Materion Corporation · NYSE:MTRN
Materion — Q3 2025 Earnings Presentation
26 slides from Materion's earnings presentation, Oct 29, 2025
Slide 1: Materion Corporation 3Q 2025 Earnings Presentation
Materion Corporation 3Q 2025 Earnings Presentation October 29, 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: Q3 2025 Highlights
Q3 2025 Highlights Delivered Record Margins in Electronic Materials; Transformation of Precision Optics Continues Value-added (VA) sales of $263.9 million, up 1% organic* YoY ▪ Electronic Materials up 7% YoY organic* and Precision Optics up 21% YoY ▪ Performance Materials sales limited by equipment
Slide 6: End Market Performance
End Market Performance Q3 2025 Q4F vs. Q3’25 Market VA Sales vs. Q3 2024 Comments ▪ Up 7% YTD excluding China Semi Semiconductor $66.5 1% ▪ Sequential improvement of 5% Consumer $50.6 -3% ▪ Up 12% YoY excluding precision clad strip inventory correction Electronics Aerospace & ▪ Aerospace up 7% YoY $
Slide 7: Our Critical Materials are a Key Enabler in High Growth Markets
Our Critical Materials are a Key Enabler in High Growth Markets Semiconductor Energy Defense Space ▪ Semiconductor market recovery ▪ Energy needs accelerating, driven ▪ US defense spending approaching ▪ Space ecosystem expanding, driven underway led by proliferation of AI primarily by electrificatio
Slide 8: Key Takeaways
Key Takeaways ▪ Delivered strong adjusted EBITDA margin of 21.0% ▪ Electronic Materials delivered all-time high adjusted EBITDA margins of 27.1%, up 700 bps YoY and 370 bps sequentially ▪ Transformation of Precision Optics tracking ahead of schedule with third consecutive quarter of improvement ▪ Or
Slide 9: Financial Review
Financial Review Shelly Chadwick Vice President and Chief Financial Officer © 2025 Materion Corporation 9
Slide 10: Q3 2025 Operating Performance
Q3 2025 Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $263.8 $263.9 $1.41 $1.41 $56.7 $55.5 ~0% -2% ~0% 21.5% 21.0% Q3 2024 Q3 2025 Q3 2024 Q3 2025 Q3 2024 Q3 2025 Value-added sales were $263.9 million, up 1% Adjusted EBITDA at $55.5 million, margin of 21.0% Adjusted EPS of
Slide 11: Q3 2025 Financial Comparison
Q3 2025 Financial Comparison Adjusted EBITDA of $55.5 million, or 21.0% of VA Sales ▪ Higher volume, favorable price/mix and strong performance in Electronic Materials and Precision Optics ▪ Partially offset by equipment downtime in Performance Materials ▪ Fx/Other includes incentive compensation ti
Slide 12: Performance Materials Segment
Performance Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $157.1 million ▪ Decrease due to equipment downtime and shipment $163.6 $46.5 timing in defense and energy $157.1 ▪ Partially offset by higher hydroxide shipments and -4% -18% $38.0 space Adjusted EBITDA of $3
Slide 13: Electronic Materials Segment
Electronic Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $79.7 million, up 2% YoY ▪ VA up 7% organic* $77.8 $79.7 $21.6 ▪ VA up 10%* excluding China Semi +2% +38% ▪ Increase driven by power and data storage market recovery $15.6 27.1% Adjusted EBITDA of $21.6 million
Slide 14: Precision Optics Segment
Precision Optics Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $27.1 million, up 21% YoY ▪ Increase driven largely by new business opportunities $3.2 in aerospace & defense $27.1 ▪ Continued improvement in several other key markets $22.4 +21% +623% including life sciences, ind
Slide 15: Cash, Debt and Liquidity
Cash, Debt and Liquidity Leverage slightly below midpoint of target range ($M) Q3 2024 Q3 2025 of 1.5x – 3x Short-term Debt $37.5 $10.2 Approximately $214 million available on existing revolving credit facility Long-term Debt $457.8 $446.8 ▪ Adequate liquidity remains to support growth Total Debt $4
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 $65M Interest Expense $30M HCS-Electronic Materials $25M Effective Tax Rate 13-14% 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, 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.) ($ in millions) Q3 2025 Q3 2024 Q3 2025 TTM Q3 2024 TTM GAAP as Reported Net income $ 25.4 $ 22.3 $ 19.4 $ 74.2 Income tax expense (benefit) 2.7 0.8 12.2 7.1 Interest expense 7.6 8.8 31.6 34.4 Depreciation, depletion, and amortization 17.5 18.6 68.8 66.4
Slide 26: 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