Materion Corporation · NYSE:MTRN
Materion — Q2 2025 Earnings Presentation
27 slides from Materion's earnings presentation, Jul 30, 2025
Slide 1: Materion Corporation 2Q 2025 Earnings Presentation
Materion Corporation 2Q 2025 Earnings Presentation July 30, 2025 © 2025 Materion Corporation
Slide 2: Agenda
Agenda Introduction Kyle Kelleher – Director, Investor Relations and Corporate FP&A Opening Remarks & Jugal Vijayvargiya – President and Chief Executive Officer Business Update Financial Shelly Chadwick – Vice President and Chief Financial Officer Review Q&A Question and Answer Session © 2025 Materi
Slide 3: Forward-looking Statements and Non-GAAP Financial Information
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
Slide 4: Opening Remarks & Business Update
Opening Remarks & Business Update Jugal Vijayvargiya President and Chief Executive Officer © 2025 Materion Corporation 4
Slide 5: Q2 2025 Highlights
Q2 2025 Highlights Delivered Record Second Quarter Margins and Strong Cash Flow Value-added (VA) sales of $269.0 million, down 2% organic* YoY ▪ Decrease driven by lower PMI shipments and China Semi, partially offset by strength in aerospace & defense, energy and non-China semiconductor ▪ VA sales u
Slide 6: End Market Performance
End Market Performance Q2 2025 Market VA Sales vs. Q2 2024 Comments ▪ Excluding China Semi, up 6% YoY Semiconductor $63.1 -4% ▪ Improving demand in data storage, power and communication devices Consumer $58.1 -12% ▪ Excluding clad strip, up 5% YoY with general market improvement Electronics Aerospac
Slide 7: New Order Rates & Business Wins Improving 2nd Half Confidence
New Order Rates & Business Wins Improving 2nd Half Confidence Q2 ‘25 weekly incoming order rate up 4% from Q1 ‘25, despite softer demand from China customers Semiconductor ▪ Q2 ‘25 Non-China Semiconductor order rates up ~15% from Q1 ‘25 ▪ Record defense bookings at ~$75M for 1H 2025 Defense ▪ Pipeli
Slide 8: Key Takeaways
Key Takeaways ▪ Delivered Record Second Quarter Margins and Strong Free Cash Flow ▪ Record second quarter adjusted EBITDA margin at 20.8% ▪ Electronic Materials adjusted EBITDA margin at all-time high of 23.4%, up 230 bps YoY ▪ Precision Optics adjusted EBITDA margins up 950 bps sequentially ▪ Gener
Slide 9: Financial Review
Financial Review Shelly Chadwick Vice President and Chief Financial Officer © 2025 Materion Corporation 9
Slide 10: Q2 2025 Operating Performance
Q2 2025 Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $57.8 $1.42 $279.8 $269.0 $55.8 $1.37 -4% -3% -4% 20.8% 20.7% Q2 2024 Q2 2025 Q2 2024 Q2 2025 Q2 2024 Q2 2025 Value-added sales were $269.0 million, down 2% Adjusted EBITDA at $55.8 million, margin of 20.8% Adjusted EPS o
Slide 11: Q2 2025 Financial Comparison
Q2 2025 Financial Comparison Adjusted EBITDA of $55.8 million, or 20.8% of VA Sales ▪ Continued strong operational performance and structural cost improvements partially offsetting volume decrease ▪ Favorable pricing offset by unfavorable mix ▪ Adjusted EBITDA margin expansion despite lower volume ©
Slide 12: Performance Materials Segment
Performance Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $168.5 million $43.1 ▪ Up 3% YoY excluding PMI driven by strength in energy $173.1 and aerospace & defense $41.5 $168.5 -3% -4% ▪ PMI down ~$9M YoY as inventory correction continues ▪ Sequential sales improvem
Slide 13: Electronic Materials Segment
Electronic Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $76.1 million ▪ Semiconductor sales drove YoY growth of 6% $81.1 excluding China $76.1 $17.8 -6% $17.1 4% ▪ China orders slow to develop with tariff situation Adjusted EBITDA of $17.8 million, up 4% YoY 23.4% ▪
Slide 14: Precision Optics Segment
Precision Optics Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $24.4 million ▪ Sequential improvement of 14% $25.6 $24.4 ▪ YoY decrease largely driven by defense order timing $2.2 $2.1 -5% 5% Adjusted EBITDA of $2.2 million, up 5%, or 80bps ▪ Increase primarily driven by impro
Slide 15: Cash, Debt and Liquidity
Cash, Debt and Liquidity Leverage slightly below midpoint of target range ($M) Q2 2024 Q2 2025 of 1.5x – 3x Short-term Debt $38.8 $19.9 Generated ~$36M Free Cash Flow ▪ $17M inventory reduction YoY Long-term Debt $446.0 $405.7 ▪ $26M debt paydown in quarter Total Debt $484.8 $425.6 Approximately $25
Slide 16: Full Year 2025 Guidance
Full Year 2025 Guidance Adj. EPS Guidance $5.30 - $5.70 +3% $5.34 2025 Guidance ▪ Affirming full year adjusted EPS guidance of $5.30 - $5.70 2024 2025E 2025 Modeling Assumptions Capital Expenditures $70M Interest Expense $30M HCS-Electronic Materials $25M Effective Tax Rate 14-15% Normal Segment Cap
Slide 17: Invest in Materion as We Advance Our Strategy
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 Leveragin
Slide 18: Appendix
Appendix © 2025 Materion Corporation 18
Slide 19: Reconciliation for Value-added Sales
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 o
Slide 20: Reconciliation for Non-GAAP Measures
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, additional start
Slide 21: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) We have adjusted the results for certain special items such as restructuring and cost reduction initiatives (including costs associated with temporarily idled facilities), additional start up resources and scrap, and merger, acquisition and divestiture re
Slide 22: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) 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, additiona
Slide 23: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) 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, additiona
Slide 24: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) 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, additiona
Slide 25: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) ($ in millions) Q2 2025 Q2 2024 Q2 2025 TTM Q2 2024 TTM GAAP as Reported Net income $ 25.1 $ 19.0 $ 16.3 $ 78.5 Income tax expense (benefit) 4.0 4.9 10.2 9.3 Interest expense 8.3 8.8 32.8 33.3 Depreciation, depletion, and amortization 17.5 16.5 70.0 62.8
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes 26 © 2025 Materion Corporation FCF is an important performance measure of the business. FCF is not a measure calculated in accordance wi
Slide 27: Materion enables what's next
Materion enables what’s next Materion Corporation +1 216.486.4200 http://www.materion.com Connect With Us © 2025 Materion Corporation