MAYFIELD HEIGHTS, Ohio--(BUSINESS WIRE)--April 29, 2026--
Materion Corporation $(MTRN)$ today reported first quarter 2026 financial results and provided an update to the full-year outlook.
Financial Summary
-- Net sales were $549.8 million versus $420.3 million in the prior year
quarter; value-added sales1 were $261.8 million versus $259.3 million in
the prior year quarter
-- Net income of $19.4 million, or $0.92 per share, diluted, versus net
income of $17.7 million, or $0.85 per share, in the prior year quarter;
adjusted earnings of $1.27 per share versus $1.13 in the prior year
quarter
-- Operating profit of $28.2 million versus operating profit of $27.2
million in the prior year quarter; adjusted EBITDA2 of $52.9 million or
20.2% of value-add sales versus $48.7 million or 18.8% in the prior year
quarter, representing 140 basis point margin expansion
Business Highlights
-- Value-added sales grew 10% year on year, excluding precision clad
strip
-- Electronic Materials delivered 18% value-added sales growth with record
adjusted EBITDA and EBITDA margin
-- Precision Optics transformation delivered its strongest top line since
2021 and the 5th consecutive quarter of bottom-line improvement
-- Exiting the quarter with record backlog, up more than 20% year on year
and up 15% since the beginning of the year
"I am very pleased with the strong start to the year, as our teams delivered double-digit growth across most of our end markets and improved operational performance throughout the company. Electronic Materials achieved its strongest results on record, while the Precision Optics transformation took another meaningful step forward, delivering well ahead of expectations," said Jugal Vijayvargiya, President & CEO of Materion.
"We continue to see unparalleled momentum in our order rates, and we exited the quarter with a record backlog, increasing our confidence in the results we expect to achieve in 2026."
FIRST QUARTER 2026 RESULTS
Net sales for the quarter were $549.8 million, compared to $420.3 million in the prior year period. Value-added sales were $261.8 million for the quarter, up 1% from the prior year period driven by growth across most end markets, partially offset by lower precision clad strip shipments.
Operating profit for the quarter was $28.2 million and net income was $19.4 million, or $0.92 per diluted share, compared to operating profit of $27.2 million and net income of $17.7 million, or $0.85 per share, in the prior year period.
Excluding special items(3) , adjusted EBITDA was $52.9 million, a first quarter record of 20.2% of value-added sales, compared to $48.7 million or 18.8% of value-added sales in the prior year period. The adjusted EBITDA margin was driven primarily by higher volume, favorable price/mix and strong operational performance in Electronic Materials and Precision Optics.
Adjusted net income was $26.7 million excluding acquisition amortization, or $1.27 per diluted share, compared to $1.13 per share in the prior year period.
OUTLOOK
Supported by the momentum in our order book and an all-time high backlog as we exited the first quarter, our confidence in delivering strong results has meaningfully strengthened. We now expect top--line growth in the low double--digit range. We are reaffirming our full--year adjusted earnings per share guidance of $6.00 to $6.50, with increasing conviction in achieving results toward the high end of the range.
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 8 to this press release.
CONFERENCE CALL
Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, April 29, 2026. 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 960083. A replay of the call will be available until May 13, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53274. 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) Details of the special items can be found in Attachments 4 through 8
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 other extraordinary events including geopolitical conflicts such as the conflict between Russia and Ukraine and the conflict between the United States and Iran; 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 2025 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) April 3, 2026 March 28, 2025
--------------- ------------------
Net sales $ 549,824 $ 420,330
Cost of sales 467,989 344,151
---------- -----------
Gross margin 81,835 76,179
Selling, general, and
administrative expense 36,200 35,445
Research and development expense 6,157 6,505
Restructuring expense 2,295 2,038
Other -- net 9,008 4,996
---------- -----------
Operating profit 28,175 27,195
Other non-operating income--net (309) (666)
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