Slide 1: Materion Corporation 4Q 2024 Earnings Presentation
Materion Corporation 4Q 2024 Earnings Presentation February 19, 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: Q4 2024 Highlights
Q4 2024 Highlights Record Adjusted Earnings on Strong Operational Performance Value-added (VA) sales of $296.1 million, up 2% YoY ▪ Increase driven by continued strength in space & defense and gradual improvement in semiconductor ▪ Partially offset by continued headwinds across automotive, industria
Slide 6: End Market Performance
End Market Performance Q4 2024 FY 2024 Market VA Sales vs. Q4 2023 Q4 Comments VA Sales vs. 2023 Semiconductor $68.8 7% ▪ Improving demand across advanced logic and memory applications $264.2 -3% ▪ Fifteenth consecutive quarter of YoY growth in Aerospace led by Aerospace & $66.9 15% significant cont
Slide 7: 2024 Highlights
2024 Highlights Delivered Fourth Consecutive Year of Adj. EBITDA ($M) Record Adjusted EBITDA and EBITDA margin $217.7 $221.2 Delivered VA sales of $1.1 billion, down 3% YoY $196.0 ▪ Diverse portfolio and positive impact of organic wins helped offset significant softness across several markets 20.2%
Slide 8: 2024 Highlights: Significant Advancements on Strategic Initiatives
2024 Highlights Significant Advancements on Strategic Initiatives Advanced portfolio initiatives to address under-performing sites ▪ Completed sale of non-core large area targets business in Albuquerque, New Mexico ▪ Consolidated/closed operations to drive scale and efficiency Secured significant ne
Slide 9: Establishing New Mid-Term Margin Target of 23%
Establishing New Mid-Term Margin* Target of 23% Materion is on a path to drive further margin expansion Adj. EBITDA (%) ▪ Delivered mid-term target margins of 20% in 2024; with margin expansion every 23% year since 2020 ▪ Expect to outgrow end-markets by 200 - 300bps with global megatrend aligned 20
Slide 10: 2025 End-Market Growth Outlook
2025 End-Market Growth Outlook Contraction (<0%) Low Single-Digit (0-3%) Mid Single-Digit (>3%) Automotive Industrial Aerospace Energy Defense Life Sciences Semiconductor Consumer Electronics Expect to outgrow underlying market projections © 2025 Materion Corporation 10
Slide 11: Looking Ahead to 2025
Looking Ahead to 2025 Expect to outperform end markets, delivering mid-single digit top line growth excluding precision clad strip ▪ Markets to improve sequentially as we move through the year Precision Clad Strip inventory correction will continue in 2025, expect a return to growth in 2026 Expect a
Slide 12: Financial Review
Financial Review Shelly Chadwick Vice President and Chief Financial Officer © 2025 Materion Corporation 12
Slide 13: Q4 2024 Operating Performance
Q4 2024 Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $296.1 $61.5 $1.55 $289.7 +2% +15% +10% $53.3 $1.41 20.8% 18.4% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Value-added sales were $296.1 million Adjusted EBITDA at $61.5 million, margin of 20.8%, Adjusted EPS of $1.5
Slide 14: Q4 2024 Financial Comparison
Q4 2024 Financial Comparison Adjusted EBITDA of $61.5 million, or 20.8% of VA Sales, up 240 bps YoY ▪ Outperformed the mid-term adjusted EBITDA margin target of 20% for third consecutive quarter ▪ Record adjusted EBITDA for any quarter ▪ Increase driven by higher volume, price/mix and performance ▪
Slide 15: Performance Materials Segment
Performance Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Record value-added sales of $195.8 million, up 5% YoY $53.6 $195.8 ▪ Increase primarily driven by continued strength across $186.0 the space & defense and consumer electronics end +5% +17% markets $46.0 Record adjusted EBITDA of $
Slide 16: Electronic Materials Segment
Electronic Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $78.6 million, up 1% YoY $14.7 ▪ Increase driven by improving semiconductor demand, specifically across logic & memory devices and data $77.7 +1% $78.6 +34% storage $11.0 ▪ Up 4% YoY excluding the divested Albu
Slide 17: Precision Optics Segment
Precision Optics Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $21.7 million ▪ Decrease due to market weakness in several end $26.0 $3.8 markets partially offset by strength in space and semiconductor -17% $21.7 -129% Adjusted EBITDA loss of $1.1 million 14.6% ▪ Decrease prima
Slide 18: Full Year Operating Performance
Full Year Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $1,127.1 $5.64 $1,097.6 $217.7 $221.2 $5.34 -3% +2% -5% 20.2% 19.3% 2023 2024 2023 2024 2023 2024 Value-added sales of $1,097.6 million Adjusted EBITDA at $221.2 million, margin of Adjusted EPS of $5.34 20.2% up 90 bps
Slide 19: Cash, Debt and Liquidity
Cash, Debt and Liquidity ($M) Q4 2023 Q4 2024 Leverage at midpoint of target range of 1.5x – 3x Short-term Debt $38.6 $34.3 ▪ Improvement from 2.2x at the end of Q3 Long-term Debt $387.6 $407.7 Strong free cash flow of $57M generated in fourth quarter Total Debt $426.2 $442.0 Approximately $169 mill
Slide 20: Full Year 2025 Guidance
Full Year 2025 Guidance Adj. EPS Guidance $5.30 - $5.70 $5.34 +3% 2025 Guidance ▪ Introducing full year adjusted EPS guidance of $5.30 - $5.70 ▪ Expect sequential improvement through the year 2024 2025E 2025 Modeling Assumptions Capital Expenditures $80M Interest Expense $30M HCS-Electronic Material
Slide 21: 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 22: Appendix
Appendix © 2025 Materion Corporation 22
Slide 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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