order rates across all businesses due to organic initiatives and strong macroeconomic trends

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• Wall Street's median 12-month price target for Materion Corp is $130.50, about 2.6% below its October 28 closing price of $133.89

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw3LqvxXa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)