Slide 1: Materion Corporation 2Q 2026 Earnings Presentation
Materion Corporation 2Q 2026 Earnings Presentation August 5, 2026 © 2026 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 © 2026 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 © 2026 Materion Corporation 4
Slide 5: Q2 2026 Highlights
Q2 2026 Highlights Delivered Record Sales and Earnings as Backlog Reaches New High Record value-added (VA) sales of $308.2 million, up 15% YoY and up 18% sequentially ▪ Highest quarterly aerospace & defense sales and significant growth seen across semiconductor, industrial, energy and telecom & data
Slide 6: End Market Performance
End Market Performance Q2 2026 Market VA Sales vs. Q2 2025 Comments ▪ Fourth consecutive quarter of YoY growth as the proliferation of AI continues to drive broad- Semiconductor $77.5 23% based momentum Aerospace & ▪ Delivered highest quarterly sales driven by new business initiatives and strong mar
Slide 7: 2026 Sales Outlook Improving: Now Expecting Mid-Teens YoY Growth
2026 Sales Outlook Improving: Now Expecting Mid-Teens YoY Growth ▪ Exited the quarter with record backlog, up ~30% YoY and up ~20% since the beginning of the year ▪ 1H 2026 incoming orders reached new high, growing ~30% YoY ▪ Strong momentum continues in defense with record $90M of incoming orders a
Slide 8: Materion Enabling the Future of Space Systems
Materion Enabling the Future of Space Systems Satellites In-space Propulsion Rovers & Exploration Housings and thermal management for optics Be and alloyed materials for Structural components and optical microreactor components coatings & filters for rovers and Semiconductor materials for high-perfo
Slide 9: Key Takeaways
Key Takeaways ▪ Delivered record quarterly VA sales, adjusted EBITDA and EPS ▪ Each business segment delivered double-digit YoY sales growth ▪ Exceeded 23% quarterly adjusted EBITDA margin for the first time in Company’s history ▪ Strong free cash flow generation of $59M in the quarter; ~150% conver
Slide 10: Financial Review
Financial Review Shelly Chadwick Vice President and Chief Financial Officer © 2026 Materion Corporation 10
Slide 11: Q2 2026 Operating Performance
Q2 2026 Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $308.2 $71.8 $1.90 +15% +29% +39% $269.0 $55.8 $1.37 23.3% 20.8% Q2 2025 Q2 2026 Q2 2025 Q2 2026 Q2 2025 Q2 2026 Record value-added sales of $308.2 million, up Record adjusted EBITDA at $71.8 million, or 23.3% Record Adju
Slide 12: Q2 2026 Financial Comparison
Q2 2026 Financial Comparison Record adjusted EBITDA of $71.8 million, or 23.3% of VA, up 250 bps YoY ▪ Increase driven primarily by higher volume, strong price/mix and operational performance 23.3% ▪ SG&A reflects growth-related investments including R&D 20.8% ▪ Other includes currency impact and in
Slide 13: Performance Materials Segment
Performance Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $190.0 million, up 13% YoY ▪ Increase driven by significant growth across $190.0 $48.3 aerospace & defense, telecom & data center, energy and semiconductor end markets $168.5 $41.5 +13% ▪ Up 36% sequentially d
Slide 14: Electronic Materials Segment
Electronic Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $87.4 million, up 15% YoY $28.0 ▪ Increase driven primarily by continued strength in $87.4 semiconductor $76.1 ▪ New business initiatives across semiconductor and +15% +57% AI adoption fueling high demand for c
Slide 15: Precision Optics Segment
Precision Optics Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $30.8 million, up 26% YoY ▪ Increase driven by market strength across all end markets $30.8 $6.6 ▪ Fifth consecutive quarter of top-line improvement, the highest quarterly sales since 2021 $24.4 +26% +206% Adjusted
Slide 16: Cash, Debt and Liquidity
Cash, Debt and Liquidity Strong free cash flow generation of $59M in the ($M) Q2 2025 Q2 2026 quarter; ~150% conversion Short-term Debt $19.9 $17.5 Leverage below midpoint of target range of 1.5x – 3x Approximately $233 million available on revolving Long-term Debt $405.7 $423.2 credit facility Tota
Slide 17: Full Year 2026 Guidance
Full Year 2026 Guidance Adj. EPS Guidance $6.80 - $7.20 ~30% 2026 Guidance $5.44 ▪ Increasing full year adjusted EPS guidance to $6.80 - $7.20, an increase of ~30% from 2025 at the midpoint 2025 2026E 2026 Modeling Assumptions Capital Expenditures $75M Interest Expense $28M Mine Development – New Pi
Slide 18: 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 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, environmental rem
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), Electronic Materials inventory adjustment, business transformation costs, environme
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, environme
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, environme
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, environme
Slide 25: 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, environme
Slide 26: Reconciliation for Non-GAAP Measures (Cont.)
Reconciliation for Non-GAAP Measures (Cont.) ($ in millions) Q2 2026 Q2 2025 Q2 2026 TTM Q2 2025 TTM GAAP as Reported Net income $ 38.8 $ 25.1 $ 90.2 $ 16.3 Income tax expense (benefit) 5.7 4.0 6.7 10.2 Interest expense 7.5 8.3 30.7 32.8 Depreciation, depletion, and amortization 19.2 17.5 72.6 70.0
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation © 2026 Materion Corporation 27
Slide 28: 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