Materion Corporation · NYSE:MTRN
Materion — Q1 2025 Earnings Presentation
27 slides from Materion's earnings presentation, May 1, 2025
Slide 1: Materion Corporation 1Q 2025 Earnings Presentation
Materion Corporation 1Q 2025 Earnings Presentation May 1, 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: Q1 2025 Highlights
Q1 2025 Highlights Strong Execution Delivers 130bps Adj. EBITDA Improvement YoY Value-added (VA) sales of $259.3 million, up 1% YoY ▪ Increase driven by growth in space, energy and improving demand in semiconductor, partially offset by lower PMI shipments ▪ Excluding PMI, up 4% YoY Adjusted EBITDA o
Slide 6: End Market Performance
End Market Performance Q1 2025 Market VA Sales vs. Q1 2024 Comments ▪ Improving demand in data storage and advanced logic & memory applications Semiconductor $68.3 7% ▪ Third consecutive quarter of YoY growth ▪ Sixteenth consecutive quarter of YoY growth in Aerospace led by significant contribution
Slide 7: 2025 Tariff Environment
2025 Tariff Environment Current Tariff Exposure Tariff Mitigation Plan TTM* Value-Added (VA) Sales 1% ▪ Minimal tariff expense incurred to ▪ Tariff-related costs to be passed 8% date on to customers 16% ▪ Immaterial impact expected with ▪ Re-sourcing goods from suppliers BY 45% dual sourcing on most
Slide 8: Key Takeaways
Key Takeaways ▪ Strong execution delivered record Q1 despite macroeconomic uncertainty ▪ Record 1st quarter adjusted EBITDA margin ▪ $35M improvement in free cash flow YoY ▪ Secured a multi-year agreement with Idaho National Lab to supply materials in support of nuclear energy research and developme
Slide 9: Financial Review
Financial Review Shelly Chadwick Vice President and Chief Financial Officer © 2025 Materion Corporation 9
Slide 10: Q1 2025 Operating Performance
Q1 2025 Operating Performance Value-added Sales ($M) Adj. EBITDA ($M) Adj. EPS $48.7 $1.13 $259.3 $257.8 $45.2 +1% +8% +18% $0.96 18.8% 17.5% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Value-added sales were $259.3 million, up 1% YoY Adjusted EBITDA at $48.7 million, margin of 18.8% Adjusted EP
Slide 11: Q1 2025 Financial Comparison
Q1 2025 Financial Comparison Adjusted EBITDA of $48.7 million, or 18.8% of VA Sales, up 130 bps YoY ▪ Increase driven by slightly higher volume, strong performance and cost management ▪ Partially offset by unfavorable price/mix primarily due to lower defense shipments © 2025 Materion Corporation 11
Slide 12: Performance Materials Segment
Performance Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $160.0 million, up 3% YoY $40.9 ▪ Increase primarily driven by strength in space, energy $160.0 and industrial $155.6 +3% +15% ▪ Excluding PMI, up 10% YoY $35.7 Adjusted EBITDA of $40.9 million, up 15% YoY 25.
Slide 13: Electronic Materials Segment
Electronic Materials Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $77.8 million ▪ Increase driven by improving semiconductor demand, $77.6 $77.8 $14.5 specifically across logic & memory devices and data $13.3 storage ~0% -8% ▪ Up 5% YoY excluding the divested Albuquerque larg
Slide 14: Precision Optics Segment
Precision Optics Segment Value-added Sales ($M) Adj. EBITDA ($M) Value-added sales of $21.5 million $24.6 ▪ Decrease due to market weakness in several end markets and order timing, partially offset by strength $21.5 in defense and semiconductor -13% ▪ ~Flat sequentially Adjusted EBITDA loss of $0.1
Slide 15: Cash, Debt and Liquidity
Cash, Debt and Liquidity ($M) Q1 2024 Q1 2025 Leverage slightly below midpoint of target range Short-term Debt $46.6 $52.6 of 1.5x – 3x $35M Free Cash Flow improvement YoY Long-term Debt $428.7 $398.7 ▪ $27M inventory reduction YoY Total Debt $475.3 $451.3 Approximately $172 million available on exi
Slide 16: Full Year 2025 Guidance
Full Year 2025 Guidance Adj. EPS Guidance $5.30 - $5.70 Current Potential China $5.34 +3% $0.50-0.65 Tariff Sales Impact 2025 Guidance ▪ Full year adjusted EPS guidance of $5.30 - $5.70 ▪ Expect $0.10-0.15 impact from China tariffs in Q2 and a potential $0.40-$0.50 impact in 2H ▪ Reducing capital ex
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
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 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) Q1 2025 Q1 2024 Q1 2025 TTM Q1 2024 TTM GAAP as Reported Net income $ 17.7 $ 13.4 $ 10.2 $ 83.5 Income tax expense (benefit) 3.3 1.2 11.1 8.8 Interest expense 6.9 8.3 33.4 32.1 Depreciation, depletion, and amortization 16.5 16.2 69.0 62.7
Slide 26: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation © 2025 Materion Corporation 26
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