Form 8-K
8-K — MATERION Corp
Accession: 0001104657-26-000042
Filed: 2026-08-05
Period: 2026-08-05
CIK: 0001104657
SIC: 3460 (METAL FORGING & STAMPINGS)
Item: Results of Operations and Financial Condition
Item: Financial Statements and Exhibits
Documents
8-K — mtrn-20260805.htm (Primary)
EX-99.1 (q22026pressrelease.htm)
GRAPHIC (image_2heading.jpg)
GRAPHIC (q226pressreleasebanner.jpg)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K
8-K (Primary)
Filename: mtrn-20260805.htm · Sequence: 1
mtrn-20260805
0001104657false00011046572026-08-052026-08-05
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 5, 2026
MATERION CORPORATION
(Exact name of registrant as specified in its charter)
Ohio 001-15885 34-1919973
(State or other jurisdiction of incorporation or organization) (Commission File Number) (I.R.S. Employer Identification No.)
6070 Parkland Blvd., Mayfield Hts., Ohio 44124
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (216) 486-4200
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, no par value MTRN New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§204.12b-2 of this chapter).
Emerging Growth Company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐
Item 2.02 Results of Operations and Financial Condition.
On August 5, 2026, Materion Corporation issued a press release announcing its results for the second quarter of 2026. The press release is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibits.
Exhibit Number Description of Exhibit
99.1
Materion Corporation press release, dated August 5, 2026
104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Materion Corporation
August 5, 2026 By:
/s/ Melissa A. Fashinpaur
Melissa A. Fashinpaur
Chief Accounting Officer
EX-99.1
EX-99.1
Filename: q22026pressrelease.htm · Sequence: 2
Document
MATERION CORPORATION REPORTS RECORD
SECOND-QUARTER 2026 FINANCIAL RESULTS AND
RAISES FULL-YEAR OUTLOOK
MAYFIELD HEIGHTS, Ohio – Materion Corporation (NYSE: MTRN) today reported strong second-quarter 2026 financial results and raised its full-year outlook.
Financial Summary
•Net sales were $613.9 million versus $431.7 million in the prior year period; value-added sales1 were $308.2 million versus $269.0 million in the prior year period
•Net income of $38.8 million, or $1.84 per share, diluted, versus $25.1 million, or $1.21 per share, in the prior year period; adjusted earnings of $1.90 per share versus $1.37 in the prior year period
•Operating profit of $51.7 million versus $36.8 million in the prior year period; record adjusted EBITDA2 of $71.8 million or 23.3% of value-add sales versus $55.8 million or 20.8% in the prior year period, with 250 basis points margin expansion
•Strong free cash flow3 generation of $59 million in the quarter with ~150% cash conversion
•Increasing full-year adjusted earnings per share outlook to $6.80 – $7.20, up 30% versus 2025 at the midpoint
Business Highlights
•Delivered record quarterly value-added sales, adjusted EBITDA and adjusted EPS
•Each business segment delivered double-digit year over year sales growth
•Exceeded 23% quarterly adjusted EBITDA margin for the first time in Company’s history
•Exited the quarter with record backlog, up ~30% year over year and ~20% since the beginning of year
•Awarded ~$15M in new business to supply advanced materials critical to engine performance for a large commercial space customer
“It is an exciting time at Materion, as our advanced material solutions are powering the critical technologies that are moving the world forward, and demand across our diverse end markets continues to accelerate. Thanks to the dedication and flawless execution across our teams, we achieved record sales and profitability in the second quarter, setting a strong foundation for the rest of the year,” said Jugal Vijayvargiya, President & CEO of Materion.
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“We continue to see strong order rate momentum, driven by new business wins and rising demand from our existing customers. We closed out the quarter once again with record backlog, giving us the confidence to meaningfully raise our full-year outlook.”
SECOND-QUARTER 2026 RESULTS
Net sales for the quarter were $613.9 million, compared to $431.7 million in the prior year period. Value-added sales were $308.2 million for the quarter, up 15% from the prior year period driven by the highest quarterly aerospace & defense sales with significant growth seen across semiconductor, industrial, energy and telecom & data center end markets.
Operating profit for the quarter was $51.7 million and net income was $38.8 million, or $1.84 per diluted share, compared to operating profit of $36.8 million and net income of $25.1 million, or $1.21 per share, in the prior year period.
Excluding special items4, adjusted EBITDA was at an all-time quarterly high of $71.8 million, a quarterly record of 23.3% of value-added sales, compared to $55.8 million or 20.8% of value-added sales in the prior year period. The record adjusted EBITDA and margin was driven by higher volume, strong price/mix and operational performance, as well as some favorable one-time items.
Adjusted net income was $40.1 million excluding acquisition amortization, or $1.90 per diluted share, compared to $1.37 per share in the prior year period.
OUTLOOK
Our first half results combined with increasing backlog and strong order rate momentum improves our confidence in delivering record full-year results. We now expect mid-teens top‑line growth and are raising our full‑year adjusted earnings per share guidance to $6.80 to $7.20, a 30% increase from prior year at the midpoint.
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, August 5, 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 962575. A replay of the call will
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be available until August 19, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53275. 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 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
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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.
Investor Contact:
Kyle Kelleher
(216) 383-4931
kyle.kelleher@materion.com
Media Contact:
Jason Saragian
(216) 383-6893
jason.saragian@materion.com
https://materion.com
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Attachment 1
Materion Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Second Quarter Ended Six Months Ended
(In thousands except per share amounts) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales $ 613,906 $ 431,658 $ 1,163,730 $ 851,988
Cost of sales 509,564 349,000 977,553 693,151
Gross margin 104,342 82,658 186,177 158,837
Selling, general, and administrative expense 42,321 35,039 78,521 70,484
Research and development expense 6,562 6,413 12,719 12,918
Restructuring expense 324 479 2,619 2,517
Other — net 3,424 3,908 12,432 8,904
Operating profit 51,711 36,819 79,886 64,014
Other non-operating income—net (317) (567) (627) (1,233)
Interest expense — net 7,526 8,230 15,104 15,147
Income before income taxes 44,502 29,156 65,409 50,100
Income tax expense 5,744 4,016 7,277 7,262
Net income $ 38,758 $ 25,140 $ 58,132 $ 42,838
Basic earnings per share:
Net income per share of common stock $ 1.86 $ 1.21 $ 2.80 $ 2.06
Diluted earnings per share:
Net income per share of common stock $ 1.84 $ 1.21 $ 2.76 $ 2.05
Weighted-average number of shares of common stock outstanding:
Basic 20,821 20,779 20,791 20,779
Diluted 21,075 20,833 21,048 20,874
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Attachment 2
Materion Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
(Thousands) July 3, 2026 December 31, 2025
Assets
Current assets
Cash and cash equivalents $ 19,987 $ 13,681
Accounts receivable, net 260,779 222,916
Inventories, net 487,444 461,231
Prepaid and other current assets 101,746 91,692
Total current assets 869,956 789,520
Deferred income taxes 8,816 7,727
Property, plant, and equipment 1,408,924 1,376,703
Less allowances for depreciation, depletion, and amortization (877,237) (841,245)
Property, plant, and equipment—net 531,687 535,458
Operating lease, right-of-use assets 56,974 62,036
Intangible assets, net 99,893 105,874
Other assets 23,185 21,529
Goodwill 280,186 280,657
Total Assets $ 1,870,697 $ 1,802,801
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt $ 17,478 $ 22,445
Accounts payable 192,292 148,642
Salaries and wages 24,074 19,312
Other liabilities and accrued items 46,328 45,445
Income taxes 3,349 5,054
Unearned revenue 12,271 12,685
Total current liabilities 295,792 253,583
Other long-term liabilities 13,286 12,556
Operating lease liabilities 58,170 60,568
Finance lease liabilities 12,671 13,384
Retirement and post-employment benefits 23,155 23,931
Unearned income 46,454 55,862
Long-term income taxes 901 532
Deferred income taxes 2,191 2,760
Long-term debt 423,210 436,348
Shareholders’ equity 994,867 943,277
Total Liabilities and Shareholders’ Equity $ 1,870,697 $ 1,802,801
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Attachment 3
Materion Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six Months Ended
(Thousands) July 3, 2026 June 27, 2025
Cash flows from operating activities:
Net income $ 58,132 $ 42,838
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion, and amortization 37,614 34,047
Amortization of deferred financing costs in interest expense 478 1,412
Stock-based compensation expense (non-cash)
8,635 5,437
Deferred income tax expense (benefit) (1,618) (25)
Changes in assets and liabilities:
Accounts receivable
(39,130) (949)
Inventory (21,938) 94
Prepaid and other current assets (11,861) (3,029)
Accounts payable and accrued expenses 45,579 4,193
Unearned revenue (7,098) (8,525)
Interest and taxes payable
(591) (1,230)
Other-net 2,304 (8,821)
Net cash provided by operating activities 70,506 65,442
Cash flows from investing activities:
Payments for purchase of property, plant, and equipment (29,818) (25,003)
Payments for mine development (1,661) (10,175)
Proceeds from sale of property, plant, and equipment — 266
Net cash used in investing activities (31,479) (34,912)
Cash flows from financing activities:
Proceeds from repayments under credit facilities, net (14,962) (2,219)
Repayment of debt (3,033) (15,111)
Principal payments under finance lease obligations (306) (306)
Cash dividends paid (5,926) (5,705)
Deferred financing costs — (2,856)
Repurchase of common stock — (7,843)
Payments of withholding taxes for stock-based compensation awards (7,888) (2,337)
Net cash used in financing activities (32,115) (36,377)
Effects of exchange rate changes (606) 1,725
Net change in cash and cash equivalents 6,306 (4,122)
Cash and cash equivalents at beginning of period 13,681 16,713
Cash and cash equivalents at end of period $ 19,987 $ 12,591
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Attachment 4
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA
(Unaudited)
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net Sales
Performance Materials $ 207.9 $ 182.8 $ 363.6 $ 356.8
Electronic Materials 375.2 224.4 738.5 449.2
Precision Optics 30.8 24.5 61.6 46.0
Other — — — —
Total $ 613.9 $ 431.7 $ 1,163.7 $ 852.0
Less: Pass-through Metal Cost
Performance Materials $ 17.9 $ 14.3 $ 34.1 $ 28.3
Electronic Materials 287.8 148.3 559.5 295.3
Precision Optics — 0.1 0.1 0.1
Other — — — —
Total $ 305.7 $ 162.7 $ 593.7 $ 323.7
Value-added Sales (non-GAAP)
Performance Materials $ 190.0 $ 168.5 $ 329.5 $ 328.5
Electronic Materials 87.4 76.1 179.0 153.9
Precision Optics 30.8 24.4 61.5 45.9
Other — — — —
Total $ 308.2 $ 269.0 $ 570.0 $ 528.3
Gross Margin
Performance Materials(1)
$ 51.5 $ 48.9 $ 82.6 $ 97.1
Electronic Materials(1)
40.8 27.2 80.6 51.0
Precision Optics (1)
12.0 6.5 23.0 10.7
Other — — — —
Total $ 104.3 $ 82.6 $ 186.2 $ 158.8
(1) See reconciliation of gross margin to adjusted gross margin in Attachment 8
Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding
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Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Operating Profit
Performance Materials $ 36.5 $ 31.0 $ 49.5 $ 62.3
Electronic Materials 23.1 13.3 44.0 20.1
Precision Optics 4.3 (0.6) 6.5 (4.7)
Other (12.2) (6.9) (20.1) (13.7)
Total $ 51.7 $ 36.8 $ 79.9 $ 64.0
Non-Operating (Income)/Expense
Performance Materials $ 0.1 $ 0.1 $ 0.3 $ 0.1
Electronic Materials (0.1) (0.1) (0.1) (0.1)
Precision Optics (0.1) (0.1) (0.3) (0.4)
Other (0.2) (0.5) (0.5) (0.9)
Total $ (0.3) $ (0.6) $ (0.6) $ (1.3)
Depreciation, Depletion, and Amortization
Performance Materials $ 11.9 $ 10.2 $ 22.9 $ 19.6
Electronic Materials 4.6 $ 4.2 9.3 8.5
Precision Optics 2.2 2.6 4.5 4.9
Other 0.5 0.5 0.9 1.0
Total $ 19.2 $ 17.5 $ 37.6 $ 34.0
Segment EBITDA
Performance Materials $ 48.3 $ 41.1 $ 72.1 $ 81.8
Electronic Materials 27.8 17.6 53.4 28.7
Precision Optics 6.6 2.1 11.3 0.6
Other (11.5) (5.9) (18.7) (11.8)
Total $ 71.2 $ 54.9 $ 118.1 $ 99.3
Special Items(2)
Performance Materials $ — $ 0.4 $ 4.3 $ 0.6
Electronic Materials 0.2 $ 0.2 0.5 2.4
Precision Optics — 0.1 0.9 1.5
Other 0.4 0.2 1.0 0.7
Total $ 0.6 $ 0.9 $ 6.7 $ 5.2
Adjusted EBITDA Excluding Special Items
Performance Materials $ 48.3 $ 41.5 $ 76.4 $ 82.4
Electronic Materials 28.0 17.8 53.9 31.1
Precision Optics 6.6 2.2 12.2 2.1
Other (11.1) (5.7) (17.7) (11.1)
Total $ 71.8 $ 55.8 $ 124.8 $ 104.5
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
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Attachment 5
Materion Corporation and Subsidiaries
Reconciliation of Net Sales to Value-added Sales, Net Income to EBITDA and Adjusted EBITDA
(Unaudited)
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales $ 613.9 $ 431.7 $ 1,163.7 $ 852.0
Pass-through metal cost 305.7 162.7 593.7 323.7
Value-added sales $ 308.2 $ 269.0 $ 570.0 $ 528.3
Net income $ 38.8 $ 25.1 $ 58.1 $ 42.8
Income tax expense 5.7 4.0 7.3 7.3
Interest expense - net 7.5 8.3 15.1 15.2
Depreciation, depletion and amortization 19.2 17.5 37.6 34.0
Consolidated EBITDA $ 71.2 $ 54.9 $ 118.1 $ 99.3
Net Income as a % of Net sales 6.3 % 5.8 % 5.0 % 5.0 %
Net Income as a % of Value-added sales 12.6 % 9.3 % 10.2 % 8.1 %
EBITDA as a % of Net sales 11.6 % 12.7 % 10.1 % 11.7 %
EBITDA as a % of Value-added sales 23.1 % 20.4 % 20.7 % 18.8 %
Special items
Restructuring and cost reduction $ 0.3 $ 0.5 $ 2.7 $ 2.6
Other 0.2 — 0.2 —
Product quality issue — — 3.5 —
Merger, acquisition and divestiture related costs — 0.2 — 2.3
Business transformation costs
0.1 0.2 0.3 0.3
Total special items 0.6 0.9 6.7 5.2
Adjusted EBITDA $ 71.8 $ 55.8 $ 124.8 $ 104.5
Adjusted EBITDA as a % of Net sales 11.7 % 12.9 % 10.7 % 12.3 %
Adjusted EBITDA as a % of Value-added sales 23.3 % 20.8 % 21.9 % 19.8 %
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:
1.Restructuring and cost reduction – Costs include restructuring charges, costs associated with temporarily idled facilities as a result of decreased demand and costs associated with disposal of assets associated with obsolete products.
2.Other – Costs primarily consist of miscellaneous expenses that are not indicative of current performance and are therefore included within our EBITDA adjustments, but are not significant enough to warrant separate presentation.
3.Product quality issue - Represents costs incurred related to a previously identified quality issue in the fourth quarter of 2025 identified by a large precision clad strip customer which led to temporarily idling production facilities within the Performance Materials segment.
4.Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals.
5.Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives.
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.
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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)
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 Diluted EPS June 27, 2025 Diluted EPS July 3, 2026 Diluted EPS June 27, 2025 Diluted EPS
Net income and EPS $ 38.8 $ 1.84 $ 25.1 $ 1.21 $ 58.1 $ 2.76 $ 42.8 $ 2.05
Special items
Restructuring and cost reduction $ 0.3 $ 0.5 $ 2.7 $ 2.6
Other 0.2 — 0.2 —
Product quality issue — — 3.5 —
Merger, acquisition and divestiture related costs — 0.2 — 2.3
Business transformation costs
0.1 0.2 0.3 0.3
Debt extinguishment costs(1)
— 0.5 — 0.5
Provision for income taxes(2)
(1.3) (0.2) (2.0) (0.7)
Total special items (0.7) (0.03) 1.2 0.05 4.7 0.22 5.0 0.24
Adjusted net income and adjusted EPS $ 38.1 $ 1.81 $ 26.3 $ 1.26 $ 62.8 $ 2.98 $ 47.8 $ 2.29
Acquisition amortization (net of tax) 2.0 0.09 2.2 0.11 4.0 0.19 4.4 0.21
Adjusted net income and adjusted EPS excl. amortization $ 40.1 $ 1.90 $ 28.5 $ 1.37 $ 66.8 $ 3.17 $ 52.2 $ 2.50
(1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025.
(2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain 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.
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Attachment 7
Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited)
Performance Materials
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales $ 207.9 $ 182.8 $ 363.6 $ 356.8
Pass-through metal cost 17.9 14.3 34.1 28.3
Value-added sales $ 190.0 $ 168.5 $ 329.5 $ 328.5
EBITDA $ 48.3 $ 41.1 $ 72.1 $ 81.8
Restructuring and cost reduction — 0.3 0.6 0.5
Business transformation costs — 0.1 0.2 0.1
Product quality issue — — 3.5 —
Adjusted EBITDA $ 48.3 $ 41.5 $ 76.4 $ 82.4
EBITDA as a % of Net sales 23.2 % 22.5 % 19.8 % 22.9 %
EBITDA as a % of Value-added sales 25.4 % 24.4 % 21.9 % 24.9 %
Adjusted EBITDA as a % of Net sales 23.2 % 22.7 % 21.0 % 23.1 %
Adjusted EBITDA as a % of Value-added sales 25.4 % 24.6 % 23.2 % 25.1 %
Electronic Materials
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales $ 375.2 $ 224.4 $ 738.5 $ 449.2
Pass-through metal cost 287.8 148.3 559.5 295.3
Value-added sales $ 87.4 $ 76.1 $ 179.0 $ 153.9
EBITDA $ 27.8 $ 17.6 $ 53.4 $ 28.7
Restructuring and cost reduction — 0.1 0.4 0.6
Merger, acquisition and divestiture related costs — 0.1 — 1.8
Other 0.2 — 0.1 —
Adjusted EBITDA $ 28.0 $ 17.8 $ 53.9 $ 31.1
EBITDA as a % of Net sales 7.4 % 7.8 % 7.2 % 6.4 %
EBITDA as a % of Value-added sales 31.8 % 23.1 % 29.8 % 18.6 %
Adjusted EBITDA as a % of Net sales 7.5 % 7.9 % 7.3 % 6.9 %
Adjusted EBITDA as a % of Value-added sales 32.0 % 23.4 % 30.1 % 20.2 %
Precision Optics
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net sales $ 30.8 $ 24.5 61.6 $ 46.0
Pass-through metal cost — 0.1 0.1 0.1
Value-added sales $ 30.8 $ 24.4 $ 61.5 $ 45.9
EBITDA $ 6.6 $ 2.1 $ 11.3 $ 0.6
Restructuring and cost reduction — 0.1 0.9 1.5
Adjusted EBITDA $ 6.6 $ 2.2 $ 12.2 $ 2.1
EBITDA as a % of Net sales 21.4 % 8.6 % 18.3 % 1.3 %
EBITDA as a % of Value-added sales 21.4 % 8.6 % 18.4 % 1.3 %
Adjusted EBITDA as a % of Net sales 21.4 % 9.0 % 19.8 % 4.6 %
Adjusted EBITDA as a % of Value-added sales 21.4 % 9.0 % 19.8 % 4.6 %
12
Other
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
EBITDA $ (11.5) $ (5.9) $ (18.7) $ (11.8)
Restructuring and cost reduction 0.3 — 0.8 —
Business transformation costs 0.1 0.1 0.1 0.2
Other — — 0.1 —
Merger, acquisition and divestiture related costs
— 0.1 — 0.5
Adjusted EBITDA $ (11.1) $ (5.7) $ (17.7) $ (11.1)
13
Attachment 8
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin
(Unaudited)
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Gross Margin
Performance Materials $ 51.5 $ 48.9 $ 82.6 $ 97.1
Electronic Materials 40.8 27.2 80.6 51.0
Precision Optics 12.0 6.5 23.0 10.7
Other — — — —
Total $ 104.3 $ 82.6 $ 186.2 $ 158.8
Special Items (1)
Performance Materials $ — $ — $ 3.5 $ —
Electronic Materials — — — —
Precision Optics — — — —
Other — — — —
Total $ — $ — $ 3.5 $ —
Adjusted Gross Margin
Performance Materials $ 51.5 $ 48.9 $ 86.1 $ 97.1
Electronic Materials 40.8 27.2 80.6 51.0
Precision Optics 12.0 6.5 23.0 10.7
Other — — — —
Total $ 104.3 $ 82.6 $ 189.7 $ 158.8
1) Special items impacting gross margin represent the product quality issue identified in the fourth quarter of 2025.
14
Attachment 9
Materion Corporation and Subsidiaries
Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow
(Unaudited)
Second Quarter Ended Six Months Ended
(Millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025
Net Income $ 38.8 $ 25.1 $ 58.1 $ 42.8
Net cash provided by (used in) operating activities $ 74.8 $ 49.9 $ 70.5 $ 65.4
Payments for purchase of property, plant and equipment (14.5) (12.7) (29.8) (25.0)
Payments for mine development (1.6) (1.5) (1.7) (10.2)
Free cash flow (FCF) $ 58.7 $ 35.7 $ 39.0 $ 30.2
Free cash flow conversion as a % of Net Income 151 % 142 % 67 % 71 %
Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. 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.
15
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