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1. Company Snapshot

1.a. Company Description

Materion Corporation, through with its subsidiaries, produces advanced engineered materials used in semiconductor, industrial, aerospace and defense, automotive, energy, consumer electronics, and telecom and data center in the United States, Asia, Europe, and internationally.It operates through Performance Alloys and Composites, Advanced Materials, and Precision Optics segments.The Performance Alloys and Composites segment offers advanced engineered solutions comprising beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.


This segment operates the bertrandite ore mine and refinery located in Utah that provides feedstock hydroxide for its beryllium businesses and external sale.The Advances Materials segment produces advanced chemicals, microelectronics packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal pre-forms, high temperature braze materials, and ultra-pure wire.This segment offers its products from its facilities, as well as through direct sales offices and independent sales representatives.


The Precision Optics segment designs and produces precision thin film coatings, optical filters, and assemblies.This segment sells its directly from its facilities, as well as through direct sales offices and independent sales representatives throughout the world.The company was formerly known as Brush Engineered Materials Inc.


and changed its name to Materion Corporation in 2011.Materion Corporation was incorporated in 1931 and is headquartered in Mayfield Heights, Ohio.

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1.b. Last Insights on MTRN

Materion Corporation's recent performance was negatively impacted by a net loss of $48.8 million in Q4 2024, compared to a net income of $19.5 million in the prior year quarter. The company's value-added sales decreased to $296.1 million, down from $312.5 million in the same period last year. Additionally, Materion's adjuvant sales, which are a key metric for the company, reached a record high of $43.1 million in Q4 2024. However, this growth was not enough to offset the decline in other sales categories.

1.c. Company Highlights

2. Materion's Q4 2025 Earnings: A Strong Performance Despite a Quality Event

Materion Corporation reported a 7% year-on-year organic growth in value-added sales (VAS) in Q4 2025, excluding Precision Clad Strip, with VAS reaching $253.9 million. Adjusted EBITDA was $57 million, or 22.5% of VAS, down 7% year over year but up 170 basis points from a margin perspective. The company's actual EPS came out at $1.53, beating estimates of $1.51. The strong performance was driven by the Electronic Materials and Precision Optics businesses, with the former experiencing its strongest sales quarter in nearly three years, driven by a 20% increase in VA.

Publication Date: Mar -07

📋 Highlights
  • Strong Q4 Organic Growth: 7% year-on-year organic sales growth (excluding Precision Clad Strip), driven by 20% increase in Electronic Materials VA and 26% Precision Optics sales growth.
  • EBITDA Margin Improvement: Adjusted EBITDA margin rose 170 bps to 22.5% (Q4 2025), despite $57M EBITDA down 7% YoY, reflecting operational efficiency.
  • 2026 Earnings Outlook: Guidance of $6–$6.50 adj. EPS (15% increase at midpoint) with ~15% earnings growth, backed by 14% YoY semiconductor order growth (excluding China).
  • Defense & Beryllium Momentum: $65M defense-related investment, 10%+ CAGR in beryllium business, and $100M+ defense sales for 2nd consecutive year, expanding into energy & space markets.
  • Working Capital & Debt Position: Net debt of $445M with $224M credit facility capacity, planning to build inventory for 2026 demand, offsetting 2025 quality event impacts.

Segment Performance

The Electronic Materials business delivered a strong performance, with sales growth driven by the semiconductor market. Precision Optics also reported a 26% increase in sales, marking the third consecutive quarter of top-line improvement. The company's beryllium business is expected to grow at a 10% plus CAGR, with over $100 million in defense sales for the second consecutive year.

Outlook and Guidance

Materion expects to deliver approximately 15% earnings growth on a strong top-line sales growth in 2026, driven by new business growth, market momentum, and order rates. The company anticipates continued progress toward its mid-term EBITDA margin target of 23%. Analysts estimate next year's revenue growth at 7.6%, which is in line with the company's guidance.

Valuation

With a P/E Ratio of 39.96 and an EV/EBITDA of 19.37, Materion's valuation suggests that the market is pricing in a strong growth outlook. The company's ROE of 8.14% and ROIC of 6.47% indicate a decent return on equity and invested capital. The Net Debt / EBITDA ratio of 3.18x suggests that the company has a manageable debt burden.

Key Takeaways

The quality event at Precision Clad Strip was a one-off issue, and the company is working to ramp up production in Q1 2026. The Electronic Materials business is expected to continue its strong performance, driven by the semiconductor market. The company's beryllium business is expected to grow at a 10% plus CAGR, driven by defense and other markets.

3. NewsRoom

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Aberdeen Group plc Sells 32,007 Shares of Materion Corporation $MTRN

Apr -06

Source: defenseworld.net

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Materion (MTRN) Moves 6.0% Higher: Will This Strength Last?

Mar -17

Source:

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Materion (NYSE:MTRN) & Wealth Minerals (OTCMKTS:WMLLF) Financial Contrast

Mar -14

Source: defenseworld.net

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Dimensional Fund Advisors LP Trims Stock Holdings in Materion Corporation $MTRN

Mar -12

Source: defenseworld.net

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Materion (NYSE:MTRN) & Lithium Americas (NYSE:LAC) Head-To-Head Analysis

Mar -11

Source: defenseworld.net

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Insider Selling: Materion (NYSE:MTRN) VP Sells $628,360.00 in Stock

Feb -22

Source: defenseworld.net

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Materion (NYSE:MTRN) Director Sells $595,440.00 in Stock

Feb -22

Source: defenseworld.net

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Jugal Vijayvargiya Sells 12,245 Shares of Materion (NYSE:MTRN) Stock

Feb -22

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.84%)

6. Segments

Electronic Materials

Expected Growth: 8.5%

Materion Corporation's Electronic Materials segment growth of 8.5% is driven by increasing demand for advanced semiconductor materials, 5G infrastructure expansion, and rising adoption of electric vehicles and renewable energy systems, which rely on Materion's specialized materials and components.

Performance Materials

Expected Growth: 9.2%

Materion Corporation's Performance Materials segment growth of 9.2% is driven by increasing demand for advanced materials in the semiconductor, LED, and solar industries. Strong sales of beryllium-based products, growth in the 5G infrastructure market, and expanding presence in Asia also contribute to the segment's growth.

Precision Optics

Expected Growth: 8.8%

Materion Corporation's Precision Optics segment growth of 8.8% is driven by increasing demand for advanced optical components in the medical, industrial, and semiconductor markets. Strong sales of precision optical components for 3D sensing, augmented reality, and laser-based applications also contribute to the growth. Additionally, the company's strategic investments in research and development, and its focus on operational efficiency, have enabled it to capitalize on emerging trends and opportunities.

7. Detailed Products

Beryllium and Beryllium Alloys

Materion's beryllium and beryllium alloys are used in a variety of applications, including aerospace, defense, and commercial industries.

Copper and Copper Alloys

Materion's copper and copper alloys are used in a range of applications, including electrical and electronic components, industrial equipment, and consumer products.

Inorganic Chemicals

Materion's inorganic chemicals are used in a variety of applications, including the production of catalysts, fuel cells, and other industrial processes.

Microelectronic Materials

Materion's microelectronic materials are used in the production of semiconductors, flat panel displays, and other electronic components.

Optical Filters

Materion's optical filters are used in a range of applications, including astronomy, biomedical research, and industrial inspection.

Precious Metals

Materion's precious metals are used in a variety of applications, including jewelry, catalytic converters, and other industrial processes.

Specialty Coatings

Materion's specialty coatings are used in a range of applications, including aerospace, defense, and industrial processes.

Technical Materials

Materion's technical materials are used in a variety of applications, including aerospace, defense, and industrial processes.

8. Materion Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Materion Corporation's products are specialized and have few substitutes, but the threat of substitutes is still present due to the evolving nature of the industry.

Bargaining Power Of Customers

Materion Corporation's customers are diverse and have limited bargaining power due to the company's strong market position and product offerings.

Bargaining Power Of Suppliers

Materion Corporation's suppliers have some bargaining power due to the specialized nature of the materials they provide, but the company's strong relationships and diversified supply chain mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the industry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry in the industry is high due to the presence of several established competitors, leading to a competitive landscape that requires Materion Corporation to continually innovate and improve its offerings.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.89%
Debt Cost 8.74%
Equity Weight 67.11%
Equity Cost 9.79%
WACC 9.45%
Leverage 49.01%

11. Quality Control: Materion Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
CF Industries

A-Score: 5.9/10

Value: 6.8

Growth: 5.8

Quality: 7.1

Yield: 5.0

Momentum: 3.5

Volatility: 7.3

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RPM International

A-Score: 5.3/10

Value: 3.8

Growth: 6.3

Quality: 5.8

Yield: 4.0

Momentum: 3.0

Volatility: 9.0

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UFP Industries

A-Score: 5.3/10

Value: 6.2

Growth: 6.4

Quality: 5.8

Yield: 3.0

Momentum: 2.5

Volatility: 7.7

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Eagle Materials

A-Score: 4.5/10

Value: 3.5

Growth: 7.6

Quality: 6.3

Yield: 0.0

Momentum: 2.5

Volatility: 7.0

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Olin

A-Score: 4.1/10

Value: 7.1

Growth: 4.3

Quality: 2.4

Yield: 6.0

Momentum: 1.0

Volatility: 3.7

1-Year Total Return ->

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Materion

A-Score: 3.7/10

Value: 3.9

Growth: 3.2

Quality: 4.1

Yield: 0.0

Momentum: 6.0

Volatility: 5.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

162.09$

Current Price

162.09$

Potential

-0.00%

Expected Cash-Flows