Materion Corporation Reports Record Second-Quarter 2026 Financial Results and Raises Full-Year Outlook

About this update from Materion Corporation

Materion Corporation (NYSE: MTRN) today reported strong second-quarter 2026 financial results and raised its full-year outlook. Financial Summary Net sales were $613.9 million versus $431.7 million in the prior year period; value-added sales 1 were $308.2 million versus $269.0 million in the prior year period Net income of $38.8 million, or $1.84 per share, diluted, versus $25.1 million, or $1.21 per share, in the prior year period; adjusted earnings of $1.90 per share versus $1.37 in the prior year period Operating profit of $51.7 million versus $36.8 million in the prior year period; record adjusted EBITDA 2 of $71.8 million or 23.3% of value-add sales versus $55.8 million or 20.8% in the prior year period, with 250 basis points margin expansion Strong free cash flow 3 generation of $59 million in the quarter with ~150% cash conversion Increasing full-year adjusted earnings per share outlook to $6.80 – $7.20, up 30% versus 2025 at the midpoint Business Highlights Delivered record quarterly value-added sales, adjusted EBITDA and adjusted EPS Each business segment delivered double-digit year over year sales growth Exceeded 23% quarterly adjusted EBITDA margin for the first time in Company’s history Exited the quarter with record backlog, up ~30% year over year and ~20% since the beginning of year Awarded ~$15M in new business to supply advanced materials critical to engine performance for a large commercial space customer “It is an exciting time at Materion, as our advanced material solutions are powering the critical technologies that are moving the world forward, and demand across our diverse end markets continues to accelerate. Thanks to the dedication and flawless execution across our teams, we achieved record sales and profitability in the second quarter, setting a strong foundation for the rest of the year,” said Jugal Vijayvargiya, President & CEO of Materion. “We continue to see strong order rate momentum, driven by new business wins and rising demand from our existing customers. We closed out the quarter once again with record backlog, giving us the confidence to meaningfully raise our full-year outlook.” SECOND-QUARTER 2026 RESULTS Net sales for the quarter were $613.9 million, compared to $431.7 million in the prior year period. Value-added sales were $308.2 million for the quarter, up 15% from the prior year period driven by the highest quarterly aerospace & defense sales with significant growth seen across semiconductor, industrial, energy and telecom & data center end markets. Operating profit for the quarter was $51.7 million and net income was $38.8 million, or $1.84 per diluted share, compared to operating profit of $36.8 million and net income of $25.1 million, or $1.21 per share, in the prior year period. Excluding special items 4 , adjusted EBITDA was at an all-time quarterly high of $71.8 million, a quarterly record of 23.3% of value-added sales, compared to $55.8 million or 20.8% of value-added sales in the prior year period. The record adjusted EBITDA and margin was driven by higher volume, strong price/mix and operational performance, as well as some favorable one-time items. Adjusted net income was $40.1 million excluding acquisition amortization, or $1.90 per diluted share, compared to $1.37 per share in the prior year period. OUTLOOK Our first half results combined with increasing backlog and strong order rate momentum improves our confidence in delivering record full-year results. We now expect mid-teens top‑line growth and are raising our full‑year adjusted earnings per share guidance to $6.80 to $7.20, a 30% increase from prior year at the midpoint. ADJUSTED EARNINGS GUIDANCE It is not possible for the Company to identify the amount or significance of future adjustments associated with potential insurance and litigation claims, legacy environmental costs, acquisition and integration costs, certain income tax items, or other non-routine costs that the Company adjusts in the presentation of adjusted earnings guidance. These items are dependent on future events that are not reasonably estimable at this time. Accordingly, the Company is unable to reconcile without unreasonable effort the forecasted range of adjusted earnings guidance for the full year to a comparable GAAP range. However, items excluded from the Company's adjusted earnings guidance include the historical adjustments noted in Attachments 4 through 8 to this press release. CONFERENCE CALL Materion Corporation will host an investor conference call with analysts at 9:00 a.m. Eastern Time, August 5, 2026. The conference call will be available via webcast through the Company’s website at www.materion.com . By phone, please dial (888) 506-0062. Calls outside the U.S. can dial (973) 528-0011; please reference participant access code of 962575. A replay of the call will be available until August 19, 2026 by dialing (877) 481-4010 or (919) 882-2331 if international; please reference replay ID number 53275. The call will also be archived on the Company’s website. FOOTNOTES 1 Value-added sales deducts the impact of pass-through metals from net sales 2 EBITDA represents earnings before interest, taxes, depreciation, depletion and amortization 3 See reconciliation of operating cash flow to free cash flow in Attachment 9 4 Details of the special items can be found in Attachments 4 through 8 ABOUT MATERION Materion Corporation is a global leader in advanced materials solutions for high-performance industries including semiconductor, industrial, aerospace & defense, energy and automotive. With nearly 100 years of expertise in specialty engineered alloy systems, inorganic chemicals and powders, precious and non-precious metals, beryllium and beryllium composites, and precision filters and optical coatings, Materion partners with customers to enable breakthrough solutions that move the world forward. Headquartered in Mayfield Heights, Ohio, the Company employs more than 3,000 talented people worldwide, serving customers in more than 60 countries. FORWARD-LOOKING STATEMENTS Portions of the narrative set forth in this document that are not statements of historical or current facts are forward-looking statements. Our actual future performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. These factors include, in addition to those mentioned elsewhere herein: the global economy, including inflationary pressures, potential future recessionary conditions and the impact of tariffs and trade agreements; the impact of any U.S. Federal Government shutdowns or sequestrations; the condition of the markets which we serve, whether defined geographically or by segment; changes in product mix and the financial condition of customers; our success in developing and introducing new products and new product ramp-up rates; our success in passing through the costs of raw materials to customers or otherwise mitigating fluctuating prices for those materials, including the impact of fluctuating prices on inventory values; our success in identifying acquisition candidates and in acquiring and integrating such businesses; the impact of the results of acquisitions on our ability to fully achieve the strategic and financial objectives related to these acquisitions; our success in implementing our strategic plans and the timely and successful start-up and completion of any capital projects; other financial and economic factors, including the cost and availability of raw materials (both base and precious metals), physical inventory valuations, metal consignment fees, tax rates, exchange rates, interest rates, pension costs and required cash contributions and other employee benefit costs, energy costs, regulatory compliance costs, the cost and availability of insurance, credit availability, and the impact of the Company’s stock price on the cost of incentive compensation plans; the uncertainties related to the impact of war, terrorist activities, and acts of God; changes in government regulatory requirements and the enactment of new legislation that impacts our obligations and operations; the conclusion of pending litigation matters in accordance with our expectation that there will be no material adverse effects; the disruptions in operations from, and other effects of, catastrophic and other extraordinary events including outbreaks from infectious diseases and other extraordinary events including geopolitical conflicts such as the conflict between Russia and Ukraine and the conflict between the United states and Iran; realization of expected financial benefits expected from the Inflation Reduction Act of 2022; and the risk factors set forth in Part 1, Item 1A of the Company's 2025 Annual Report on Form 10-K and in other reports that we file with the SEC.   Attachment 1 Materion Corporation and Subsidiaries Consolidated Statements of Income (Unaudited)     Second Quarter Ended   Six Months Ended (In thousands except per share amounts) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net sales $ 613,906     $ 431,658     $ 1,163,730     $ 851,988   Cost of sales   509,564       349,000       977,553       693,151   Gross margin   104,342       82,658       186,177       158,837   Selling, general, and administrative expense   42,321       35,039       78,521       70,484   Research and development expense   6,562       6,413       12,719       12,918   Restructuring expense   324       479       2,619       2,517   Other — net   3,424       3,908       12,432       8,904   Operating profit   51,711       36,819       79,886       64,014   Other non-operating income—net   (317 )     (567 )     (627 )     (1,233 ) Interest expense — net   7,526       8,230       15,104       15,147   Income before income taxes   44,502       29,156       65,409       50,100   Income tax expense   5,744       4,016       7,277       7,262   Net income $ 38,758     $ 25,140     $ 58,132     $ 42,838   Basic earnings per share:               Net income per share of common stock $ 1.86     $ 1.21     $ 2.80     $ 2.06   Diluted earnings per share:               Net income per share of common stock $ 1.84     $ 1.21     $ 2.76     $ 2.05   Weighted-average number of shares of common stock outstanding:               Basic   20,821       20,779       20,791       20,779   Diluted   21,075       20,833       21,048       20,874   Attachment 2 Materion Corporation and Subsidiaries Consolidated Balance Sheets       (Unaudited)     (Thousands)   July 3, 2026   December 31, 2025 Assets         Current assets         Cash and cash equivalents   $ 19,987     $ 13,681   Accounts receivable, net     260,779       222,916   Inventories, net     487,444       461,231   Prepaid and other current assets     101,746       91,692   Total current assets     869,956       789,520   Deferred income taxes     8,816       7,727   Property, plant, and equipment     1,408,924       1,376,703   Less allowances for depreciation, depletion, and amortization     (877,237 )     (841,245 ) Property, plant, and equipment—net     531,687       535,458   Operating lease, right-of-use assets     56,974       62,036   Intangible assets, net     99,893       105,874   Other assets     23,185       21,529   Goodwill     280,186       280,657   Total Assets   $ 1,870,697     $ 1,802,801   Liabilities and Shareholders’ Equity         Current liabilities         Short-term debt   $ 17,478     $ 22,445   Accounts payable     192,292       148,642   Salaries and wages     24,074       19,312   Other liabilities and accrued items     46,328       45,445   Income taxes     3,349       5,054   Unearned revenue     12,271       12,685   Total current liabilities     295,792       253,583   Other long-term liabilities     13,286       12,556   Operating lease liabilities     58,170       60,568   Finance lease liabilities     12,671       13,384   Retirement and post-employment benefits     23,155       23,931   Unearned income     46,454       55,862   Long-term income taxes     901       532   Deferred income taxes     2,191       2,760   Long-term debt     423,210       436,348   Shareholders’ equity     994,867       943,277   Total Liabilities and Shareholders’ Equity   $ 1,870,697     $ 1,802,801   Attachment 3 Materion Corporation and Subsidiaries Consolidated Statements of Cash Flows (Unaudited)       Six Months Ended (Thousands)   July 3, 2026   June 27, 2025 Cash flows from operating activities:         Net income   $ 58,132     $ 42,838   Adjustments to reconcile net income to net cash provided by operating activities:         Depreciation, depletion, and amortization     37,614       34,047   Amortization of deferred financing costs in interest expense     478       1,412   Stock-based compensation expense (non-cash)     8,635       5,437   Deferred income tax expense (benefit)     (1,618 )     (25 ) Changes in assets and liabilities:         Accounts receivable     (39,130 )     (949 ) Inventory     (21,938 )     94   Prepaid and other current assets     (11,861 )     (3,029 ) Accounts payable and accrued expenses     45,579       4,193   Unearned revenue     (7,098 )     (8,525 ) Interest and taxes payable     (591 )     (1,230 ) Other-net     2,304       (8,821 ) Net cash provided by operating activities     70,506       65,442   Cash flows from investing activities:         Payments for purchase of property, plant, and equipment     (29,818 )     (25,003 ) Payments for mine development     (1,661 )     (10,175 ) Proceeds from sale of property, plant, and equipment     —       266   Net cash used in investing activities     (31,479 )     (34,912 ) Cash flows from financing activities:         Proceeds from repayments under credit facilities, net     (14,962 )     (2,219 ) Repayment of debt     (3,033 )     (15,111 ) Principal payments under finance lease obligations     (306 )     (306 ) Cash dividends paid     (5,926 )     (5,705 ) Deferred financing costs     —       (2,856 ) Repurchase of common stock     —       (7,843 ) Payments of withholding taxes for stock-based compensation awards     (7,888 )     (2,337 ) Net cash used in financing activities     (32,115 )     (36,377 ) Effects of exchange rate changes     (606 )     1,725   Net change in cash and cash equivalents     6,306       (4,122 ) Cash and cash equivalents at beginning of period     13,681       16,713   Cash and cash equivalents at end of period   $ 19,987     $ 12,591   Attachment 4 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Value-added Sales, Operating Profit, and EBITDA (Unaudited)     Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net Sales               Performance Materials $ 207.9   $ 182.8   $ 363.6   $ 356.8 Electronic Materials   375.2     224.4     738.5     449.2 Precision Optics   30.8     24.5     61.6     46.0 Other   —     —     —     — Total $ 613.9   $ 431.7   $ 1,163.7   $ 852.0                 Less: Pass-through Metal Cost               Performance Materials $ 17.9   $ 14.3   $ 34.1   $ 28.3 Electronic Materials   287.8     148.3     559.5     295.3 Precision Optics   —     0.1     0.1     0.1 Other   —     —     —     — Total $ 305.7   $ 162.7   $ 593.7   $ 323.7                 Value-added Sales (non-GAAP)               Performance Materials $ 190.0   $ 168.5   $ 329.5   $ 328.5 Electronic Materials   87.4     76.1     179.0     153.9 Precision Optics   30.8     24.4     61.5     45.9 Other   —     —     —     — Total $ 308.2   $ 269.0   $ 570.0   $ 528.3                 Gross Margin               Performance Materials (1) $ 51.5   $ 48.9   $ 82.6   $ 97.1 Electronic Materials (1)   40.8     27.2     80.6     51.0 Precision Optics (1)   12.0     6.5     23.0     10.7 Other   —     —     —     — Total $ 104.3   $ 82.6   $ 186.2   $ 158.8 (1) See reconciliation of gross margin to adjusted gross margin in Attachment 8 Note: Quarterly information presented within this document and previously disclosed quarterly information may not equal the total computed for the year due to rounding   Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Operating Profit               Performance Materials $ 36.5     $ 31.0     $ 49.5     $ 62.3   Electronic Materials   23.1       13.3       44.0       20.1   Precision Optics   4.3       (0.6 )     6.5       (4.7 ) Other   (12.2 )     (6.9 )     (20.1 )     (13.7 ) Total $ 51.7     $ 36.8     $ 79.9     $ 64.0                   Non-Operating (Income)/Expense               Performance Materials $ 0.1     $ 0.1     $ 0.3     $ 0.1   Electronic Materials   (0.1 )     (0.1 )     (0.1 )     (0.1 ) Precision Optics   (0.1 )     (0.1 )     (0.3 )     (0.4 ) Other   (0.2 )     (0.5 )     (0.5 )     (0.9 ) Total $ (0.3 )   $ (0.6 )   $ (0.6 )   $ (1.3 )                 Depreciation, Depletion, and Amortization               Performance Materials $ 11.9     $ 10.2     $ 22.9     $ 19.6   Electronic Materials   4.6     $ 4.2       9.3       8.5   Precision Optics   2.2       2.6       4.5       4.9   Other   0.5       0.5       0.9       1.0   Total $ 19.2     $ 17.5     $ 37.6     $ 34.0                   Segment EBITDA               Performance Materials $ 48.3     $ 41.1     $ 72.1     $ 81.8   Electronic Materials   27.8       17.6       53.4       28.7   Precision Optics   6.6       2.1       11.3       0.6   Other   (11.5 )     (5.9 )     (18.7 )     (11.8 ) Total $ 71.2     $ 54.9     $ 118.1     $ 99.3                   Special Items (2)               Performance Materials $ —     $ 0.4     $ 4.3     $ 0.6   Electronic Materials   0.2     $ 0.2       0.5       2.4   Precision Optics   —       0.1       0.9       1.5   Other   0.4       0.2       1.0       0.7   Total $ 0.6     $ 0.9     $ 6.7     $ 5.2                   Adjusted EBITDA Excluding Special Items               Performance Materials $ 48.3     $ 41.5     $ 76.4     $ 82.4   Electronic Materials   28.0       17.8       53.9       31.1   Precision Optics   6.6       2.2       12.2       2.1   Other   (11.1 )     (5.7 )     (17.7 )     (11.1 ) Total $ 71.8     $ 55.8     $ 124.8     $ 104.5   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. Internally, management also reviews net sales on a value-added basis. Value-added sales is a non-GAAP financial measure that deducts the value of the pass-through metals sold from net sales. Value-added sales allows management to assess the impact of differences in net sales between periods or segments and analyze the resulting margins and profitability without the distortion of the movements in pass-through market metal prices. The dollar amount of gross margin and operating profit is not affected by the value-added sales calculation. The Company sells other metals and materials that are not considered direct pass throughs, and these costs are not deducted from net sales to calculate value-added sales.   The Company’s pricing policy is to pass the cost of these metals on to customers in order to mitigate the impact of price volatility on the Company’s results from operations. Value-added information is being presented since changes in metal prices may not directly impact profitability. It is the Company’s intent to allow users of the financial statements to review sales with and without the impact of the pass-through metals.   (2) See additional details of special items in Attachment 5 Attachment 5 Materion Corporation and Subsidiaries Reconciliation of Net Sales to Value-added Sales, Net Income to EBITDA and Adjusted EBITDA (Unaudited)     Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net sales $ 613.9     $ 431.7     $ 1,163.7     $ 852.0   Pass-through metal cost   305.7       162.7       593.7       323.7   Value-added sales $ 308.2     $ 269.0     $ 570.0     $ 528.3                   Net income $ 38.8     $ 25.1     $ 58.1     $ 42.8   Income tax expense   5.7       4.0       7.3       7.3   Interest expense - net   7.5       8.3       15.1       15.2   Depreciation, depletion and amortization   19.2       17.5       37.6       34.0   Consolidated EBITDA $ 71.2     $ 54.9     $ 118.1     $ 99.3   Net Income as a % of Net sales   6.3 %     5.8 %     5.0 %     5.0 % Net Income as a % of Value-added sales   12.6 %     9.3 %     10.2 %     8.1 % EBITDA as a % of Net sales   11.6 %     12.7 %     10.1 %     11.7 % EBITDA as a % of Value-added sales   23.1 %     20.4 %     20.7 %     18.8 %                 Special items               Restructuring and cost reduction $ 0.3     $ 0.5     $ 2.7     $ 2.6   Other   0.2       —       0.2       —   Product quality issue   —       —       3.5       —   Merger, acquisition and divestiture related costs   —       0.2       —       2.3   Business transformation costs   0.1       0.2       0.3       0.3   Total special items   0.6       0.9       6.7       5.2   Adjusted EBITDA $ 71.8     $ 55.8     $ 124.8     $ 104.5   Adjusted EBITDA as a % of Net sales   11.7 %     12.9 %     10.7 %     12.3 % Adjusted EBITDA as a % of Value-added sales   23.3 %     20.8 %     21.9 %     19.8 % In addition to presenting financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP), this earnings release contains financial measures, including operating profit, segment operating profit, earnings before interest, taxes, depreciation, depletion and amortization (EBITDA), net income, and earnings per share, on a non-GAAP basis. As detailed in the above reconciliation and Attachment 6, we have adjusted the results for certain special items, including the following: Restructuring and cost reduction – Costs include restructuring charges, costs associated with temporarily idled facilities as a result of decreased demand and costs associated with disposal of assets associated with obsolete products. Other – Costs primarily consist of miscellaneous expenses that are not indicative of current performance and are therefore included within our EBITDA adjustments, but are not significant enough to warrant separate presentation. Product quality issue - Represents costs incurred related to a previously identified quality issue in the fourth quarter of 2025 identified by a large precision clad strip customer which led to temporarily idling production facilities within the Performance Materials segment. Merger, acquisition and divestiture related costs – Includes due diligence costs associated with potential merger, acquisition and divestitures as well as loss on asset disposals. Business transformation costs – Represents project management and implementation expenses related to the Company's automation and transformation initiatives. Internally, management reviews the results of operations without the impact of these costs in order to assess the profitability from ongoing activities. We are providing this information because we believe it will assist investors in analyzing our financial results and, when viewed in conjunction with the GAAP results, provide a more comprehensive understanding of the factors and trends affecting our operations. Attachment 6 Materion Corporation and Subsidiaries Reconciliation of Net Income to Adjusted Net Income and Diluted Earnings per Share to Adjusted Diluted Earnings per Share (Unaudited)     Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   Diluted EPS   June 27, 2025   Diluted EPS   July 3, 2026   Diluted EPS   June 27, 2025   Diluted EPS Net income and EPS $ 38.8     $ 1.84     $ 25.1     $ 1.21   $ 58.1     $ 2.76   $ 42.8     $ 2.05                                 Special items                               Restructuring and cost reduction $ 0.3         $ 0.5         $ 2.7         $ 2.6       Other   0.2           —           0.2           —       Product quality issue   —           —           3.5           —       Merger, acquisition and divestiture related costs   —           0.2           —           2.3       Business transformation costs   0.1           0.2           0.3           0.3       Debt extinguishment costs (1)   —           0.5           —           0.5       Provision for income taxes (2)   (1.3 )         (0.2 )         (2.0 )         (0.7 )     Total special items   (0.7 )     (0.03 )     1.2       0.05     4.7       0.22     5.0       0.24 Adjusted net income and adjusted EPS $ 38.1     $ 1.81     $ 26.3     $ 1.26   $ 62.8     $ 2.98   $ 47.8     $ 2.29 Acquisition amortization (net of tax)   2.0       0.09       2.2       0.11     4.0       0.19     4.4       0.21 Adjusted net income and adjusted EPS excl. amortization $ 40.1     $ 1.90     $ 28.5     $ 1.37   $ 66.8     $ 3.17   $ 52.2     $ 2.50 (1) Debt extinguishment costs - Represents debt extinguishment costs incurred in connection with the amendment of the Company's Credit Agreement in June 2025. (2) Provision for income taxes includes the net tax impact on pre-tax adjustments (listed above), the impact of certain discrete tax items recorded during the respective periods as well as other adjustments to reflect the use of one overall effective tax rate on adjusted pre-tax income in interim periods. Attachment 7 Reconciliation of Segment Net sales to Segment Value-added sales and Segment EBITDA to Adjusted Segment EBITDA (Unaudited)                 Performance Materials                 Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net sales $ 207.9     $ 182.8     $ 363.6     $ 356.8   Pass-through metal cost   17.9       14.3       34.1       28.3   Value-added sales $ 190.0     $ 168.5     $ 329.5     $ 328.5                   EBITDA $ 48.3     $ 41.1     $ 72.1     $ 81.8   Restructuring and cost reduction   —       0.3       0.6       0.5   Business transformation costs   —       0.1       0.2       0.1   Product quality issue   —       —       3.5       —   Adjusted EBITDA $ 48.3     $ 41.5     $ 76.4     $ 82.4   EBITDA as a % of Net sales   23.2 %     22.5 %     19.8 %     22.9 % EBITDA as a % of Value-added sales   25.4 %     24.4 %     21.9 %     24.9 % Adjusted EBITDA as a % of Net sales   23.2 %     22.7 %     21.0 %     23.1 % Adjusted EBITDA as a % of Value-added sales   25.4 %     24.6 %     23.2 %     25.1 %                 Electronic Materials                 Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net sales $ 375.2     $ 224.4     $ 738.5     $ 449.2   Pass-through metal cost   287.8       148.3       559.5       295.3   Value-added sales $ 87.4     $ 76.1     $ 179.0     $ 153.9                   EBITDA $ 27.8     $ 17.6     $ 53.4     $ 28.7   Restructuring and cost reduction   —       0.1       0.4       0.6   Merger, acquisition and divestiture related costs   —       0.1       —       1.8   Other   0.2       —       0.1       —   Adjusted EBITDA $ 28.0     $ 17.8     $ 53.9     $ 31.1   EBITDA as a % of Net sales   7.4 %     7.8 %     7.2 %     6.4 % EBITDA as a % of Value-added sales   31.8 %     23.1 %     29.8 %     18.6 % Adjusted EBITDA as a % of Net sales   7.5 %     7.9 %     7.3 %     6.9 % Adjusted EBITDA as a % of Value-added sales   32.0 %     23.4 %     30.1 %     20.2 %                 Precision Optics                 Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net sales $ 30.8     $ 24.5       61.6     $ 46.0   Pass-through metal cost   —       0.1       0.1       0.1   Value-added sales $ 30.8     $ 24.4     $ 61.5     $ 45.9                   EBITDA $ 6.6     $ 2.1     $ 11.3     $ 0.6   Restructuring and cost reduction   —       0.1       0.9       1.5   Adjusted EBITDA $ 6.6     $ 2.2     $ 12.2     $ 2.1   EBITDA as a % of Net sales   21.4 %     8.6 %     18.3 %     1.3 % EBITDA as a % of Value-added sales   21.4 %     8.6 %     18.4 %     1.3 % Adjusted EBITDA as a % of Net sales   21.4 %     9.0 %     19.8 %     4.6 % Adjusted EBITDA as a % of Value-added sales   21.4 %     9.0 %     19.8 %     4.6 %                 Other                 Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 EBITDA $ (11.5 )   $ (5.9 )   $ (18.7 )   $ (11.8 ) Restructuring and cost reduction   0.3       —       0.8       —   Business transformation costs   0.1       0.1       0.1       0.2   Other   —       —       0.1       —   Merger, acquisition and divestiture related costs   —       0.1       —       0.5   Adjusted EBITDA $ (11.1 )   $ (5.7 )   $ (17.7 )   $ (11.1 ) Attachment 8 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Gross Margin to Adjusted Gross Margin (Unaudited)     Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Gross Margin               Performance Materials $ 51.5   $ 48.9   $ 82.6   $ 97.1 Electronic Materials   40.8     27.2     80.6     51.0 Precision Optics   12.0     6.5     23.0     10.7 Other   —     —     —     — Total $ 104.3   $ 82.6   $ 186.2   $ 158.8                 Special Items (1)               Performance Materials $ —   $ —   $ 3.5   $ — Electronic Materials   —     —     —     — Precision Optics   —     —     —     — Other   —     —     —     — Total $ —   $ —   $ 3.5   $ —                 Adjusted Gross Margin               Performance Materials $ 51.5   $ 48.9   $ 86.1   $ 97.1 Electronic Materials   40.8     27.2     80.6     51.0 Precision Optics   12.0     6.5     23.0     10.7 Other   —     —     —     — Total $ 104.3   $ 82.6   $ 189.7   $ 158.8 (1) Special items impacting gross margin represent the product quality issue identified in the fourth quarter of 2025. Attachment 9 Materion Corporation and Subsidiaries Reconciliation of Non-GAAP Measure - Operating Cash Flow to Free Cash Flow (Unaudited)     Second Quarter Ended   Six Months Ended (Millions) July 3, 2026   June 27, 2025   July 3, 2026   June 27, 2025 Net Income $ 38.8     $ 25.1     $ 58.1     $ 42.8                   Net cash provided by (used in) operating activities $ 74.8     $ 49.9     $ 70.5     $ 65.4   Payments for purchase of property, plant and equipment   (14.5 )     (12.7 )     (29.8 )     (25.0 ) Payments for mine development   (1.6 )     (1.5 )     (1.7 )     (10.2 ) Free cash flow (FCF) $ 58.7     $ 35.7     $ 39.0     $ 30.2                 Free cash flow conversion as a % of Net Income   151 %     142 %     67 %     71 %   Free cash flow (FCF) represents operating cash flow adjusted for capital expenditures and mine development costs. Management believes FCF is an important performance measure of the business. FCF is not a measure calculated in accordance with GAAP, and it should not be considered a substitute for operating cash flow or any other measure of financial performance presented in accordance with GAAP.   View source version on businesswire.com: https://www.businesswire.com/news/home/20260804646762/en/

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